presents presents Pre-Employment Background Screening: Legal Pitfalls g Avoiding Discrimination and Fair Credit Reporting Act Claims A Live 90-Minute Teleconference/Webinar with Interactive Q&A Today's panel features: Rod M. Fliegel, Shareholder, Littler Mendelson , San Francisco Robert Pickell, Senior Vice President of Customer Solutions, HireRight, Inc. , Irvine, Calif. Shawn Bushway, Associate Professor, University at Albany , Albany, N.Y. Shawn Bushway Associate Professor University at Albany Albany N Y Wednesday, September 8, 2010 The conference begins at: The conference begins at: 1 pm Eastern 12 pm Central 11 am Mountain 10 am Pacific 10 am Pacific You can access the audio portion of the conference on the telephone or by using your computer's speakers. Please refer to the dial in/ log in instructions emailed to registrants.
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4 Pre-Employment e g a l Pitfa lls l Pitf ll Background p y Screening L L Se pte mb e r 8, 2010
Rod F lie g e l, E sq. L ittle r Me nde lso n, P.C. Robe rt Pic ke ll Hire Rig ht I Hire Rig ht, I nc ., nc I rvine , CA Prof. Sha wn Bushwa y Univ. a t Alb a ny Se pte mb e r 8, 2010 5
Agenda Agenda I t Introduc tion to Ba c kg round Re ports d ti t B k d R t – Rob Pic ke ll, Hire Rig ht g L e g a l Ove rvie w – Rod F lie g e l, L ittle r L L a te st Sc hola rship a te st Sc hola rship – Prof. Sha wn Bushwa y 6
Background Reports Background Reports Rob Pic ke ll, SVP Custome r Solutions Hire Rig ht Solutions, Hire Rig ht 7
A “Typical” Background Report Report 8 Privileged and Confidential
Background Report Overview Background Report Overview E E Sa mple Sc re e ning Se rvic e s Sa mple Sc re e ning Se rvic e s a c h individua l ba c kg round re port a c h individua l ba c kg round re port is a fa c tor of: • County, State & F e de r al c r iminal r e c or ds • National c r iminal database r e c or ds • T he spe c ific de ta ils of the individua l be ing • Inte r national c r iminal r e c or ds se ar c he s sc re e ne d • S Se x Offe nde r Off d R Re gistr i t y Se ar S c he s h • T he unique c ombina tion of se rvic e s • Addr e ss Histor y Se ar c h re que ste d for the sc re e n • Soc ial Se c ur ity Numbe r Validation • E mployme nt Ve r ific ations Se rvic e s se le c tion drive n by • E E duc ation Ve r duc ation Ve r ific ations ific ations spe c ific re quire me nts • Cr e dit Histor y • Motor Ve hic le Re c or ds Che c ks • Industry spe c ific issue s • Comme r c ial Dr ive r s L ic e nse Che c ks • Position a nd c ompe nsa tion • Pr ofe ssional L ic e nse Ve r ific ation • Pr ofe ssional Cr e de ntial Ve r ific ation • Compa ny polic y • Pr ofe ssional Re fe r e nc e Che c ks • Gove rnme nt re g ula tions • Civil Cour t Re c or ds Se ar c he s • Ge og ra phy • Militar y Re c or d Ve r ific ation • Inte r national Bac kgr ound Che c ks Individua l se rvic e re sults ma y va ry • Dr ug and He alth Sc r e e ning ba se d on supplie r spe c ific fa c tors 9 • National T he ft Database
Producing a Background R p Report t Hire Rig ht E E nte rprise ™ nte rprise ™ Hire Rig ht E xpre ss ™ Pre - Inte g ra te d Solution Solution E mployme nt Applic a tion Solution Solution 10 Privileged and Confidential
Background Screening S l ti Solutions Hire Rig ht E Hire Rig ht E nte rprise ™ nte rprise ™ • Unifie d solution for g loba l org a niza tions • Comple te prog ra m visibility • Config ura ble to c lie nt- spe c ific polic ie s • Inte g ra tion with HR a pplic a tions • E xte nde d workforc e func tiona lity • Compre he nsive c omplia nc e fe a ture s Hire Rig ht E xpre ss ™ • E a sy- to- use solution for sma ll busine sse s • Built a round be st pra c tic e s a nd sta nda rds • No c onfig ura bility or c ustomiza tion • Pa y a s you g o, c re dit c a rd pa yme nt • Ba sic se rvic e s a nd se a rc he s 11 Privileged and Confidential
2010 Screening Practices g Hire Rig ht produc e s a nnua l be nc hma rking Hire Rig ht produc e s a nnua l be nc hma rking re port Provide s re le va nt informa tion for c ompa ring Provide s re le va nt informa tion for c ompa ring polic ie s, prog ra ms, a nd pra c tic e s – He lps org a niza tions to a dva nc e the ir sc re e ning prog ra ms • I de ntifie s stre ng ths a nd we a kne sse s • Hig hlig hts pro c e ss impro ve me nts • Suppo rts c ha ng e ma na g e me nt – More tha n 1,800 pe rsons from org a niza tions of a ll size s a nd industrie s pa rtic ipa te d p p – www.Hire Rig ht.c om/ be nc hma rking 12
Almost All Respondents Screen p J Just thre e pe rc e nt of t th t f org a niza tions c ontinue to ig nore sc re e ning – 92 pe rc e nt re quire ba c kg round sc re e ning – 73 pe rc e nt re quire drug 73 pe c e e qu e d ug or a lc ohol te sting – 28 pe rc e nt utilize the DHS E - Ve rify syste m y y E -Ve rify is ra pidly g ro wing po st-hire sc re e ning pra c tic e sc re e ning pra c tic e 13 *Sourc e : 2010 Hire Rig ht Be nc hma rking Surve y n=1800
Screening Coverage by Worker T p Type Almost a ll pote ntia l Almost a ll pote ntia l re g ula r hire s a re sc re e ne d – T wo- thirds of c onting e nt works not sc re e ne d – E xisting e mploye e re c urring sc re e ning holding ste a dy a t 16 pe rc e nt L a rg e g a ps still e xist in sc re e ning pro g ra m c o ve ra g e 14 *Sourc e : 2010 Hire Rig ht Be nc hma rking Surve y n=1800
Screening Policy Applied C Consistently i t tl Org a niza tions ofte n sc re e n the ir e ntire workforc e simila rly – Some org a niza tions va ry the ir sc re e ning by role or othe r fa c tor – Be c oming more importa nt due to re g ula tions Jo b title & pa y le ve ls b e c o ming fa c to rs in de te rmining o ptio ns de te rmining o ptio ns 15 *Sourc e : 2010 Hire Rig ht Be nc hma rking Surve y n=1800
Active Evolution of Screening Programs Org a niza tions re g ula rly re fine the ir sc re e ning prog ra ms p g – Almost one in four fre que ntly ma ke re fine me nts or improve me nts – Only 1 in 20 re port a sta tic prog ra m p g F re q ue nt pro g ra m mo dific a tio ns b e c o ming pre va le nt b e c o ming pre va le nt 16 *Sourc e : 2010 Hire Rig ht Be nc hma rking Surve y n=1800
Key Screening Program Challenges y g g g F F a c tors re la te d to spe e d a re t l t d t d the most c ha lle ng ing a spe c ts of sc re e ning – Sc re e ning fa c e s ne w c ha lle ng e s: furloug he d c ourts, re sponse time c ha lle ng e s for ve rific a tions – Polic y de ployme nt a nd c omplia nc e ma na g e me nt top issue s a fte r time - to- hire T ime -to -hire issue s a re to p pro g ra m c ha lle ng e s c ha lle ng e s 17 *Sourc e : 2010 Hire Rig ht Be nc hma rking Surve y n=1800
Most Report Adverse Rates of <10% <10% Adve rse ra te s of <10% typic a l – Almost 30% re port hig he r a dve rse ra te s – Nine pe rc e nt a ve ra g e a dve rse ra te s re porte d on drug or a lc ohol te sts – Se ve n pe rc e nt a ve ra g e a dve rse ra te s re porte d on e mployme nt e lig ibility ve rific a tions Adve rse ra te s re po rte d c o nsiste nt with 2009 with 2009 18 *Sourc e : 2010 Hire Rig ht Be nc hma rking Surve y n=1800
Candidate Misinformation High f g On a ve ra g e , 10% of a pplic a nts provide untruthful informa tion – 70% of re sume s ha ve misinforma tion (a s re porte d by re sponde nts) p ) – E mployme nt a nd e duc a tion va lida tion c le a rly c ritic a l Co nflic ting e vide nc e o n whe the r fa lse info rma tio n inc re a sing 19 *Sourc e : 2010 Hire Rig ht Be nc hma rking Surve y n=1800
Legal Overview Legal Overview Rod F lie g e l, Sha re holde r, L ittle r 20
The Legal Landscape The Legal Landscape “I f “Infra struc ture L t t L a ws” ” (e .g ., the F a ir Cre dit Re porting Ac t or "F CRA") “De c ision Ma king L De c ision Ma king L a ws” a ws (e .g ., T itle VII of the Civil Rig hts Ac t of 1964) 1964) 21
Summary of Key Points Summary of Key Points 22
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