The Fair Credit Reporting Act (FCRA) is a federal law that was enacted in 1970 to help consumers deal with inaccuracies in their credit reports. In 1996, the law was expanded to include other reports including background reports for employment screening purposes. Today, FCRA compliance is mandatory for any employer using a third party to conduct background checks.

Among it provisions, the FCRA includes the following to protect consumers:

-Consumers have the right to be informed and provide consent when an employment background check is going to be performed
-Consumers have the right to review any information complied on them from these checks and correct any inaccuracies that it may contain
-Consumers have the right to know when their personal data is used in decisions that will affect them
-Consumers have the right to appeal those decisions if they feel that they were made unfairly

As an employer, when you are choosing a background check provider you need to ensure that your provider is a certified FCRA-compliant Credit Reporting Agency (CRA). Aside from choosing a quality, certified CRA, employers also play a critical role within several steps of the background check process.

Your FCRA responsibilities as an employer include:

–FCRA-permitted purpose: The Fair Credit Reporting Act states that employers are only allowed to conduct background checks on employees or potential hires with the purpose of determining fitness for a position. This includes routine background checks to ensure that new charges or findings have not occurred for current employees or employees that are being considered for a promotion or new role within the company.
(Make sure that your purposes for running a background check fall within these guidelines. You should not run a background check on employees for personal reasons or reasons that fall outside of determining fitness for employment.)

-Disclosure & Consent: In order for a background check to be legal, the employer must provide all candidates (including current employees) with a written disclosure of their plans to conduct the background check. This disclosure must be presented on its own—not handed over in an orientation packet or with a collection of other papers. For employers wishing to run a background check on a potential job candidate under review, they must also obtain a signed consent form from the candidate before instructing a CRA to conduct a background check.
(Please ensure that your screening candidate is aware that a background check will be performed on them in order to avoid any liability issues.)

-Share results with the candidate: Upon completion of a background check and before making a final hiring decision, employers must inform candidates of their rights under the FCRA and offer them to opportunity to review (and dispute if necessary) any information within their report. (We always include this information in our authorization forms and offer to send a consumer copy electronically if requested.)

-Consider Equal Employment Opportunity Commission rules to findings review: Under the federal Equal Employment Opportunity Commission (EEOC), employers are banned from excluding potential hires based purely on past arrests or criminal records (unless directed otherwise by state or federal regulations) if the offense is not relevant to an applicants ability to perform their job. Employers should also remember to pay heed to various states “ban the box” regulations which can forbid them from asking about criminal records until after serious hiring consideration.
(Be sure to take each applicant on a case-by-case basis. Consider what the job requirements are, their personal character, if they have completed any rehabilitation programs, or if they have performed well in similar roles before.)

-Follow proper 2-step adverse-action procedures: If a background check does contribute to a decision against hiring, retaining, or promoting a candidate, an employer must issue the candidate written notice. This notice is knows as a pre-adverse action notification and gives the candidate a chance to refute or explain any findings before a hiring decision is final.
(Blueline Services is happy to provide guidance on this process. Our state of the art platform will also help create pre-adverse notifications for you to help streamline your process.)

-Finalize the hire: Once background checks have been conducted, any disputed facts have been corrected as needed, and candidates have been notified of any adverse actions (and given the chance to respond), an employer can then make the final hiring decision and notify all candidates of their final decision.

Here at Blueline Services we always work to stay up-to-date on all of the latest industry changes and updates to keep our clients on top of things. If you have any questions on how to stay FCRA compliant, please feel free to reach out to 888-919-8378 or backgrounds@blueline-services.com.

The post What Does It Mean To Be FCRA Compliant? appeared first on Blueline.

Along with establishing equal pay standards, employers are also now prohibited from asking potential employees about their compensation history. These new requirements apply to any Oregon employer with one or more employees. To minimize risk of charges or damages, employers are able to complete a thorough survey every three years regarding their work force to demonstrate that employees doing similar work are being paid similar amounts.

This new change may open the door for a slew of pay increases or potential complaints and issues for employers if they are not ready to follow the new law requirements. The Bureau of Labor and Industries (BOLI) has opened up numerous free best practice guides for Oregon employers who want to best understand how to comply with the new employment statute. (You can check out the guides here)

The equal pay act protects the following classes:

-Race
-Color
-Religion
-Sex
-Sexual orientation
-National origin
-Marital status
-Veteran status
-Disability
-Age

The exceptions to the act for acceptable pay differences include:

-Seniority or merit
-Work location
-Education
-Training
-Experience
-Or a combination of these factors

To see the full amendment to the law you can go to oregon.gov here. If you are an employer in Oregon and have any questions regarding this new legislation, please view the document and resources above to see if your questions can be answered or email our customer service team.

The post Oregon Equal Pay Act: What Employers Should Know appeared first on Blueline.

Those joining this movement are requiring employers to remove any employment screening questions that ask if an applicant has been convicted of a crime before. The exact details may differ from jurisdiction to jurisdiction, but the overall idea is the same. Also dubbed the “Fair Chance Hiring” movement, this campaign was set in motion in an effort to give those who have been convicted a fair chance at finding employment.

The Society for Human Resource Management has an up-to-date list here on what specific states and jurisdictions have “ban the box” restrictions in place for private employers. Stay up-to-date on your specific laws to stay FCRA compliant.

The post New Areas Take On Ban The Box And Fair Chance Laws appeared first on Blueline.