The Equal Employment Opportunity (EEOC) and the Federal Trade Commission (FTC) have issued a joint publication entitled, Background Checks, What Employers Need to Know. The publication offers guidance from both agencies to employers when considering the background of applicants and employees in making employment-related decisions. The EEOC enforces federal laws against employment discrimination based on a person’s race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability, or genetic information. The FTC enforces the Fair Credit Reporting Act (FCRA), the law that protects the privacy and accuracy of the information in credit reports.
This update highlights the three main areas that these agencies discussed in the publication.
Before You Get Background Information
The EEOC offers the following guidance to employers before getting background information on an applicant or employee:
The FTC requires the employer to follow these specific procedures before background information is obtained on an individual for employment purposes.:
Using Background Information
When using background information, the EEOC states you should:
The FTC requirements related to the use of background information are two-fold, that is before and after taking adverse action. Before taking adverse action, the employer must:
After taking adverse action, the employer must tell the applicant or employee (orally, in writing, or electronically) the following:
Disposing of Background Information
With regard to records, the EEOC wants employers to keep all personnel or employment records made for one year or after a personnel action is taken, whichever comes later. This requirement is extended to two years for education institutions, state and local governments, and federal contractors that have at least 150 employees and a government contract of at least $150,000.
The FCRA requires that disposal of the reports and all information gathered from them be disposed of in a secure manner. Records should be burned, pulverized, or shredded, and electronic information destroyed so that it cannot be read or reconstructed.
backgroundchecks.com offers compliance products and services to clients. Our General Counsel, Chris Lemens, hosts a webinar entitled, “A Final Consensus on Criminal Background Checks and Equal Employment Opportunity” that offers in-depth instructional knowledge about compliance in this area. The next webinar is scheduled for May 13th. Go here to register: http://www.backgroundbiz.com/campaigns/cceeo-webinar-invitation.html.
The joint publication also offers access to sites identified by the EEOC and the FTC of related topics that may be helpful to employers. The publication can be viewed here: http://business.ftc.gov/documents/0487-background-checks-what-employers-need-know