Background Checks

How should we handle background checks during a merger or acquisition?

10/14/2008

Q. We are acquiring another company and intend to hire hundreds of its employees. Can we rely solely on that company’s background and criminal checks? …

New law: Employers must review outside investigators’ work

10/10/2008

In May 2008, Michigan enacted the Professional Investigator Licensure Act. The act has a significant impact on how employers can conduct background checks and investigations. A violation of the act is a felony punishable by imprisonment for not more than four years or a fine of not more than $5,000, or both …

New York employers protected by new negligent hiring law

10/01/2008

There’s good news for employers that, in good faith, hire employees with criminal records. Gov. David A. Paterson signed a new law that makes it harder to use an employee’s past criminal record as proof that an employer was negligent in hiring that employee …

Madison Square Garden suit hinges on alleged background check bias

09/03/2008

Do criminal background checks lead to bias? The EEOC will have to weigh that question when it investigates discrimination charges filed against Madison Square Garden by Charlene Clarke. Clarke, a black woman from the Bronx, accepted a food worker position at The Garden in September 2007. One month later, the arena withdrew its offer after Clarke’s background check revealed a misdemeanor assault charge …

Has accusatory pizza man made his final delivery?

08/26/2008

Two men went to a Papa John’s in Westfield to pick up a pizza. After they left the store, delivery driver Kelly Tharp told co-workers that one of the men had pulled out a gun. Tharp repeated his story to local police, describing the men’s car and offering a license plate number. The men sued Papa John’s for defamation, negligent hiring and related claims …

Transportation Companies Face New Drug-Testing Requirements, Starting on Aug. 25

08/12/2008

Starting Aug. 25, organizations that must comply with U.S. Department of Transportation (DOT) drug-testing regulations face some new requirements. Specifically, drug testers must directly observe any follow-up urine tests. The goal: prevent employees from cheating the drug test.

Must we give rejected applicant a copy of a negative reference letter?

07/22/2008

Q. We request references from applicants’ former or current employers. Recently, an applicant (who was not hired) requested a copy of his former employer’s reference letter, which indicated that the applicant was difficult to work with and performed poorly. The letter was one of the factors considered when we decided not to hire him. Must we turn over the letter (or any other part of our file on the applicant)? …

Employer liability for defamation claims based on a reference

07/21/2008

Q. Our company constantly receives calls from prospective employers requesting references for our former employees. Recently, one of our receptionists told an inquiring employer that a former employee was terminated for falsifying his expense reports. The former employee now has threatened to file a lawsuit against us for defamation. Do we have any exposure? …

Would an employee’s signed release protect us against reference liability?

07/21/2008

Q. What can we do to protect our company from being sued by former employees when we give references? Should we require that the prospective employer provide us with a release or consent from the former employee? …

Isn’t there some way we can provide honest references?

07/07/2008

Q. We work in a very small industry, and employees tend to circulate among various employers in our greater metropolitan area. Many of us belong to the same trade and professional organizations and know each other. We would like to be able to provide each other with honest information in response to reference checks about an employee’s work history, but everyone is reluctant to do so because the general opinion seems to be that the safer course of action is to give only names and dates of employment. Can employers provide honest information about the reasons for employment terminations in response to reference requests? …