Every so often I get asked about the need for the documents and certifications completed when signing up a new customer. After all, can’t you simply search Google for background checks and find an online firm where you enter the applicant’s information, your credit card data, and behold! You have a background screening report?
These instant, online data companies are most often breaking federal – and potentially state — laws. So yes, you can use them; however, with an illegal background check, you risk additional liability to lawsuits and claims for conducting the background check incorrectly. Additionally, should something occur down the road with your employee and the allegation of negligent hiring is made, how do you protect yourself with a report that was done illegally?
Just a few days ago, the Federal Trade Commission issued a press release outlining how staff contacted a variety of firms offering various consumer reports, including reports for employment purposes. Of the 45 contacted, approximately 10 appear to have violated the law.
Out of the ten firms receiving those letters, six appeared to offer consumer information for employment purposes: Crimcheck.com, 4Nannies, U.S. Information Search, People Search Now, Case Breakers, and USA People Search.
The letters are not an official notice by the FTC that any of the named companies are subject to the requirements of the FCRA, nor do the letters lay out any formal complaints against the companies. Instead, they serve to remind the companies to evaluate their practices to determine whether they are consumer reporting agencies, and if so, how to comply with that law.
The FTC press release and links to the letters issued can be seen here:
We understand that navigating the regulatory environment regarding backgrounds can be complicated, and that’s what we’re here for…Keeping You Safe™.