Category Archives: Recent Posts

FDIC Modifies Statement of Policy for Section 19 of Federal Deposit Insurance Act

In December of 2012, the Federal Deposit Insurance Corporation (FDIC) Board of Directors modified the Statement of Policy (SOP) for Section 19 of the Federal Deposit Insurance (FDI) Act which prohibits a person convicted of a criminal offense involving dishonesty, breach of trust, money laundering, or who has entered into a pretrial diversion program, from working at an FDIC-insured institution without prior written consent of the FDIC. The updated SOP for Section 19 of the FDI Act, which includes modifications the de minimis exceptions regarding the potential fine and the number of days of imprisonment, is available on the FDIC website at http://www.fdic.gov/news/news/financial/2013/fil13003.html. Continue reading

New EEOC Criminal Record Guidance Subject of Session at SHRM Conference in Albuquerque on February 25

Attorney Lester Rosen, a safe hiring expert and founder and CEO of background check firm Employment Screening Resources (ESR), will present a session titled ‘Practical Steps to Comply with the New Equal Employment Opportunity Commission (EEOC) Criminal Record Guidance’ at the 2013 Society for Human Resource Management (SHRM) NM Employment Law & Legislative Conference in Albuquerque, New Mexico on Monday, February 25, 2013 from 2:00 PM to 3:15 PM MST. For more information and to register for the SHRM conference, visit http://www.shrmnm.org/2013_Legislative_Conference.aspx. Continue reading

DOL Office of Contract Compliance Programs Issues Directive on Use of Criminal Records for Background Checks

The Department of Labor’s (DOL) Office of Contract Compliance Programs (OFCCP) has issued a new Directive on ‘Complying with Nondiscrimination Provisions: Criminal Record Restrictions and Discrimination Based on Race and National Origin.’ The OFCCP Directive advises federal contractors and subcontractors about potential discriminatory liability resulting from using criminal records for employment background checks and warns policies that exclude workers with criminal records without taking into account the age and nature of the offense could violate Title VII of the Civil Rights Act by adversely impacting minority candidates. The OFCCP Directive, which took effect immediately, is available at http://www.dol.gov/ofccp/regs/compliance/directives/dir306.htm. Continue reading

Workplace Romances Can End Happily in Marriage or Sometimes Unhappily in Lawsuits Against Employers

Just in time for February 14, the annual CareerBuilder Valentine’s Day Survey has revealed that 3 in 10 workers – 30 percent – who have dated a co-worker said their workplace romance led to marriage. However, the fact that nearly a third of all romances that started in the workplace resulted in marriage also means that more than two-thirds of such relationships may have already ended, perhaps even in a potentially messy breakup that could be bad for business. Continue reading

Safe Hiring Expert Lester Rosen Discusses Top Background Check Trends for 2013 on The Proactive Employer

Attorney Lester Rosen, a safe hiring expert and Founder and CEO of background check firm Employment Screening Resources (ESR), discussed ‘The Top Ten Trends for Background Checks in 2013 – What Every Employer Needs to Know’ during an interview by Stephanie R. Thomas, Ph. D., the host of The Proactive Employer, on February 7, 2013. To listen to the interview of Lester Rosen, visit http://www.blogtalkradio.com/theproactiveemployer/2013/02/07/the-top-10-trends-for-background-checks-in-2013. Continue reading

California Supreme Court Ruling on Discrimination Case Involving Mixed Motive May Impact Fair Employment and Housing Claims

On February 7, 2013, the California Supreme Court issued a unanimous decision in a case – Harris v. City of Santa Monica – that involved the “mixed motive” theory where the employer has both legitimate and discriminatory reasons for job actions such as termination and discipline. The Court ruled an employer can defeat an employee’s claim for damages in a discrimination case by proving with a preponderance of evidence it would have terminated the employee anyway for lawful reasons.  The ruling on Harris v. City of Santa Monica is available at http://www.courts.ca.gov/opinions/documents/S181004A.PDF. Continue reading

FTC Study on Credit Report Accuracy Finds One in Five Consumers has Error on Their Credit Reports

A Federal Trade Commission (FTC) study of accuracy in the U.S. credit reporting industry has found that one in five consumers – an estimated 40 million Americans, according to a ‘60 Minutes’ report on the FTC study – had an error on at least one of their three major credit reports while five percent had significant errors on one of their credit reports that could result in less favorable terms for auto loans and insurance. The full text of the FTC report is available at http://www.ftc.gov/os/2013/02/130211factareport.pdf. Continue reading

Allegation of Failure to Update FCRA Compliance Forms by National Retailer Leads to 3 Million Dollar Settlement

A large national retailer has settled an employment class action lawsuit for $3 million that alleged the company violated the federal Fair Credit Reporting Act (FCRA) by failing to send proper notices to nearly 65,000 plaintiffs who were job applicants. More detailed information about the settlement reached in Pitt v. KMart Corp., Case No. 11-cv-00697 is available at: http://www.archive.org/download/gov.uscourts.vaed.272989/gov.uscourts.vaed.272989.56.0.pdf. Continue reading

Legislation Introduced in Rhode Island Would Establish E-Verify Compliance Chapter in State Law

Rhode Island Representative Peter G. Palumbo (D-Dist. 16, Cranston) has introduced legislation – (2013-H5236) – that would establish an E-Verify Compliance chapter in state law requiring all employers in the state to participate in the federal program, according to a press release from Representative Palumbo. The legislation would require employers with 200 or more employees to use E-Verify no later than January 1, 2014, while employers with between 50 and 200 workers would have until July 1, 2014 and employers of 50 or fewer workers would have until January 1, 2015 to comply. To read the full version of (2013-H5236), visit http://webserver.rilin.state.ri.us/BillText13/HouseText13/H5236.pdf. Continue reading

Bad Hires Affected Nearly Seven in Ten Businesses in Past Year According to CareerBuilder Survey

Nearly seven in ten businesses were affected by a “bad hire” of a worker in the past year and nearly one in four employers reported a bad hire cost them more than $50,000, according to a CareerBuilder survey of nearly 2,500 hiring managers and human resource professionals that shows the cost of incorrectly choosing a new employee can be high. More information about the survey can be found at: http://www.careerbuilder.com/share/aboutus/pressreleasesdetail.aspx?sd=12/13/2012&sc_cmp1=cb_pr730_&siteid=cbpr&id=pr730&ed=12/31/2012. Continue reading