Adding to the debate over whether globalization negatively affects the U.S. economy, new data from the U.S. Commerce Department shows that multinational corporations in the United States – familiar big brand-name companies which employ nearly 20 percent of all American workers – reduced their domestic workforce by 2.9 million jobs during the last decade while at the same time increasing their overseas workforce by 2.4 million jobs, the Wall Street Journal reports in the article ‘Big U.S. Firms Shift Hiring Abroad.’ Continue reading
While only four U.S. states – Hawaii, Oregon, Washington, and most recently Illinois – currently have laws limiting or prohibiting credit checks by employers on job applicants and employees, lawmakers in many U.S. states are currently proposing legislation restricting the use of credit reports for employment screening background checks.
In all, lawmakers in 18 U.S. states are considering bills that limit the use of credit report data for employment screening. These states include: California, Connecticut, Florida, Georgia, Indiana, Kentucky, Maryland, Michigan, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, Ohio, Pennsylvania, Texas, and Vermont. Continue reading
A recent article by two labor and employment attorneys published on the Association of Corporate Council (ACC) website – ‘Top Ten State Background Issues’ – summarizes key state background check issues that employers need to know about since there are an increasing number of state issues that must be considered by employers when conducting employment screening and drug testing on job applicants. Continue reading
According to a story that reflects a parent’s nightmare – ‘Mom says background checks are needed for college RAs’ – a mother in Tennessee wants a law that would require background checks on college resident assistants (RAs) after a University of Tennessee at (UT) Chattanooga student and former RA at the university was accused of placing surveillance cameras hidden in alarm clocks in the dorm rooms of her daughter and several other students. Police arrested the student – who was previously convicted on charges that included burglary, arson, harassment, and stalking – on more than a dozen charges. Continue reading
State lawmakers in Maryland have proposed legislation that would limit the ability of employers to run credit checks using credit reports and credit histories of employees and job applicants for employment purposes in response to complaints from job seekers in the state who said they were denied jobs after their would-be employers learned about their low credit scores, according to an article in The Baltimore Sun. Continue reading
In an effort to keep Human Resources (HR) leaders and professionals informed about the latest legislative, compliance, and regulatory issues affecting how they conduct day-to-day business in their workplaces – including employment screening and safe hiring – the Society for Human Resource Management (SHRM) will hold the 2011 SHRM Employment Law and Legislative Conference from Monday, March 14, 2011 to Wednesday, March 16, 2011 at the Hyatt Washington in Washington D.C.. For more information about the conference, visit: http://www.shrm.org/Conferences/EmploymentLawLegislativeConference/Pages/default.aspx. Continue reading
To avoid bad hiring decisions, employers have increasingly turned to pre-employment background screening as a risk management tool. However, no employment screening program can be conducted by employers without a full understanding of a number of laws including the Fair Credit Reporting Act (FCRA), discrimination and privacy laws, and the Americans with Disabilities Act (ADA). The challenge is even greater for California employers who must use caution when dealing with additional rules regulating employment screening. Continue reading
More than half of consumers approve of the idea of banning the use of job applicant credit reports by employers for employment screening, according to a recent survey.
A telephone poll survey conducted for Credit.com by GfK Custom Research North America from January 14, 2011 to January 16, 2011 interviewed 1,004 consumers about:
Employers have the right, with your permission, to check your credit report as part of background screening for employment. A number of lawmakers are interested in banning this practice – do you… Continue reading
A staffing firm that places individuals in temporary positions with independent employers cannot be sued under the federal Fair Credit Reporting Act (FCRA) when a background check firm hired by the staffing firm delivers a background check report that is inaccurate or erroneous.
In a case from the United States District Court for the Eastern District of Tennessee, a staffing firm retained an employment screening firm to provide a background check report. The background check report indicated that the plaintiff had been convicted of a felony and misdemeanor, had served jail item, was serving probation, and had made restitution for theft and assault. Continue reading
A proposed Colorado law would restrict the use of credit reports of job applicants by employers to certain situations, and make employers that use the information adversely indicate what information they relied upon in the credit report to make their decision. Continue reading