4/20/16. Legal Disclaimer. Learning Objectives. Considering Background Screening? Discover Best Prac6ces and Revenue Opportuni6es

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1 Considering Background Screening? Discover Best Prac6ces and Revenue Opportuni6es The presenta1on will begin shortly. While you are wai1ng, please subscribe to our Ac1onable Insight NewsleAers at haps://peopletrail.com/compliance- resources/ac1onable- insight- newsleaer/ Legal Disclaimer This presenta1on is designed solely for informa1onal purposes, and should not be inferred or understood as legal advice. Persons in need of legal assistance should seek the advice of competent legal counsel. Check with an employment law aaorney in your state before approving and applying any of the sugges1ons or interview/ applica1on ques1ons in this presenta1on. An employer should engage in a careful analysis to determine they will not violate a federal law, state law or Title VII of the 1964 Civil Rights Act. Learning Objectives Title: Considering Background Screening? Discover Best Prac1ces and Revenue Opportuni1es. Time: 1 hour Format: Presenta1on Learning Objec6ves: 1. Explore revenue opportuni1es for adding Background screening products, 2. Background Screening Safe Hiring Prac1ces & Iden1fy State/Federal Laws, 3. Supplier End User du1es/responsibili1es under the Fair Credit Repor1ng Act, (FCRA), 4. Benefits of White Label Partnerships to provide back end screening and compliance support 1

2 Speaker Background Wallace T. Davis President & CEO of Peopletrail Experience incorporates a broad range of consul1ng, and 20+ years of diverse hands- on inves1ga1ve and entrepreneurial experience WriAen, been published, and lectured extensively on industry standards, opera1ng procedures, and inves1ga1ve best prac1ces MBA Goldman Sachs 10,000 Small Businesses Program Alumni Background Screening & Drug Testing go hand in hand Consolidation of resources in one of the top requests of hiring and HR Professionals Combining DT& BK is a great way to accomplish this goal As with DT, Regulatory Environment Usually same contact/area of expertise Caution: Learning curve to background screening Opportunities for Drug Screening Company s 2

3 Why Screen? Why Screen? Why Screen? An es1mated 8% of rapes, 7% of robberies, and 16% of all assaults occurred while vic1ms were working or on duty* Rape 25% Robbery 20% Aggravated assault 15% Simple assault Personal theb 10% Motor vehicle theb 5% % *Bureau of Jus1ce Sta1s1cs hap:// 3

4 Annual Workplace Crimes Nearly 1 million people are vic1mized by a violent crime while at work resul1ng in almost 160,000 injuries each year* Type of Crime Vic6miza6ons Injuries Violent Crimes 971, ,094 Rape 13,068 3,438 Robbery 79,109 17,904 Aggravated Assault 264,174 48,180 Simple Assault 615,160 89,572 In today's li1gious culture, you simply cannot afford to hire employees who will put your company at risk. Employers can and are being held legally responsible for the wrongful acts of employees, as courts have established that it s an employer s duty to conduct a thorough background screening of all poten1al employees. *Bureau of Jus1ce Sta1s1cs hap:// Why Screen? 4

5 More states adop1ng Ban the Box Employment laws becoming more fragmented Increase in no- harm FCRA lawsuits 5

6 Companies seeking Consumer Repor1ng Agency s (CRA s) with quality controls that support compliance Companies becoming more concerned about the candidate experience and seeking integrated solu1ons Laws Impacting Background Screening Consumer Protec6on/Privacy Laws Fair Credit Repor1ng Act (FCRA) Financial Moderniza1on Act of 1999 or Gramm- Leach- Bailey Act(GLAB) Family Educa1onal Rights and Privacy Act (FERPA) Fair Housing Act State Regula6ons (supersede EEOC restric6ons) State- Specific Consumer Reports Rules State- Specific Credit Reports Rules State- Specific Criminal Records Rules State- Specific Driving Records Rules State- Specific Educa1on/ Employment history Rules 4/20/16 6

7 Laws Impacting Background Screening Employment Laws Americans With Disabili1es Act (ADA) Equal Employment Opportunity Act (Title VII Civil Rights Act of 1968) Other Laws Driving Record Regula1ons The Driver s Privacy Protec1on Act (DPPA) Iden1ty Regula1ons USA Patriot ACT I- 9 Form Regula1ons Drug Screening Regula1ons DOT Rule 49 CFR Part 40 4/20/16 EEOC Cases Percentage of EEOC Claims Alleging Retalia1on Reaches Record High 42.8% 35% 29.3% 28.6% Percent of Charges Filed 23.2% 11% 3.1% 1.1% Retalia1on under all statutes Race Sex Disability Age Na1onal Orgin Color Equal Pay Act 4/20/16 *EEOC Sta1s1cs hap://www1.eeoc.gov/eeoc/newsroom/release/ cfm Best Practice Standards Comply with the EEOC Guidance and limit liability under Title VII of the Civil Rights Act, and state and local an1- discrimina1on laws Comply with the Fair Credit Repor1ng Act (FCRA) Minimize the risk of liability from hiring an unfit employee The EEOC wants employers to remember that millions of workers with prior convic1ons have turned their lives around and become produc1ve members of society. 7

8 DETERMINE WHERE & HOW TO SEARCH FOR CRIMINAL RECORDS Not an exact science Missed records, false posi1ves Process subject to human error Myths about background screening One place to go for all criminal records or Na1onal 50 State Database FIND YOUR COST VS. TOLERANCE LEVEL What is your reason for screening? Exercising Due Diligence decreases chance of being found negligent Only performing minimum screen because of cost restraints Performing comprehensive search eliminates problems SCREENING GOLD STANDARDS Retrieve records by hand from County Court House 7- Year County Search Search Scope Where applicant has lived, worked, and gone to school Possible touch Coun1es Na1onal Database search 8

9 OTHER CONSIDERATIONS Falsified previous addresses & employers Average person has lived in 2.5 coun1es in past 7 years Matching records using alternate iden1fiers Very few jurisdic1ons use SS # s as iden1fiers DOB, Address, Middle names False posi1ves are possible Only fingerprint confirma1on is exac1ng, but expensive EFFECTIVE NON- FCRA SUPPORT TOOLS Social Security Search or Person Search MVR validate correct DOB OIG/GSA Excluded Par1es Search Health & Human Services database Medicaid- Medicare sanc1ons Na1onal Database Search Na1onal Sex & Violent Offender database Foreign Na1onals Database (OFAC Terrorist Watch list) Na1onal Security Database FBI, U.S. Marshalls, Secret Service, Most Wanted, DEA fugi1ves, Interpol, Interna1onal Banking Sanc1ons lists, etc. Who Does the FCRA Apply to? Consumer Reporting Agency (CRA) Private Investigator Credit Approval Agency Background Screening Company Any other company that collects personal or consumer information and compiles it for sale Data Furnishers -Banking institutions -Landlords End-Users, or Employers Resellers of Background Reports to End-users Consumers 9

10 Employer FCRA Responsibility: To Ensure Consumer Report Process is Fair, Accurate, And Well Communicated User Certification [ 604(b)] Adverse Action Preliminary Notice Copy of Consumer Report/Investigative Consumer Report A Summary of Your Rights Under the Fair Credit Reporting Act Opportunity for Dispute Final Notice FCRA Summary CRA Authenticate User User Certification Report Up-To-Date Information Adhere to Reporting Limitations Follow All Applicable law User of Consumer Reports Permissible Purpose Disclosure Authorization Adverse Action Follow All Applicable Law Where do I go from here? Do it from Scratch by Myself Significant Investment Technology Platform Hire In house Staff Connect with suppliers 3,700 Court Jurisdictions Contract with Researchers Credit Bureau Connect with State/Federal/Local governments Data Suppliers On, and ON and On Compliance Resources Accreditation Laws Regulations Process/Procedures On and On and On White Label / Partner with Existing CRA Perform minimal customer vetting Ensure authorization / Release (FCRA) Small investment Branded use of platform Suppliers already in place Compliance in place Ongoing support 10

11 Interview well Questions? 11