Small Mistakes with Employee Background Screening Can Cause Big Problems
Contributed by John Gardner and Scott Paler, of DeWitt Ross & Stevens

Small employee background screening mistakes continue to give rise to large class actions with big settlements. If you obtain background screening reports from a third-party agency regarding your job applicants or employees, and have not reviewed your background screening policy and practices in a while, now is a good time to do so.  Here are four things to look for:

1. Are you supplying job applicants and employees with the correct version of the federal notice entitled “A Summary of your Rights under the Fair Credit Reporting Act”? 
   The government introduced a revised version of this notice on January 1, 2013, but many employers inadvertently continue to use the old format.  Here’s how you can tell the difference.   The new version references the Consumer Financial Protection Bureau throughout the notice.  The old version references the Federal Trade Commission.  Using an outdated federal summary of rights can carry big consequences.  One retail employer just agreed to a $3 million settlement in part based upon allegations that it was supplying candidates with an outdated version of this federal notice.
    
2. Does your background screening consent form (“Disclosure and Authorization”) contain a release of liability? 
   One plaintiffs’ firm obtained a multi-million dollar settlement based partially on allegations that an employer had included a release of liability in its background screening consent form.  It argued that such a release violated the Fair Credit Report Act’s requirement that a background screening disclosure to job applicants and employees “stand alone.”  We have seen many companies—including several in the last few weeks—that have release language in their Disclosure and Authorization form.  Now is a good time to consider removing it.
    
3. Do you provide BOTH a pre-adverse action letter and a post-adverse action letter when excluding an individual based upon a background screening report from a third-party vendor, and do those letters contain the correct information? 
   The Fair Credit Reporting Act requires specific adverse action procedures to ensure that job applicants and employees have an opportunity to identify errors in their background screening reports before an employer rejects them based on those reports.  However, it is not unusual for companies to forget these procedures.  Several companies have paid more than $2 million dollars in settlements in the last few years based partially upon allegations that the companies had not correctly followed the adverse action process.
    
4. Do you have a blanket policy that excludes all convicts or felons? 
   In years past, many employers maintained such a policy.  However, the risks associated with doing so have increased tremendously.  Only last year the Equal Employment Opportunity Commission secured a $3 million settlement from a major public company on the theory that the company’s broad criminal history policy had a disparate impact on minorities.  Since then, the EEOC has issued new guidance suggesting that employers must engage in a multi-faceted analysis before rejecting a candidate or employee based upon a criminal record.  Further, several states—including Wisconsin—maintain state laws requiring employers to assess the relationship between a job and conviction before taking adverse action.  Under these circumstances, it is important that employers update their background screening policies to reflect changes from the last few years, and consult with counsel before excluding an individual based upon a background screening report.

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Professional Development

Human Capital Conference Recap

On Tuesday, May 14th GMA SHRM held its 8th annual full day Human Capital Conference, HR: Game Changing.  With an upcoming SHRM (national) conference that will be held in our back yard of Chicago we were a little concerned about a lower turnout. We were very pleased so many of you took advantage of our local conference. Attendance was over 200 human resources professionals! These attendees were pleased to not only receive HRCI credits, but had numerous opportunities to learn about the ‘game changing’ HR topics from health care reform and legal updates, wellness programs, engagement, social media, veteran’s returning to the workplace, to learning how to help their teams ‘ditch the drama,’ and hold themselves accountable.  Along with these great sessions, there was plenty of networking and connections being made. Thank you to all those who attended and to those volunteers who organized a fantastic event!  If you weren’t able to attend this year’s conference we highly encourage you look at attending the May 2014 conference.

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Volunteers Needed - PHR/SPHR Study Group 

Each year GMA SHRM offers a study group for those preparing for the PHR or SPHR certifications.  This year the meetings are focusing on open discussion/dialogues for participants on topics in any of the modules as well as test taking skills.  We are looking for someone who is willing to facilitate a study group this spring for those preparing to take the certification test during the spring testing window.  The facilitator helps group participants to understand the answer to a question, reviews test preparation questions and is available as a resource for the participants. 

If you are interested in facilitating this group, please contact Melissa Chadwick at 608 240 2350 or melissa.chadwick@bakertilly.com.  The participants and facilitator can choose a preferred meeting time and location.

Additionally, if you are interested in participating in a group, please contact Melissa as well.  She can share your information with others who are interested in forming a study group.

 

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Nominations Are Now Being Accepted for the WISHRM 2013 Workplace Diversity & Inclusion Award!

It’s not too early to start thinking about nominations for the WISHRM 2013 Workplace Diversity and Inclusion Award! 

Does your organization stand out from your peers when it comes to diversity and inclusion initiatives?   Do you know of an organization that is a true advocate in your community when it comes to diversity and inclusion?  Do you view your organizational culture as diverse and inclusive in all aspects of your business and daily routines?  

 

If the answer is “yes” to any of these questions, then now is the time to start thinking about recognizing your organization or another organization in the community for the 2013 Diversity and Inclusion Award.  The Award will be presented at the Wisconsin State SHRM Conference in October.

 

More information on eligibility and the nomination process will follow.

 

Nominations are due Friday, July 19, 2013.

 

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Industry Liaison Group 

There is a new opportunity in Madison for employers who are federal contractors or who voluntarily provide an affirmative action plan.  A group of our members have joined with a former President of the Milwaukee SHRM chapter to form an Industry Liaison Group (ILG).  One question you might have is this:  What is an Industry Liaison Group?  ILGs provide an opportunity for companies and others to meet with representatives of regulatory agencies (most often the Office of Federal Contract Compliance Programs [OFCCP] and the Equal Employment Opportunity Commission[EEOC]) in an informal setting so that there can be a dialogue between the parties.  ILG meetings are, in effect, a learning opportunity for companies AND a learning opportunity for the regulatory agencies.  ILGs operate in many different ways in the various geographic areas that they serve, but their primary purpose is to help build a bridge between organizations and regulatory agencies so that there is an effective flow of information between the two groups.

Meetings with the Madison group are held quarterly.  A typical meeting may include speakers from the state speaking about opportunities to employ veterans, the local OFCCP director, or even representatives from the EEOC to talk about their new focus on arrest and conviction records as well as the push to employ ex-offenders.  It should be noted that the ILG is not a marketing opportunity for organizations.  This is truly meant to be an educational opportunity and chance to build a relationship with these agencies. 

In summary:

• The Madison ILG has the potential to be a valuable service to GMA SHRM members;
• The ILG concept is well-established throughout the nation as a successful way to build relationships with regulatory agencies;
• The people who are currently involved in the Madison ILG are not looking at this as a marketing opportunity, but as a possible learning experience for both organizations in Madison and for the regulatory agencies who might attend;

The next meeting will be held June 14, 2013 at Promega’s BioPharmaceutical Technology Center (address below).  GMASHRM members who are interested in participating may contact Sally Buzdum at sbuzdum@hranalytical.com  or Bill Osterndorf at 414.525.1972, ext. 202 or wosterndorf@hranalytical.com

Details for the June 14, 2013 meeting are as follows:
5445 E Cheryl Parkway, Madison.
Parking is available in a parking lot out front or on the street in front of the building.
11:30-registration (lunch on your own)
Meeting 12:00-2:00 (this includes Q & A time)

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GMA SHRM Volunteer of the Year

Each year the GMA SHRM board has the difficult task of choosing one volunteer from the almost 100 volunteers that work so hard to keep our chapter running smoothly.

Jeff Westra

This year’s Volunteer of the Year (VOY) has been an active contributor to the Workforce Readiness Committee for several years.  With a desire to help the unemployed in the community and provide a pro-active response to assisting the unemployed find work, the Job Boot Camp was born. The event consisted of a key note speaker, mock interviews, and resume reviews. This one day event required 20 volunteers to facilitate and had 60 participants. Our VOY was key to the success of this event!  Because of its success and all the positive feedback regarding the event, the Board decided to submit the program to National SHRM for consideration for the Annual Pinnacle Award.  

Please join me in congratulating our 2013 Volunteer of the Year, Jeff Westra. 

Thank you, Jeff, and all of our volunteers.  If you are interested in learning more about volunteering with the chapter, feel free to reach out to any of the volunteers here today, myself or any of the board members.
 

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GMA SHRM Member News

GMA SHRM Member Spotlight

Name: Matt Shefchik

 

Where do you currently work?  

Chief Operating Officer of QTI Consulting, part of The QTI Group

 

What is the focus of your position? 

I lead and manage the consulting function of The QTI Group.  We consult with organizations around the state and country on a variety of HR specialties; including compensation and variable pay design, employee engagement, and talent management and succession planning.

 

How long have you been in the Human Resource field?

12 years

 

Which of your career accomplishments makes you proudest? 

Seeing my team and former colleagues grow their expertise in the field of HR and take on leadership roles.

 

What is the best advice you’ve ever received? 

1. Work hard; play hard; and don’t take yourself too seriously.
2. It's not who you are underneath. It's what you do that defines you.

 

Why did you decide to join GMA SHRM?

Contact with others in the field of HR.

 

If you’d like to be published in an issue of HR InTouch, please complete this profile and submit (along with a photo) to Tia Gibson @ tia.gibson@covance.com.

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GMA SHRM Volunteer Spotlight

Name: Jeff Palkowski

How long have you been volunteering with GMA SHRM?
A little over two years.
 
What committees are you volunteering with (if more than Government Affairs)? Or have you volunteered on other committees in the past?
Government Affairs Committee.  Previously served on the Legislative Advocacy Committee for four years with Metro Milwaukee SHRM.
 
What do you enjoy about volunteering?
It’s a great opportunity to network with other HR professionals while developing programs and industry related information to share with GMA SHRM members.
 
What would you say to others who are considering volunteering with GMA SHRM?
Just do it!  There are many ways to get involved and most do not require a big time commitment.  Find an area that you’re interested in and “pay it forward.”  
 
What have you gotten back from volunteering with GMA SHRM?
Besides the networking opportunities, it’s been a great opportunity to share my current and previous experience in human resources and state government with others to create a greater awareness of our profession with elected officials and to encourage HR professionals to get involved in the issues and legislative processes that directly affect human resources.
 

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Welcome New Members!

GMA SHRM welcomes the following members who joined our chapter in April 2013!

Movin' Up

Have you started with a new company? Has your organization recently promoted you to a new position? Or do you want to recognize a new person or promotion within your department? If so, we want to hear about it. Send us an e-mail, and we’ll publish your good news in the next HR InTouch!

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In Transition

If you are a member who is in between jobs, or who is currently employed but seeking new positions or career paths, write us a brief description of your skill set, areas of expertise, what you’re looking for, etc. Send us an e-mail. We’ll publish your information in the next HR InTouch.

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GMA SHRM Member Poll

Do you have a burning HR question that you’d like to see featured on our GMA SHRM Member Poll? If so, please submit your questions to Tara Conger at tconger@pjpower.com

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HR InTouch Guidelines

Article Writing:

Do you have an interest in writing for the HR InTouch? We have an interest in learning more about your area of expertise!

Why should you volunteer? Top three reasons: 1) to share your knowledge and experiences to educate others; 2) to become more connected in the HR and Dane County communities; and 3) to contribute towards the advancement of GMA SHRM and the HR profession.

The first step is for you to choose a submission option: you can pre-submit an article to GMA SHRM at any time for us to use in any of the upcoming newsletters, you can sign up to write for a particular month, or we can put you on a list of people to contact in future months whenever we need articles.

Article length:

Because the HR InTouch is now in an online format, the size is flexible. The article should be engaging and hold readers’ attention. Include the core information in your article, and we will advise if it is too lengthy.

Solicitation:

GMA SHRM is conscious not to allow solicitation through the articles, in an effort to protect the interests of our partners and members. The nature of the article should be educational (i.e., what are the business advantages of having a product like yours) or informational. Otherwise, if you truly are interested in advertising through the HR InTouch, you can work with our Marketing Committee. As a rule of thumb for article writing, if the submission relates to a for-profit event, or specifically markets your company (vs. your industry), it is an advertisement, and should be purchased. If it is a not-for-profit event that your company is hosting, or an announcement (i.e., a SHRM member recently joined your company), it is an acceptable addition to the HR InTouch content. If you have any questions related to the appropriateness of your submission, please contact us.

If you have questions, or to submit an article, contact GMA SHRM at chapteradmin@gmashrm.org .