In the midst of the shelter-in-place order many businesses have slowed or shut down altogether. This means that, for the moment, hiring has slowed down too. This makes for the perfect time to review your hiring practices and policies, especially when it comes to background and drug screening. This is particularly important if you have not done so in a long time.

Laws and regulations regarding background screening often differ from one location to the next. California laws are different from Michigan laws. Even within a state laws can vary. The regulations in Los Angeles are different from those in Sacramento. Recently Grand Rapids, MI introduced a human rights ordinance that does not apply anywhere else in the state.

As you can see, if your company does business in multiple locations it is imperative to pay attention to the requirements of each location. But what if you are hiring an applicant from another state for a position in Michigan? The general rule of thumb is to follow the regulations from the state in which the applicant lives. However, you must always make sure you comply with federal law.

If the regulations in the state, county, or local municipality are more stringent than the federal requirements you can follow the local ordinance. If the local ordinance does not meet the federal requirements, then you must follow the federal laws.

Always remember the basics. If you obtain information from a third party such as a background screening company, credit reporting agency, or an automated system, you must provide the applicant with appropriate Disclosure and Authorization forms and their Summary of Rights.

• Keep the documents separate, particularly the disclosure form

• Do not include the documents in an application or other employment document

• Keep the forms on plain paper, not letterhead

• Do not add any extraneous information, disclaimers, etc. to the disclosure form

• Check for any state or county required forms and provide them as necessary

• Review your policies, procedures, and forms with your company’s legal council

When reviewing your process ask yourself if you are you getting the checks/coverage you want and need. Do you know what type of records are included in the services you currently run? Just because you run a state check doesn’t mean you will find sex offender records. They may be included but could be missed if you don’t run a check of the national sex offender registry. You can find descriptions of the checks ASE offers here.

Are you running the right checks for each position? If you are hiring someone for a production line, credit checks and motor vehicle records checks most likely would not apply. However, if you are hiring a CFO, a credit check seems prudent.  Know what you need.

If you are able, take advantage of the slower pace and make sure you are getting the checks you want and that your checks are compliant with applicable laws for your area.

Additional ASE Resources
Background Checks – For more information on ASE’s background checking service, please contact Susan Chance.

Sources: https://www.eeoc.gov/eeoc/publications/background_checks_employers.cfm; https://www.consumer.ftc.gov/articles/pdf-0111-fair-credit-reporting-act.pdf