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This newsletter is sent to clients of Employment Screening Resources (ESR) as well as employers, Human Resources and Security professionals, and law firms who have requested information on pre-employment screening, safe hiring, the FCRA and legal compliance. Please note that ESR's statements about any legal matters are not given or intended as legal advice but only general industry information.  For specific legal advice, employers should contact their attorney.  If this was sent in error, you can be removed from this mailing by simply using the “remove" feature at the end of the newsletter and you will not receive any future newsletters.

(Reading time: Less than 5 minutes)
February 2009            Vol. 9, No. 2
 

ESR Newsletter and Legal Update


1. E-Verify Federal Contractor Rules Delayed Until May 21, 2009

2. ESR President Quoted in USA Today on Credit Reports for Employment Use; Described as “Background Check Expert.”

3. Australian Court Says Facebook can be used to Serve Legal Papers

4. ESR Speaks 2009 Speaking Schedule


1. E-Verify Federal Contractor Rules Delayed Until May 21, 2009

The rules announced by the U.S. Citizenship and Immigration Services (USCIS) on the use of the E-Verify program for federal contractors have been delayed until May 21, 2009.

The E-Verify program, formerly known as the Basic Pilot/Employment Eligibility Verification Program, is designed to allow employers to confirm the legal working status of new hires in seconds.  The E-Verify program utilizes databases administered by the Department of Homeland Security and Social Security Administration, to check the information on an I-9 form to determine that individual’s employment eligibility.  Employers can sign up to access the system directly, or use a firm such as Employment Screening Resources (ESR) as their Designated Agent.

According to the USCIS web site:

“Federal contracts awarded and solicitations issued after May 21, 2009 will include a clause committing government contractors to use E-Verify. The same clause will also be required in subcontracts over $3,000 for services or construction. Contracts exempt from this rule include those that are for less than $100,000 and those that are for commercially available off-the-shelf items. Companies awarded a contract with the federal government will be required to enroll in E-Verify within 30 days of the contract award date. They will also need to begin using the E-Verify system to confirm that all of their new hires and their employees directly working on federal contracts are authorized to legally work in the United States.”

These rules underscore the impact the current immigration debate will have on employers.  With the new administration, the extent to which employers will eventually be required to utilize E-Verify on all new hires is not clear.  A number of states have passed their own E-Verify requirements.  If you have any question about your state, or need the assistance of a Designated Agent to run your E-Verify program, please call ESR Customer Service, or email jcallahan@ESRcheck.com  

For more information, here is a very long URL that goes to the USCIS site that announced the changes to the federal contractor rules.

http://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=75bce2e261405110VgnVCM1000004718190aRCRD&vgnextchannel=75bce2e261405110VgnVCM1000004718190aRCRD


2. ESR President Quoted in USA Today on Credit Reports for Employment Use; Described as “Background Check Expert.”

USA Today ran a font page story on February 13, 2009, titled, “Job Credit Checks Called Unfair.”  The story noted certain criticisms that have been leveled at the use of credit repots for employment purposes and noted that some five states have legislation pending that would seek to place limits on credit reports and ensure they are used only for job related reasons. In addition, the story recounted how the new acting head of the EEOC has been critical of credit reports for employment and has called for guidelines for their use.  On the other hand, they can be useful for jobs involving access to money.  Also, the story noted that the Transportation Security Administration (TSA) “bars people with $5,000 in overdue debt or any federal or state tax lien from working as airport screeners.”

In the USA Today article,  ESR President, Lester Rosen, was quoted as saying:

“Many employers check credit to protect against negligent-hiring lawsuits,” said Lester Rosen of Employment Screening Resources, a California firm. But the checks aren't infallible. "A person with credit problems may be a great performer," Rosen said, "because they need the job."

USA Today ran a second story on page 3 about workers unable to obtain certain jobs due to a poor credit history.  ESR President, Lester S. Rosen, is also quoted in that article: 

“Employer credit checks look at only delinquent payments and not at credit scores,” said background-check expert Lester Rosen.

“Credit checks cost about $15 and can protect against lawsuits by customers or shareholders if an employee causes damage,” Rosen said.

The article can be located online at http://www.usatoday.com/money/perfi/credit/2009-02-12-creditchecks_N.htm and http://www.usatoday.com/news/washington/2009-02-12-creditcheckinside_N.htm

The ESR newsletter has followed the ongoing issues surrounding credit reports.  ESR has taken the position that although credit reports can have value for certain positions, employers should limit their use to positions where there is a clear necessity.  Furthermore, employers are well advised to take a credit report with a grain of salt because of potential errors or the possibility that negative information is not a valid predictor of job performance.

The ESR Newsletter has reported the following on credit reports:

The Use of Employment Credit Reports Seen As a Civil Rights Issue
February 2007 -
http://www.esrcheck.com/newsletter/archives/February_2007.php#T1

Credit Bureaus Increasing Requirements for Employment Credit Reports
March, 2007 -
http://www.esrcheck.com/newsletter/archives/March_2007.php#T2

New Restrictions on the Use of Credit Reports (from the State of Washington)
June, 2007 -
http://www.esrcheck.com/newsletter/archives/June_2007.php#T2

Urban Myths Continued - Credit Scores are Utilized for Employment
September, 2007 -
http://www.esrcheck.com/newsletter/archives/September_2007.php#T1

Law Firms Face Special Issues in the Use of Background Reports and Credit Checks
April, 2006 -
http://www.esrcheck.com/newsletter/archives/April_2006.php#T2 

Dispelling Urban Myths: Credit Scores Not Used for Employment
September, 2006 -
http://www.esrcheck.com/newsletter/archives/September_2006.php#T2

For more information on the use of credit scores and employment, contact Jared Callahan at 415-898-0044 or by e-mail at jcallahan@ESRcheck.com


3. Australian Court Says Facebook can be used to Serve Legal Papers

Just when you thought you heard everything, along comes a story off the AP wire from Australia about a court approving the use of Facebook to serve legal papers.

Consumers that were worried that their social networking site was being used by employers now have to worry that Facebook or MySpace may be used by lawyers and court, if US Courts were to ever duplicate that example.

According to the story, an Australian lawyer had been trying to locate a couple to serve a lien notice telling them they had lost their house as a result of a default.   Apparently, the lawyer was unable to locate the couple and complete the legal service of papers.  The lawyer turned to the court after discovering the couple had a Facebook page.  Although novel, the court approved using Facebook for that purpose. 

The effort ultimately was not successful because the couple apparently turned up their privacy setting so that the lawyer could not get though.

Facebook, however, was apparently pleased with the ruling, because in their view,  it validated Facebook “as a reliable, secure and private medium for communication,” and showed the increasing role Facebook is playing in people’s lives.

The use of Facebook, MySpace and social networking sites by employers has been controversial in the U.S.  For more about using social networking sites for employment, see:  http://www.esrcheck.com/articles/Caution-Using-Search-Engines-MySpace-or-Facebook-for-Hiring-Decisions-May-Be-Hazardous-to-Your-Business.php


4. See the ESR Press Release http://www.prleap.com/pr/124407/ on our New Book, The Safe Hiring Audit (click within this headline)

ESR Speaks 2009 Speaking Schedule

February 19, 2009 Modesto ,CA
"Pre-Employment Screening and Background Checks,"  Stanislaus County Employer Advisory Council (EAC)

March 25, 2009 Los Angeles, CA
Background Checks and Social Networking Sites HR Star Los Angeles

March 26/27, 2009 New Delhi, India
Third Annual India Global Employment Screening Conference, Taj Mahal Hotel

April 28/29, 2009 San Francisco, CA
"The Use of Search Engines and Social Networking Sites to Screen Candidates—Landmines and Pitfalls” HR West, NCHRA’s 25th Annual Conference (Northern California Human Resources Association)

May 19/22 2009 Las Vegas, NV
Ten Practical and Proven Tools to Qualify and Hire the Best KennedyInfo Recruiting Conference 

June 24, 2009 Webinar
“The Essentials of Background Checking: An Introduction."  Presented as an educational webinar for members of the National Association of Professional Background Screeners (NAPBS)

July 1, 2009 New Orleans, LA
“Negligent Hiring Mock Trial"   SHRM 61st Annual National Conference and Exposition. 

November 8-11, 2009 Tampa, Florida
Annual Pre-Employment Screeners Conference sponsored by the Background Investigator (Intended for background firms and record retrievers) "The Pre-employed Screening Industry--The Good, the Bad and the Ugly."   

ESR Articles (click for more info)

The FCRA in 4 Easy Steps
Find out how to be in compliance with the FCRA

Criminal Records and Employment Applications
What questions should employers be asking?

10 Safe Hiring Tools
These tools don’t cost anything and promote a safe and profitable workplace

Negligent Hiring
What occurs when Due Diligence is not performed


Please feel free to contact Jared Callahan at ESR at 415-898-0044 or jcallahan@esrcheck.com if you have any questions or comments about the matters in this newsletter. Please note that ESR's statements about any legal matters are not given or intended as legal advice.

Employment Screening Resources (ESR)
www.ESRcheck.com
7110 Redwood Blvd., Suite C
Novato, CA 94945
415-898-0044

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