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Introduction to International Screening

by Lester S. Rosen

Employers have long recognized that conducting due diligence on new hires is a mission critical task. Firms cannot afford to be sidetracked by employee problems such as workplace violence, theft, false resumes, embezzlement, harassment or trumped-up injury claims. Employers can be the subject of lawsuits for negligent hiring if they hire someone that they should have known, through the exercise of due diligence, was dangerous, unfit or unqualified.

However, with the mobility of workers across international borders it is no longer adequate to conduct these checks just in the United States. A 2000 government study shows that 11.5% of the population consists of immigrants. In addition, an increasing number of workers have spent part of their professional career abroad. The number of countries from which employers seek additional information about applicants is expansive, and includes India, China, Philippines, France, Germany, Russia, Brazil, Mexico, Australia, Japan, Canada, among others.

International Background Screening Perceived As Difficult
Because of the perceived difficulty in performing international employment screening, some employers have not attempted to verify international credentials or to perform foreign criminal checks. However, the mere fact that information may be more difficult to obtain from outside of the U.S. does not relieve an employer from their due diligence obligation.

Nor can employers simply assume that the U.S. government has conducted background checks if the worker was issued a visa. After the events of 9/11, the U.S. has increased checks on foreign visitors and on workers on government "watch lists." However, the government checks are generally not aimed at verifying a credential or checking for criminal records for employment purposes.

To exercise due diligence in hiring, employers should consider screening internationally for criminal records, employment, education, and publicly available terrorist lists.

Criminal Records
When it comes to criminal records, each and every country is completely different. The availability of public records that is taken for granted here in the United States is often times not available abroad. In some countries, records are available at the courthouse, similar to how criminal records are obtained in the US. In other countries, records can be obtained from a police agency. In some countries, the best course is to have the applicant obtain their own certificate of good conduct from their local police station.

For criminal records searches, it is important to know exactly where the person has lived to ensure you are searching the appropriate court. Keep in mind also that that turnaround time for international criminal searches takes longer than domestic searches. Different countries also have different rules on the level of searches, but in most countries it is possible to obtain information of offenses that are at the felony level.

Another concern is name variations. Many countries have naming convention that is different then the US, such as the use of the mother's name. Complications can also arise for applicants whose name is based on a non-English alphabet, such as Chinese, Arabic or Japanese. There are numerous ways that such names can be translated into English.

Privacy and data protection is another crucial issue. For example, the European Union has passed strong privacy rules affecting how personal data can be obtained and utilized. U.S. background firms that do international searches should be a member of the U.S. Department of Commerce Safe Harbor program, which demonstrates a commitment to the E.U. privacy and data protection rules.

Education
Verification of an educational degree earned abroad is critical to verify credentials and to avoid fraud. An employer needs to determine if an applicant in fact attended the school claimed and received the degree claimed. Statistics show that education fraud can run as high as 20%. The employer also needs to determine if the school is accredited and authentic. The world is awash with phony schools and worthless diplomas. If the employer is not familiar with a school, they should conduct their own research. A legitimate school will often have an e-mail address or phone number so that they can be contacted to verify a degree.

Employment
Foreign employment can also be verified by contacting the employer even though they are in a foreign country. Often such calls will be made in the middle of the night due to time differences. The critical step is to obtain as much information about the past employer as possible from the applicant. If the employer does not speak English, an interpreter may be needed.

Terrorist Lists
Other due diligence tools are the various terrorist databases available to the public, such as the Office of Foreign Assets Control ("OFAC") list maintained by the U.S. Department of the Treasury. Such lists are readily available but there are limitations as well, such as working with name matches only when no additional details are available. To locate a list of web sites containing publicly available lists, and for more information on international background checks, go to: www.esrcheck.com/international.php.

Lester S. Rosen is an attorney at law and President of Employment Screening Resources (www.ESRcheck.com), a national background screening company headquartered in Novato, California. He is the author of, The Safe Hiring Manual--Complete Guide to Keeping Criminals, Imposters and Terrorists Out of Your Workplace (512 pages-Facts on Demand Press), the first comprehensive book on employment screening. He is a frequent speaker nationwide on pre-employment screening and safe hiring issues. He was the first co-chairman of the National Association of Professional Background Screeners (NAPBS), the organization for the background screening industry.

Credit Reports and Job Hunting

By Les Rosen, Employment Screening Resources

Reprinted from:

Employers can request credit reports before making a hiring decision, but applicants should be aware of their rights in this regard.

Many job applicants are discovering that employers require pre-employment credit reports before they hire. For many companies, a credit report has become a screening tool to evaluate a candidate and to exercise due diligence in the hiring process. But for job applicants, a credit report can feel like an invasion of privacy or a violation of their rights. However, job applicants have substantial legal protection concerning the use of credit reports for employment. In fact, an employer cannot obtain a credit report without an applicant's written permission and cannot use it to deny a job until the applicant has had the chance to review the report Credit reports, employment and job applicants

Employers seek credit reports on job applicants for a variety of reasons. Some employers utilize a credit report to verify that an applicant is responsible and reliable or to confirm identity. Other employers are concerned about hiring persons who cannot manage their affairs, or whose monthly debt payments are too high for the salary involved. Many employers limit credit reports to management and executive positions, or to positions that have access to cash, assets, a company credit card, or confidential information. Employers are well advised to run credit reports on bookkeepers or others who handle significant amounts of cash.

However, employers should approach the use of credit reports with caution, and have polices and procedures in place to ensure that the use of credit information is both relevant and fair. An employer should first determine if there is a sound business reason to obtain a credit report. Unless the information in a credit report is directly job related, its use can be considered discriminatory. For example, running a credit report for an entry-level person with low levels of responsibility or no access to cash is probably not a good practice. Unnecessary credit reports can discourage applicants from applying, and running mass credit reports on all applicants, regardless of the position, can have the effect of discriminating against certain protected classes. In addition, employers should avoid making negative hiring decisions on information that is old or relatively minor.

A credit report typically contains four types of information. First, it gives identifying data, such as name, social security number, and past addresses. Second, it shows how persons pay their debts, such as by credit cards and personal loans, and what are their car payments, student loans, and mortgage payments. It also shows how much credit a person has been given, how much they currently owe, and whether debts have been paid late or sent for collection. Third, it will indicate who has requested a credit report. Finally it will report public records such as court judgments, liens and bankruptcies. Negative information will stay on a report for seven years, and bankruptcies stay for 10 years (although there are limitations to using a bankruptcy in an employment decision). For pre-employment credit reports, the three major credit bureaus use a special reporting format that leaves out actual credit card account numbers, credit risk scoring and age.

The job applicant must provide written authorization before an employer can request a credit report. Under the Federal Fair Credit Reporting Act (FCRA), an applicant has a series of additional rights. If an employer intends not to hire someone based upon information in the credit report, then the applicant must first receive a copy of the report and statement of rights. The applicant has a right to review the credit report and to dispute any information believed to be inaccurate or incomplete. This right applies even if the employer had additional reasons not to hire the person or even if an applicant has excellent credit, but the employer has other concerns based upon the credit report, such as a reported high debt level. It may be, for example, that the debt level is overstated in the report. If a final decision is made, an applicant is entitled to a second confirming letter. In California, job applicants must also be given the opportunity to request a copy of the report free of charge if the employer obtains it.

Because of the potential for errors on credit reports, applicants have a right to review a report before it is used to affect employment adversely. Although the credit bureaus make efforts to be accurate, credit reports are based upon millions of pieces of data assembled by human beings and computers from sources all over the United States, and mistakes are always possible. Negative information may also be the result of a disputed bill, dissolution of marriage or some other problem outside the applicant's control.

If job applicants are concerned about their credit reports, they should first contact all three major credit bureaus and request a copy. There typically is a fee not exceeding $8.00, but in some circumstances reports are free. Credit reports, as well as information on costs and procedures to dispute information, can be obtained as follows:

Trans Union (www.transunion.com/CreditReport/CreditFileInfo.asp)-- 800-888-4213.

Equifax (http://www.econsumer.equifax.com/)--888-532-0179

Experian (www.experian.com/customer/index/html)-800-972-0322.

If there is an error or explanation the applicant cannot resolve with the creditor, the applicant should write a detailed letter to the three credit bureaus, which have 30 days to investigate and resolve the dispute. If the report is corrected, the applicant may request the agencies to notify anyone who has received the report for employment in the past two years. If the dispute is not resolved to the applicant's satisfaction, the applicant has a right to place a brief statement on the credit report. All of these rights are explained in detail on the web site of the Federal Trade commission, which oversees the credit industry (www.ftc.gov/bcp/menu-credit.htm).

If a job applicant has bad credit and wants to clear it up, there are excellent credit-counseling services available. The National Foundation for Consumer Credit, for example, is a non-profit organization that has over 1,400 affiliates throughout the United States that provide this service (see http://www.nfcc.org/). Unfortunately, there also are scam artists who make false or misleading claims, and the Federal Trade Commission issues warnings about these scams and provides information for consumers on the FTC web site. It is worthwhile to take steps to maintain good credit because it can effect a job application

Lester S. Rosen is an attorney at law and President of Employment Screening Resources (ESR), a national background screening company located in California. He is a consultant, writer and frequent presenter on pre-employment screening and safe hiring issues. He is a certified specialist in criminal law in California, a former deputy District Attorney and defense attorney, and has taught criminal law and procedure at the University of California Hastings College of the Law. His jury trials have included murder, death penalty and federal cases. He graduated UCLA with Phi Beta Kappa honors in 1973, and received a J.D. degree from the University of California at Davis in 1976, serving on the Law Review. He has qualified and testified in court as an expert in the area of safe hiring and pre-employment background screening. Email: lsr@ESRcheck.com

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