NBIC You & The Law

Don't let your applicant become a
PROBLEM!

IMPORTANT INFORMATION ABOUT THE YOU & THE LAW
WHEN CHECKING OUT AN APPLICANT

Many employers and property managers today operate with very little working knowledge of the laws that govern hiring and rental practices when it comes to screening applicants. While most of us aren't lawyers, that does not relieve us from our obligations to follow the rules. Our particular focus in this document is on that aspect of hiring where a third party consumer reporting agency is used to check an applicant's background or verify information on their application. The NBIC is ready to help you 'do it right'!

Consumer reporting and the use of consumer reports is governed by the Fair Credit Reporting Act (FCRA) 15 U.S.C. § 1681 et.seq., and you can view the entire FCRA at the US Federal Trade Commission website here. if you wish. There are several provisions of this law that apply to you! We will highlight here some points that are critical to the process of obtaining background information from a third party service. If you have questions concerning your compliance with the FCRA or any law regarding personnel or tenants, we recommend you contact an attorney who is well versed in employment or tenant law.

The first thing that you must understand is that anytime you use a third party service to check out your applicants, you are obtaining what is called a Consumer Report. The laws that govern credit reports are the same laws that govern other types of background records. Criminal records, civil judgments, driving records, credit reports, warrant checks, reference checks are ALL governed by the same federal laws! And these laws provide for both civil and criminal penalties for you if you fail to properly obtain the background information on your applicant. Many services don't bother to inform you about these requirements, because they are not in compliance themselves! We are here to be sure you select the best applicant and don't get in legal hot water doing so!

Probably the most overlooked item in the screening process, is the notification & release that must be obtained from the applicant any time you are going to use a third party, consumer reporting agency to obtain information about the applicant. According to the FCRA, before obtaining any information about an applicant from a consumer reporting agency (the credit bureau or any other service that collects information on people and conducts background checks or record checks for a fee, or maintains a database of consumer information), you MUST obtain a written release from the applicant. Sounds simple, right. Were you aware that, for employment screening, the release can NOT be on the same part of the application with any other requested information? The release must be a 'separate, conspicuous' document. There is also certain wording prescribed and required by the FCRA! Here at the NBIC, we provide all of our clients with a sample release & notification that complies materially with the requirements of the FCRA. When you subscribe, this document will be part of the information we make available to you for free!

Already have a signed notification & release as described? What else is important? First, making sure that the information you use in your decision is accurate and complete! Unlike some 'online' background services, we do not rely on 'compiled lists' of civil or criminal data. We go directly to the source of the records (court clerks, state driving records repositories, etc.). There are 2 reasons for this. First, we want to provide you the most accurate, up to date information possible. Second, the law requires that certain records be 'verified' within a certain length of time (days) prior when the information is reported to you! If we get it from the source repository when you request it, then we can all be reasonably assured of the currency and accuracy of the information. This protects you, us and your applicant. Using a source that does not follow the law exposes you to a risk of being sued by an applicant who was denied employment based on your use of faulty, inaccurate or improperly obtained information. It also leaves you open to the possiblity of civil or criminal charges or fines by state and federal regulators!

Next, there is a myth that needs to be dispelled. Many 'background services' advertise that they can get 'national criminal records' or 'criminal records nationally'. This might lead you to believe that there is a 'one stop shop' to obtain a criminal or arrest history on an individual. This simply IS NOT TRUE! The US Federal Bureau of Investigations maintains a considerable database of criminal conviction, arrest warrant and other information. However, this information is NOT available to persons outside the law enforcement community, and any member of law enforcement who obtains information from this source that is not for use in official police business can be charged with a felony! So, how are records obtained nationally? The best way is by making direct contact with the local court or law enforcement agencies in each jurisdiction to be checked. Whew! What a job! Yes, and one that most managers are not equipped to do by themselves. This is especially true when you consider that each state has a different 'standard' for what is and what is not considered public record. Now you may begin to understand why the NBIC does what it does!

Ok, now you have a release, you have decided that you can't hire someone with a criminal or violent history, you have used the professional NBIC service, and you need to turn down an applicant who doesn't meet your selection criteria. Were you aware that you can not just 'tell them no thanks'? You are required to give an applicant specific information and (depending on your reasons for denying them) a specially worded ' Notice of Consumer Rights'. The NBIC makes a properly worded notice available to all of our clients. Few managers have the time to stay on top of these requirements, that's why we do! And we can help you stay on top of new changes that affect the way you handle issues involving the screening of your applicants.

Most other 'background' services are only interested in getting your order (and your money) and delivering the 'goods'. They really aren't too concerned with helping you stay on the right side of the law! We aren't lawyers, and we don't provide legal advice. But, we believe that your best interests start before and continue beyond 'getting the report'. That is why we work hard to keep informed of changes that affect background checks. It is also why you will receive outlines, sample forms and other information from us as a part of your involvement with our company. We want to help you 'do it right'. If you have questions, we will be here to help you find answers.

These are just a few matters of interest. Time prevents a discussion of all the fine points in this forum. However, if you align yourself with the NBIC, you will be getting more than 'just a report'! Establish your account today and take a step out of the applicant wasteland. There is no cost or obligation to become one of our preferred clients... just added peace of mind when you need it!

DON'T ALLOW YOUR APPLICANT TO BECOME A Problem!

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