If your company gets background information on prospective employees, it’s likely you’re covered by the Fair Credit Reporting Act. Before you get a background screening report, the law requires that you make certain disclosures and get a prospective employee’s authorization. Is it time for a FCRA compliance check?
As we’re well into 2017, quite a few legislative changes have developed since January. With passed and potential bills affecting the multifamily industry and employment on a nationwide and state level, check below to see if you’re affected.
With the credit bureaus’ new National Consumer Assistance Plan (NCAP) hot on our heels, it’s starting to look like these future changes could actually improve millions of U.S. credit scores. While a score boost definitely rears in the rental applicants’ favor, these new standards might be a little disconcerting for property managers and property owners where tax liens and civil judgments play an important role in the rental decision.
California’s Fair Employment and Housing Council (“FEHC”) has released new regulations that would greatly affect California employers. Parts of the FEHC’s new regulations differ from current Federal regulations (like the consideration of marijuana convictions). The following guidance has been released from Anthony J. Oncidi and Jeremy M. Mittman at Proskauer Rose LLP:
From enforcing “Ban the Box” regulations on Los Angeles employers to potentially prohibiting Texan counties and cities from enacting “Ban the Box” legislation, passed and proposed legislation has, for the most part, favored the movement. While the federal Fair Chance Act has been halted since it was proposed in 2015, many states, cities, and counties have enacted their own “Ban the Box” legislation this year.
As a hiring manager, you know well that employment screening is one of the most effective ways to help you determine if an applicant is the right fit for your company. In fact, according to the U.S. Department of Labor, 87% of companies rely on background checks for hiring decisions. Although the benefits of pre-employment screening include an increase in employee quality and a decrease in liabilities, the advantages of pre-employment screening are short lived. As Ryan Green points out in his article, “employees with inclinations towards activities that violate company policy rely on the fact that their job will stop looking into their background once they are hired.” The solution? Annual background checks.