Posts Tagged ‘reference check’

Sometimes I feel like I am selling fear…

Thursday, August 27th, 2015

The following post is from CAI’s Kevin von der Lippe. He serves as CAI’s private investigator and leads the company’s Background Checking department.

Kevin von der Lippe, Private Investigator

Kevin von der Lippe, Private Investigator

Often, clients hear me talking about the pitfalls of not staying compliant with the nitpicky rules of the federal Fair Credit Reporting Act (FCRA).  Or, they hear me cautioning against transgression of Title VII of the Civil Rights Act of 1964, and how the onerous Equal Employment Opportunity Commission (EEOC) is in their enforcement.  Sometimes I feel like I am selling fear, but the reality is, the litigation is real, the liability for your company is real, and the long term consequences for non-compliance can be devastating to your company.

The view from today’s perspective is that there is a sea of class action lawsuits over small, technical flaws with the paperwork required under the FCRA.  In particular, the two main points of contention are: proper release from your applicant or employee, and sending out the proper paperwork (or even any paperwork) before you make your adverse employment action based upon the background check.

The problem stems from an infamous $22 million settlement on the East Coast in 2008. This particular case showed that suing companies who fail to comply with the FCRA could be lucrative. In 2009, the Sixth Circuit ruled that a plaintiff did not have to show actual damages because the fact that the company failed to comply with the FCRA was in-of-itself an “injury” to the plaintiff, thus giving him justification in filing his suit. [1]

In February 2014, the U.S. Court of Appeals for the Ninth Circuit (in California) ruled that “a plaintiff can suffer a violation of the statutory right without suffering actual damages.” [2] Contrary to rulings from other circuits, this reignited a firestorm and on April 27, 2015, the argument made its way to the nation’s highest court. While the Supreme Court’s decision has not yet been made, the ruling could change Congress’ role in defining how these cases move forward, and perhaps even reduce the number of class action lawsuits that are based solely on technical flaws.

The good news is, you can reduce your exposure under the FCRA by keeping up with the necessary paperwork.  CAI provides samples of the necessary documents on our website, www.capital.org/vea.  We also provide the necessary FCRA paperwork with every report issued by our background checking department.

If you have questions about our background checking services, or how CAI can help you remain in compliance with the federal laws related to background screening, please do not hesitate to contact Kevin W. von der Lippe at (336) 899-1150 or by e-mail at kevin.vonderlippe@capital.org.

Capital Associated Industries Services Corporation is a licensed investigative agency, specializing in corporate pre-employment background screening. Our corporate agency license is BPN 001473P11.

[1] Beaudry v. TeleCheck Services, Inc., (6th Cir. 2009).

[2] Thomas Robins v. Spokeo, Inc. (9th Cir. 2010)

Choose Wisely to Avoid the Cost of a Bad Hire

Tuesday, June 12th, 2012

There are several costs associated with hiring a new employee. Money is spent hiring a recruiter, advertising the new position, reimbursing travel expenses and training the new staff member. Not only are financial resources used, but employers spend an ample amount of time with job candidates and new hires. Time is spent interviewing, onboarding and educating the new team member. When considering all the effort invested in one employee, uncovering that she’s a bad hire can be devastating.

CareerBuilder’s recent survey on costs related to bad hires indicates that 65 percent of the participating US hiring managers said that their bad hiring decision cost their company $25,000 to $50,000. Financial losses are easy to spot, but bad hires can also lower productivity and impact their coworkers negatively. Although you can’t prevent a bad hire 100 percent of the time, you can take several steps to ensure a candidate is a good fit for your job opening. Use the tips below to avoid a poor hiring decision:

Know the Job

Do you know why you have a vacancy at your company, and why it hasn’t been filled yet? If your opening isn’t new, take some time to thoroughly understand the requirements and skills needed to fill the position. Review what made past employees successful in the position and what made them ultimately leave. If there wasn’t much success, evaluate what you can do to help reduce turnover.

Nail the Interview

Evaluate your company’s role and responsibility during the interview process. Do you have good interviewers that are excellent time keepers and make job candidates feel welcomed? Do you utilize interview questions that will paint a picture of what the candidate did at his previous job? Do you incorporate questions that will give the candidate different scenarios of what he can expect from his new job? Planning for well-thought-out behavioral interview questions is a must.

Check and then Double Check

Before setting a start date for your new employee, make sure all of your company’s pre-requisites for new hires are completed. Perform a background check to verify his employment and criminal history, call his references to confirm his past work performance and experience, and have him complete an assessment to further demonstrate job fit.

Following the three tips above should help you identify high-performing talent and avoid making a costly hiring mistake. CAI offers services to help you increase your chances of selecting a great hire. Contact Molly Hegeman at 919-878-9222 or http://j.mp/cai-a for more information about recruiting and assessments.  Contact Kevin von der Lippe at 336-668-7746 or www.capital.org/vea for questions regarding background checking and reference services.

Photo Source: hawken king