ESA Best Practices

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  • Why is a social security trace and confirmation vital? A social security trace has two very important purposes. First, it validates that the social security number is issued to your Applicant. This is done directly through the Social Security Administration. Second, it identifies prior addresses of your Applicant. Although your application may request prior residency, Applicants may attempt to hide a criminal history by omitting this information. The trace identifies prior addresses which directs us to the counties to search. Can we get a 'statewide' or 'national' criminal check? This is the greatest area of confusion. First, no true Nationwide check exists. The courthouses at the county level retain the only comprehensive information, so looking at all counties of residence will accomplish this task appropriately. Second, very few states have a true Statewide check. A true check entails consolidating all county information daily. Only a handful of states actually do this. Most states make database searches available, however they typically consist of prison records and/or sexual offenders. These are typically by name match only and we recommend them only as a backstop to the county level searches.
  • ESA Best Practices

    1. 2. Pre-Employment Criminal Background Checks and Drug Testing www.emplscreen.com ESA
    2. 3. Did you know? ESA According to Monster.com the top 5 lies told by job candidates are: 1. Exaggerating dates of past employment 2. Falsifying the degree or credentials earned 3. Inflating salary history or title held 4. Concealing a criminal record 5. Hiding a drug habit
    3. 4. The Need for Background Checks <ul><li>Improve Hiring Practices </li></ul><ul><li>Mitigate Liability Risk </li></ul><ul><li>Decrease Turnover and Improve Productivity </li></ul><ul><li>Maximize Employee Recruitment Investment </li></ul><ul><li>Better Loss Prevention </li></ul><ul><li>Decrease Workplace Violence </li></ul>ESA
    4. 5. Do you really know who your hiring? <ul><li>Food For Thought? </li></ul><ul><li>About 10% of all job applicants have a criminal record, including felonies and misdemeanors (averaged out across all industries) </li></ul><ul><li>34% of all applications contain intentionally false information or relevant omissions </li></ul><ul><li>Internal theft is 1.5x greater than external theft (costing U.S. companies $50 billion annually) </li></ul>ESA
    5. 6. <ul><li>… . and further </li></ul><ul><li>Approximately 20% of the U.S. workforce regularly uses illicit drugs (marijuana, cocaine, etc.). Another 5% abuses prescription medications (but this number has increased steadily in recent years). </li></ul><ul><li>A typical full-time new hire costs a minimum of between $10-$30k in up-front training and lost production time during the first year </li></ul><ul><li>About 30% of business failures are due to negligent hiring practices [U.S. Dept of Labor] </li></ul><ul><li>Plaintiffs suing for negligent hiring or dismissals win 60% of cases </li></ul><ul><ul><ul><ul><ul><li>(Statistics from the Bureau of Labor Management, 2008) </li></ul></ul></ul></ul></ul>ESA
    6. 7. Before you start ... <ul><li>Understand the purpose & uses of the </li></ul><ul><li>pre-employment screening </li></ul><ul><li>Make sure your HR Department has a clearly defined hiring policy & standard decision-making criteria </li></ul><ul><li>Adhere to the ADA and FCRA </li></ul><ul><li>Make sure proper and consistent documentation is used before, during, and after each background check for each candidate </li></ul><ul><li>Ensure negative findings (e.g. criminal past, DUI, poor credit history, etc.) truly affect the required tasks </li></ul><ul><li>For rejected applicants, place onus of discussion on FCRA </li></ul><ul><li>Know your budget </li></ul>ESA Key Elements of a Background Check
    7. 8. Fair Credit Reporting Act ESA <ul><li>Companies performing third-party investigations are deemed Consumer Reporting Agencies (CRAs) under the FCRA, and therefore report facts only . And ... </li></ul><ul><li>Generated reports may only be used for employment purposes. </li></ul><ul><li>The applicant must provide written authorization that a report may be obtained. If employment is denied based on the report, the applicant has certain rights under the FCRA. </li></ul><ul><li>A Credit Reporting Agency may not report negative information more than 7 years old (10 years for bankruptcies) unless the applicant is expected to earn more than $75,000 per year. (Exception: The 7-year limit does not apply to criminal convictions .) </li></ul><ul><li>If adverse action is taken based on info. in the report, the applicant must be informed (verbally or writing), and provided CRA information. </li></ul>
    8. 9. Key Elements of a Background Check <ul><li>Depending on your needs and whom you are hiring, can include many varieties of checks. The most common: </li></ul><ul><li>Employment / Education Verification and History </li></ul><ul><li>References (Business / Character) </li></ul><ul><li>SSN Trace Confirmations </li></ul><ul><li>Criminal History: County + State + National + Federal </li></ul><ul><li>Licensure / Certification </li></ul><ul><li>Credit History </li></ul><ul><li>Drug Testing </li></ul><ul><li>MVR, DOT, OFAC, etc. </li></ul>ESA
    9. 10. <ul><li>SSN Trace Confirmations </li></ul><ul><li>Essential For Optimal Criminal History </li></ul><ul><li>Address Verification </li></ul><ul><li>Name Verification/Identity! </li></ul><ul><li>Social Security Verification </li></ul><ul><li>Criminal History : County + State + National + Federal </li></ul><ul><li>Not the same as arrest records: Convictions! </li></ul><ul><li>Should list Charges & Dispositions </li></ul><ul><li>Look for patterns </li></ul><ul><li>Ability To Perform Work (e.g., DUI for Transport Position) </li></ul><ul><li>Workplace Violence Potential </li></ul>ESA Key Elements of a Background Check Let’s take a closer look ...
    10. 11. <ul><li>Credit History </li></ul><ul><li>Ability To Handle Personal Funds </li></ul><ul><li>Bankruptcy, Judgements, Or Garnishments </li></ul><ul><li>Potential For Theft (e.g., Cash Handling, External Sales) </li></ul><ul><li>Cross-Reference To Salary Claims </li></ul><ul><li>Drug Testing </li></ul><ul><li>Use Of Illegal Substances </li></ul><ul><li>Essential: Verification Through Medical Review Officer (MRO) </li></ul>ESA Key Elements of a Background Check <ul><li>Licensure / Certification </li></ul>
    11. 12. <ul><li>Motor Vehicle Reports </li></ul><ul><li>Ability To Operate Vehicle Legally </li></ul><ul><li>Points </li></ul><ul><li>DUI, Other Recent Charges </li></ul><ul><li>Potential Safety Issues </li></ul>ESA Key Elements of a Background Check <ul><li>Worker’s Compensation History </li></ul><ul><li>Ability To Perform Necessary Tasks </li></ul><ul><li>Falsified Information From Interview / Application </li></ul><ul><li>Potential For Litigation </li></ul><ul><li>Hiring Decision Must Adhere To ADA Guidelines </li></ul>
    12. 13. “ After” the hire services … <ul><li>Random Drug Testing / Drug-Free Workplace </li></ul><ul><li>Drug / Alcohol Testing For Cause / Suspicion / Post-Accident </li></ul><ul><li>Motor Vehicle Report Audits </li></ul><ul><li>Random Credit Checks </li></ul>ESA
    13. 14. Original Source vs. Databases ESA Original Source: A provider/vender that uses the original source records, each time, every time! Arrest records  conviction records : Therefore, police records are unethical (and against FCRA) to use for pre-employment screening purposes! County Courthouse misdemeanor and felony records : Only place you can be 100% sure you’re getting accurate conviction records is from County Courthouses (and sometimes Federal District Courts for Federal Crimes). Best “first” check is where the candidate lives now. State Records: Sometimes inclusive of all counties, but most often are not So-called “national” or “U.S.” records search: Is a myth. There’s no such thing as a “national” database search that’s at all accurate. Most companies use a “national” sweep only as a supplement to a county or statewide search. Bigger problem: Databases that are from the Dept. of Corrections, which can result in a false hit because it doesn’t distinguish between arrest records (which can be dismissed, thrown out) and actual convictions!!
    14. 15. Due Diligence and Liability <ul><li>It’s been said that inaccurate </li></ul><ul><li>information on the Internet spreads </li></ul><ul><li>three times faster than the truth. </li></ul><ul><li>(Databases are no exception) </li></ul><ul><li>Liability of a hiring decision made based on database information. So-called “national databases” have only a 40% accuracy on Felony records, and are even less accurate on misdemeanor records. Reason: A majority of counties still don’t record their records electronically, not even to this day. Those that do aren’t updated often enough to be considered accurate. </li></ul><ul><li>The issue is Due Diligence : </li></ul><ul><li>Database-only or internet-only background searches typically do not pass the “due diligence” test when a hiring decision is called into court. </li></ul>ESA
    15. 16. County-Level Criminal Checks <ul><li>An actual in-person visit to the county records office by a professional trained to read court documents and find court documents others wouldn’t </li></ul><ul><li>A check for felonies and misdemeanors in the applicant’s current county of residence and often past 3 counties </li></ul><ul><li>Typically takes 2-3 days turnaround -- often started on same day as reference checks </li></ul><ul><li>The only way to ensure accurate information about the </li></ul><ul><li>candidate is represented </li></ul>ESA
    16. 17. “ Red Flags” <ul><li>Reports obtained “up the street” from police precinct </li></ul><ul><li>Criminal History done in a 24-Hour Turnaround Time </li></ul><ul><li>Age of information presented (shelf life) </li></ul><ul><li>Drug Testing w/o a Medical Review Officer (MRO) </li></ul><ul><li>Using “fingerprinting” for pre-screening candidates. </li></ul><ul><li>High % of reports without any records found </li></ul>ESA
    17. 18. Your Budget: What to look for <ul><li>Obviously, it’s often impractical to run every type of check </li></ul><ul><li>on every candidate. Therefore ... </li></ul><ul><li>1. Know or establish your company’s minimum hiring standards and policies </li></ul><ul><li>Felonies </li></ul><ul><li>Misdemeanors </li></ul><ul><li>What about domestic crimes? One-time crimes vs. repeat offenders? </li></ul><ul><li>Drug screenings: Pre-employment only? Random during the year? MVRs? etc... </li></ul><ul><li>2. Establish the most appropriate “baseline” check for all candidates </li></ul><ul><li>3. Maintain consistency with candidates (not same as job title to job title) </li></ul><ul><li>4. Job titles: Add on “a la carte” services, making sure the relevance of added check(s) are related to the duties of job </li></ul><ul><li>… and of course, always adhere to the FCRA! </li></ul>ESA
    18. 19. Your Budget: What to look for <ul><li>How they are typically priced … </li></ul><ul><li>SSN Trace Confirmations …………………………………………….……………Per candidate </li></ul><ul><li>County and State criminal history ………………... Per county (and/or per State) searched** </li></ul><ul><li>“ National” or “U.S.” databases……………………………………………………..Per candidate </li></ul><ul><li>Federal District Courts ……………………………………………………..Per district searched </li></ul><ul><li>Employment / Education Verification and History ……..Per college, or per prior Employer ** </li></ul><ul><li>MVR/driver’s reports ……………………………………………………………….…Per license** </li></ul><ul><li>Licensure / Certification …………………………………………………………….... Per license </li></ul><ul><li>Credit History ………………………………………………………………………..Per candidate </li></ul><ul><li>Drug Testing ………………………………………………………………...……....Per candidate </li></ul><ul><li>** (Note: most companies will let you know of any pass-through fees such as </li></ul><ul><li>county courts/state-specific access fees, third-party provider fees, etc. where applicable) </li></ul>ESA
    19. 20. Trends in Background Screening <ul><li>Return to original-source reporting/decreasing usage of databases </li></ul><ul><li>Mixed reviews so far from Applicant Tracking Systems </li></ul><ul><li>Increasing usage of ITAR, eVerify, and other “government watch” type checks </li></ul><ul><li>Companies realizing limitations and flaws of using fingerprinting records (no matter the source) -- dissolution of methodology </li></ul><ul><li>The impact of Health Care reform -- Increasing usage of drug screening and pre-employment physicals </li></ul><ul><li>Decentralization -- Payroll companies, which once bought up background firms and/or started doing background checks themselves, are now re-focusing on their firm’s core competencies (e.g., payroll!) and spinning off background checks firms, outsourcing to third-party companies, or getting out of the background industry all together! </li></ul>ESA
    20. 21. <ul><li>About Employment Screening Associates ... </li></ul><ul><li>Headquartered in Cincinnati Ohio </li></ul><ul><li>Founded in 1991 - Almost 20 Years Expertise -National Clientele </li></ul><ul><li>“ One-Stop Shop” For All Intelligence Needs </li></ul><ul><li>Comprehensive Reports Written In “Plain English” Format </li></ul><ul><li>Customized / Modular Approach To Services </li></ul><ul><li>Quality Checks Ensure Accurate Information </li></ul><ul><li>Strict Adherence to the Fair Credit Reporting Act </li></ul>ESA
    21. 22. Employment Screening Associates Doug Cottengim Director of Sales & Marketing 513-728-3255 [email_address] www.emplscreen.com ESA

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