| The most prominent trend in the employment | | | | cause potential liability is because most databases |
| screening industry has been a proliferation of online | | | | contain information that may not be used in the |
| databases offering cheap background checks. Any | | | | screening process such as arrest records, or |
| one can access the internet and with a quick search | | | | unadjudicated matters, or matters for which an |
| be able to purchase, for example, criminal records for | | | | expungement exists at the Court but is not reflected in |
| a low fee. While that is very appealing to companies | | | | the database.As previously stated, professional |
| looking to trim the budget on background checks, it | | | | background checks require an experienced researcher |
| may in fact be a dangerous trend.What do the | | | | who knows what to look for including: verifying a |
| companies say that have been running background | | | | applicant's true identity, obtaining verification of past |
| checks, back when employment screening "industry" | | | | employment and education, fully investigating the |
| was just a concept and not an accepted | | | | applicant's criminal past (a skill that requires an intense, |
| practice?Tom Lawson, the founder of APSCREEN, | | | | and multi-level knowledge of court procedures, credit |
| the oldest screening firm in the country, says "The | | | | evaluation including legal records such as bankruptcies, |
| necessity of a background check has been | | | | tax liens and judgments, driving analysis, as well as a |
| established now, and that's why we are seeing such a | | | | history of being a sex offender or involved in domestic |
| proliferation of people getting into the business - | | | | violence or retraining orders for stalking. All of the |
| particularly because the internet makes it an easy field | | | | factors contribute to, but may not necessarily be |
| to enter because of the low start-up costs."Lawson | | | | germane to the job description, at hand, and while |
| continues, "But back in 1980, when we practically | | | | exciting, could lead an employer into court, for using the |
| invented the concept of employment screening, | | | | information to deny candidacy, for inapplicability.By now |
| companies had to be convinced that there was a | | | | it should be fairly clear that professional background |
| good reason to spend money on background checks. | | | | checks are a comprehensive package that far |
| We have always been a business that focused on | | | | outweigh any "bits and pieces" of information that can |
| training our specialists to screen applications for | | | | be provided by any individual online database. When a |
| completeness, thoroughness and accuracy and | | | | person is thinking about hiring someone and they |
| provide our customers with individualized service. This | | | | believe that "all I really need to do is run a fingerprint |
| trend of online databases is very disturbing to us | | | | check," they are really missing the point. So much more |
| because the potential for error and liability is very | | | | information is needed to make a careful, informed hiring |
| high."The Dangers of Databases - Caveat Emptor of | | | | decision. Besides, only police departments run |
| the Quick TurnaroundDatabases are only as good as | | | | fingerprint checks, not employers.Liability Risks of Not |
| the search logic used to retrieve stored data, and | | | | Performing Background ChecksIn today's hiring |
| search logic is expensive and only as good as the | | | | environment employers face ever increasing potential |
| amount of money the database companies are wiling | | | | for liability from the workplace when they choose not |
| to invest in it. Unfortunately, the advent of the internet | | | | to do background checks on their news hires. Those |
| has made starting an online business easy for anyone. | | | | liabilities include:· Premises liability for not |
| As a result, many companies that start an internet | | | | safeguarding customers from employees who steal, lie, |
| "data selling" business do so because the start-up | | | | cheat or injure· Negligent hiring liability in the event |
| costs are small which means the databases can only | | | | of violence or fiduciary malfeasance, for not providing |
| provide limited information.Even worse, most online | | | | other employees a safe place to work· |
| database providers lack an intimate working | | | | Termination or investigation of the individual who hired |
| knowledge of how to screen potential applicants. Their | | | | an applicant who later steals from the company or |
| focus is on selling units of information for | | | | exposes the company to the above-mentioned |
| profit.Database companies cannot simply use | | | | liabilities.· Litigation under officer/director liability |
| off-the-shelf software to retrieve publicly compiled | | | | theories because of incompetent or inept hiring |
| repository information. It comes in too many proprietary | | | | practices involving the company and/or person who |
| "operating systems' and while good, expensive search | | | | hired the employeeTo prevent this type of litigation, a |
| logic helps to delineate between the different | | | | company must have established a refined HR policy |
| languages of the information entered into the database | | | | that includes a professional employment screening |
| company's archival system, it can NEVER be 100% | | | | component.You must become knowledgeable about |
| "competent", even if it is a very "robust" retrieval | | | | employment laws which a good background screener |
| architecture.By the sheer science of databasing, 100% | | | | can help you with. For example, did you know that it is |
| information retrieval capability is impossible, unless (as | | | | illegal to make a decision to not hire someone based |
| demonstrated recently by the IRS and FBI Computer | | | | on an arrest record alone? Usually, the only time it is |
| fiascos) the "source" data originates from wholly | | | | legal for a third-party provider to release arrest |
| compatible systems. This means that going in you can | | | | information is in the case of daycare providers and |
| never expect to have a complete file when you | | | | nuclear facility workers. An employer, generally is not |
| compile data from different systems. This results in | | | | allowed to ask about arrests and cannot use this |
| "data drops" in which bytes of information mysteriously | | | | information to deny employmentCritical Tips For |
| disappear, as well as computer viruses which can | | | | Choosing an Employment ScreenerSo what should |
| reside undetected in mainframes for years and | | | | you be looking for in an employment screening |
| indiscriminately wipe out data, which would be | | | | company?First of all, look for longevity. The longer a |
| undecipherable in a foreign operating environment, such | | | | company has been providing background checks, the |
| as a third party compiler.A classic example of this | | | | more experienced it is, and as a result, the knowledge, |
| occurred on January 17, 1990, when screening client | | | | they will have in recognizing the signs of a "suspect" |
| District Cablevision received a now infamous incorrect | | | | applicant. This is a field where screeners need not only |
| report of a felony cocaine conviction on one James | | | | be highly trained, but have extensive experience.Ask |
| Russell Wiggins, which was not verified for accuracy | | | | for references and then call them. You want a |
| or its relationship to the subject Wiggins, and which | | | | company with an extensive and positive track record |
| resulted in a serious elimination of candidacy lawsuit | | | | of providing factual information so you can make an |
| brought against the provider based upon slander. This | | | | informed hiring decision.Look for the company's |
| error dealt a major blow to the reputation of the | | | | professional memberships in organizations such as |
| provider and resulted in the payment of a substantial | | | | ASIS, SHRM, PIHRA, NPRRA, NAPBS, as well as |
| monetary settlement. (US District Court, District of | | | | others. This indicates a combined knowledge of the |
| Columbia; Civil Action 90-199; Wiggins (et al) v. Equifax | | | | screening and security industries.Do you as the hiring |
| Services, Inc. (et al).)Database companies outnumber | | | | company; have a complete knowledge of employment |
| legitimate employment screeners almost 75 to 1 in the | | | | law? If not, you need your screening company to |
| industry today. The main problem with such vendors | | | | know the laws involving background checks. If is |
| who advertise "nationwide criminal checks," "statewide | | | | extremely beneficial if you hire a company that has an |
| criminal checks," "instant", or "online," is the veracity of | | | | acute knowledge of "negligent hiring" practices, much in |
| the data they are selling and the competency of the | | | | the way that an Expert Witness would know.The |
| search used to retrieve the data.Many vendors | | | | company should have an intimate, thorough and |
| acquire data from a multitude of sources, not having | | | | long-term knowledge of the Fair and Accurate Credit |
| any idea who compiled the information in the first | | | | Transactions Act (FACTA), and the Fair Credit |
| place. This data is then combined into each vendor's | | | | Reporting Act (FCRA), as well as Sarbanes-Oxley, the |
| own format, which often does not contain complete | | | | Gramm-Leach-Bliley Act, and the myriad local statutes |
| information. The common term in the database | | | | that may or may not apply to the employment |
| industry is "data drops," which in addition to the above | | | | process. They should also have the ability to testify for |
| meaning also means that not all of the data, such as | | | | you in a court of law if need be; or even better, keep |
| criminal record information from a court jurisdiction that | | | | you out of court in the first place!Does your |
| is put into the database, is available to be extracted, | | | | prospective screener have knowledge and |
| retrieved or researched. This occurs because of the | | | | understanding of current HR management systems? |
| following:1. The bridge software used to import the | | | | How about corporate due diligence programs or |
| jurisdictional data into the database company's | | | | factual employment screening programs that train |
| memory banks can never be 100% reliable, as long as | | | | people to find fraudulent applications and false |
| the compiler is gathering information from "foreign" | | | | identities?Are you beginning to see how there is so |
| repositories2. The computer has to handle many | | | | much more to background checks than first meets the |
| different formats while compiling information into a | | | | eye?In short, can your vendor help keep you from |
| standardized format so that some of the data simply | | | | unwanted litigation? Unless you or someone in your |
| does not transfer.This is a problem because of the | | | | company is an expert in employment law, you are |
| technical department's inability to inform the sales | | | | putting your company at significant risk by using an |
| marketing department properly as to the database's | | | | online database provider. If you are using any of the |
| limitations or unwillingness to tell the customer that the | | | | multitudes of online databases, it's not likely you are |
| product it is selling may be deficient in some areas. As | | | | protected.Not only do these online companies increase |
| a result, approximately 5 to 8% of the data is lost. That | | | | your risk of exposure, they may even add to it. For |
| means that there is a 92% to 94% chance (at best) to | | | | example, let's say you are currently using an |
| identify a record on a candidate. Also, data drops are | | | | employment screener that does not require you to |
| indiscriminate. Rape convictions are dropped as easily | | | | provide a signed release for each applicant. Sounds |
| as traffic tickets.The second problem with databases | | | | relatively harmless, doesn't it?The truth is what these |
| is the psychological dependence they engender on | | | | companies have done is had you waive liability to them |
| those using them. As time progresses, the databases' | | | | when you signed up for an account so they can avoid |
| ease-of-use causes the user to forget just how | | | | the time and effort it takes involved in this critical step. |
| important it is that the database be accurate and | | | | Their focus in on increasing their sales; which isn't |
| complete, and that the need for thoroughness in | | | | necessarily in your company's best interest.In the case |
| screening an employment candidate should never vary, | | | | of a credit bureau audit, your company is now |
| as to ensure consistency in the screening process, | | | | responsible for producing an original signed application |
| thus precluding the successful prosecution of the | | | | and therefore also liable if you don't have one on file. A |
| employer for Title 7 claims. The results of falling into | | | | good employment screener is not only a long-term |
| this pattern of laziness can be disastrous as litigation | | | | certified credit bureau, they also provide signatures for |
| may not be far behind.Crucial Steps in the Employment | | | | these audits on a regular basis and you should never |
| Screening ProcessHistorically, and until the late 1970s | | | | even know when theses audits occur. A typical |
| when the "personnel" department recognized the need | | | | lawsuit of this nature could cost your company six |
| to get involved in employment screening, background | | | | figures. There is no upside for a company purchasing |
| checks were performed by security departments - | | | | background checks to take this kind of risk.What type |
| typically comprised of highly qualified, and often retired | | | | of criminal conviction research, hand-researched or |
| professionals.Today it's up to the HR department to | | | | online databases, does the company provide? Most |
| create the mandatory steps needed to develop a | | | | companies do not realize that there is absolutely NO |
| thorough employment screening procedure including for | | | | single source of information available regarding criminal |
| starters, a positive candidate identification process. If | | | | convictions. It doesn't exist - anywhere. Do they verify |
| this isn't the first step in the background check, the | | | | these discoveries against subject identifiers and if so, |
| results of your searches could be faulty and therefore | | | | how?Does your online provider claim to have worker's |
| prove useless.For example, critical identification data | | | | compensation claim records? Any information provided |
| needs to be gleaned from credit bureaus and other | | | | regarding worker's compensation claims potentially |
| repositories including unused maiden names, or | | | | provides a false sense of security for the user. The |
| intentionally omitted information such as date of birth | | | | truth is the only records available for worker's |
| and variations in social security numbers. This is where | | | | compensation are appeals, not claims, and much of the |
| the difference between true employment screeners | | | | available files are sealed because they are not as yet |
| and data sellers comes into play. It takes years of | | | | adjudicated. This means the file competency rate for |
| experience to be able to differentiate, for example, | | | | this type of data is about 40% - not good |
| intentionally omitted information versus an honest | | | | enough.Does the employment screener have |
| mistake.The same holds true for incomplete | | | | international research capability? If not, how will they |
| disclosures such as partial criminal history in which the | | | | screen people you might want to hire from overseas? |
| full story can dramatically change your assessment of | | | | Without the kinds of connections and a network of |
| the applicant. One such case involved an applicant | | | | relationships developed over long periods of time, this |
| who disclosed to the company that she was | | | | information would be almost impossible to get.Has the |
| convicted of trespassing. When the criminal check | | | | company you want to hire ever been involved in a |
| came back, however, it was discovered that while she | | | | litigation themselves for improper screening |
| had indeed told the truth that she was convinced of | | | | processes? Can they provide you with at least three |
| trespassing, she had also been convicted of trafficking | | | | long-term references? Do they have professional |
| in child pornography and possession of controlled | | | | liability insurance including errors and omissions? Are |
| substances - a serious error by omission.Hiring | | | | they FACTA, FCRA; CCRRA, and G-L-B |
| decisions must not be made on partial, incomplete or | | | | compliant?And of course you need to know the |
| incorrect data, but on thorough information and a | | | | practical things such as cost, turnaround time and |
| consistent application of thorough scrutiny of all of the | | | | reporting method. Many competent employment |
| information regarding criminal, credit, work and | | | | screeners are listed in publications such as the Security |
| education history, driving attitude, whether or not the | | | | Industry Buyers Guide as well as industry publications |
| candidate has completed the application completely, as | | | | such as those connected with the Society of Human |
| well as identity disclosure.A screener must have | | | | Resource Management (SHRM) and the American |
| extensive knowledge about each vendor source to | | | | Society for Industrial Security (ASIS).What is needed |
| make the appropriate follow-on decisions that develop | | | | now in this industry is a standardization of compliance |
| into a full and comprehensive report.Online databases | | | | for employment screeners and someone to step up |
| don't provide highly trained researchers who can spot | | | | and create an industry co-operative that can police |
| "red flags" and other indicators in an application that | | | | it.Cathy Taylor is a marketing consultant with over 25 |
| demand further consideration. You can only get this | | | | years experience. She specializes in internet marketing, |
| kind of service from an interactive screener who has | | | | strategy and plan development, as well as |
| years of experience in processing background | | | | management of communications and public relations |
| checks.Another reason online databases can be | | | | programs for small business sectors. |