What Employers Need to Know About Background Checks Mike Coffey President Imperative Information Group www.imperativeinfo.com

Mike Coffey

President Imperative Information Group

www.imperativeinfo.com

Homeland Security concerns have heightened employers’ responsibilities.

Good corporate governance now includes human due diligence.

516 workplace murders 417 by shooting - 2006 US Department of Labor Employees face threats from within, not just outside, the workforce.

516 workplace murders

417 by shooting

- 2006 US Department of Labor

12,025 cases filed $48.8 million settlements - 2006 EEOC Employers’ liability for employees’ actions costs both money and goodwill.

12,025 cases filed

$48.8 million settlements

- 2006 EEOC

Employee theft is the single largest cause of retail loss (“shrink”). $19 billion 2006 National Retail Security Survey

$19 billion

The most important thing I’ll say today...

There is no reliable “national” or “nationwide” criminal records source.

“ National” databases miss 60% or more of available criminal records. Michael Gilbert

“ National” databases regularly report outdated or misidentified records. Entre Nax Karage

Local jurisdictions regularly fail to report criminal convictions to the state database.

Clifton Williams Stephen Barbee Anthony Shore 34% of criminal convictions are missing from Texas DPS’ database.

Clifton Williams

62% of felony defendants released 33% were rearrested - 2004 Bureau of Justice Statistics State and national criminal databases do not reflect pending criminal cases.

62% of felony defendants released

33% were rearrested

- 2004 Bureau of Justice Statistics

The county courthouses’ “live” criminal records are the best source.

Limiting research to a single county will miss offenses in other jurisdictions. Jacob Muniz

Federal criminal records, though difficult to search, should not be overlooked.

Limiting the scope of criminal reports to seven years means missing significant risks.

A good criminal background check begins with good identity research. Employment Application Name DOB SSN Prev. addresses Associated Names SSN Issuance Address history ID Database

Research should be conducted in each jurisdiction associated with the applicant. Identity Research County Research Federal Research State & “ National” Databases County Research Possible records

The federal Fair Credit Reporting Act governs background checks.

Disclosure must be made and written authorization received.

The employer must provide information prior to making an adverse decision.

The employer must provide additional notice after taking the adverse decision.

The FCRA limits what can be reported in background checks.

Trend 4: Social Networking Sites & Blogs Hot Topic: Social Media Background Checks

1996 – Berkeley, SC Domestic violence DWI 2001, 2002 – Navarro, TX Criminal Trespass Theft DWI Identity theft is a growing problem in criminal records.

1996 – Berkeley, SC

Domestic violence

DWI

2001, 2002 – Navarro, TX

Criminal Trespass

Theft

DWI

Mike Coffey President Imperative Information Group http://www.imperativeinfo.com http://blogs.imperativeinfo.com P.O. Box 101327 Fort Worth, Texas 76185 877.473.2287 [email_address] Licensed by the Texas Department of Public Safety Private Security Board (A09357)