An ounce of prevention is worth a pound of cure

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• An ounce of prevention is worth a pound of cure
  
• Ben Franklin

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ADPs Sixth Annual Hiring Index

• 51 of all resumes, applications, and references
  provided by applicants contain inaccurate
  information.
• Employee dishonesty costs U.S businesses over 50
  billion annually.
• Over 46 of inventory shrinkage is due to
  employee theft.
• 30 of all business failures are due to employee
  theft and related forms of dishonesty.

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ADPs Sixth Annual Hiring Index

• In the 2003 Hiring Index, ten percent, or
  approximately 300,000 records, contained an area
  of concern or data inconsistency.

• 7 had a criminal record in the last seven years.
• 44 had a driving record with one or more
  violations or convictions
• 24 had credit records showing a judgment, lien
  or bankruptcy, or had been turned over to a
  collection agency
• 9 had a previous workers compensation claim
• 51 of employment, education or credential
  reference checks revealed a difference of
  information between what the applicant provided
  and what the source reported

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Pre-Employment ScreeningWhat Is It and Who Does
It

• Pre-employment screening is an assessment of a
  group of applicants for employment by means of
  methodically assembling standardized types of
  information concerning qualifications and
  behavior that when obtained and applied in a
  legal fashion is considered relevant to the
  potential job, in order to reasonably detect
  those applicants that are either not qualified or
  have risk factors that need further consideration.

• Education and Credentials Verification
• Past Employment References
• Criminal History
• Motor Vehicle Report (driving record)
• Social Security Number Trace/ Verification
• Credit Report
• Workers Compensation Records
• Civil Lawsuits, Judgments, Liens
• International Background Checks

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Standards for ScreeningWhat level of
pre-employment screening is required?

• Does the position have access to money or assets?
• Does the position carry significant authority or
  fiduciary responsibility?
• Does the position have access to members of the
  public or co-workers so that any propensity to
  violence or dishonesty could foresee ably cause
  harm?
• Would a new hires falsification of skills,
  experience, or background put the firm at risk,
  or lower the firms productivity?
• Would a bad hire expose the firm to litigation or
  financial claims from the applicant, co-workers,
  customers, or the public, or other risks?
• Is there a statutory or legal requirement for
  certain positions to be screened?

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The Four Levels of Screening

• For causal or temporary labor.
  Recommended search County criminal search in
  local county or county of residence and other
  individual reports such as a Social Security
  trace and driving record.
• For entry level employees, retail or
  manufacturing or positions where the employer has
  internally checked references and education.
  Recommended search A full seven year criminal
  records check for felonies and misdemeanors in
  the state of residence, Social Security trace and
  drivers record check.
• For more responsible positions and
  permanent hire. Recommended search the Basic
  search above plus verification of the last three
  employers (and references if available) and
  highest post high school education.
• For positions involving increasing
  responsibility or supervision of others.
  Recommended search The Basic and Standard
  search above, plus checking Superior Court civil
  cases in the last two relevant counties for
  litigation matters that may be job related.

• 1. Individual
• 2. Basic
• 3. Standard
• 4. Extended

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Interview Process StageThe 5 Questions

• Always ask these 5 questions during the
  housekeeping stage of the interview!
• We do background checks on everyone to whom we
  make an offer. Do you have any concerns you
  would like to discuss? Good applicants will
  shrug off this question.
• We also check for criminal convictions for all
  finalists. Any concerns about that?
• We contact all past employers. What do you think
  they will say?
• Will a past employer tell us that you were tardy,
  did not perform well, etc.?
• Use the interview to ask questions about any
  unexplained employment gap.
• Since an applicant has signed a consent
  form and believe checks are being conducted,
  applicants have a powerful incentive to be
  truthful.

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Due Diligence and Negligent Hiring

• Due Diligence
• The employers duty to exercise due diligence
  means the employer must consider if a potential
  new employee represents a risk to others in view
  of the nature of the job.
• What is a term that can used to describe an
  employer who fails to exercise due diligence in
  the hiring process?
• The term defendant, as in a party who is
  sued for damages in a civil lawsuit for failure
  to perform a legal duty.

• Negligent Hiring
• when an employer fails to exercise due
  diligence and a person is harmed by an employee,
  that employer can be sued. Negligent hiring is
  the flip side of due diligence. If an employer
  hires someone who they either knew or in the
  exercise of reasonable care should have known was
  dangerous, unfit, or not qualified for the
  position, and it was foreseeable that some sort
  of injury could happen to someone as a result,
  then the employer can be sued for negligent
  hiring. This is called the knew or reasonably
  should have known standard.

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Keeping It Legal The Fair Credit Reporting Act
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Step 1Employer Certification

• Use the information for employment purposes only.
• Not use the information in violation of any
  federal or state equal opportunity law.
• Obtain all the necessary disclosures and consents
  as required by the FCRA (steps 2 and 3)
• Give the appropriate notices in the event an
  adverse action is taken against an applicant
  based in whole or in part on the contents of the
  Consumer Report (step 4)

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Step 2 Written Release and Disclosure
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Step 4 Adverse Action Notice
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ForYourInformation

• In 2003 President Bush signed into law a few
  amendments to the FCRA
• -Employers now have the ability to conduct
  third party investigations of current employees
  without disclosure of having to first get written
  authorization.
• Criminal Records, Civil Suits/Judgments and Tax
  Liens can only be considered for the past 7
  years.
• These restrictions from the FCRA do NOT apply to
  an individual whos annual salary is expected to
  equal 75,000 or more.

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What if They do have a Record?

• The nature and gravity of the offense or
  offenses.
• The nature of the offense
• The gravity of the offense
• The time passed since the conviction and/or
  completion of the sentence.
• The nature of the job held or sought.

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FAQs on Working With A Background Screening
Company

• 1. How does an employer start the process?
• 2. What forms does an applicant sign or receive?
• 3. When does the applicant sign the forms?
• 4. During what step should applicants be
  screened and who should be screened all
  applicants or just finalists?
• 5. What positions should be screened, and what
  information should be requested?
• 6. What about conditional hiring based upon
  receipt of the background report?
• 7. How are forms and orders transmitted?
• 8. How long does it take to get the report?
• 9. How is the report sent back to the employer?
  
• 10. What does a CRA do about information that an
  employer is not suppose to have?
• 11. How long should forms signed by applicants
  and applicant records be kept?
• 12. What does an employer do if they decide not
  to hire an applicant?

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Employee Theft and FraudCase Study

• 47 year old Male
• Warm Body Theory
• Hired to run a Wine Cheese Company
• No background/or references checked
• 1st Red Flag within 60 days of being hired, 2nd
  Red Flag shortly after which prompted
  investigation.

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Case Study Continued
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The Safe Hiring Manualby Lester S. Rosen

• Chapter 2 The Solution A Safe Hiring Program
  (SHP)
• Chapter 3 Due Diligence and Negligent Hiring
• Chapter 6 The Fair Credit Reporting Act
• Chapter 7 Why Applications Are Vital
• Chapter 8 The Interview Process
• Chapter 10 Pre-employment Screening
• Chapter 11 Role and Legal Use of Criminal
  Records in Safe Hiring
• Chapter 14 Education and Credentials
  Verifications
• Chapter 16 Screening Essential Non-Employees
• Chapter 21 Drug Testing in the U.S
• Chapter 28 Working with a Background Screening
  Company

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Intelli-Check Investigations LLC(Intelli
Investigations)

• 1-800-756-4069
• License A-2500267
• Intelli.inv_at_gmail.com
• Web Intelli-Investigations. com