Tagged: Background Checks

Employers are Required to Use New Form to Comply with the Fair Credit Reporting Act

Employers must use an updated form in order to comply with the Fair Credit Reporting Act (“FCRA”), which covers background checks for job applicants and existing employees. The new form is for use effective January 1, 2013. No other provisions of the FCRA have changed. The FCRA Regulates the Use of Consumer Information – The FCRA regulates the use of consumer information. Consumer Reporting Agencies (“CRAs”) compile consumer information into detailed “consumer reports,” which may be used by employers for hiring and retention decisions. Employers also may conduct their own investigative consumer reports, which are covered by the Act as well. The FCRA provides notice and authorization requirements for the use of consumer reports and investigative consumer reports.

New Requirements for NJ Employers and for Employers Conducting Business in Newark, NJ

Beginning November 12, 2012, the State of New Jersey will require employers to post a new “equal pay” notice in the work place, to provide the notice to employees and to obtain an acknowledgment of receipt. Effective November 18, 2012, the City of Newark will impose restrictions on employers conducting hiring in the City with regard to the use of criminal background checks for job applicants.

New Jersey Legislative Update: New Laws Could Limit Employer’s Use of Credit Reports and Social Networking Information

If passed into law, two bills currently pending before the New Jersey General Assembly will place significant limitations on the categories of information that New Jersey employers may use and rely upon in connection with the hiring, promotion, and termination of employees. Credit Reports & Related Information – Bill A2840, introduced in the Assembly on May 10, 2012, proposes legislation that would prohibit an employer from obtaining, requiring or otherwise basing employment decisions, such as hiring, promotion, and discipline on reports containing information about an applicant’s or current employee’s credit history, credit score, credit account balances, payment history, and savings or checking account balances or numbers.

The New EEOC Guidance Regarding Criminal Background Checks

On Wednesday, April 25, 2012, the Equal Employment Opportunity Community issued its long awaited Enforcement Guidance on the Consideration of Arrest and Conviction Records in Employment Decisions under Title VII of the Civil Rights Act, updating and clarifying its prior guidance on the subject. The good news? Employers may continue to use criminal background checks as a screening tool for applicants and employees. However, employers are specifically discouraged from asking about a criminal record on the application and are encouraged to conduct an individualized assessment of the applicant/employee when job exclusion occurs because of a criminal record. Employers should review their policies to ensure compliance with the EEOC’s latest recommendations.