INSIDE BACKGROUND SCREENING
Liability Waivers and FCRA Disclosure Violations
In the first half of 2014 alone, at least six large employers and one consumer reporting agency had found themselves to be the subject of class action Fair Credit
Reporting Act (FCRA) lawsuits. Additionally, in July of this year, a single Florida law firm filed three additional federal FCRA class actions on the same day against three more employers. What is the common thread in these cases? All include allegations that the defendants violated section 1681b(b)(2) of the FCRA because the disclosure and authorization forms they provided did not consist ―solely of the disclosure that a consumer report may be obtained for employment purposes.‖
This specific type of FCRA violation is a relatively new approach, most likely stemming from the ―success‖ of a similar case in 2013, Singleton v. Domino‟s Pizza, LLC, (US District Court of Maryland, 8:11-cv-01823- DKC). In Singleton, based on the argument that inclusion of a liability release in the disclosure and authorization form process violates the FCRA, Domino‘s Pizza reached a settlement with the plaintiffs in the amount of $2.5 million dollars.
What is particularly unique about this new ―litigation trend‖ is it attempts to include all applicants that signed the disclosure and authorization during the allowable period under the FCRA (statute of limitations can be 2 or 5 years based on certain circumstances). Prior to Singleton, most FCRA cases typically focused on individuals or applicants that were wrongfully eliminated or eliminated without due process in one form or another. With this new type of allegation, even individuals that consented to the background screening and were hired as a result of the process are still eligible members of the class action suit.
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2014-15 BACKGROUND SCREENING INDUSTRY BUYERS GUIDE
A Best Practice Guide for Selecting a Background Screening Partner
The crucial task of selecting a trustworthy background screening partner can be a difficult one, and, options continue to grow as the industry expands and technology
evolves. Your background screening partner is a key component of your talent screening and selection process, so finding the right partner with the right fit for your screening program is paramount. That partner should support your hiring process by delivering timely, accurate, and compliant information of the highest quality while delivering industry leading customer service.
This guide was created as a best practice resource to cover essential areas for partner consideration and selection. The key areas addressed within this guide pertain to businesses of all sizes. Whether you are hiring for a local storefront or a multi-national corporation, there are ten critical factors that need to be considered to ensure a seamless and successful partnership for you and your screening partner.
1. Expertise and Length of Experience 2. Industry Involvement and Credentials 3. Service Capabilities and Your Customized Needs
4. Technology that Supports Business Optimization and Your Onboarding Process
5. Client Onboarding, Training, and Program Reviews
6. Approach and Structure to Client Management and Customer Service
7. Quality Management and Customer Satisfaction 8. Data Privacy, Security and Business Continuity 9. Responsible Use of Database Information 10. Compliance Resources and Support
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HireRight‟s Benchmark Report for Higher Education; Reveals Risks, Screening Trends and Practices
A new survey from HireRight focused on employment screening in higher education found that 77 % of higher education industry respondents reported screening had exposed a person who lied on a resume. The survey further found that 63 percent of respondents reported that screening uncovered issues that would not have been found otherwise.
HireRight surveyed human resources, recruiting and talent management professionals from a wide range of academic institutions, and the results revealed important trends and common practices in employment screening.
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