Why Are Background Checks Important in Construction?

There’s a reason that people want to work in construction. For employees, a career in construction offers the chance to work outside with diverse groups of people as well as the opportunity to solve interesting technical and logistical challenges on a daily basis. For managers, the industry offers a mix of office work and field work and can provide experience leading and motivating skilled workers.

Working in construction, however, isn’t without risks. According to the Occupational Safety and Health Administration (OSHA), there are an average of 15 on-the-job fatalities every day in the United States. Approximately 20%—one out of five—of these deaths occur in the construction industry. Construction sites are also the scene of numerous non-fatal injuries.

So what makes a construction site safe? One of the most important factors in maintaining a safe construction site is having reliable, trained, and experienced workers on the job.

The right employees can help hold an entire team accountable to construction safety best practices. Poorly trained, inexperienced, or intoxicated workers, however, can produce poor-quality work that can result in death, injury, and property damage even years after a project is finished.

In addition to the physical safety of workers and clients and the long-term durability of construction projects, poor work also poses a risk to your company’s reputation. Failure to vet workers appropriately can result in bad press and negligence lawsuits.

With a boom in construction and a growing shortage of workers, employers are often adding new employees to their rosters as quickly as they can hire them—but don’t let your need for speed get in the way of hiring high-quality workers! Background checks can provide valuable information about a prospective employee that can save you time, money, and stress down the line.

Background checks remove the guesswork

Regardless of who you’re hiring and for what position, background checks can give you extra protection and greater peace of mind.

Hiring workers for your job site? Drug screening, criminal background checks, and licensing verification help increase worksite safety.

Hiring workers for your office? A comprehensive pre-employment check ensures that you hire honest, hardworking employees and reduces employee turnover.

Hiring someone for your board or to oversee a large construction company? A corporate due diligence screening checks for a history of lawsuits, disciplinary actions by the SEC or FINRA, or past employment with firms that have been expelled from the securities industry.

Comprehensive background checks not only create a safer, more productive environment for everyone but also act as evidence that your hiring process was thorough and complete. This, in turn, protects you from charges of negligent hiring and potential lawsuits.

Ensure licensing and qualifications

Many construction positions call for a specialized background, training, or licensing. Unqualified or untrained workers can reduce workplace productivity and efficiency. Worse, they can present a danger to the immediate physical safety of others on the site and the long-term safety of a construction project.

Failure to ensure that your employee has the qualifications they claim can also be dangerous to your company’s reputation and finances. If someone is injured or killed, or if the project proves unsafe after it’s built, your company could be held liable if you failed to adequately check your workers’ backgrounds.

A professional license verification is part of a comprehensive pre-employment screening. It checks to ensure that the applicant has the licensing that they claim, whether it’s related to a specific skill or is required to use particular equipment. The screening company will contact the license issuing authority on your behalf to verify the license, the date it was issued, and the expiration date.

Meanwhile, employment verification can confirm that your applicant has the skills and experience necessary for the job by verifying previous employment, employment dates, and types of positions held.

Hiring the most qualified people and having a realistic understanding of your employees’ experience drastically reduces the chances of serious injury or a poorly constructed project.

Increase employee quality with criminal background checks

It’s in every employer’s best interest to know if their employees have criminal backgrounds, and construction is no exception.

In an industry where workers may have access to personal or proprietary information or to valuable equipment and materials, a criminal background check can reduce the risk of theft. More importantly, it can expose applicants with a history of violence or sex offenses, creating a safer workplace for employees and clients alike.

A criminal background screening typically checks your applicant’s name against county court records and national sex offender registries to be sure there’s no history of felony convictions.

Drug tests reduce workplace accidents

Ready for another alarming statistic? According to the Substance Abuse and Mental Health Services Administration (SAMHSA), more than 17% of people working in the construction industry have abused alcohol or drugs.

Construction often involves heavy equipment and hazardous materials, and workers may be responsible for driving vehicles, operating machinery, and making split-second decisions. Workers who abuse drugs or alcohol put themselves and others at immediate risk on construction sites and may contribute to poor workmanship that can pose a hazard to workers and others.

The good news is that both pre-employment drug screening and ongoing post-employment screenings can contribute to significantly reducing on-site accidents and injuries, while also contributing to better productivity and reducing costs.

In order to be sure you’re in compliance with both the demands of your industry and the laws protecting employee privacy, it’s worth working with an experienced background check company that can help you navigate federal, state, and local regulations.

Find your screening company today

The construction industry tends to have a high turnover rate even during the best of times. Add that to the current labor shortage, and construction companies are often understandably reluctant to add another hurdle to the hiring process.

But don’t worry. The good news is that background screenings typically take only a few days. Even better news is that the right screening company will understand the federal, state, and local regulations for your industry and help you to stay in compliance with them. They’ll also be able to connect directly with your applicant tracking software, reducing your time-to-hire by allowing candidates to submit their information online, collect electronic signatures, and send updates as they become available.

So don’t be deterred from running the appropriate background checks! The extra security for your people, your company, and your peace of mind is well worth it.

If you’d like to connect with us for a free demonstration and an explanation of how we help companies like yours, contact us today.

The Importance of Background Checks for Staffing Agencies

If you run or work for a staffing agency, you’re probably in the somewhat unusual position of having to screen applicants not only for multiple job types but also for multiple industries.

Your healthcare clients may have different needs, for example, than your construction clients, your nonprofit clients, or your financial clients. Each industry might require a different type of background check.

For staffing agencies, consistently making strong placements is critically important. A poor placement can impact your relationship with your client, damage your reputation, and ultimately affect your bottom line. Fortunately, running background checks on the people who apply to work through your agency can increase your success rate by improving the quality of workers you supply and putting your clients at ease. This, in turn, helps your firm stay competitive.

Whether you’re filling full-time or part-time positions, temporary or permanent ones, your company’s success rests on being able to supply your clients with high-quality, reliable workers. Background checks can help you do it.

What types of background checks do staffing agencies run?

The exact types of screenings run by a staffing agency vary according to the needs of the staffing agency and its clients. The following are some of the most standard pre-employment and corporate due diligence screenings:

SSN trace

A social security number trace, or SSN trace, finds all the current and past addresses associated with your placement’s social security number. This ensures that appropriate criminal history searches can be done in all the jurisdictions in which an applicant has lived.

Criminal background check

Criminal background checks can be done at both local and national levels to ensure that your candidate has no criminal history or felony convictions that could pose a threat to your client’s company, employees, or customers.

National Sex Offender Registry check

This search will check your applicant’s name against sex offender registries across the country. This is an important screening under any circumstances, but it’s particularly vital in cases where an applicant will be working with vulnerable populations such as children.

Drug screening

For companies with anti-drug policies in place, or for positions that call for operating machinery or driving vehicles, a drug screening is an essential step in keeping your client’s workplace safe.

Employment verification

This verification ensures that your applicant has the employment history—including job title, responsibilities, organization, and employment dates—that they claim, and thus the experience needed to do the job.

Education verification

Similar to employment verification, education verification checks the educational background a candidate has on their resume to confirm their degree, dates of attendance, and field of study, and makes sure that they attended an accredited institution.

Motor vehicle report

Essential if the position being filled calls for any kind of driving, a motor vehicle report gives you insight into your applicant’s driving history and will let you know if they have a record of DUIs or serious traffic violations.

SEC/FINRA

This screening is especially important when placing applicants in financial firms to ensure compliance with Security and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulations. This search looks for a history of complaints, lawsuits, or arbitration filed by customers, disciplinary actions by the SEC or FINRA, or past employment with firms that have been expelled from the securities industry.

How to conduct a background check

Most staffing agency contracts promise that the agency will exercise “due care” in vetting applicants before placing them with a client. In order to make sure that background checks are conducted consistently, legally, and quickly, it’s important to have a policy in place.

At a minimum, your policy should include:

  • A written document stating which screenings will be conducted and under what circumstances
  • A system to be sure your background checks are legally compliant
  • A system to inform applicants of their legal rights, allow them to dispute errors, and inform them of your decision to place or not place them with a company

How do I stay compliant when running a background check?

It’s important to stay in compliance with federal, state, and local regulations regarding background checks. Staying in compliance ensures that applicants are treated equally and fairly. Just as importantly, you protect your company and prevent potential lawsuits by staying on the right side of the law.

At the federal level, the Fair Credit Reporting Act (FCRA) requires that the organization running the check must inform the applicant of their rights, get their written authorization to run the screenings, and keep their information secure. If you decide not to hire an applicant based on the results of their screenings, it’s important to follow the correct steps to inform the applicant and allow them to dispute the findings and correct errors.

Background checks must also comply with the Equal Employment Opportunity (EEO) laws and with the Immigration Reform and Control Act (IRCA), which prohibits discrimination on the basis of national origin or citizenship.

Below the federal level, laws vary from state to state and sometimes even city to city. Some states prohibit asking about a candidate’s criminal or credit history until after an initial interview has been conducted or a job offer made, for instance.

The best way you can stay in compliance is to be aware of the laws that regulate your specific jurisdiction. Working with a professional background check company can help you understand the laws and stay in compliance with them.

Seek out a professional and avoid the hassle

Running background checks can be time-consuming, and they must be run in strict adherence to legal regulations. Failure to do this can make you vulnerable to lawsuits.

The easiest way to save time, stay in compliance, and be sure that your background checks are thorough, complete, and accurate is to work with a professional screening company. This is especially true for staffing agencies, which usually handle a much higher volume of applicants than other businesses.

At EagleScreen, we can streamline the process for you. In most cases, all you need to do is give us your applicant’s email address and we’ll take it from there. We’ll inform your applicant of their rights, get the information and signatures we need from them, run the screenings, and let you know the results. Best of all, the entire process can be integrated with your existing applicant tracking software, so you’ll have the information you need, where you need it and when you need it.

If you’d like to find out more about how we can help your staffing agency find the best people for your clients, contact us today to set up a free demo.

Why Landlords Should Screen Their Tenants

What you want is what every landlord wants: tenants who pay their rent on time, don’t bother the neighbors, and treat your property with respect.

It sounds simple enough, but unfortunately, not all potential tenants will fit the bill. And the wrong tenant can be a liability in more ways than one.

Eviction is every landlord’s nightmare, but it’s not the only possible bad outcome. Reasons why landlords should screen their tenants include:

  • Saving money on repairs and replacement of damaged property
  • Avoiding negligence lawsuits
  • Keeping tenant turnover low
  • Losing rental income due to vacancy
  • Preventing damage to your reputation

Finding the right tenants isn’t always easy. Fortunately, a comprehensive tenant background check enables you to look for red flags in your applicant’s past behavior and helps you find the perfect tenant for your rental property.

Think of screening as an investment in your business or a form of insurance. It’s the closest thing you can get to a crystal ball.

Why financial history matters

A good look at your applicant’s financial history can tell you a lot more than just their salary.

These days, a credit check is a standard part of the tenant screening process. While credit scores are important, it’s the credit history that really tells you what you want to know.

Specifically, a credit check can tell you if your applicant has a history of late payments on rent, utilities, credit cards, or other bills. It also lets you know if your applicant is carrying significant amounts of debt, and if so, what kind. Too much debt may mean that if they lose their job, even temporarily, they may struggle to cover rent.

Derogatory credit marks such as bankruptcies, liens, judgments, and collection accounts are a warning sign that your applicant may have a history of mishandling their finances. A credit history also lets you see how often your applicant changes address. Frequent moves may be a sign that they’re skipping out on their lease before they have a chance to get evicted.

While credit history is important, it’s not the only thing to consider. If all else looks good, an uneven credit history or a low score doesn’t have to be a dealbreaker. In those cases, however, you may want to consider covering yourself with a higher security deposit or asking for a co-signer on the lease.

Will your tenant pay on time?

Landlords rely on the rent they collect to make their mortgage payments, pay utility bills and taxes, and stay on top of upkeep and repairs. Even if residents do eventually pay you, it’s a waste of your resources to have to constantly chase them down every time they’re late. Therefore, it’s important that tenants not only pay their rent but pay it on time.

There’s no landlord crystal ball that can give you 100% certainty that your tenant will always pay their rent in a timely manner. However, you can significantly raise the odds in your favor with a tenant screening process that can tell you all about their past behavior.

An applicant’s credit report will tell you if they have a history of paying their bills, including rent, late, and may tell you if they’ve been evicted in the past if there have been judgments for rent against them. Confirming employment and salary is also helpful. The rule of thumb is to look for regular income equal to at least three times the rental amount.

You can make it easier for your tenant to pay on time by setting the due date for rent shortly after, not before, they receive their monthly paycheck, and by making online payments possible. You can also use a carrot-and-stick approach by combining incentives, such as a small discount for paying early, with late fees.

Avoid uncertainty

Arguably, the most important reason why a landlord should screen their tenants is to keep themselves and their other residents safe.

Criminal acts committed by your tenants put your property and other residents in danger, can damage your reputation as a landlord, and can invite negligence lawsuits. Criminal background checks of your prospective tenants are one of the best things you can do to ensure the safety of your residents, your property, and yourself.

If an applicant has a criminal history, consider how recent, how often, and how serious the crimes were. A traffic violation from seven years ago may not influence your decision as much as an assault conviction from two years ago. And a single incident might not carry as much weight as repeated brushes with the law.

Depending on where you live, criminal history alone may not be legal grounds for denying a tenant, so be sure you familiarize yourself with tenant laws for your area.

Eviction history

Eviction is costly—getting rid of a troublesome resident usually costs $2,500 to $3,500, and may take a month or longer—meaning even more lost rent. It’s an expensive, time-consuming, and stressful process, so smart landlords do their best to avoid risky tenants.

Some evictions may show up on a credit report in the case of monetary judgments, but not all. Don’t rely on a credit report alone. The best way to check for a history of evictions is a nationwide eviction search.

Eviction records stay on file with the courts for seven years and typically show up in the records within two months.

How to screen tenants

In order to be fair to your applicants and protect yourself from accusations of discrimination, it’s vital to understand Fair Housing Act requirements and to follow all federal, state, and local laws around renting.

Long before you get to the screening stage, you can begin weeding out people who aren’t good fits by disclosing information about the property up front. Put your application fee, security deposit, lease terms, and pet and smoking policies in your ads.

Determine your minimum qualifications for income, employment, and credit history. You don’t need to make these public, but you should be careful to hold all applicants to the same standards.

It’s important to treat all applicants equally, and that includes screening: if you screen one, you should screen them all in the same way. Depending on the laws in your state, you may be able to pass the cost on to applicants, so don’t let cost hold you back from running background checks on each applicant.

Also, be aware of your responsibility to protect applicant privacy. Using a tenant screening process like EagleScreen’s, all you need from your tenant is their email address. Once you give that to us, we’ll take it from there, contact your applicant directly, and let you know when their background report is available. You can reduce your liability and make your tenant feel more secure by never seeing their social security number in this step.

Hold on to your screening reports. They can show that you’ve done your due diligence in vetting your residents. And if you’re accused of discrimination, they can help you point to valid, objective reasons why you turned an applicant down.

Final thoughts

There are plenty of reasons why landlords should screen their tenants, but they all boil down to peace of mind. A comprehensive screening gives you a three-dimensional view of your applicant’s potential as a resident and is one of your most powerful tools to ensure a long and happy relationship with your tenants. To learn more about EagleScreen’s tenant screening services, contact us today.

How Long Do Background Checks Normally Take?

In the movies, detectives and government agents run complete background checks on suspects in just seconds.

But be warned: In real life, it usually takes a little longer.

While some types of checks might be as simple as a quick database search, most call for at least some manual records checks or verification by phone or email. The result is that screenings—if they’re to be considered reliable—are rarely instantaneous.

At a minimum, pre-employment background checks do two things:

  • Verify that information your job applicant has shared on their resume is true
  • Ensure your applicant’s background doesn’t pose a liability for your company or employees

That makes high-quality background checks vital to the health and safety of your company. Although delays can be frustrating, the peace of mind that a comprehensive background check can provide is well worth the wait.

How long does a background check take?

The background check process usually takes between two to five days to complete. In rare cases, checks can take longer, sometimes up to two weeks. The exact length of time depends primarily on the type of checks being done but it can also be affected by other factors.

Understanding the process can help you manage time and expectations appropriately.

What causes delays?

How long a background check takes depends on a number of factors. Knowing what can cause delays can help you avoid them.

Inaccurate or incomplete check request forms

Candidates sometimes make errors or omissions when submitting their information, which can cause delays and confusion. Explain ahead of time to your candidate that the more accurate and complete the information they submit is, the faster the process will go.

Not having the necessary authorization and release forms

No check, either by the hiring company or a screening company, can proceed until an applicant has received, signed, and returned all the necessary consent forms. It’s important that these forms be the most up-to-date available as required by law. This process can be done quickly and easily with an online system. Paper forms lend themselves to confusion and delays.

Verification checks

Most background check companies will gather contact information themselves to verify educational attainment, past employment, and licensing rather than rely on what the applicant provides. This adds a layer of security, but it can be time-consuming. And in many cases, this kind of verification involves personal phone calls and emails, rather than a fast and automated database search.

Drug screening delays

Delays in getting appointments at screening centers and lost samples can result in wasted time, which is why it’s essential to work with highly vetted laboratories and experienced drug screening providers. Medical reviews may be necessary to determine whether a non-negative result stems from a prescription medication or a medical condition.

Third-party delays

Not all former employers, court systems, and educational institutions have fully computerized files. Some county courts have significant backlogs, and most institutions aren’t under any obligation to return verification requests quickly. Turnaround times can also be affected by holidays and staffing issues.

How to expedite background checks

Since both you and your candidates are probably eager to know if you can proceed with the hire, it’s in everyone’s interest to get the check done quickly. While some aspects are beyond your control, you may be able to reduce how long your background check takes with a few simple steps.

Communicate with your candidates

Encourage candidates to get their authorization and release forms signed as soon as possible, and explain that hiring may be delayed if they don’t act promptly. Let them know what kind of information they’ll need so that they can gather it and have it all available when they submit their information. And, since background checks usually call for sensitive data such as social security numbers, assure them that their information will be kept private and secure. 

Keep it streamlined

A single online system that provides consent forms, collects electronic signatures, allows candidates to submit their information, and integrates with your company’s applicant tracking software is vastly more efficient than paper forms or multiple systems.

Understand what type of searches you need

There are multiple types of searches and verifications. It’s important to know which ones are required by your jurisdiction and/or industry as well as which ones are best suited to your company’s needs and the requirements of a particular position. This can save you time by ensuring you conduct only the searches that are truly relevant and necessary.

Work with a proven expert

A knowledgeable, ethical background check company can save you time by streamlining your workflow, steering you away from screenings you don’t need, and putting their experience to work for you.

Avoiding complications

Knowing your responsibilities as an employer and understanding what’s involved in the background screening process can help you avoid disputes and complications. At best, these complications can delay the hiring process. At worst, they can devolve into ugly legal disputes.

Follow federal regulations

Failure to follow state and federal laws concerning background checks can result in lawsuits and accusations of discrimination and bias.

At a minimum, employers are required to:

  • Inform applicants of their rights concerning background checks
  • Provide up-to-date consent forms
  • Ensure that applicant information is kept secure and private
  • Ensure that all applicants are treated equally
  • Follow the adverse action procedures outlined by the FCRA, which includes providing applicants who are turned down as a result of their criminal records with a statement of rights and a copy of the background check

Follow state and local regulations

Laws around pre-employment screenings vary from state to state, and even from city to city. Large companies with offices in multiple locations may be subject to different laws even when hiring for the same position. Working with a screening company that builds compliance into all their checks is a smart move across the board, and it’s especially important for companies that hire across multiple jurisdictions.

Final thoughts

How long a background check takes ultimately depends on a variety of factors, only some of which are within your control. You can significantly improve turnaround time by communicating clearly with job candidates, understanding your legal and ethical obligations, and working with a reputable screening company. If you’re ready to learn more about how EagleScreen can help you hire the best, contact us today.


@[email protected] Please let us know if you’d like us to include specifics about what this statement should look like!

This should instruct the reader to follow the Adverse Action procedures outlined by the FCRA as well as the summary of rights and a copy of their background check.

updated!

5 Reasons Why Companies Should Perform Background Checks

Every company wants to work with the best people—but finding the best people isn’t always easy.

The candidate who is perfect on paper, charming and charismatic in the interview, and comes with glowing references isn’t always the catch they seem to be. Have they lied about their education? Exaggerated their work experience? Are they hiding a criminal history or a drug habit?

The consequences of a bad hire can range from lowered company morale and wasted time to bad publicity, litigation, and even outright violence. Pre-employment background checks, including a drug screening and comprehensive check of criminal records, can save your company untold amounts of money, stress, and time.

Despite this, many companies, especially smaller ones, don’t bother to run background checks, assuming they’re too expensive or time-consuming. Fortunately, background checks are increasingly affordable and fast, meaning that you can easily take steps to protect your company and the people who work for it.

Here are five reasons why background checks can benefit your company:

1. To protect your employees, customers, and clients

Keeping your employees and anyone else who has contact with your company safe is always a priority and is probably the most compelling reason why you should conduct background checks. An unsafe work environment reduces productivity, raises the risk of liability, and in the worst case, can result in tragedy.

Checking job applicants against sex offender registries and criminal records databases should be a no-brainer, but deliberate violence isn’t the only danger. Pre-employment and regular drug screening has proven to be highly effective in reducing workplace accidents and on-the-job injuries as well.

As an employer, you have an ethical and legal obligation to keep your employees and customers safe. Making employment background screening a standard part of your hiring process is one of the easiest ways to do it.

2. To keep your workplace productive

In a 2020 survey, 36% of respondents said they lied on their resumes—and that was only the ones who admitted it! Candidates can and have lied about everything, including their education, job histories, skills, licensing, and even their names.

Exaggeration or “bending the truth” is also a problem. Just because a candidate attended a particular college doesn’t mean that they graduated or studied the subject they claim to have majored in. And it’s not unheard of for applicants to pad out their resumes with duties they didn’t actually perform.

The unfortunate fact is that resumes alone can’t be trusted any more than an interviewer’s “gut instinct” can be considered objective. By not verifying a candidate’s claims, you risk hiring people without the skills and competency to do their jobs well. This leads to higher turnover, which in turn costs your company more money and lowers overall morale.

A background check that verifies your candidate’s claims about education, past employment, and licensing means your new hire is more likely to be able to do the job—and do it well.

3. To protect your company against theft & fraud

Company theft isn’t limited to a few pilfered staplers and pens. In the United States, employee theft costs companies an estimated $50 billion a year. This can range from inventory theft to embezzlement to data security breaches, which can put company and client information at risk.

Furthermore, theft isn’t limited by age, gender, or employee rank. Don’t assume that someone applying for a management or executive position is less of a risk than a lower-paid employee—in fact, the higher up in the company they are, the more potential damage they can do thanks to increased access and trust.

Lack of a criminal history doesn’t guarantee that your employees will never do anything wrong, but a history of theft or other criminal behavior is a red flag you want to be aware of. 

4. To reduce your liability exposure

In 2016, the family of a man who was shot to death by a co-worker sued the company he worked for. The company had failed to run a comprehensive background check that would have turned up the co-worker’s history of violence. The jury awarded the victim’s family one million dollars.

Failing to provide safe working conditions for your employees may be grounds for a lawsuit if one or more of your employees is harmed by a coworker. Similarly, if someone outside your company is harmed by one of your employees—say, an intoxicated delivery driver who hits a pedestrian—you could face charges of negligent hiring.

Whether accidental or deliberate, harm caused by one of your employees is potential grounds for a lawsuit. Companies that run background checks can save thousands of dollars in lost time and litigation, as well as prevent senseless tragedies.

5. To ensure compliance

Finally, one of the most important reasons why you should conduct a background check is simple: because you have to. Depending on your industry, you may be subject to local, state, and federal regulations that require you to conduct specific background checks or drug screenings. You may also work with clients and suppliers who insist on specific standards of security and qualifications for your employees.

Failure to comply with these regulations can result in heavy fines and loss of business. Professional background screening helps to ensure that you’ve made the right hiring decisions and gives you proof that you’ve done your due diligence to ensure that your employees meet the legal and professional standards required.

Final thoughts

The exact reasons why an employer should conduct background checks may vary depending on the company, the industry, and the geographical region, but virtually any business can benefit on some level from the increased peace of mind and security that a background screening can provide.

Better background checks mean better employees, a better work environment, and a better bottom line. They also mean less stress, less turnover, and less waste. Even better, as your company’s reputation for providing an excellent work environment grows, you’ll attract increasingly good candidates over time, creating an ever-improving experience for your entire company.

Making background checks a standard part of your hiring process isn’t just good for your bottom line—it’s also the right thing to do. Get started today.

Employers and Last Week’s Equifax Hack

Last week, the credit reporting giant Equifax disclosed that hackers gained access to the names, Social Security numbers, dates of birth, and addresses of the company’s 143 million U.S. customers. Even by today’s standards, this data breach was big.

While Equifax customers sign-up for identity theft protection and seek answers, employers are left asking what the incident means for them. Most likely, not very much. For starters, hiring for many positions doesn’t require access to credit information, unless that information relevant to the role being filled.

Furthermore, the latest breach isn’t going to stop a background check company, like EagleScreen, from accessing reliable consumer credit information when it needs to. Our measures and processes are designed to only retrieve accurate, verified information on subjects and check for quality assurance at every step along the way. Unless employers start receiving ghosted job applications that are submitted by the hackers (not likely to happen), a hack of this nature isn’t going to mean much.

Still, last week’s Equifax hack is a good reminder of the critical importance of data security. As an important partner in your hiring process, EagleScreen is proud to safeguard sensitive applicant information using the most robust, best-in-class data security measures, including secure archiving, constant internal vulnerability testing, and SAS 70 compliance on host systems.

Long story short: employers, you can breath easy. Hackers are not likely to use this information to apply for jobs on behalf of those whose sensitive information they have hacked.  Equifax customers, on the other hand, should check out these resources regarding what to do next.

The Promise -and Pitfalls- on the Horizon for Landlords

In May 2017, the nationwide average for monthly rent grew by about $4, marking the third straight month of rent growth in the U.S. That’s the good news, according to new survey data from Yardi Matrix. Residential landlords and property managers are less likely to smile over the fact that rent growth is decelerating, meaning year-over-year increases in rental prices are still underway, but at a more modest rate.

EagleScreen blog readers are encouraged to check out the reporting from our friends at MultiFamilyExecutive .com for their summary of the Yardi Matrix report, as well as their other insightful commentary on the latest market trends. The Yardi report’s authors credit a slowdown in rental price growth to the slight increase in apartment supply. Compared to last year’s 281,000 new rental units, 2017 is expected to come in nearly 80,000 units stronger at 360,000.

Other fast facts from the data:

Growth in upscale renters, those who could afford to own their own home but choose to rent, is a market subset that Yardi anticipates will stay flat this year. On the other end of the spectrum, the “Renter by Necessity” category of tenants is expected to rise by 2.6%.

Look west for rent growth, as three regions in the Golden State take the gold, silver, and bronze medals for top rent growth in the country with the Sacramento area clocking in at +7.3%, the Inland Empire at +4.2% and Los Angeles at +3.9%.

After years of robust rent growth, Yardi predicts a slowdown ahead in this area. In the southern and western regions of the U.S., new completions are expected to push total apartment stock about 3.0% higher in 2017.

Friendly reminder: EagleScreen is a proud provider of high-quality, FCRA-compliant screening solutions to property managers and landlords across the country.

‘Ban the Box’ Laws & What They Mean For You

When changes in the law and public policy intersect with HR management, the practical consequences for employers are compliance-related complexities -and the heightened chance of doing something wrong. Few other trends at the nexus of HR and public policy can prompt more head-scratching -and require closer attention- than the “Ban the Box” movement. Simply put, the “Ban the Box” movement is about eliminating the ability of employers to ask applicants about their criminal history in an initial job application. More broadly, efforts are underway to promote “fair chance” laws that restrict employers’ inquiries into the criminal histories of applicants.

In the United States, 70 millions adults – more people than every man, woman, and child in France- have an arrest or conviction on their record. This reality, coupled with greater scrutiny of the criminal justice system, has invigorated the campaign for “Ban the Box.” Advocates for “Ban the Box”-style reforms frame their arguments in terms of fairness, while opponents, particularly those in the business community, lament how the laws add to an already frustrating screening compliance checklist.

Like so many legal and regulatory issues, precisely how “Ban the Box” manifests itself varies from place to place. For example, an employer in Los Angeles must be clear and up-front about the fact that they consider an applicant’s criminal record, whereas employers in New York City must initially refrain from mentioning whether a criminal record search is part of the hiring process. Given that over 150 municipalities and 18 states have some version of Ban the Box, understanding what those laws and regulations mean for you is no simple task.

As more and more companies and organizations turn to pre-employment screening providers, it is essential for them to work with those who understand the complex and ever-evolving compliance landscape. In the case of EagleScreen, our top-notch compliance experts keep appraised of “Ban the Box” and other screening-related compliance questions. Moreover, our team educates clients about these issues to allow for greater end-to-end compliance in the hiring process.

EEOC Guidelines: What You Need To Know

Employers, in general, and HR professionals, in particular, have plenty on their plate. Who has the time to consider the latest Equal Employment Opportunity Commission (EEOC) guidelines when managing and motivating a workforce, meeting payroll, and coordinating recruitment are just a few of your core responsibilities?

And yet, here’s the truth: if you want to stay on the right side of hiring regulations, EEOC guidelines are critical to know.

Established in the mid-1960s, the EEOC is tasked with making sure employers give equal treatment to their employees -and job applicants. Like the Federal Trade Commission, the EEOC is a federal agency charged with enforcing civil rights laws and pushing back on workplace discrimination, including discrimination that Americans could experience before they get hired.

Here are a few high-level recommendations for those who want to ensure compliance with the EEOC:

No brainers:

Don’t discriminate – the EEOC can take swift action against employers that screen or check applicants of only a certain race, national origin, color, gender, religion, disability, or age. Instead, it’s a good idea to stick to a uniform screening protocol for all of your applicants and use background checks across the board, not just for some. Plus, once you have access to information gained through a background check, be consistent in how you accept or disqualify applicants based on that data.

Safe from the start:

The EEOC cares big-time about preventing employers from taking actions that could have a “disparate impact” on specific groups of applicants based on factors such as race, national origin, gender, and age. For this reason, employers are advised to refrain from saying in the job posting that a clean criminal record and passing a criminal background check are required.

Hold off on the recycling:

EEOC guidelines require employers hold on to employment records (including applications forms and related records!) for one year after the records were created or the hiring decision was made, whichever comes later. Some employers, like educational institutions and government employers must preserve these records for even longer.

Type it up:

Employers of all kinds can work to insulate themselves from additional liability by typing up their hiring procedures and criteria for assessing job applicants, as well as their background check information. Keeping a paper trail can be useful for conveying to the EEOC that you have taken concrete actions to prevent discrimination in your hiring process.

Don’t freak out:

OK, so the EEOC is on your case, what do you do? First, don’t freak out. Get to the facts by interviewing the employees involved in your hiring process and reviewing any related documents. Doing your homework in this regard will go a long way to helping you decide whether you do or don’t want to go to court and litigate your case. Of course, it’s important to be forthcoming and make clear to EEOC investigators who was involved, what documents are relevant, how you are responding to each allegation, and the pro-active steps you took before the incident happened.

Of course, no one is going to mistake a blog post for sound legal advice. We hope this information helps bring you up-to-speed on what you need to know. Clients that engage with EagleScreen enjoy the peace of mind knowing that we conduct our background checks in compliance with EEOC guidelines and other relevant federal, state, and local laws. More than that, we pride ourselves on educating clients and working with them to build a compliant hiring process from end to end.

 

 

Not Your ‘Run of the Mill’ Risk: Beware of Diploma Mills

In the information age, educational credentials are more important than ever when it comes to evaluating candidates. Yet, just as counterfeiters and swindlers have churned out fake money, artwork, and artifacts, so too are diploma mills selling fake educational credentials to those desperate for a quick and easy boost to their resume.

What does all this mean for employers? Today, hiring managers are forced to navigate the murky waters of a hiring landscape that is muddied by the presence of diploma mills in the United States and around the world. Mistakes in doing so can result in employees that are patently unqualified for the work they were hired to do. As a result, employers become saddled with the costs of those employees’ mistakes and the subsequent pressure to rehire for their positions.

 

While the Federal Trade Commission has released a list of warning signs on the topic of diploma mills and has taken regulatory actions, as well, these (non) “institutions” attempt to slip by with names and, occasionally, Internet domain information that are similar to legitimate academic institutions. Furthermore, no level of the education system is immune to the presence of these diploma mills, as there are fake degrees peddled for everything from high school to college to graduate-level degrees. In fact, many of the most high-profile instances of diploma mill fraud involve job applicants who claimed to have a professional degree. In an era when its hard to be a job applicant without a high school degree, diploma mills swoop in with the false promise of an easy solution.

 

The downstream consequences of diploma mills, of course, are realized by employers who convert the wrong applicants into employees. Depending on the role being filled and the industry it is in, employees with fake degrees can expose employers to serious risks and liability concerns. Across the board, the negative consequences of bringing on an employee with fraudulent educational credentials can stem from the wasted time onboarding and training them, the money it takes to rehire, and the potential for the employee to make mistakes linked to the absence of a real educational credential. High-quality providers of pre-employment screening solutions, like EagleScreen, know how to identify cases of fraudulent educational credentials. Ultimately, these verification solutions save our clients time and money by keeping them safe from diploma mill scams.