Amicus Research monitors and studies legislation related to hiring, screening and other employment practices. We maintain nationwide contacts with active employment defense lawyers to keep up with developing regulatory standards. These contacts provide invaluable insight into how those new legal standards are actually applied in courts and administrative hearings.
Statistics
Studies by the U.S. Chamber of Commerce, U.S. Justice Department, Association of Certified Fraud Examiners (ACFE) and other organizations confirm the existence and scope of employee theft.
- Companies lose about 7 percent of their gross revenue to occupational fraud each year, according to the ACFE’s 2008 Report to the Nation on Occupational Fraud and Abuse.
- 30 percent of all employees admit stealing from their employers, according to Common-Sense Measures Preventing Employee Theft, a U.S. Small Business Administration report.
- The Association of Certified Fraud Examiners reports that 41 percent of the perpetrators of employee theft are managers, 39 percent are employees, and 19 percent are owners or executives. Sixty-one percent of employee thieves are male, while 39 percent are female.
- The National Retail Foundation reports that the majority of retail shrinkage is caused by employee theft, at $19.5 billion, which represents almost half of losses (47% of all shrinkage). Shoplifting accounts for $13.3 billion, or about one-third (32%) of losses. Other losses include administrative error ($5.8 billion and 14% of shrinkage) and vendor fraud ($1.7 billion and 4% of shrinkage).
The Right Search Depends on the Position.
A search through the county civil records probably doesn't make sense for a call center employee, but if your new IT manager has been sued for theft of intellectual property, you need to know that before you give him the keys to the kingdom.
Best Practices by Industry Type
Employers should not inform applicants of the strength of their candidacy before the criminal background report has been evaluated. If applicants are told they are strong candidates, but later they are turned down after the background report is received, then even if the conviction record played no part in the decision, the applicant may be much more likely to contend that it did. Avoiding the appearance of impropriety can prevent baseless lawsuits.
We offer special guidance for:
- Healthcare
- Staffing Agencies
- Education
- Banking & Finance
- Transportation
We adhere faithfully to the laws and regulations that apply to the screening industry, not only because it protects our company, but because it helps protect yours. Here is a glimpse at the applicable standards:
FCRA & FACTA Compliance
The Federal Fair Credit Reporting Act (FCRA) is designed to protect individuals by promoting accuracy, fairness, and privacy of information in the files of every Consumer Reporting Agency (CRA). Most CRAs are credit bureaus that gather and provide information about individuals - such as if they pay their bills on time or have filed bankruptcy - to creditors, employers, and landlords. Companies that perform pre-employment screening services, such as Amicus Research, are also governed by the FCRA, as are the employers that use our screening services.
Amicus Research provides FCRA compliance guidance and online templates of all letters and forms necessary to comply with FCRA employment background screening requirements, including:
- Disclosure & Consent Forms
- Notice Letters
- Pre-Adverse Action Letters
- Adverse Action Letters
- FCRA Rights Disclosures
- End User Requirements Forms
The Fair Credit Reporting Act (FCRA)
Fair and Accurate Credit Transactions Act
ADA Compliance
Amicus Research operates in compliance with the Americans With Disabilities Act (ADA), which prohibits employers from discriminating against people with disabilities who are qualified to perform essential job functions. We do not collect or publish to clients any medical or disability information. It should be noted that while pre-employment medical examinations are restricted under the ADA, testing for illegal drug use is not considered a medical examination. Past rehabilitated drug use is included in that list of disabilities; current legal drug use is included as well. The ADA does not protect current users of illegal drugs. Current illegal drug use is always a grounds for firing or not hiring a person—as long as it can be substantiated.
On September 24, 2008, President Bush signed the ADA Amendments Act (ADAAA), which goes into effect on January 1, 2009. The ADAAA significantly expands the number of workers who are "disabled" and entitled to the ADA's protections. Click here to read more.
ADA Home Page
EEOC Guidance on ADA Compliance in Employment Screening
Title VII of the Civil Rights Act
Title VII is shorthand for Title VII of the Civil Rights Act of 1964, which is the foundation of American anti-discrimination law. The Equal Employment Opportunity Commission (EEOC), which enforces the law, says that use of criminal convictions has an adverse impact on Hispanic and black males. Employers may ask about convictions, but if they use them as a factor in employment and a plaintiff can demonstrate a disproportionate impact on the protected classes then the employer must show that the company considered the following criteria: (a) the nature and gravity of the offense; (b) the time passed since the conviction; (c) whether the person was rehabilitated; and (d) the nature of the job.
The employer must evaluate the applicant's conviction record on its own merits rather than by applying hard and fast rules. Those who are responsible for reviewing the conviction data—whether you do it inhouse or using our customized decision matrix—must understand the nature, qualifications and duties of the position applied for. The employer must consider whether the conviction relates to the applicant's suitability for that job, and that decision must be documented.
Many clients are reluctant to document their decisions in this respect. But if the rejected applicant files a claim with the EEOC, you will need to provide evidence that you followed a defensible process. That means showing the connection that you saw between the conviction and the job. If you do this every time as a matter of policy then it will not only establish a good practice but may also help the documentation to be admitted into court.
EEOC Policy Statement on the Issue of Conviction Records
EEOC Policy Guidance on the Consideration of Arrest Records
EEOC Letter Re: Use of Credit Checks
EEOC v. United Virginia Bank/Seaboard National, regarding employer's right to rely on credit checks where applicable to the position
California Consumer Reporting Agencies Act
Designed to ensure fairness, impartiality, and a respect for the consumer's right to
privacy, this statute imposes specific requirements on employers and reporting agencies.
Employment Drug Screening Compliance
The Omnibus Transportation Employee Testing Act of 1991 requires drug and alcohol testing of safety-sensitive transportation employees in aviation, trucking, railroads, mass transit, pipelines and other transportation industries. DOT publishes rules on who must conduct drug and alcohol tests, how to conduct those tests and what procedures to use when testing. These regulations cover all transportation employers, safety-sensitive transportation employees and service agents -roughly 12.1 million people. Encompassed in 49 Code of Federal Regulations (CFR) Part 40, the Office of Drug & Alcohol Policy & Compliance (ODAPC) publishes, implements and provides authoritative interpretations of these rules. Is your company covered?
Whitepaper: Drug Testing in Compliance with the ADA
DOT Drug Testing Requirements
DOT Regulations
Amicus Research is a certified member and is in compliance with the regulations published by the Substance Abuse Program Adminstrators Association (SAPAA) and the
Drug and Alcohol Testing Industry Association (DATIA).
 
Additional Compliance
Our reports allow employers to comply with the screening requirements of various government agencies and legislation, including:
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