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Know the law governing background criminal and credit checks

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in Discrimination and Harassment,Employment Background Check,Hiring,Human Resources

THE LAW: Title VII of the Civil Rights Act allows covered employees to file lawsuits against employers that have policies that appear to be neutral, but have a disparate impact on minorities or protected classes.

Additionally, the Fair Credit Reporting Act (FCRA) requires employers to obtain releases to obtain a job applicant’s or employee’s credit information. The law limits how employers may use the information they uncover.

Numerous states have laws governing hiring practices as well, and some of them have recently stepped up enforcement efforts. Because state laws vary greatly, employers should consult with their attorneys before using criminal or credit checks in hiring.

WHAT’S NEW: Two lawsuits challenging the fairness of background checks serve as cautionary tales for employers.

The U.S. Census Bureau recently was hit with a class-action Title VII lawsuit because it requested arrest information from applicants seeking...(register to read more)

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