Apr 23, 2012
EEOC to release new guidance on Use of Criminal Histories and Credit Checks
The EEOC is about to release new guidance on the use of Criminal Histories and Credit Checks as part of the hiring process. States and local governments also are targeting aspects of the hiring process. For example, several states are focusing on questions about prior criminal history on applications. These often are referred to as “Ban the Box” initiatives.Several state and federal court cases resulted in multi-million dollar settlements related to the use of credit checks. The recent Pepsi settlement for $3.13 million was related to the use of criminal background histories.
It is best practice to review your Background Screening Policies and Procedures regularly. You can start by:
- Reviewing your background check authorization and disclosures. Capitol One and Domino’s Pizza are being sued for burying their authorizations in a job application with “extraneous” information.
- Making sure applicants and employees receive copies of any reports used in taking adverse employment actions. Your third-party administrator can take the hassle out of administering the Adverse Action process.
- Using credit histories only when they are both job-related and justified by business necessity. The EEOC filed against Kaplan Higher Education in December 2010 on these issues.
- Requesting a Background Screening Policy Review
Call our Business Relationship team at 1.800.230.2991 to discuss how we can help you start or maintain a compliant background checking process.