On December 6th, Rite Aid filed a motion to dismiss a proposed FCRA class-action in the U.S. District Court for the Eastern District of Pennsylvania.
According to the complaint, Rite Aid violated the FCRA by allegedly failing to allow job applicants to challenge inaccurate or misleading reports after they were rejected for employment. The Defendant claims that the case should be dismissed because the Plaintiff, Kyra Moore, already settled claims with the background screening company.
Prior to applying for a job at Rite Aid, Moore was employed by CVS from 2006 to 2010. She signed a statement and was dismissed from her employment with CVS when a loss prevention officer confronted Moore about missing store stock.
In 2011, Moore applied for a store supervisor position at Rite Aid, which subjected her to a background screening by Lexus Nexus. Moore contends she was disqualified from employment at Rite Aid in April 2011 because of her signed statement regarding the alleged theft at CVS. However, according to Moore, a copy of that statement was not provided to her along with Rite Aid’s adverse action notice.
Rite Aid argues that in her complaint, Moore alleges that the background screening company acted as Rite Aid’s “agent” for purposes of the FCRA. Since Moore settled claims with the background screening company, any claims arising from the acts of Rite Aid’s agent, releases the company from alleged FCRA violations.
Rite Aid says Moore is now trying to “milk her claims for maximum personal benefit,” pointing to the fact that in 2013 Moore already filed two class actions and an EEOC proceeding.
Moore v. Rite Aid Hdqtrs Corp. et al., case number 2:13-cv-01515, in the U.S. District Court for the Eastern District of Pennsylvania.
All indications are that the new President’s key initiatives will include sweeping changes in immigration. According to immigration law, employers have certain responsibilities during the hiring and background screening processes. Federal law requires that every employer who “recruits, refers for a fee, or hires an individual for employment in the U.S. must complete Form I-9 Employment Eligibility Verification,” according to the Department of Homeland Security (DHS).
It’s time to review your I-9 program and ensure it is compliant. Here’s why.
- Monetary penalties for knowingly hiring and employing undocumented workers can be up to $16,000 per violation.
- Penalties for technical violations, including failing to produce a Form I-9, can be up to $1,100 per violation.
- Criminal penalties can be up to 6 months in prison for engaging in a pattern or practice of hiring, recruiting or referring for a fee unauthorized aliens.
Immigration and Customs Enforcement’s (ICE) audits are serious. In 2015, Hartmann Studios was hit with the largest fine ever ordered – $605,250 – for more than 800 I-9 paperwork violations. Most of the violations were due to repeated failure to sign section 2 of the I-9 form. Employers need to have an audit proof process to ensure forms are properly completed and retained.
As part of our Onboarding Solution, CARCO can facilitate an electronic Form I-9 process (using e-signature technology) AND complete the E-Verify process through an interface with the DHS. The results of this process are available to clients within seconds. The employee’s I-9, along with the supporting documents, are then stored in compliance with ICE requirements.
In addition to the mechanics of providing the documents, CARCO’s I-9 solution allows its clients to achieve a far higher level of compliance than would otherwise be possible by having e-mail reminders, reporting, and e-mail escalation notices if these tasks are not complete.
Now is a good time to review your I-9 process with a CARCO Specialist to ensure compliance. Contact us a 1-866-557-5984 or click here to receive more information.
Don’t forget that the new Form I-9 must be used starting January 21, 2017.
25.3% of employee theft includes amounts stolen of $1M and up.
75% of employees have stolen from their employers at least once.
33% of all business bankruptcies are caused by employee theft.
2 years is the average time office fraud lasts before being detected.
(Source: Static Brain Survey)
Do these numbers shock you? They should!
KNOW WHO YOU ARE HIRING!
At CARCO, our screening accuracy rate is the highest in the industry at 99.996%.
Contact CARCO at 1-866-557-5984 or click here to speak with a CARCO Specialist.
According to an article in The Gainesville Sun, a background screening company twice misidentified Richard Williams of Chiefland as Ricky Williams, a Delray Beach man convicted of aggravated battery on a pregnant woman in Broward County and arrested on charges of selling cocaine in Palm Beach County. The two men have the same birth date.
After receiving the report from the first company, Williams followed the proper procedure and filed a dispute. When he applied for a different job, this time at Winn-Dixie, the same background screening company processed his background check and made the same mistake!
To receive punitive damages, Williams’ attorney had to prove that the background screening company’s mistakes were done willfully. The attorney had to essentially prove that the company did not follow its own procedures for people with common names or set up an effective procedure for someone already misidentified once in its system. The attorney was able to prove that the process did not make use of available reports that show Social Security numbers or address histories. Publicly available records from the Department of Corrections showed that Ricky Williams was in jail in Broward County when Richard Williams applied for the job at Winn-Dixie.
The above issue is a prime example of why employers should fully vet the consumer reporting agency that provides background screening services for their company. Some of the largest companies are constantly embroiled in class action lawsuits for FCRA violations. A simple Google search shows pages and pages of disputes. The background screening company in this article alone has been involved in over 17,300 disputes from 2009 – 2013.
It is important to know that not all background screening companies have the same processes. It is especially important to work with a company that uses only official sources of data and confirms all information from online databases with the courts.
Here’s how to do background checks right:
- Never rely on 3rd party databases to complete criminal record checks.
- Never report the raw results of an inadequate database search.
- Take the extra steps that protect clients and their candidates by verifying through secondary documentation or sources all potentially adverse information contained in a background report. (At CARCO, we re-verify adverse information up to five times prior to dissemination.)
For more information on how to ensure your background screening program is done right, contact a CARCO Specialist at 1-866-557-5984 or click here.
To read The Gainesville Sun’s article in full, click here.
As the New Year approaches, it’s time to review your HR technology and background screening partnerships, define what you are seeking in those partnerships in 2017, and prepare a detailed Request For Proposal (RFP).
At CARCO, we know that preparing a Request For Proposal (RFP) can be a daunting task. CARCO CAN HELP!! We have the knowledge and experience to know what vendors need to know about your background screening process in order to bid accurately. We’ve been there thousands of times! Good bids lead to good working relationships.
Let us help you create a well composed RFP.
We have consulted with many of the Fortune 1000 companies in creating robust background screening RFPs by helping them:
- Take the lead role in the RFP process (don’t allow non-HR units to run the entire RFP process)
- Know industry trends
- Audit their current processes
- Understand new legislation
- Create decision-making stakeholder committees
- Address differentiators between vendors
- Understand how background checks are performed
- Keep their RFP in compliance with the FCRA
- Ensure that QUALITY IS KEY in selecting a background screening vendor
Interested in learning more about how CARCO can help you create a meaningful, well-prepared background screening RFP? Let us show you how!
Contact a CARCO Specialist at 1-866-557-5984 or click here for more information.
On October 21st, a proposed class action was filed against Robert Half International, Inc., a staffing agency, for allegedly violating the FCRA.
The Plaintiff alleges that he was denied employment based on a background report containing inaccurate information, including a felony robbery conviction, and that he never had a chance to dispute the information in the report.
According to the complaint, “As a result of [Robert Half]’s actions, Plaintiff and the members of the class have been deprived of their consumer rights and have been prevented from timely and effectively contesting the adverse action.”
The proposed class includes anyone who was subject to an adverse action over the past five years based on consumer reports procured by Robert Half and who were not given the opportunity to dispute the reports’ findings in advance. The lawsuit seeks damages between $100 and $1,000 per violation per class member.
We keep seeing the same type of class action lawsuit over and over again. Keep your company out of harm’s way by making sure your hiring process is completely compliant. CARCO can help!
Click here for more information or call 1-866-557-5984 to speak to a CARCO Specialist.
Black v. Robert Half International, Inc., case number 3:16-cv-06077, in the U.S. District Court for the Northern District of California.
The Department of Justice and the Federal Trade Commission recently published a Guide to alert HR professionals and others involved in hiring and compensation decisions to potential violations of the antitrust laws.
This is a must read for all HR professionals as the DOJ has sued several companies for violations. The guidance discusses in detail:
- Antitrust laws establish the rules of a competitive employment marketplace
- Agreements among employers not to recruit certain employees or not to compete on terms of compensation are illegal.
- Avoid sharing sensitive information with competitors
The Antitrust Guidance also contains a Questions and Answers section. Below is a sample of what this section covers.
Question: I work as an HR professional in an industry where we spend a lot of money to recruit and train new employees. At a trade show, I mentioned how frustrated I get when a recent hire jumps ship to work at a competitor. A colleague at a competing firm suggested that we deal with this problem by agreeing not to recruit or hire each other’s employees. She mentioned that her company had entered into these kinds of agreements in the past, and they seemed to work. What should I do?
Answer: What that colleague is suggesting is a no-poaching agreement. That suggestion amounts to a solicitation to engage in serious criminal conduct. You should refuse her suggestion and consider contacting the Antitrust Division’s Citizen Complaint Center or the Federal Trade Commission’s Bureau of Competition to report the behavior of your colleague’s company. If you agree not to recruit or hire each other’s employees, you would likely be exposing yourself and your employer to substantial criminal and civil liability.
Click here to read the Antitrust Guidance.
It has always been CARCO’s mantra that Compliance is KEY in every aspect of your hiring process.
To learn how CARCO keeps your hiring process compliant in every way, click here or speak to a CARCO Specialist at 1-866-557-5984.
Are you looking for an Onboarding Experience that is Candidate-Centric?
CARCO can help!
We are all about making the onboarding and background screening process of your new hires as easy and efficient as possible via our industry-leading technology.
New hire productivity is critically important for every organization. Too often new hires begin their experience burdened with cumbersome paperwork!
Let CARCO take the onerous, paper-based new hire process out of your hands and make it completely automated and compliant. CARCO’s Onboarding Solution will streamline your process, reduce time-to-fill and provide your applicants an efficient and positive onboarding experience with your company before they even start!
To view a demo of CARCO’s Onboarding Solution, click here.
To learn more about the CARCO’s industry-leading HR Technology, click here or speak to a CARCO Specialist at 1-866-557-5984.
The Federal Trade Commission (FTC) recently released information on what landlords and their tenant background screening companies need to know to ensure compliance with the Fair Credit Reporting Act (FCRA).
Tenant background checks can include a variety of information, including rental and eviction history, credit, or criminal records. These reports are also known as consumer reports. It is important to know the steps that must be taken before obtaining a consumer report and after adverse action is taken based on that report in order to be FCRA compliant.
Some of the tips provided are:
- Follow reasonable procedures to assure accuracy
- Get certifications from your clients
- Provide your clients with information about the FCRA
- Honor the rights of applicants and tenants
Interested in learning more? Below are the links from the FTC to review for detailed information.
What Tenant Background Screening Companies Need to Know About the Fair Credit Reporting Act
Using Consumer Reports: What Landlords Need to Know
To learn more about how CARCO ensures complete compliance with the FCRA, click here or call 1-866-557-5984 to speak with a CARCO Specialist.
Preparing an RFP can be a daunting task. One of the most important issues is to do as much research and preparation up front in order to avoid mistakes that will hold up the process in the end.
Do your research– Do your research to ensure you are up to date on new processes and procedures in the background screening arena. Visit sites such as www.hr.com to read about industry trends and www.nabps.com to understand the background screening industry.
Update your program– Now is the time to run an audit of your current processes and procedures. Know the types of background components you currently perform and those components that you would like to perform on each role in your organization. It is important to understand any new legislation that has passed and find out which background screening providers have been mired in litigation because of cutting corners. Quality is key when it comes to background screening.
Take a lead role in the RFP process– Don’t allow non-HR units run the entire RFP process. Knowing the level of quality you need and the cost associated with that quality is important when selecting a background screening provider. Remember, quality is key when it comes to background screening. Too many companies run the RFP process as a method to reduce cost when ignoring HOW background checks are performed is more important than the cost of the service. There are entities such as the FCRA and the EEOC that audit the background screening programs of companies to ensure compliant processes are in place. With this in mind, you should do business with a background screening partner that is NAPBS accredited and focuses on quality and compliance.
Create a stakeholder committee– Make sure the decision-making committee is made up of stakeholders from multiple areas of the company. Human Resource and Talent Acquisition leaders are a must but you should include hiring managers from different business units to ensure all needs are being addressed.
Ask for differentiators– Most background screening providers think they do something differently than their competitors. Ask what that differentiator is and make sure it aligns with your philosophy.
Review a sample RFP template– Why re-create the wheel? There are sources that provide templates for RFPs (we’ve attached one for you from www.napbs.com) and this is a great way to build the framework of your RFP.
Remember as you go through the RFP process that it is imperative to work with a quality background screening partner in order to keep your company out of harm’s way. Contact CARCO Group to see how we can help you improve your talent acquisition process (through our HR technology) and reduce risk. 1-866-557-5984 or click here.