Background Checks & Risk Management
Presented to:
Charity First
10/21/2015
About Us
• Provider of comprehensive background checks and employment screening
solutions
• In business since 1996
• A Verisk Analytics (NASDAQ: VRSK) business
• Accredited through the National Association of Professional Background
Screeners (NAPBS). Only 10% of eligible companies are accredited.
• Named to Human Resource Outsourcing (HRO) Today magazine’s 2014
Baker’s Dozen list of the nation’s top 13 outsourced screening providers.
– 5th overall and our 6th appearance on the list.
• Listed on the 2015 Workforce Management Hot List of background
screening providers for the ninth consecutive year.
Importance of Background Checks
• Employers routinely request background checks for potential new hires and
existing employees. They rely on background screens to make informed
hiring decisions and to help mitigate risks:
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Workplace violence
Employee theft
Negligent hiring lawsuits
Loss of business and/or customers
Lost time recruiting, hiring and training
• Poor hiring practices can lead to many kinds of risks which = Claims
• While pre-employment screening is only part of the hiring process, it does
provide employers with an extra level of assurance against hiring
employees who could cost them millions in lawsuits or thousands to replace
them.
Compliance
• A key component of any background screening program is remaining
compliant with the Fair Credit Reporting Act (FCRA).
– The Federal Trade Commission (FTC) enforces the FCRA.
– The Consumer Financial Protection Bureau (CFPB) is tasked with
interpreting and rulemaking for the FCRA as a result of the Dodd-Frank
Act of 2010.
– Consumer Reports: information prepared by a consumer reporting
agency “bearing on a consumer’s credit worthiness, credit standing,
credit capacity, character, general reputation, personal characteristics,
or mode of living which is used or expected to be used or collected in
whole or in part for the purpose of serving as a factor in establishing the
consumer’s eligibility for—credit or insurance to be used primarily for
personal, family, or household purposes; employment purposes” or
other permitted purposes.
– It is mandatory for employers using a 3rd party to conduct background
checks on job applicants or existing employees to comply with the rules
and regulations outlined in the FCRA.
What Policies/Procedures should be followed?
• The requirements include procedures that employers must follow before
ordering a consumer report, and steps employers must follow if they intend
on using any of the information, in whole or in part, from the consumer
report to take adverse action. Organizations must understand their
obligations under the FCRA and other federal, state, and local laws.
• Consumer Reporting Agencies (CRAs) that furnish consumer reports (i.e.
background screening companies) must also comply with the FCRA.
• Be aware that 20 states have their own consumer reporting laws that are
stricter and serve as a supplement to the federal FCRA.
– AK, CA, CO, GA, HI, IL, KS, KY, MD, MA, MI, MN, MT, NV, NH, NM, NY, OK,
TX, WA
Disclosure and Authorization: What You Should
Know
• FCRA requirements
– Disclosure Notice – prior to acquiring background report
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Blanket disclosures are permitted for the duration of employment.
MUST be clear, conspicuous and in writing.
Should be in a document consisting “solely of the disclosure”.
May NOT be part of a printed employment application.
Avoid extraneous information.
Do not include “release of liability” or “hold harmless” statement.
– Written Consent/Authorization
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May be a blanket authorization covering duration of employment.
Consent must be obtained prior to the background check being requested.
Separate page (paper or online) and not part of an application.
Avoid extraneous information.
Do not include “release of liability” or “hold harmless” statements.
Adverse Action: What You Should Know
• FCRA requirements
– Pre-Adverse Action Notice
• Summary of Rights
• Copy of Report
• By giving notice in advance, the person has an opportunity to review and explain.
– Post Adverse Action
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Summary of Rights
Copy of report
Name address and phone # of company that provided the report
Statement that the provider of the report did not make the hiring decision
– This two step process is for the Employment Purpose only.
– Consumers also have the ability to request a copy of the report from the CRA
that provided the employer the results
Additional Guidance
• Equal Employment Opportunity Commission (EEOC)
– An agency of the federal government, the EEOC enforces federal laws
prohibiting job and workplace discrimination. Created by the Civil Rights Act of
1964, employers must not deny employment or promotions based on an
individual’s race, color, national origin, religion, sex, gender, age, disability,
genetic information, and/or retaliation for reporting, participating in, and/or
opposing a discriminatory practice.
– The EEOC also publishes guidance on the use of criminal records.
• EEOC issued new guidelines on April 25, 2012.
– Employers need to consider the nature of the crime, time elapsed, and nature of
the job when using criminal information for screening employees.
– Employer’s policy or practice for excluding applicants based on criminal
conviction must include an evaluation that such exclusion is “job related for the
position in question and consistent with business necessity.”
What You Should Consider – Ban the Box
• Some state/local laws dictate when you can run the BC.
• “Ban the Box” – When are you allowed to ask if someone has a criminal
conviction?
– It is best practice to remove this question from your application. Some states
have specific rules on when you are able to ask the question.
– 17 states have passed Ban the Box laws: CA, CO, CT, DE, GA, HI, IL, MD, MA,
MN, NE, NJ, NM, OH, RI, VT, VA.
– Additionally, over 100 cities and counties have passed some form of Ban the
Box laws.
• EEOC guidelines state:
– The policy rationale is that an employer is more likely to objectively assess the
relevance of an applicant’s conviction if it becomes known when the employer is
already knowledgeable about the applicant’s qualifications and experience. As
best practice, and consistent with applicable laws, the Commission recommends
that employers not ask about convictions on job applications and that, if and
when they make such inquiries, the inquiries be limited to convictions for which
exclusion would be job related for the position in question and consistent with
business necessity.
What You Should Consider
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Have a screening policy and put it in writing
Determine which checks are relevant to the position
Arrest records should not be used in your hiring decision
Conduct individualized assessments
Apply consistent screening methods for each job position
Conduct regular background screening program audits
– Review your program to be sure you are in compliance with ever changing laws
and legislation.
• FTC/EEOC Joint Publication “Background Checks: What Employers Need
to Know” Link to Publication:
– http://www.eeoc.gov/eeoc/publications/background_checks_employers.cfm
Affiliation Benefits
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Provide a value added service
Offer a pre-negotiated rate that is discounted from retail pricing
Helps reduce overall risk and loss due to negligent hiring
Can positively impact your indsureds’ bottom line
Differentiate yourself from the competition
We educate your clients on how to make their screening program more
effective
• Our goal is to ensure consistent and professional quality of all background
screening program services
IntelliCorp Benefits
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One Stop Shop
A comprehensive background search with just a few clicks of your mouse
Easy to read reports
Price of the search is displayed before it is ordered
No hidden fees
Dedicated support team
– Sales Representative
– Client Services
– Account Manager
• Free system and compliance training
• We help keep the client FCRA Compliant
IntelliCorp Benefits
• Standard Package: $13.95
• Preferred Package: $20.95
• Notes:
– *Some courts charge a mandatory fee. These are treated as pass-through fees to our clients
and are clearly highlighted before processing the search.
Additional Products
• We offer a wide variety of additional products and services that you can add
on to your package (such as education/employment/reference verifications,
credit reports, drug testing, motor vehicle reports and many more).
– This option is designed to meet your specific hiring requirements by allowing you
to layer services for different positions as well as various levels of job
responsibilities.
• Some products are available a-la-carte.
Registration Process
• Online Registration only.
– Should be completed by end user and no one else.
• Account is automatically assigned to a Sales Rep immediately following
completion of first step.
• Training is mandatory and made available immediately to all users that will
be using the account.
– No Charge
• 2 – 4 day turnaround time to activation an account once all information is
received from the client.
• Activation fee waived because of partnership ($125 savings)
Registration Step 1
Registration Step 2
Registration Step 3
Registration Step 4
Registration Step 5
Questions and Discussion
IntelliCorp Records
Matt Garbincus
mgarbincus@intellicorp.net
216-450-5212
Insured’s(End Users)
Sales
800-539-3717
sales@intellicorp.net