Employment screening and hiring practices often include background screening of applicants’ credit reports and criminal histories.  These background checks have recently come under increased scrutiny from the U.S. Equal Employment Opportunity Commission (EEOC) and the U.S. Congress.

Acting EEOC Chairman Stuart Ishimaru has asked the agency to issue guidelines within the next 12 to 18 months on how to carry out background checks in a nondiscriminatory manner. If approved, these guidelines could to require employers to provide empirical evidence for the “business necessity” defense in discrimination cases that arise from screening and hiring practices. In addition, legislation has been introduced that would further restrict employee credit checks. The proposal would amend the Fair Credit Reporting Act (FCRA) and prohibit the use of consumer credit checks against employees “for the purposes of making adverse employment decisions.”

The HR Department at Management 2000, a Professional Employer Organization with offices in Indianapolis, Indiana and Dayton, Ohio, tracks the latest legislative and agency trends and changes.  By doing this, the HR professionals at Management 2000 can provide employers with the HR support needed to address human resource issues and develop appropriate HR strategies.