If your company gets background information on prospective employees, it’s likely you’re covered by the Fair Credit Reporting Act. Before you get a background screening report, the law requires that you make certain disclosures and get a prospective employee’s authorization. Is it time for a FCRA compliance check?
Employment Screening Tips
California’s Fair Employment and Housing Council (“FEHC”) has released new regulations that would greatly affect California employers. Parts of the FEHC’s new regulations differ from current Federal regulations (like the consideration of marijuana convictions). The following guidance has been released from Anthony J. Oncidi and Jeremy M. Mittman at Proskauer Rose LLP:
From enforcing “Ban the Box” regulations on Los Angeles employers to potentially prohibiting Texan counties and cities from enacting “Ban the Box” legislation, passed and proposed legislation has, for the most part, favored the movement. While the federal Fair Chance Act has been halted since it was proposed in 2015, many states, cities, and counties have enacted their own “Ban the Box” legislation this year.
As a hiring manager, you know well that employment screening is one of the most effective ways to help you determine if an applicant is the right fit for your company. In fact, according to the U.S. Department of Labor, 87% of companies rely on background checks for hiring decisions. Although the benefits of pre-employment screening include an increase in employee quality and a decrease in liabilities, the advantages of pre-employment screening are short lived. As Ryan Green points out in his article, “employees with inclinations towards activities that violate company policy rely on the fact that their job will stop looking into their background once they are hired.” The solution? Annual background checks.
In addition to new multifamily housing legislation, 2017 has come with a few employment legislation changes as well. Here are some employment bills that passed this year that affect all employers, especially those in California and New York.
Texas Judge Preliminarily Enjoins New Overtime Exemption Rules Nationwide: What Steps Should Follow?
By: Seyfarth’s Wage & Hour Litigation Practice Group
**UPDATE 12/2/16: On December 1 (the day on which the new salary level was supposed to become effective) the Department of Justice and Department of Labor filed a notice of appeal from the district court’s order granting a preliminary injunction. The notice was filed around the same time that a number of members of Congress held a media event in support of the increased salary level. According to Seyfarth Shaw LLP, at this time, it does not appear that the government has sought a stay of the preliminary injunction. Subscribe for continued updates**
Late Tuesday afternoon, Judge Amos Mazzant of the United States District Court for the Eastern District of Texas issued an order enjoining the U.S. Department of Labor’s implementation and enforcement of the new overtime exemption rules that were set to go into effect on December 1, 2016. The court granted a motion for preliminary injunction filed by the attorneys general of 22 states, in which the states argued among other things that the new rules were unlawfully promulgated and would be likely to cause irreparable harm to the states that requested the injunction. The court also considered amicus arguments made by various chambers of commerce and trade associations, which filed a companion case asserting similar and separate grounds for overturning the DOL’s new rules. Although the court’s order leaves some room for confusion on this point, it appears to apply to all public and private sector employers nationwide.
With several states voting on the legalization of marijuana this November, you’ll want to prepare your employee policy in case it passes in your state. As we stated in Employee Marijuana Use: Companies Still Have a Say, “so long as marijuana is deemed illegal under federal statues employers are within their rights to take action against employees, and even applicants”. While the U.S. Department of Housing and Urban Development (HUD) released a memorandum also siding with federal law in 2015, as marijuana becomes legalized in more states, you might want to include language in your employee policy that further protects your company.
Insuring that your new business partners, vendors, and clients are trustworthy and reliable is a huge priority. You don’t want your business to be vulnerable to threats. Just as you perform background screening on potential employees, why not do the same to businesses as well? By running an Experian® Business credit report online, you’ll find out who are trustworthy, sidestepping risks to your business and reputation.
What is an Experian® Business Credit Report?
An Update to this law has been posted here!
Effective December 1, 2016 a new change to labor laws will go into effect that directly affects salary exempt employees across the United States. To learn how this change might affect you and your business, review this helpful infographic originally provided by the legal professionals at Seyfarth Shaw LLP.
With some applicants giving fraudulent paystubs and residents listing their homes on Airbnb, depending on your team to protect your property is more important than ever. But, what if your employees are actually the ones taking advantage of you? While it’s essential that you trust your employees to do their job, it’s just as vital to enact some measures that’ll prevent employee embezzlement from ever occurring.