Simplify Your Background Check and Compliance Process
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The document outlines a comprehensive approach to establishing effective background check policies and compliance obligations in the screening industry, emphasizing the complexity of the process and the necessity of a clear policy. It details ten steps for creating a background check policy, including program oversight, compliance with federal and state laws, and evaluation procedures for employment decisions based on consumer reports. Additionally, it highlights the importance of documentation, individualized assessments, and legal requirements pertaining to adverse actions.
Simplify Your Background Check and Compliance Process
- 1. Simplify Your Background Check & Compliance Process +
- 2. ● More than 20 years of experience in the screening industry ● Serving third term on the Board of Directors for the National Association of Professional Background Screeners (NAPBS) ● At EBI, Curt oversees state, federal and global regulatory and compliance initiatives, US Privacy policies, and vendor management Curt Schwall Vice President of Compliance and Regulatory Affairs linkedin.com/in/curt-schwall-ccep-88a82a47
- 3. Disclaimer The information contained within this presentation is for general informational purposes only and does not constitute legal advice. Participants are advised to contact professional legal counsel for legal advice.
- 4. 01. Creating and Maintaining an Effective Background Check Policy 02. The 10 Steps to Creating Your Background Check Policy 03. Understanding Your Compliance Obligations 04. Making an Employment Decision Based on Consumer Reports 05. Q&A Agenda
- 5. 01. Creating and Maintaining an Effective Background Check Policy
- 6. ● Background checks are complicated! ● Policy Benefits: – Program Consistency – Documentation of Compliance Policies and Procedures – Risk Mitigation ● And… Why You Need a Policy
- 8. 02. The 10 Steps to Creating Your Background Check Policy
- 9. Step One 1. Company Statement
- 10. Step Two 1. Company Statement 2. Program Oversight
- 11. Step Three 1. Company Statement 2. Program Oversight 3. Background Check Services
- 12. Step Four 1. Company Statement 2. Program Oversight 3. Background Check Services 4. Background Check Packages
- 13. Step Five 1. Company Statement 2. Program Oversight 3. Background Check Services 4. Background Check Packages 5. Ordering Process and Compliance
- 14. Step Six 1. Company Statement 2. Program Oversight 3. Background Check Services 4. Background Check Packages 5. Ordering Process and Compliance 6. Report Evaluation Process
- 15. Step Seven 1. Company Statement 2. Program Oversight 3. Background Check Services 4. Background Check Packages 5. Ordering Process and Compliance 6. Report Evaluation Process 7. Adverse Action Process
- 16. Step Eight 1. Company Statement 2. Program Oversight 3. Background Check Services 4. Background Check Packages 5. Ordering Process and Compliance 6. Report Evaluation Process 7. Adverse Action Process 8. Document Retention
- 17. Step Nine 1. Company Statement 2. Program Oversight 3. Background Check Services 4. Background Check Packages 5. Ordering Process and Compliance 6. Report Evaluation Process 7. Adverse Action Process 8. Document Retention 9. Privacy Protection
- 18. Step Ten 1. Company Statement 2. Program Oversight 3. Background Check Services 4. Background Check Packages 5. Ordering Process and Compliance 6. Report Evaluation Process 7. Adverse Action Process 8. Document Retention 9. Privacy Protection 10. Policy Review and Approval
- 19. 03. Understanding Your Compliance Obligations
- 20. Laws ● Federal Law – Fair Credit Reporting Act – Fair and Accurate Transaction Act ● State Law and Local Laws – Ban the box – Adverse Action Requirements – Disclosure Laws
- 21. Compliance Obligations – Disclosure and Authorization ● Disclosure Form – FCRA: The disclosure must consist solely of the disclosure – Ninth Circuit Court Ruling: Gilberg v Cal. Check Cashing Store, LLC ● Authorization Form ● State Disclosures – California – Washington – New York (Article 23-A) ● Federal Summary of Rights
- 22. Compliance Obligations – Adverse Action Process ● PRIOR to a Final Decision – Do not indicate a final adverse decision has been made until the end of the process ● Pre-Adverse Process – Notice – Copy of the consumer report – Copy of a summary of your rights under the fair credit reporting act – Determine appropriate waiting period ● Halt process for a dispute ● Adverse action notice
- 23. Adverse Action Process – New State and Local Requirements ● Reason for denial ● Required language in notices – Pre-Adverse Action Notice – Adverse Action Notice ● Individual Assessment Forms ● Required time frames between notices ● State notices ● Inclusion of your background check policy
- 24. Adverse Action Process – Reason for Denial Jurisdictions ● Prospective employers must include a potential reason for denial in the following jurisdictions: – New York City, NY – Prince George’s County and Montgomery County, MD – Philadelphia, PA – Austin, TX – Seattle, WA – Portland, OR – Both, California and Massachusetts (for statewide criminal record checks obtained through DJIS/CORI)
- 25. Adverse Action Process – Special Notice Requirements ● Pre-Adverse Action Notes – State of Massachusetts (DCJIS/CORI) – State of California i. City of Los Angeles (additional) ii. City of San Francisco (additional) – New York City ● FINAL Adverse Action Notices – State of California
- 26. 04. Making an Employment Decision Based on a Consumer Report
- 27. Evaluation Basics ● Identify report evaluator(s) ● Individualized Assessment – Do NOT have automatic disqualifiers ● Scoring Matrices / Models – Pass / Review
- 28. Good News!
- 29. EEOC Factors: Things to Know ● The facts and circumstances surrounding the offense ● The number of offenses for which the individual was convicted ● The age of the individual at the time of conviction or release from prison ● Evidence that the individual has performed the same type of work post-conviction – With the same or different employer – Without incidents of criminal conduct ● The length and consistency of employment history before and after the offense ● Any efforts of the candidate towards rehabilitation ● Employment or character references ● Whether the individual will be bonded for the position
- 30. Memorialize Your Decision ● Always, always, always… Document Your Decision ● Document decision and reasoning – “Candidate has a prior history of violence and may present a safety risk to employees and the public.” – “Candidate applied for a position of trust and has demonstrated previous acts of dishonesty.” – “Candidate does not have a bachelor’s degree as indicated on job application.”
- 31. To receive a sample Background Screening Policy Contact us cschwall@ebiinc.com Visit us www.ebiinc.com Interested in a 30 Minute Compliance Review?
- 32. Newton is an intuitive applicant tracking system designed by recruiters Learn more about how having an ATS can help give you a competitive advantage in hiring the best candidates faster. Contact us sales@newtonsoftware.com Visit us www.newtonsoftware.com/demo-request