FCRA: Are YOUR Employment Screening and

Background Checks FAIR for your Applicants?

Presentation By::

HUMAN RESOURCE PROFILE, INC.CINCINNATI, OH

Jane McFadden

Client Advocate

JaneM@hrprofile.com

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Paid Out Millions of Dollars in Lawsuits

Can you AFFORD to end up on this list?

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©Copyright 2015 HR ProFile, Inc. All Rights Reserved

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 help

keep our clients compliant.

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Recent Class Action Cases

What is the FCRA

How the FCRA Regulates

Employers

Clear Guidelines for Compliance

Questions

©Copyright 2015 HR ProFile, Inc. All Rights Reserved

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Credit Bureaus

Data Furnishers

Consumer

Reporting

Agencies (CRA’s)

Employers

Landlords

Criminal Records

Credit Checks

Driving Records

Violent Sex

Offender Search

Employment

Verification

Education

Verifications

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No Way to Contest Information

Weren’t able to see the report

No Reason for Denial Needed

No Recourse- Legal or

Otherwise

Protection for Consumers

Fairness for Consumers

Win-Win for Company and

Candidate

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Federal Law that regulates the use of

personal information by

private businesses.

Federal Consumer

Protection Statute.

Minimum Standard for

Employers

“Furnishers”- CRA’s

“End-Users”- Employers

“Consumers”- Applicants

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Permissible Purpose

Certification to CRA

Disclosure and

Authorization

Adverse Action

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Anyone who has access to these reports is considered an end user,

staffing agencies and employers alike.

Protect Consumer Rights

Service Agreement-Reason for Record Search

Intent for Use-Employment Purposes

Section 604 of FCRA

§ 604[15 U.S.C. § 1681b]

Certification:

Our Clients are asked to use our approved forms.

Specify Intended Use and Certifies Consumer

Report will not be used

for any other purpose.

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They might be simple,

But we make them easy.

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1. Disclosure

2. Authorization

3. Pre-Adverse Action

4. Waiting Period

5. Adverse Action

The applicant MUST be informed that a consumer report is going to be obtained.

Understand this information will be used to make a hiring decision.

“Stand Alone” Document, NOT in the application.

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Written

“Consent” or

Authorization

from Applicant

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Before

EEOC

Job Relatedness

Business Necessity

Time Passed

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Disqualifying

Derogatory

Was information found that would disqualify the

applicant?

No

Hire the Applicant

YesFollow

Adverse Action

Pre-Adverse Action Letter

Pause

Adverse Action Letter

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Informs the applicant

something came back that

could effect their

employment

Disqualifying Information

found on the consumer

report

Applicant Receives:

Pre-Adverse Letter

Copy of Report

Summary of Rights

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To Be Given to the

Applicant to Sign if

Giving the Pre-

Adverse Action

Letter in Person.

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Let’s hear what the

Candidate has to say.

A “Fair Shake” to tell

their story

5 Days Deemed

Reasonable

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Individualized Assessment

AND/OR

Targeted Screening

In Order to Establish an Affirmative

Defense you must:

To be used when:

Rejecting

Applicant

Terminating

Employee

Denying A

PromotionDisqualifying Information can be found in ANY part of

the Consumer Report

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Informing the Candidate

you are NOT Hiring Him or

Her Based in Whole or in

Part on their Consumer

Report.

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Candidate

Ready to Start?

Hand Searches

Common

Name

Identity Theft

Lying on the

Application

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You Won’t Know Unless You Follow Adverse Action

Disclosure Authorization Pre-Adverse Action

Pause

Adverse Action

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FCRA- Minimum Guidelines Must

ALSO follow EEOC, Federal, and

State Mandates

EEOC Standards

Job Relatedness

Business Necessity

Time Passed

7 Year Search- Best Practice

Accuracy of CRA

Protecting the Consumer

Disclosure and Authorization

Separate from Application

Clear and Conspicuous Notice

Stand Alone Documents

No Release with Disclosure

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Check ALL Documents with Legal Counsel for

FCRA Compliance

Review all documents provided by CRA, follow

CRA’s Guidance and Recommendations

Keep Documents on Hand! HRP

Recommendation: 7 years if hired, 5 years if

not hired. § 618. Jurisdiction of courts;

limitation of actions [15 U.S.C. § 1681p]

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Disclosure Stands Alone

Review Adverse Action

Process

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Give Disclosure form 1st, here are your

rights IF you sign the Authorization.

Before taking any Adverse Action, make sure the

candidate has a copy of Consumer Report AND

Summary of Rights

Wait 5 days minimum before taking Adverse Action

Make sure in your Disclosure and Authorization the

term “Consumer Report” is used

‘I have been informed in writing and acknowledge that a “Consumer Report” and/or “Investigative Consumer Report” May be obtained on me for employment purposes.’

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Research your CRA, How do they do what they

do? Not all background checks are the same.

Don’t leave it Just to HR! Everyone’s responsibility

to know the laws/requirements.

Have a system to record personnel decisions.

Document why applicant was accepted or

rejected.

Record EVERYTHING! (In your Policy)

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1. Disclosure

2. Authorization

3. Pre-Adverse Action

4. Waiting Period

5. Adverse Action

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We’ll be happy to take

some time and answer

your questions.

Jane McFadden

Client Advocate

JaneM@hrprofile.com

T

h

a

n

k

Y

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©Copyright 2015 HR ProFile, Inc. All Rights Reserved

©Copyright 2015 HR ProFile, Inc. All Rights Reserved

About HR ProFile, Inc.

HR ProFile, Inc. is a full-service, trusted, industry leader with

over 20 years of experience in all areas of Human Capital

Management and Employee Screening. We provide

Background Checks, Drug Testing, Criminal & Court Checks,

& Reference and Education Verification to clients in all

industries Nationally and Internationally. We partner with our

clients to ensure best hiring practices and Fair Credit Reporting

Act (FCRA) compliance to HR professionals who outsource

employee screening. HR ProFile provides market leading

innovations, customized and scalable solutions and pricing, as

well as unparalleled personal and professional customer

service. Visit us at http://www.hrprofile.com/