If you are using AI information in making employment decisions your activity could fall under the Fair Credit Reporting Act (FCRA) and therefore require compliance with the FCRA.

 

The state of California can be a challenge for employers who want to conduct background checks for employment purposes. The state has restrictions on using credit checks for employment decisions which have very restrictive exceptions.

The legalization of marijuana use, either for medical, recreational, or both, has led to an increase in positive marijuana tests as reported by Quest Diagnostics. In 2019 the percentage of positive tests was 3.1%. In 2023 the number rose to 4.5%. However, the number of positive tests is not the only thing that has gone up. The number of workers cheating on their drug tests has also risen.

Summer is almost here, and orange barrel mating season is well underway. The nice weather also brings more motorcycles, cars pulling boats, and large recreational vehicles on the roads. In other words, there are a lot more hazards on the roads.

The U.S. Department of Justice has issued a notice of proposed rulemaking that would reclassify marijuana from a Schedule I narcotic down to a Schedule III drug. Schedule I controlled substances are in the “mean street neighborhood” including heroin, LSD, and other drugs with “no currently acceptable medical use or treatment.” Schedule III drugs, on the other hand, where it is proposed marijuana be moved to is in a “friendlier neighborhood” of classified...

Spring has sprung and hopefully all the April showers will bring May flowers. This is a good time for companies to “spring clean” their documents, processes, and procedures, particularly those that are part of background checks.

In this day and age it is hard to believe, but there are still so many employers who either don’t run employment background checks on applicants/employees, or they use free online systems without considering the pitfalls of relying on these free sites.

California is once again making changes to how employers can use information obtained in criminal background checks. Last month, changes that had been proposed by the California Civil Rights Council were approved by the California Civil Rights Council and the Office of Administrative Law.

Change is a constant, and that is certainly true in background screening laws. Some changes seem like common sense and are easy to apply, such as having a clear and concise disclosure form. Making sure that anyone giving permission for an employment background check understands what they are agreeing to is basic fairness, and unless an employer has some nefarious intent in mind for a background check, this should be an easy compliance item.

Anyone running an employment background check through a third party, such as a background screening company such as ASE and/or automated verification systems is considered a user of consumer reports and therefore must follow the requirements of the FCRA.

Ban-the-box might seem like old news, but these laws are constantly being added and/or updated. It is important for employers to keep up with the laws in all areas in which their employees work. The city of Chicago recently expanded its requirements on how employers may use criminal records in hiring decisions. 

Ban-the-box seems like old news by now as so many states, cities, and counties have enacted some sort of ban-the-box legislation. Most ban-the-box laws address asking about criminal history on job applications. However, some locations are taking it further with Fair Chance Hiring legislation. The Fair Chance Hiring laws address not only when, but how an employer can use criminal history in employment decisions and what obligations they have in making those decisions.

California is once again looking at making changes to how employers can use information from background checks in employment decisions. The California Civil Rights Department’s Civil Right Council released their most recent draft of changes to their Fair Employment and Housing Ace (FEHA) this past December. This update addresses proposed changes to the use of criminal history for employment decisions.

More and more employers are considering applicants from other countries to fill vacant positions. While international checks take a longer time to complete, employers can help themselves get through the process more efficiently by providing required information up front.

If you use a consumer reporting agency or third-party vendor such as ASE to conduct a background check on an employee or applicant, you must comply with the Fair Credit Reporting Act (FCRA) by first providing the employee or applicant with a written consumer report disclosure. Employers that fail to do this or do it incorrectly expose themselves to significant liability.

When we think of identity theft, our minds typically go to the culprits opening up credit card accounts or getting loans using another person's information. Identity theft has gone up over the last five years, and according to the Federal Trade Commission (FTC), the number of reported identity theft cases in 2021 increased more than 70% over 2020.

More than 90% of employers use some form of a background screening on applicants or employees when making employment decisions. There can be several reasons for using them: ensuring safety in the workplace; reducing exposure to liability and legal costs; verifying information provided by applicants and employees; and ensuring position fit. However, while these value-adds may make a strong case for conducting employment background screenings, the legal landscape of this area is constantly...

Most people who use background checks for employment purposes are at least familiar with the Fair Credit Reporting Act, or FCRA. But did you know that the Consumer Financial Protection Bureau (CFPB) has some control over what records a background screening company, commonly referred to as a consumer reporting agency (CRA), can provide to you as an end-user of background screening reports?

Spring has sprung, at least by the calendar, which means it is time to hire summer help. Help could come in the form of interns, co-ops, work study programs, or perhaps even just helping a young person with an employment opportunity. What does this mean for employers?

If you run background checks which include employment verifications, you are most likely aware that most employers these days use automated systems for employment verifications. One of the biggest of these systems is The Work Number, which is owned by Equifax.

Last year seemed to fly by, but there was plenty of time for lawmakers to make updates to existing laws regarding background checks.

Earlier in the year ASE shared information on the pending law that would redact dates of birth from court records. The law, that was to take effect July 1, 2021, was postponed until January 1, 2022. This change would have made it difficult, if not impossible, to conduct criminal record checks in the State of Michigan.

As more and more states make the use of cannabis being legal, for medical or recreational use, employers have been challenged with making policies that will best protect the company while still allowing them to fill positions.

ASE is a member of the Professional Background Screening Association (PBSA). Recently, the PBSA, along with the HR Research Institute, completed a research report, “Background Screening: Trends in the U.S. and abroad 2021.”  Of the responding employers with locations in the U.S., 95% stated that their company does some type of background screening, and 77% of those companies have a documented screening policy.

 

Back in June we were gearing up for the new identifier redaction policy that was to go into effect in Michigan on July 1^st. This policy would have caused dates of birth to be redacted from court records before those records could be provided to the public. It would also have prohibited court clerks from using date of birth in searches and from verbally verifying dates of birth.