AlphaStaff Webinar Importance of Drug and Background Screening


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Hiring someone is a decision that should not be based solely on the person’s ability to handle the job. While skills required to conduct the job are necessary, one cannot rule out threats caused by an employee with a checkered past (or present). Someone with a criminal record or someone who isn’t who they say they are can potentially cause significant damage to the welfare of the company and its staff.
This webinar, led by one of the country’s premier background check and drug screening companies and a key partner of AlphaStaff, will highlight the need, the process and the advantages of proper pre-employment screenings. Presented by Sterling Infosystems.

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AlphaStaff Webinar Importance of Drug and Background Screening

  1. 1. 800 Corporate Drive, Ste 600 Ft. Lauderdale, FL 33334 | 888.335.9545 Toll-Free | alphastaff.com2013 Webinar Series:Importance of Drug &Background ScreeningApril 18, 2013Presented by:Richard SeldonPresident
  2. 2. Simplifying business. Benefiting people.AlphaStaff Welcomes Our Premier Partner2RichardSeldon
  3. 3. The Importance of Background Checks& Drug Screening3
  4. 4. Simplifying business. Benefiting people. According to the Workplace Violence Research Institute, negligent hiringcosts U.S. businesses in excess of $18 billion annually Workplace violence is the foremost concern of corporate securitydirectors at Fortune 1000 companies About 8% of the job applicants that Sterling screens have a criminal record About 9% of job applicants falsely claim they have a college degree, listfalse employers, or identify jobs that dont exist The Wall Street Journal reports that approximately one third of all jobapplications contain lies regarding experience, education, and the abilityto perform essential functions of the job.Industry Facts
  5. 5. Simplifying business. Benefiting people. Confirm that the applicant is accurately representing him / herself Higher quality applicant pool Ensure that the person is really qualified for and can perform the job Lower turnover and recruiting costs Ensure the person does not pose a threat of harm to co-workers and the public Reduce theft and embezzlement Reduce workplace violence and the resulting liability Reduce legal exposure for negligent hiring and retentionIf Background Checking Is Not Required By Law,Why Do It?
  6. 6. Simplifying business. Benefiting people. Negligent hiring: the failure to properly screen employees, resulting in the hiring ofsomeone that has a history of violent or criminal acts. Negligent retention: retaining an employee after the employer became aware of theemployees unsuitability, thereby failing to act on that knowledge1. A taxicab company was held liable for negligence in hiring a criminally violent driver whoraped and robbed a woman in the presence of her two young children.2. A nursing home was found liable for $235K for the negligent hiring of an unlicensed nursewith numerous prior criminal convictions who assaulted an 80 year old visitor.3. A security company was liable for the negligent hiring, training, supervision, andassignment of a security guard who aided outside confederates in the theft of $200,000worth of gold certificates.4. A furniture company was found liable for $2.5 million for negligent hiring and retention ofa deliveryman who savagely attacked a woman customer in her home.Negligent Hiring / Retention
  7. 7. Simplifying business. Benefiting people. Resume / Cover Letter Employment Application Form Interview Conditional Offer of Employment Drug Test/Background CheckBackground Checking should be narrowly tailored to obtainjob-related information with respect to the position at issue.Employment Application Process
  8. 8. Simplifying business. Benefiting people. The Society for Human Resource Management states 45%of all resumes contain one major fabrication A high degree of misinformation involves pastemployment and the educational background.Resume / Cover Letter
  9. 9. Simplifying business. Benefiting people. Review for legal compliance (e.g., question regarding criminalconvictions) Look for Red Flags in the application process and follow-up on them,e. g., gaps in employment Have good disclaimer language, including language that false ormisleading information constitutes grounds for immediatetermination. Require applicant to complete entire form, and sign and date it (don’tjust allow applicants to attach their resume or leave sections blank).Employment Application Form
  10. 10. Simplifying business. Benefiting people. If you offer a position, make sure it is conditional on thesuccessful completion of a background check. Conduct a drug test and thorough background checktailored to the particular position.Conditional Offer of Employment
  11. 11. Simplifying business. Benefiting people. The job relatedness of the crime The seriousness of the offense The date the offense occurred The person’s age at the time of the offense Evidence of successful rehabilitationFactors to Review Before Denying EmploymentCriminal Conviction Information
  12. 12. Simplifying business. Benefiting people.Equal Employment Opportunity Commission(EEOC)• The United States Equal Employment Opportunity Commission (EEOC) has ruled thatdiscriminating against felons in the workplace has the same effect as discrimination againstblacks and Hispanics and is therefore illegal.• The ruling means that the EEOC has decided that employers cannot have a blanket policystating they will not hire convicted felons.• In September 2009, a class action lawsuit was filed against Freeman Companies, as theEEOC claimed that Freeman used credit histories and criminal background checks tounlawfully deprive blacks and Hispanic job applicants equal employment opportunities.• In 2005, the EEOC issued informal guidance that said that an employer who uses a blanketpolicy of not hiring any applicant with a history of arrest or conviction violates Title VII ofthe Civil Rights Act because such a policy “disproportionately excludes members of certainracial and ethnic groups, unless the employer can demonstrate a business need for use ofthis criteria.”
  13. 13. Simplifying business. Benefiting people.EEOC and PEPSI• Pepsi Co. agreed to pay a $3.1 Million fine to the Equal Employment Opportunity Commission(EEOC) after it was charged with using criminal background checks to discriminate againstpotential job applicants.• The EEOC’s investigation revealed that more than 300 African Americans were adverselyaffected when Pepsi applied a criminal background check policy that disproportionatelyexcluded black applicants from permanent employment. Under Pepsi’s former policy, jobapplicants who had been arrested pending prosecution were not hired for a permanent jobeven if they had never been convicted of any offense.• “Pepsi’s former policy also denied employment to applicants from employment who had beenarrested or convicted of certain minor offenses. The use of arrest and conviction records todeny employment can be illegal under Title VII of the Civil Rights Act of 1964, when it is notrelevant for the job, because it can limit the employment opportunities of applicants or workersbased on their race or ethnicity.”13
  14. 14. Simplifying business. Benefiting people. Number and List of Accounts Number of Accounts with Negative Information Number and List of Accounts that have Placed the Applicant’s Accountfor Collection Public Records, such as civil judgments Total Outstanding Balances Be Careful Regarding Job-Related Determination Do Not Use BankruptciesThe type of information to consider:Consumer Credit Reports
  15. 15. Simplifying business. Benefiting people. Current Status of License History of Speeding, Reckless Driving, Careless Driving, DUI, DWI,etc. All Suspensions and RevocationsDepartment of Motor Vehicle ReportsThe type of information to consider:
  16. 16. Simplifying business. Benefiting people.Employment Verification Dates of Employment PositionAdditional Questions: Was the employee honest? Was the employee excessively late or absent? Is the employee eligible for rehire? How was the employees overall performance? Was proper notice given?
  17. 17. Simplifying business. Benefiting people.Education VerificationVerification of the applicant’s educational historyWe recommend verifying the highest degree attainedDiploma mills – unaccredited institutions that grant illegitimatedegrees for a fee
  18. 18. Simplifying business. Benefiting people.Sexual Offender SearchOffers an additional measure of protection beyond a criminalconviction search as the offender’s state or county records maybe sealed, records may reside in family court, or the originalsexual offense may have been reduced to a lesser chargeState Registries
  19. 19. Office of Foreign Asset Control (OFAC)This search identifies individuals and companies, owned, controlled by, or acting onbehalf of countries targeted by US foreign policy as terrorists and narcotics traffickersthrough information provided by the US Treasury’s Office of Foreign Asset Control(OFAC).These Specially Designated Nationals (SDN) have had their assets blocked, and UScitizens are generally prohibited from dealing with them.The OFAC search contains information from the below sources:Bank of England Sanctions List, Canada OSFI List of Entities/IndividualsCIA Chiefs of State and Cabinet Members of Foreign GovernmentsEU Consolidated List of Persons, Groups and Entities, Interpol,FBI Most Wanted Terrorist, OFAC Palestinian Legislative Council ListWorld Bank Debarred Parties And Others
  20. 20. Simplifying business. Benefiting people. Applicant’s Name Jurisdiction Docket Number Indictment Number Arrest Date Reason for Arrest Disposition Date Disposition SentenceCriminal Conviction History Search
  21. 21. Simplifying business. Benefiting people. Social Security Trace / Address History Criminal Conviction History Search – Federal, State, County Consumer Credit Reports Motor Vehicle Reports Employment Verification Education Verification Sexual Offender Search Office of Foreign Asset Control (OFAC) ArrestDirectBackground Checking Options
  22. 22. Simplifying business. Benefiting people.Criminal Conviction Searches• At this time, about 30% of Americans have been arrested by age23 at least once for something other than a traffic violation.• In 1965, about 22% of Americans had been apprehended atleast once by age 23• By age 18, about 16% to 27% of teens have been arrested atleast once* Source: Journal of Pediatrics22
  23. 23. Simplifying business. Benefiting people.International Background Checks• Every country around the globe has laws and rules that regulatedrug testing and background checks• Drug testing and background checks are becoming moreacceptable around the world• However, the services available are still more limited than in theUnited States• The cost is much greater to do drug tests and backgroundchecks• The turnaround time to complete the work is much slower thanin the United States23
  24. 24. Simplifying business. Benefiting people. The Fair Credit Reporting Act (FCRA) directly affects an employer’s abilityto obtain background information on applicants and current employeesthrough contracts with third-party Consumer Reporting Agencies (CRA) Organizations such as Sterling that conduct background checks areConsumer Reporting Agencies The FCRA regulates the circumstances under which employers can useCRAs to obtain background information and to rely on that information tomake employment decisionsIf you use an outside vendor, you must comply withthe Fair Credit Reporting Act
  25. 25. FCRA and Compliance ProceduresRequired By FCRA For Users Of ReportsConsent And DisclosurePre-Adverse ActionAdverse Action
  26. 26. 26All StateConsent andDisclosure
  27. 27. Simplifying business. Benefiting people.In the Pre-Adverse Action Notice, the employer must revealthe disqualifying information received from the ConsumerReporting Agency.Include with this notice a copy of the report and notice ofrights as required by Fair Credit Reporting Act.Give a short but reasonable period of time to provideinformation that would explain the discrepancy, omission ormisrepresentation.If the employee is unable to do so, take adverse action.Pre and Post Adverse Action
  28. 28. Simplifying business. Benefiting people. Some states have fair credit reporting laws that havemore stringent requirements than the FCRA (e.g.,California). States have other laws that also limit the use ofinformation you can obtain and how to use it once it isobtained (e.g., New York, criminal convictions andarrest records)State Laws Create Additional Compliance Issues
  29. 29.  More than three-quarters (76.4%) of all illicit drug users 18 andolder are employed full or part time… thats approximately16% of the working population (full- and part-time workerscombined). The federal government reported that drug abusingemployees, when compared to non-using workers, are:1. More likely to change jobs frequently2. More likely to be absent from work3. More likely to be involved in a workplace accidentDrug Testing
  30. 30. Simplifying business. Benefiting people.Why Enforce a Drug Free Workplace?About 3% of the drug tests that Sterling administers for theirclients are positive1 out of 12 US households surveyed admit to using illegaldrugs in the past 30 days20.2 million Americans over the age of 18 use illicit drugsPrescription drugs are abused by 7.0 million AmericansMarijuana is abused by 17.4 million AmericansCocaine is abused by 1.5 million AmericansDrug testing is a deterrent – fewer drug users apply atcompanies with a drug testing program
  31. 31. Simplifying business. Benefiting people. Cannabinoids (THC) Cocaine Amphetamines Opiates Phencyclidine (PCP) Barbiturates Benzodiazepines Methadone PropoxypheneMost Drug Tests Screen for the Following Drugs:Pre-Employment Substance Abuse Testing
  32. 32. Simplifying business. Benefiting people.ConclusionQuestions?Thoughts?Napping?32
  33. 33. Simplifying business. Benefiting people.Contact Us !• .Copies of the presentationhrsc@alphstaff.com888-335-9545 (Option 8)
  34. 34. Upcoming AlphaStaff WebinarsPlease mark your calendars !!!Date: Thursday, May 16, 2013Topic: Workers Comp. Claims ReportingDate: Thursday, May 30, 2013Topic: Recent NLRB Rulings and TheirImpact on Non-Union Employers42
  35. 35. 35Thank you for your time!Questions?