Background Checks & Credit Reports

 On March 13th, Commissioner Victoria Lipnic of the Equal Employment Opportunity Commission (EEOC) spoke at an event on "Due Diligence, Background Checks and Employment: Protecting the Safety of Employees, Customers and At-Risk Populations." Lipnic stated that the EEOC is "likely" to issue new guidance to employers on the use of both criminal history and credit background checks in the near future.

Regarding criminal history, Lipnic noted that the EEOC was unlikely to establish a strict rule about the specific period of time after which a conviction could no longer be considered in making employment decisions. Lipnic, however, cautioned that employers should avoid "blanket" bans on hiring individuals with criminal convictions as such bans could have a disparate impact on certain minority groups.

The event was hosted by the National Association of Professional Background Screeners, the Consumer Data Industry Association, and the U.S. Chamber of Commerce.

(http://www.eeoc.gov/eeoc/lipnic.cfm)

FTC Issues Employers Guidance for FCRA

The Federal Trade Commission (FTC) issued Employers Guidance for the use of Consumer Reports. 

While this information is not new, the Guidance is another step by the Federal Government, both the FTC and EEOC, to ensure that companies are following the Fair Credit Reporting Act(FCRA).

Please review these brief guidelines to ensure your company is in compliance.