FCRA Rules and Regulations, Government Policy, What is needed to stay compliant?

1. Screening your Applicants & All Things
Hiring
Bringing your hiring process out of the shadows and into the light in a simple and easy
solution to ensure FAIR hiring practices.

2. Violated Federal Hiring Guidelines
Paid Out Millions of Dollars in Lawsuits
Can you AFFORD to end up on this list?

3. Presenters:
▪ Jane McFadden- Client Advocate- Education and
Outreach of updates, products, and services.
▪ John Robinson- Compliance Officer- Stay up to date on
latest laws and legislation to keep our clients
compliant.

4. Fair Credit Reporting Act
▪ Why is it regulated?
▪ What does it mean to me?
▪ What are the regulations
▪ How do I stay compliant?
▪ Questions?

5. Federal Trade Commission 1970
▪ Mistakes in Public Record
▪ Databases are not complete or current
▪ No Recourse Legal or Otherwise
▪ Records have mistakes
▪ 2013 FTC 26% estimated error rate
▪ Everyone should have a “fair shake”
▪ Win-Win for company and candidate
The FCRA is a federal law that regulates the collection,
assembly, and use of consumer report information

6. Giving the APPLICANT a FAIR SHAKE
A chance to tell their story
The FCRA is a federal law that regulates the
collection, assembly, and use of consumer report
information

7. Out of the Dark Ages
Legal Hiring Practices Vs. Ignorance of Laws
Due Diligence Vs. Negligent Hiring
Fairness Vs. No Right to Know

8. Mitchell Fenton, CPP
Chief Security Officer at Baltusrol Golf Club
Improving your club’s safety and security

9. Improving your Safety and Security Presentation
Background Checks
▪ Living inside our club bubble- the industry is changing from
the days of turning our head to one of litigation on negligent
hiring, workplace violence and harassment lawsuits awards
with huge numbers
▪ You’re looking for a company with state look ups along with
national checks
▪ If your club is not providing them on every employee you are
placing your club and your membership in harm’s way.
Mitch Fenton Dec. 2012
A GM/COO could be
civilly liable for a
case of
negligent hire

10. Good Employee Employment Screening
Legal Compliance
Best Practice: Follow FCRA, EEOC, and State Laws

11. Consumer
Reports
Information obtained about the
applicant for employment purposes.
• Criminal Record Search
• Driving Record Search
• Reference Check
• Education Verification
• And Many More…
http://www.business.ftc.gov/documents/
bus08-using-consumer-reports-what-employers-
need-know

12. If you use someone else for
information on any consumer
report you must comply with
FCRA
CRA’s
CRA= Any person that compiles and furnishes a “consumer report”
CRA’s Responsible for: being LEGAL
and FAIR
Accuracy of a Report- information
from originating sources
Up to date information- Current
Handling Disputed information

13. 4 Simple Steps
to FCRA
1. Disclosure
2.
Authorization
3. Pre-Adverse
Action
4. Adverse
Action
They might be simple, but we make them easy.

14. Disclosure
Applicant is
told there will
be a
background
check run on
them
Authorization
The applicant
gives written
consent to
the
background
check being
performed
Pre-Adverse Applicant is
notified
there is
disqualifying
information
on the
background
check
Adverse Action
Applicant is
informed
they will not
be hired due
to the
information
on the report

15. Disclosure
Informing the applicant a
background screen will be
performed.

16. Authorization
Candidate signing they agree to
the background check.

17. Steps 1 & 2 Disclosure & Authorization

18. Employer’s
Responsibility
When using a consumer report
Was information found that
would disqualify the applicant?
No
Hire the
Applicant
Yes
Follow Adverse
Action
Pre-Adverse
Action
Adverse Action
Letter

19. Disclosure
Applicant is
told there will
be a
background
check run on
them
Authorization
The applicant
gives written
consent to
the
background
check being
performed
Pre-Adverse Applicant is
notified
there is
disqualifying
information
on the
background
check
Adverse Action
Applicant is
informed
they will not
be hired due
to the
information
on the report

20. Pre-Adverse
Action
This is the notice given to
applicants informing them
that derogatory information
was found on the consumer
report.

21. Let’s hear what the candidate has to say!
A “Fair Shake” to tell their story

22. Adverse Action
Informing the candidate you are
NOT hiring them based in whole or
in part on their consumer report.

23. Is there a Mistake?
 Give applicant time to dispute the
Consumer Report
Hire the applicant
–OR–
Send Adverse Action
Notice
Send Adverse Action Notice
Advise Candidate to Re-Apply

25. “I do my own
check”
 Privacy & Discrimination
 Source of Information
 Excessive Information
Ignorance is no excuse under the law
 Negligence- for missing what’s out there
 Discriminatory- inconsistent with what you
search
 EEOC- Federal and State Regulations

26. “I don’t do any check”
▪ Are you taking the basic steps to avoid bad hires?
▪ Are you responsible for safety in the workplace?
What you don’t know about your applicant CAN hurt you!
NO EMPLOYER IS
INVULNERABLE TO
LITIGATION FROM
NEGLIGENT HIRING.
Companies have an obligation to keep
their environment safe.
 Employees
 Patrons
 Vendors

27. Besides the legal obligation…
If an Employee had a violent record or is a habitual thief,
would you want to know about it?
TABITHA LYNNAE COTTRELL VS
CRESTMOOR GOLF CLUB ETAL
&
IMT INSURANCE CO VS CRESTMOOR GOLF
CLUB ETAL
4:03-cv-40269

28. Out of the Dark Ages
Legal Hiring Practices Vs. Ignorance of Laws
Due Diligence Vs. Negligent Hiring
Fairness Vs. No Right to Know

29. Disclosure
Applicant is
told there will
be a
background
check run on
them
Authorization
The applicant
gives written
consent to
the
background
check being
performed
Pre-Adverse Applicant is
notified
there is
disqualifying
information
on the
background
check
Adverse Action
Applicant is
informed
they will not
be hired due
to the
information
on the report

30. We’ll be happy to
take some time and
answer your
questions.
T
h
a
n
k
Y
o
u
!