Many Local Employers Using Improper Consent Forms to Launch Inquiries
San Diego Business Journal, April 16, 2007, By Pat Broderick
Trying to protect your business by screening job applicants can be a balancing act – one that comes with a strict set of rules. The federal Fair Credit Reporting Act sets a number of regulations for consumer reporting agencies. Among them:
• Applicants must give written consent for background reports to be provided to employers, and they must be told if information in their files has been used against them
• They have the right to know what is in their file, to ask for a credit score, and to dispute incomplete or inaccurate information
• Consumer reporting agencies must correct or delete erroneous information, and may not report outdated negative information
Keeping up with state and federal requirements regarding screening can be especially onerous for smaller businesses. For instance, the authorization forms need to provide a box that the applicant can check to request a copy of the background report.
“I find that a number of companies unknowingly are not using the forms that comply with the law,” said Rick Bergstrom, co-chairman of Morrison & Foerster LLP’s employment group in San Diego. “They may not have a box you can check. Or they don’t have the names, addresses and telephone numbers of the consumer reporting agency, which is supposed to be on the form. In that case, the authorization is not valid, and the employer has potential exposure for violation of state or federal law.”
Consumer Control
While traditionally the company initiates background checks, a service called MyBackgroundCheck.com allows the applicant to start the process. This allows applicants to nip any problem in the bud – and challenge erroneous information – before it gets to the employer, said Robert Mather, Chief Executive Officer of the Redding-based Pre-employ.com, MyBackgroundCheck.com, and Past-Employ.com.
"They have complete control,” he said. “The site allows applicants to put together the package they want to release, and they can verify the information before they give it our to the business owner. The benefit for business owners is, it’s free. If they wish to reimburse the applicant, they can. It’s good for applicants. They walk in with a fresh suit and clean haircut, letter of reference, and a background check. They employer can make immediate hiring decisions."
The service is priced from $10, for a basic criminal background check in the county where you live, to up to $85 for additional information, and applicants can use it for everything from job searches to checking out potential suitors online.
Tena Friery, research director for the San Diego-based Privacy Rights Clearinghouse, a nonprofit consumer group, said a big concern on both sides of the screening process should be accuracy of the information.
“We have no objection to background checks per se, and we think they are necessary,” said Friery. “But the information should be accurate. Nothing is foolproof. Having access before an employer sees the information, if there is a discrepancy, might go a long way in correcting some of the inaccuracy.”