PointhHR Partners with Hirebridge

PointHR announces partnership with Hirebridge. For more than 17 years, PointHR has been providing unmatched screening services to thousands of companies nationwide in virtually every industry.  PointHR is fully integrated with Hirebridge Recruiter, and  has firmly established itself as the logical Background Screening choice for forward thinking companies. PointHR provides all background screen services, including: Criminal Records, Drug Screening, Electronic Offer Letter and Biometric Form I-9, Digitized Personnel Files, Automated Instant Employment Confirmation, Anonymous Employee Hotline, and More. By selecting PointHR as your Total HR Services partner you will save time and money by ensuring that you hire the best candidates, with the least risk, in a fast efficient manner. Streamline your screening now. Explore how easy it is at http://HireBridge.PointHR.com. Hirebridge helps organizations maximize their HR resources and expand their opportunities with an affordable web-based recruiting platform. We understand that every business is unique, which is why we provide a range of on-demand services to meet the unique needs of your business. No matter the industry you are in or the size of your company, Hirebridge has a solution to meet your specific needs and can help reduce the time and cost to hire and fill your open positions.

In Some States, You Cannot Request a Credit Report for Most New Employees

In their quest to hire reliable and trustworthy employees for open positions, many employers have turned to credit reporting agencies for applicant background information. Although such information may be readily available, obtaining it could lead to possible liability if the appropriate policies and procedures are not in place.

Discrimination Claims
Under Title VII, employer practices – such as basing hiring and other employment decisions on credit history information – that weigh more heavily on individuals within protected categories could lead to discrimination claims. For instance, if an employer’s use of credit reports has the effect of excluding women or minorities from certain positions, that practice could lead to liability.

In addition, a number of states have enacted or are considering enacting laws that explicitly prohibit discrimination on the basis of credit histories. For instance, Illinois’ newly enacted Employee Credit Privacy Act, which goes into effect on January 1, 2011, prohibits employers from inquiring about an applicant’s or employee’s credit history and from ordering or otherwise obtaining an applicant’s or employee’s credit history or credit report from a consumer reporting agency. Despite the potentially broad reach of Illinois’ new Act, there are several exceptions including:

• Situations where an employer can show that a satisfactory credit history is a “bona fide occupational requirement” for a position, which is further defined in the statute;
• Employers who are banks, savings and loans, or certain other financial institutions; insurance or surety businesses; state law enforcement or investigative units; state or local government agencies that otherwise require use of the employee’s or applicant’s credit history or credit report; and entities that are defined as debt collectors under federal or state statute; and
• Background investigations that do not include a credit history or report as permitted under the Fair Credit Reporting Act.

Employers that violate the Illinois Act could face damages, injunctive relief, and liability for attorneys’ fees and costs and could also face liability for any retaliatory conduct under the Act.

Along the same lines, legislation has been introduced in, among other states, Michigan and Ohio as well. In Michigan, House Bill 4528, also known as the Job Applicant Credit Privacy Act, would prohibit an employer from failing or refusing either to hire or recruit an individual because of the individual’s credit history and from inquiring about a job applicant’s or potential job applicant’s credit history. As with the Illinois Act, certain exceptions would apply for individuals who hold positions with identified types of companies including, for instance, banks or other financial institutions.

In Ohio, House Bill 340, which was introduced on October 28, 2009, would make it an unlawful discriminatory practice for an employer to use a person’s credit rating or score or consumer credit history as a factor in making decisions regarding that person’s employment. House Bill 340would allow a person to file a charge with the Ohio Civil Rights Commission and would provide similar penalties for violations.

As these examples show, a blanket policy of requiring credit reports for all employees or applicants could lead to possible discrimination claims under state or federal law or both.

The Federal Fair Credit Reporting Act
Moreover, even when employers are permitted to obtain applicant or employee credit reports, liability can still attach if the detailed procedures set forth in the federal Fair Credit Reporting Act (FCRA) are not followed. Specifically, the FCRA requires employers to inform applicants that a credit check will be performed and to obtain the applicants’ written permission in a stand-alone document that is not part of the employment application.

In addition, if an employer decides to take an adverse employment action against an employee or applicant based on the credit check, the employer must first give that individual a “pre-adverse action disclosure” that consists of a copy of the credit report and a written summary of rights under the FCRA before taking the adverse action. Presumably, this requirement is intended to allow an employee or applicant an opportunity to attempt to correct any inaccuracies on the report. Once the adverse action has been taken, the employer must provide the applicant or employee with an “adverse action notice.” This notice must alert the recipient that the employer, not the credit reporting agency, made the adverse decision; inform the recipient that he or she has a right to a free copy of the report; and provide the name, address and phone number of the agency that provided the credit report so that the recipient can dispute any inaccurate information.

Employers that fail to comply with the FCRA may face liability for actual damages, attorneys’ fees, costs and punitive damages. Criminal penalties are also possible for any employer that obtains a credit report under false pretenses.

Minimizing The Risks
Some of the ways you can minimize the risks of obtaining employee or applicant credit reports are by:

• Determining whether state laws govern your use of applicant/employee credit reports;
• Evaluating whether the benefits of obtaining credit reports for various positions outweigh the risks of doing so;
• Developing appropriate policies and procedures to govern procurement of credit reports; and
• Ensuring compliance.

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