ESR Newsletter and Legal Update

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January, 2004 Vol. 4, No. 1
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Employment
Screening Resources (ESR) Newsletter and Legal Update


1. The Sarbanes-Oxley Act and Background Checks for Public Companies

2. Negligent Hiring Cases Against Employers One of the Fastest Growing Areas of Litigation

3. New Background Screening Association Forms

4. Safe Hiring Workshops Available for Employers in 2004


1. The Sarbanes-Oxley Act and Background Checks
for Public Companies

As a result of the Sarbanes-Oxley Act of 2002, signed into law on July 30,
2002, publicly held companies have a new set of rules when it comes to
corporate ethics. The far-reaching law
radically changes the landscape when it comes to corporate governance,
controls, audits and financial disclosures.

Among the many critical provisions is section 404. That section requires that public firms
establish and maintain financial controls and processes, and conduct periodic
evaluations of the controls that are in place. What that means for public companies, according to experts, is that
corporations must have an ongoing effort aimed at instituting and documenting
corporate controls to ensure honesty and ethical dealing. Undoubtedly, any list of 404 compliance
tasks should include background checks.

For a more detailed report from ESR on the Sarbanes-Oxley
Act and background checks, contact Jared Callahan at ESR at 415-898-0044, or jcallahan@esrcheck.com, or go to http://www.esrcheck.com/Sarbanes-Oxley_compliance.php


2. Negligent Hiring Cases Against Employers
One of the Fastest Growing Areas of Litigation

According to a very detailed legal article on negligent hiring
lawsuits, “One of the fastest growing areas of tort litigation involves the
imposition of liability upon third parties for intentional or criminal acts
committed by one person against another
.” 29 Am Jur Trials, Sec. 1

This quote is from an in-depth article written for the purpose
of assisting lawyers who are either suing employers or defending employers in
negligent hiring lawsuits. The fact
that there are how-to books written expressly for lawyers, just for negligent
hiring cases, should be a wake-up call for employers that Safe Hiring is a
priority if they want to stay out of court.

According
to one recent survey of reported California jury verdicts in employment cases,
employers lose 60 percent of negligent hiring/supervision lawsuits. There is no reason to believe the figures
are significantly different in other states. According to information from the Insurance
Information Network of California,negligent hiring and retention out-of-court settlements due to workplace violence lawsuits averaged more than $500,000. If the
matter went to a jury trial, the verdicts in those cases averaged
about $3 million,
not including the cost of a lawyer. In
a case that simply settles without a trial, attorney fees alone can easily
reach into the six-figures.


3. New Background
Screening Association Forms

The first national
non-profit trade association for the pre-employment background screening
industry has been formed and will begin its first full year of operating in
2004. It is the National Association of
Professional Background Screeners (NAPBS).

The organization
is committed to:

1) Developing and promoting
ethical business practices

2) Promoting compliance with the Fair Credit Reporting Act

3) Fostering awareness of consumer protection, privacy and other issues related to background screening

Employment Screening
Resources (ESR) was pleased to have supported the new organization along with a
number of other firms as a founding member. See www.NAPBS.com.


4. Safe Hiring Workshops
Available for Employers in 2004

ESR founder and attorney Lester S. Rosen is featured in the following
presentations at locations throughout the United States:

April 20-21, 2004-Washington,
D.C. SHRM 35th Annual Employment Management Association (EMA)
Conference and Exposition.
Topic: “Safe Hiring
Audit-Implementing and Measuring Due Diligence in Your Hiring.”

April 13, 2004–Houston, TX “How to Avoid Hiring Criminals
and Problem Employees.”
Gulf Coast Symposium. See www.hrhouston.org

April 6, 2004–Oakland, CA “Privacy in the Workplace.” Seminar
sponsored by Lorman Seminars (www.Lorman.com)

March 23, 2004-San Jose, CA “Identify Theft: How
Individuals and Businesses Can Protect Against Fraud and New Legal Obligations
of Employers.”
San Jose EAC (breakfast meeting).

March 10, 2004–Stockton, CA “Crimes,
Criminals and Human Resources.”
San Joaquin Human Resource
Association (SJHRA) at Noon. See www.sjhra.org

February 24, 2004–San Francisco, CA “Drugs, Sex and Murder–An
Introduction to Safe Hiring and Pre-employment Screening in California.”
(A three-hour workshop sponsored by he NCHRA–details to be announced)

February 19, 2004–Newark/Fremont,
CA “Drugs, Sex and Murder–An
Introduction to Safe Hiring and Pre-employment Screening in California.”
(A three-hour workshop sponsored by he NCHRA-details to be announced)

February 11, 2004–Sacramento,
CA “Legal Pre-employment
Background Investigations for Security Professionals: New Laws and New
Challenges.”
ASIS Sacramento Chapter

February 6, 2004-Palm
Springs, CA “Everything You
Need to Know about the FCRA and Background Checks, and the New Federal and
California Law.”
CALI Mid-Winter Conference. See www.CALI-PI.org

See the ESR Speaking Schedule at http://www.esrcheck.com/ESR_Speaks.php


Please feel free to
contact Jared Callahan at ESR at 415-898-0044
or jcallahan@esrcheck.com if
you have any questions or comments about the matters in this newsletter. Please
note that ESR’s statements about any legal matters are not
given or intended as legal advice.


Employment
Screening Resources (ESR)
 

www.ESRcheck.com

1620
Grant Avenue, Suite 7
 

Novato, CA 94945

415-898-0044

Employment Screening
Resources (ESR
)
Rated Top Background Screening Firm in First Independent Industry Study

http://www.ereleases.com/pr/2002-12-12e.html

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