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National News

Feds Warn Employers Of Lawsuits Over Background Checks

May 01, 2012 posted by Steve Brownstein

For many employers, a criminal background check is a no-brainer when hiring workers -- especially those handling money or with safety responsibilities.

Employers don't want embezzlers cooking their financial books, thieves working the cash register or drug offenders working the pharmacy.

But the federal government is now warning employers that background checks could run afoul of anti-discrimination laws if they use the checks the wrong way. That could result in lawsuits brought by employees and prospective employees who claim some sort of discrimination.

The U.S. Equal Employment Opportunity Commission   issued some guidelines for employers today regarding the use of criminal background checks.

The EEOC said employers can get into legal trouble if they use background checks as the basis for not hiring a protected class of workers. The EEOC board voted 4-1 on the new guidance rules. That includes saying criminal background checks could violate the Civil Rights Act of 1964.

Federal law prohibits employment discrimination based on factors like race, religion, ethnicity, sex and being older than 40 years old.

The EEOC warns employers that arrest records are different from records showing criminal convictions.

The federal agency also noted that minorities are more likely to have been in jail than whites, and employers need to make sure they have consistent hiring policies for various races and other backgrounds.

"About one in 17 white men are expected to serve time in prison during their lifetime. By contrast, this rate climbs to one in six for Hispanic men and to one in three for African American men," according to the EEOC's ruling and official guidance on the matter.

The federal agency " which will sue employers on workers' behalf in discrimination and retaliation cases " said hiring managers need to look at when the offense occurred, the nature of any crime committed and how they might relate to the job at hand.

The EEOC has been more active during the Obama administration as compared with the previous Bush administration.