Things to Consider When Hiring Ex-Offenders

Has your organization ever considered hiring a person with a prior criminal conviction? If so, there are many hiring and discrimination issues to consider. One major concern with hiring an ex-offender lies with negligent hiring and retention liability issues. There could be unwanted consequences if a company retains an employee that they should have known was likely to subject others to actions which can create legal liability. Employers can be held liable for willful misconduct by their employees.

The Equal Employment Opportunity Commission (EEOC) scrutinizes employers to ensure their hiring practices are consistent and non-discriminatory including giving due-consideration to ex-offenders. While most employers who have hired ex-offenders have deemed their experience negative, some have reported success stories. There are plenty of examples of individuals who have "paid their debt" to society and are entitled to a “second chance.”

Examples include individuals who have had incidents in college or mishaps where the person is arrested and charged with a crime but once the debt to society is paid, he or she may not have a "clean" record to later use in seeking a career. Other examples include an individual, such as a consultant, who may have committed a financial crime such as money laundering, but has paid his or her debt to society. When seeking employment later in an unrelated field, perhaps a retail position, they may be unable to secure employment due to the prior criminal record.

According to the Society for Human Resource Management (SHRM), one in four adults in the United States has an arrest or conviction that would appear in a routine criminal background check. As a result, these individuals would face problematic circumstances when seeking potential employment. That is why the EEOC continues to encourage employers to eliminate discriminatory hiring practices of ex-offenders and consider the following factors: the nature and seriousness of the conviction; the length of time since the offense occurred; and the job-relatedness or relevance of the offense.

Since late 2011, the EEOC has been expected to provide additional guidance on whether the use of criminal background checks may discriminate against groups of candidates and employees. If so, disparate impact will be presumed and employers will be forced to provide specific evidence to substantiate the business necessity of criminal background checks such as providing a very compelling reason. At the end of the day, the government is becoming more involved in ensuring that all individuals, regardless of their prior history, have an opportunity to become gainfully employed and not be discriminated against based upon any factors, including prior criminal convictions.

For more information on how EEOC polices related to ex-offenders could impact the hiring practices within your organization, please contact sales@allianceinvestigative.com.

FINGERPRINTING VS. TRADITIONAL BACKGROUND INVESTIGATIONS

Background Investigations have evolved significantly through the years. According to WIKIPEDIA, a Background Investigation may be defined as the process of looking up and compiling criminal records, commercial records and financial records (in certain instances such as employment screening)of an individual.

Many employers have implemented background investigations as a means to assist them in making proper hiring and vendor decisions. The process of screening potential employees has led to the commercialization of the industry. At the same time local, state and federal authorities have become involved in the collection, regulation and dissemination of data utilized in the investigations process.

Fingerprint based backgound investigations are often considered to be one of the most accurate means available by which to conduct background investigations. The process involves securing fingerprints of candidates through government issued documents and submitting said fingerprints through various state/federal agencies. While this is perceived to be an accurate method, in reality, after careful examination, its outcome is certainly questionable. While there are some employers (typically state and federal agencies, as well as certain industries such as medical, banking, etc.) that require this method as a means to screen all potential employees, employers should beware of the pitfalls. Employers should be familiar with the level of searches being conducted along with the jurisdiction being searched: Federal? State? In some instances there are organizations/industries that will require fingerprinting as the method of the background investigation, however, fingerprints are only submitted to specific State or Federal agencies and not necessarily always to both. This could present a significant issue when looking at the comprehensiveness of such a method.

Fingerprinting has been available as a means for background investigations for years, however, rarely has it been found to be effective or comprehensive, and sometimes legally compliant with the FCRA (Fair Credit Reporting Act). Many of the firms that conduct thorough and accurate background investigations rarely utilize the fingerprint method, and in many cases are not permitted the access with this method without a significant investment in technology/infrastructure with a direct link and permissible purpose to FBI records. There are some organizations that will help coordinate fingerprinting through third party sources, however, this places the background investigation process in legal jeopardy. This has also raised some questions over what is typically available from a fingerprint based investigation compared to what is available to private industry. As a matter of fact, the IRS recently announced an initiative requiring background investigations on all PTIN applicants (preparers of tax returns) for proper reasons. As the following link to the IRS reflects, the IRS is still considering proposals that would require certain tax preparers to undergo fingerprinting or some other background check as part of the suitability check required to obtain the PTIN. http://www.irs.gov/taxpros/article/0,,id=239682,00.html.

Unfortunately, what many are not aware of is that while fingerprinting is perceived to be the most comprehensive means for background investigations, it is not because of the following reasons:

1. The United States Department of Justice issued a report entitled "The Attorney General's Report on Criminal History Background Checks" and the author emphatically states that although the federal fingerprinting method is quite comprehensive in its coverage of nationwide arrest records for serious offenses, the FBI's Interstate Identification Index is still missing final disposition information for approximately 50 percent of its records.

2. The same report also advises that there is no single source that provides a complete, up to date background investigation about a person's criminal history.

3. The last and probably most important fact is that the US Department of Justice Report further advises that contrary to common perception, the FBI's Interstate Identification Index is NOT a complete national database of all criminal history records in the United States. Many state records whether from law enforcement agencies or courts, are not included or have not been updated.

With all of the above being stated, it is critical for organizations to understand that there are more comprehensive, legally compliant (FCRA) organizations that access records that are above and beyond the scope of what is available through an FBI check, but thorough records from actual courts globally. A reputable background investigation firm can access thorough records from actual courts globally and will conduct an investigation utilizing a number of steps prior to conducting the criminal court research. Factors such as names utilized, aliases/identity, areas of last residency, possible areas where an applicant could have been convicted of a crime are all considerations in making a decision to conduct a background investigation. Once the initial factors are considered, the next step involves accessing the latest court records from all jurisdictions (local, state, and federal). Many times arrests are dismissed and not reportable in the FBI fingerprint method or candidates/applicants are charged with multiple charges and said charges are later pled down to lesser crimes.

According to information maintained by the United States Census Bureau, there are over 3,100 jurisdictions/venues throughout the US. With that said, based upon the report by the United States Department of Justice, it is nearly impossible to have fingerprinting stations serving all jurisdictions. A reputable background investigative firm will have proper access to court systems and be legally compliant with securing all information and ensuring that all applicable state/federal laws are followed and that the employer requesting the investigation is compliant with the applicable laws when utilizing the information.

If you are seeking a thorough comprehensive investigation, contact a firm that will provide you with a comprehensive solution rather than just inaccurate data that may be sporadic in nature. For information about this or other topics related to background investigations, contact us at info@allianceinvestigative.com. Alliance Worldwide Investigative Group Inc. is a national/international Corporate Investigative Services Firm helping employers globally in making effective and comprehensive hiring decisions.

Social Networking Background Investigation Process: Beware

Employers' use of the company Social Intelligence to "scrape" the Internet -- particularly social networking sites -- for background information on jobseekers has raised alarm bells with government regulators. Recently, the Federal Trade Commission reviewed the firm's operating practices, which include innovative "deep search" mechanisms, and concluded that it is in compliance with the Fair Credit Reporting Act, which generally prohibits reporting agencies from investigating job applicants without their permission. The law also requires that jobseekers be given a chance to respond to disputed information. Despite the alleged search mechanisms that are not invasive, Democratic Sens. Richard Blumenthal of Connecticut and Al Franken of Minnesota, both congressional privacy advocates, recently sent the firm a letter demanding to know how it collects and distributes its information. The interesting part of the law is that it only focused on the use of the information but not the gathering or potential illegal gathering of said information. The senators want to know if websites' "terms of service" are being violated to harvest background information and if "inappropriate" information is being fed to employers about jobseekers.
Has your company reviewed its process for Social Networking Background Investigations? Visit us at www.allianceinvestigative.com for more information to ensure that you are compliant and not in violation of any of the laws/regulations surrounding this new practice.

Consent Based SSN Verification Search - CBSV

Background Investigations should be conducted utilizing a mythodical process involving several steps. Among those steps are developing a policy surrounding proper background investigation levels based upon the position(s) being filled. In addition, said levels should be relative to the specific job duties/functions.
A new search was recently launched, termed a Consent Based SSN Verification (CBSV) Search. This new search, offered which offers employers the ability to help fight the Identity Theft/Fraud spectrum of a Background Investigation.
The CBSV verifies whether a name and Social Security Number (SSN) combination match the data in SSA’s records. The submitted information is matched against SSA’s Master File of Social Security Numbers (SSNs). The matching elements include: Social Security Number, name, date of birth and a gender code if available. Each SSN and name combination submitted to CBSV will be returned with a “yes” or “no” verification code indicating that the submission either matches or does not match our records. If applicable, we will report a death indicator when our records reflect that the SSN holder is deceased. Please note that the results obtained from CBSV do not confirm or authenticate "proof of identity”.
This search will help limit the number of false positives which occur when an incorrect SSN is provided tied to a candidate for employment. This search should not be mistaken for a SSN/Address History Search which verifies a person's address history and provides a list of name(s) associated with the subject along with potential addresses utilized. This is critical in not only establishing the correct identity of a subject/applicant, but also in determining the area(s) in which to perform the background investigations.
For more information concerning identity verification searches, SSN/Address History, or other Background Investigations, visit our website at www.allianceinvestigative.com

BACKGROUND INVESTIGATIONS: THE DIFFICULTY IN THE RISK & COST OF CONTINGENCY BASED INVESTIGATIONS

Has your organization faced the issue of contingency based Background Investigations? According to the U.S. Chamber of Commerce, U.S. businesses lose more than $50 billion annually due to employee theft and fraud. In addition, more than 18 percent of violent crime is tied to the work environment. With that being said, according to information obtained, only 35 percent of companies require background screening on contingent workers. In the face of these numbers, companies may be more inclined to revisit that process. Prior to doing that it is critical to review the employment screening process carefully before jumping into it to ensure compliance. Implementing the wrong methodology and practices could cause unnecessary legal conflicts including possible litigation for your organization.

That warning applies to employers at all levels — even the federal government. For instance, the U.S. Census Bureau is embroiled in a lawsuit for allegedly screening out temporary census takers last year based on decades-old arrest records for minor or unconvicted offenses. Meanwhile, the Equal Employment Opportunity Commission (EEOC) is currently reviewing its 20-year-old background check guidelines regarding criminal and credit histories, because the policies may discriminate against minorities.

To ensure that your organization is compliant with the legal pitfalls of due-diligence based investigative screening, contact Alliance Worldwide Investigative Group - www.allianceinvestigative.com today for more information. Alliance Worldwide Investigative Group Inc. is a full service corporate investigative firm serving the needs of employers globally in mitigating losses through due-diligence based investigations, including Workers Compensation and Insurance Fraud Investigations, Anywhere.

EEOC Explores Changes on Employer Use of Criminal Background Investigations

EEOC Explores Changes on Employer Use of Criminal Background Investigations....to further limit employers in the hiring practices...

On July 26 the Equal Employment Opportunity Commission (EEOC) held a hearing to examine the use of arrest and conviction records as a barrier to employment. SHRM’s research on employer use of criminal background checks was cited by one of the panelists as an illustration of how HR professionals grapple with making good hiring decisions while maintaining safety in the workplace.
Against a backdrop of high unemployment, several Commissioners expressed concern that a criminal record may act as an obstacle to employment. The issue is whether an employer’s policy against hiring applicants with a criminal history may result in a disparate impact on protected groups.
With respect to conviction records, the agency requires an employer to show that it considered the nature and gravity of the offense(s); time since conviction and/or completion of a sentence; and the nature of the job held or sought. Acknowledging the complexity of the problem, several Commissioners expressed interest in revising current guidelines to make an employer’s requirements more specific.

This was the latest in a series of meetings the EEOC has held examining barriers to employment, including issues such as credit checks, older workers, and discrimination against the unemployed. Alliance Worldwide Investigative Group can assist with helping to formulate policies concerning preventing EEOC discrimination concerns. Written comments from the public can be filed with the agency until Aug. 10. To learn more about the recent hearing, read testimony, or find out how to submit comments to the EEOC, contact Aliance Worldwide Investigative Group offices today, at sales@allianceinvestigative.com.

New bill introduced would make it illegal for employers to use credit history for background investigation and employment decision

Background Investigations have changed the way employers look at candidates for employment and help with mitigating the potential losses from a negative hiring decision. At the same time through the years more and more employers have increased the level of searches being conducted and also have implemented new procedures to increase scrutiny of candidates.

From Address History/Verifications, Criminal Histories (all levels), References, Employment, Education, Civil Actions, employers have also been using Credit Reports and credit scores when making an employment decision. . As employers have become more selective in their hiring practices, candidates who have failed to secure employment, for a multitude of reasons are now fighting back.

The House Financial Services Committee has a bill pending, titled H.R. 321, with respect to the use of credit reports in background investigations process. This bill would make it illegal for employers to use credit history for employment decisions. This could be problematic for many employers who currently use credit reports as a means for a hiring decision. Some states have already implemented this practice, such as Illinois where it is now illegal to use credit reports as a means for background investigations.

To ensure that you are compliant with the state and federal laws governing background investigations, visit and stay close to the developing changes.

For an assessment of your current practices and recommendations on effective hiring practices, reach out to a representative at Alliance Worldwide Investigative Group Inc. today, at 800-579-2911.