Category Archives: Recent Posts

Top 10 Trends for Background Checks in 2012 Reviewed in PIHRA Webinar on May 18

To help Human Resources professionals understand the current trends, best practices, and legal developments affecting due diligence and hiring, Attorney Lester Rosen, CEO of Employment Screening Resources (ESR), will present a webinar titled ‘The Top 10 Trends for Background Checks in 2012’ for the Professionals In Human Resources Association (PIHRA) on Friday, May 18, 2012 from 12:00 PM to 1:00 PM Pacific Time. To register for this program, which is approved for 1.0 general recertification credit hours toward PHR, SPHR, and GPHR recertification through the HR Certification Institute, visit: PIHRA Webinar ‘The Top 10 Trends for Background Checks in 2012’. Continue reading

Yahoo CEO Leaves Company after Discrepancy in Academic Credentials Revealed

On May 13, 2012, Yahoo! Inc. announced that Scott Thompson, the recently hired Chief Executive Officer who was revealed to have a discrepancy in his academic credentials included in online biographies and filings with the Securities and Exchange Commission, has left the company, and that the Board of Directors has named Ross Levinsohn as interim CEO to manage the day-to-day operations, effective immediately. The full text of the press release is available here: ‘Yahoo! Names Fred Amoroso Chairman and Appoints Ross Levinsohn Interim CEO’. Continue reading

Employment Screening Expert Reviews EEOC Guidance for Criminal Background Checks

Attorney Lester Rosen, founder and CEO of background check firm Employment Screening Resources (ESR), has submitted a letter of public comment to the U.S. Equal Employment Opportunity Commission (EEOC), the agency that enforces federal laws prohibiting employment discrimination, regarding the April 25, 2012 meeting where the EEOC voted 4-1 to approve updated Enforcement Guidance on the Consideration of Arrest and Conviction Records in Employment Decisions Under Title VII of the Civil Rights Act of 1964. The letter is available at: http://www.esrcheck.com/Les-Rosen-Public-Comment-on-EEOC-Criminal-Guidance.php. Continue reading

California Bill SB 1384 Would Authorize Consumers to Place Security Freezes on Consumer Reports

While existing law allows California consumers to place security freezes on their credit files maintained by the three major credit reporting agencies Equifax, Experian, and TransUnion, new legislation – Senate Bill 1384 (SB 1384) ‘Consumer Reporting Agencies Act’ – would authorize consumers to place similar security freezes on certain other consumer reports containing private financial information. Introduced by State Senator Joe Simitian (D-Palo Alto), SB 1384 defines a “nationwide specialty consumer reporting agency” and “consumer file” for purposes of California law and authorizes consumers to place security freezes on consumer files compiled and maintained by nationwide specialty consumer reporting agencies. The full text of the bill is here: California SB 1384. Continue reading

News Reports about Bank Firing Employee for 40 Year Old Shoplifting Charge Do Not Tell Entire Story

Recent news reports about how an employee of Wells Fargo in Milwaukee, Wisconsin was fired after a background check uncovered two 40-year-old shoplifting arrests from 1972 when she was 18 do not tell the entire story, according to one safe hiring expert, since there are two avenues that allow applicants and employees with minor offenses to work at banks. A Wells Fargo spokesman said the 58-year-old woman, who worked in customer service in the Home Mortgage department for five years and received numerous recognition awards, was terminated because Federal Deposit Insurance Corporation (FDIC) law prohibits the bank “from hiring or continuing the employment of any person who we know has a criminal record involving dishonesty or breach of trust.” Continue reading

Background Screening Firm Criticized for Offshoring Jobs and Personal Data of Americans to Foreign Country

A letter published on the Cleveland.com website criticizes a U.S.-based background screening firm for laying off local workers in the Ohio area in March of 2012 and “offshoring” both jobs and the personal data of American consumers collected for background checks outside of the country. The full text of the letter, written by Katharine Sarlog, a former employee of the company who was recently laid off, is available by clicking here: Katharine Sarlog letter. Continue reading

Yahoo CEO Education Record Mentioned in Biography Contained Discrepancy in Degree Awarded

In a recent example of the need for businesses to conduct education verifications during background checks, the newly hired Chief Executive Officer of Yahoo!, Scott Thompson, was found to have discrepancies in his educational record after a letter from Third Point LLC, owners of close to 6 percent of Yahoo! shares, pointed out that while numerous biographies and securities filings claimed Thompson held a Bachelor’s degree in accounting and computer science, a “rudimentary Google search” revealed that his degree was in accounting only.  The letter is available here: Third Point letter to Yahoo! (UPDATE: Yahoo! Board of Directors Forms Special Committee to Review CEO Academic Credentials). Continue reading

April 2012 Employment Situation Report Reveals Increase of 115000 Jobs

Nonfarm payroll employment rose by 115,000 jobs in April 2012 due to increases in professional and business services, retail trade, leisure and hospitality, and health care, while the unemployment rate fell to 8.1 percent from 8.2, according to ‘THE EMPLOYMENT SITUATION — APRIL 2012’ released today by the U.S. Department of Labor’s Bureau of Labor Statistics. The April 2012 report will be available at http://www.bls.gov/news.release/pdf/empsit.pdf until the May 2012 Employment Situation Report is released on Friday, June 1, 2012. Continue reading

April 2012 ADP National Employment Report Shows Private Sector Added 119000 Jobs

According to the April 2012 ADP National Employment Report® from Automatic Data Processing, Inc. (ADP®), U.S. private sector employment increased by 119,000 jobs from March 2012 to April 2012, with the private service providing sector adding 123,000 jobs during the month. However, employment in the private goods producing sector declined by 4,000 jobs in April 2012. The April 2012 ADP National Employment Report, which marked the twenty-seventh consecutive monthly jobs gain, is available at: http://www.adpemploymentreport.com/pdf/FINAL_Report_April_12.pdf. Continue reading

Larger Background Screening Companies Continue the Move to Offshore Processing of Background Check Reports

According to a report from the Associated Press (AP), a Minneapolis, Minnesota-based Consumer Reporting Agency (CRA) that performs employment screening for businesses will close two offices in South Dakota by the end of the year and move those jobs to new sites in Arizona, India, and the Philippines. The AP reports that the company, one of the largest background screening suppliers in the country, says the closings in Aberdeen, South Dakota and Mitchell, South Dakota are due to restructuring and will affect approximately 140 workers. The AP story is the latest case of a large U.S. background screening company “offshoring” the processing of background checks to foreign countries. Continue reading