Background Checks

1
Background Checks

• TEAM 3
• Katy Barnicle
• Jenna DiMaggio
• Ellen Lee
• Laura Lengerich
• Greg Zimmerman

2
Why???

• Attracting human assets ?Barring potential
  liabilities
• Enron
• War on Terrorism
• Trend toward exaggeration and misrepresentation
  in applications and resumes (56)
• Past predicts future behavior
• Over 96 of HR professionals report that their
  companies do background checks of new hires
  (Zahorsky)

3
What???

• Investigate/Verify Resume or Application
• Credit Records
• Academic Records
• Social Security Records
• Personal References(Character References, Former
  Employers, Former Neighbors and Co-Workers)
• Driving Records
• Vehicle Registration Records
• Military Records

4
What???

• Bankruptcy Proceedings
• Property Ownership Records
• Sex Offender Lists
• Criminal Records
• Workers Compensation
• Medical Records
• Incarceration Records
• Drug Testing
• Facebook

5
Youre Protected

• Fair Credit Reporting Act
• Employers must adhere to certain rules when they
  seek a background check from a Consumer Reporting
  Agency (CRA)
•  Employer must
• Disclose to applicant that a report is being
  prepared
• Collect a signed release form before checking any
  records
• Get separate consent for an Investigative
  Consumer Report
• Get separate consent for Medical Records
• Provide applicant a copy of any report and legal
  rights if report used to deny employment
• Give applicant opportunity to correct any errors

6
Or Are You???

• 1 - Background checks that are done in-house
  are exempt from FCRA
• 2 - Employers can create another reason for
  rejecting the applicant

7
Problems

• Information in background checks, frequently
  flawed
• Lewis vs. Ohio Professional Electric Network LLC
• Promised job contingent upon background check
• Called HR and was told never to call again
• Hired PI
• Found discrepancy with SS (Murder, Felonies)
• Challenged ruling/Settled
• Lewis situation not uncommon

8
Problems

• Adverse Impact
• Criminal Records for African Americans
• Credit Reports for African Americans
• Statistically speaking, blacks earn much less
  than whites, have far fewer accumulated savings
  and are more at risk in terms of health care. -
  Adam Klein
• Facebook if not used across the board
• Job- Relatedness
• Certain reports are unnecessary, not related to
  job
• Credit check / Bank Teller

9
Fair Credit Reporting Act FAQs

• How do I find the Consumer Reporting Agency that
  has my report?
• Yellow Pages under credit or credit rating
  (call each until locating all agencies
  maintaining your file).

10
Fair Credit Reporting Act FAQs

• Do I have a right to know whats in my report?
• Yes, but you must ask for it!!
• CRA must tell you everything in report including
  medical info, and sources of information
• CRA must give list of everyone who has requested
  your file in the past 1-2 years

11
Fair Credit Reporting Act FAQs

• What can I do about inaccurate or incomplete
  information?
• CRA must correct incomplete or inaccurate
  information
• Contact CRA in writing
• CRA has 30 days to investigate
• If CRA finds information to be wrong, they must
  notify all nationwide CRAs so they can correct
  info in file.
• When investigation is complete, CRA must give you
  written results and a free copy of your report

12
Fair Credit Reporting Act FAQs

• How long can a CRA report negative information?
• 7 years with the exception of
• Criminal convictions unlimited
• Bankruptcy-10 years
• Lawsuit or unpaid judgment against you 7 years
  or until statute of limitations runs
  outwhichever is longer.

13
Facebook

• Social networking service
• Over 7.5 million US college student accounts
  created with an additional 20,000 new accounts
  being created daily
• High frequency of students logging in
• Many Facebook accounts include personal
  information, interest groups, and pictures
• Facebook is now open to anyone with an e-mail
  account

14
Employers and the Internet

• Many employers that participate in on-campus
  recruiting have been using search engines to
  conduct background checks on students
• Now it is becoming more popular for employers to
  use social networking sites such as Myspace,
  Facebook, and Friendster

15
Is it Valid?

• Criterion related
• How well does a Facebook profile predict
  on-the-job success?
• Content
• Does a Facebook profile directly help to sample
  KSAs needed to do the job?
• Construct
• How well does Facebook compare to the other
  selection procedures?

16
Is it Legal?

• Employers are free to make unfair, stupid,
  arbitrary, and wrongheaded hiring and termination
  decisions, even based on false information, as
  long as in doing so they do not violate some
  specific law.
• Adverse impact may lead to unintentional
  discrimination
• In Facebooks terms of service, users are
  prohibited from using Facebook for commercial
  purposes

17
Our Recommendations

• If you have a facebook or myspace profile, make
  it private!
• Be careful of the material you put on the
  internet
• Google your name and see what comes up
• Dont lie on resumes/applications
• Take advantage of your rights the Fair Credit
  Reporting Act is for YOUR benefit!

18
Any Questions???