Every hiring manager knows: when filling an open position… Speed is essential. But with hiring practices and drug testing, there are regulations galore. One misstep can land a company in a pit of legal trouble.
The key to helping keep your company protected boils down to something simple: it is an absolute must to stay up on compliance trends.
Knowledge is Key: Recorded Session Now Available
In June, OHUG Ascend 2022 featured an educational session, “Be Prepared: Key Hiring Compliance and Legal Challenges.” Delivered by Kelly Uebel, General Counsel at Asurint and Chair of the Professional Background Screening Association, this presentation looks at:
- Legislation to watch at all levels of government
- Key lessons of recent litigation
- New developments in marijuana legalization and potential impact to workplace drug testing policies.
“Be Prepared” is now available as a free resource for all OHUG members. View the full presentation here.
(Disclaimer: the information delivered in this video is intended only as a source of education. It does not constitute legal advice. Use this as an educational resource for discussions with your own legal counsel.)
Litigation on the Rise: Background Screening Forms and Processes
When it comes to employment background screening, employers must follow clear protocols spelled out by the Fair Credit Reporting Act (FCRA)—a federal law, regulating how a candidate’s information is handled during the screening process when using a third-party vendor.
For employers, two of the biggest obligations, Kelly says, “are to provide a clear and conspicuous disclosure form to the candidate in a document that consists solely of the disclosure and obtain written authorization before you conduct a background check on them. And then the second is adverse action.”
Adverse action, she explains, is a two-step process employers must follow when a background screen raises an issue that may negatively impact any employment-related decisions. Step one, referred to as pre-adverse action, involves notifying the candidate of the employer’s potential decision, providing the candidate a copy of the consumer report and “A Summary of Your Rights Under the Fair Credit Reporting Act”. The employer must then wait a specified period of time before making a final decision. Step two requires employers to notify the candidate of the finalized decision. Employers should be cautious of any applicable local and state laws that may impact this process as well.
If the processes outlined by the FCRA are not followed, employers become vulnerable to litigation.
For example, Kelly discusses how one nationwide retailer found itself mired in litigation because the company’s disclosure form—given to candidates for two years—erroneously included sample disclaimer language. This simple mistake opened the door for a plaintiff’s counsel to argue FCRA was willfully violated, and a large class of people harmed.
What could the employer done to avoid this? Watch “Be Prepared” with your team to find out.
About Asurint:
Asurint is innovating the background screening industry. Its powerful, customizable technology—backed by subject matter experts and personalized assistance—helps employers hire the right candidates every time, and faster than ever before. Asurint is an Oracle Gold Partner. Learn more.