Background Screening Blog Pre-Employ.com

ICE Turns Up Heat With Employment Eligibility Verification (Form I-9) Audits

Tom Ahearn — Thu, 09 Jul 2009 09:32:00 -0700

On July 1st – just before the long hot Fourth of July holiday weekend – the U.S. Immigration and Customs Enforcement (ICE) turned up the heat on U.S. employers by issuing Notices of Inspection (NOIs) to 652 businesses nationwide to determine whether or not they were complying with employment eligibility verification (Form I-9) laws and regulations.

Employers are required to complete and retain an Employment Eligibility Verification form – also known as Form I-9 – for each individual they hire for employment in the United States. This form requires employers to review and record the individual's identity document or documents and determine whether the document(s) reasonably appear to be genuine and related to the individual.

The large amount of notices – ICE issued 503 similar notices throughout all of fiscal year 2008 – illustrates ICE's increased focus on holding employers accountable for their hiring practices, Form I-9 compliance, and efforts to ensure a legal workforce. Form I-9 audits are one of the most powerful tools the federal government has to enforce employment and immigration laws.

The businesses being presented with a NOI for a Form I-9 audit were selected for inspection as a result of leads and information obtained through other investigative means. ICE is committed to establishing a meaningful I-9 inspection program to promote compliance with the law. This nationwide effort is a first step in ICE's long-term strategy to prevent illegal employment.

Recently, ICE implemented a new, comprehensive strategy to reduce the demand for illegal employment and protect employment opportunities for the nation's lawful workforce. Under this strategy, ICE is focusing resources on the auditing and investigation of employers suspected of cultivating illegal workplaces by knowingly employing illegal workers.

Employers wishing to protect their businesses in the event of an ICE audit should be certain that they are filling out each Form I-9 correctly and know the rules on how long they must retain those documents. Also, anyone involved in the hiring process should be trained on the correct way to complete I-9 forms, maintain I-9 compliance, and federal recordkeeping requirements.

In addition, training should cover Form I-9 “best practices” including:

How to properly complete I-9 forms at the time a new employee is hired.
What documents are acceptable as proof of identification or work eligibility.
How to properly store I-9 forms in order to help a business stay in compliance.
How to review current I-9 forms to identify employees who need updates in status.
How long employers need to retain I-9 forms after employees leave their jobs.

A designated E-Verify agent, I-9Compliance.com – a service offered by leading pre-employment screening and Human Resources (HR) outsourcing provider Pre-Employ.com – helps employers maintain full Form I-9 compliance, reduce risks and liability, virtually eliminate errors, and improve the economy by ensuring jobs for legal Americans. For more information, download a complimentary white paper – "15 Facts You Should Know About I-9 Compliance" – visit www.i-9compliance.com, email sales@i-9compliance.com, or call 1-800-300-1821 to talk to a service representative.

tahearn@pre-employ.com

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Data Privacy Alert: Researchers Find Social Security Numbers Can Be Predicted

Tom Ahearn — Tue, 07 Jul 2009 12:22:00 -0700

In what could be a severe blow to privacy, a recent Washington Post article reveals that researchers have discovered it is possible to guess many – even all – of the nine digits in an individual's Social Security number (SSN) using publicly available information from the government, schools, and businesses, as well as self-published data on social networking sites like Facebook, LinkedIn, MySpace, and Twitter.

According to research from Carnegie Mellon University, the privacy and security of one of the most widely used consumer identifiers in the United States – SSNs – has been compromised, as many numbers could be guessed at by simply knowing a person's place of birth data. The findings – published in "The Proceedings of the National Academy of Sciences" – are evidence that privacy safeguards created before powerful computers are increasingly failing and setting up an "architecture of vulnerability" around personal data.

The researchers predicted SSNs by exploiting what is publicly known about how the numbers are derived. The first three digits – or "area number" – are issued according to the Zip code of the mailing address provided in the application form, while the fourth and fifth digits – or "group number" – transition slowly and remain constant over several years for that region. The last four digits are assigned sequentially. As a result, SSNs assigned in the same state to applicants born on consecutive days are likely to contain the same first four or five digits, particularly in smaller U.S. states.

Using the so-called "Death Master File" – a publicly available file listing the SSNs, names, dates of birth and death, and the states of all individuals whose deaths have been reported to the Social Security Administration – researchers correctly guessed the first five digits for 44 percent of deceased people who were born after 1988, and for 7 percent of those born between 1973 and 1988. They were able to identify all nine digits for 8.5 percent of people born after 1988 in fewer than 1,000 attempts. For people born recently in smaller states, some researchers predicted all nine digits in 10 or fewer attempts.

Concern over the privacy of Social Security numbers has grown after hundreds of reported data breaches have exposed millions of consumer records – including SSNs – even though the government has long cautioned against using a Social Security number as a personal identifier. Privacy and security experts praised the study, saying it should be "a wake-up call" to industry leaders, many of whom have resisted switching to more secure consumer authentication systems due to costs.

Aware of identity theft, today’s consumers are concerned about privacy. As a result, more companies are focusing on issues of privacy and security. The challenge facing businesses today with regards to privacy is how to share data when necessary while – at the same time – protecting privacy through effective data security design. Keeping sensitive data safe from corruption and suitably controlling access helps to ensure privacy and protection.

Pre-Employ.com – a leading background check and human resources (HR) outsourcing provider – believes that good data privacy equals good business. The company is concerned with the privacy and protection of data collected during job posting, application, and screening processes. Pre-Employ.com's privacy policy is clear in that the company will not offshore (send outside the U.S.), repurpose (covert for another use), or resell data.

For more information about data privacy, please download our complimentary white paper at http://www.pre-employ.com/SHRM2009/, visit http://www.pre-employ.com, email info@pre-employ.com, or call 1-800-300-1821 to speak with a service representative.

tahearn@pre-employ.com

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Magnum PII: Need A “Privacy” Detective To Find Offshored Background Check Information?

Tom Ahearn — Thu, 02 Jul 2009 17:29:00 -0700

For those too young to understand the “Magnum” reference in the title, “Magnum, P.I.” was a hit TV show in the 1980’s starring Tom Selleck as Thomas Magnum, a private investigator (or PI) in Hawaii. The “PII” refers to “Personally Identifiable Information” – such as an individual’s name, birthday, and Social Security Number – that all businesses, including background check companies, are entrusted to protect.

Unfortunately, many jobseekers undergoing background checks could use a man of Magnum’s talents to track down the PII they give away in their efforts to find employment. According to reports from the Society of Human Resource Management (SHRM), more than 80 percent of U.S. businesses currently perform some form of pre-employment background check before the actual hire. In a typical background check, applicants agree to give third party background check companies their PII – basically, all the information needed to commit identity theft.

What most job applicants – and even some Human Resources (HR) professionals – do not realize is that there is a good chance that much of the PII collected during a background check will end up far beyond U.S. privacy laws in a foreign call center or data processing location where there is little, if any, privacy protection. Why? Because a number of background check companies routinely “offshore” PII from clients – without informing them of their intentions – in order to cut costs and increase profits.

“Offshoring” is the business practice of transferring jobs, services, and data to low-cost labor markets by using companies internationally to complete tasks formerly performed in house. While offshoring data may help background check firms lower costs and increase profits, these activities bring great risk to the PII of U.S. citizens in the form of lost privacy and identity theft. Although many U.S. state and federal laws protect data privacy, these protections – as a practical matter – cease to exist once background check companies send PII out of the country.

While some countries outside of the U.S. have strong data privacy protection laws, many places where information is sent offshore for processing have little or no practical identity theft protection. As a result, American job applicants have no ability to enforce their privacy rights overseas. With little practical or cost-effective access to foreign courts, it is extremely difficult for a U.S. consumer to contact a foreign police department to lodge a complaint about identity theft or to obtain assistance.

The lack of any meaningful protection once PII is sent offshore is a major hurdle in the effort to combat identity theft and to protect privacy. Some U.S. companies – like Pre-Employ.com, a nationally recognized background check and employer service provider – are taking a stand against offshoring. Pre-Employ.com believes good data privacy and good data security equals good business. Our company policy dictates that we:

Do NOT practice offshoring personally identifiable information (PII).
Do NOT resell data to skip tracers, lawyers, or marketing lists.
Do NOT repurpose data for other uses like marketing purposes.
Do NOT use foreign nationals abroad to access cases or calls.
Are NOT owned by a credit bureau or by data aggregators.

To learn more about Pre-Employ.com’s background check, privacy, and PII policies, download our FREE white paper Your Employee Data, How To Prevent Its Reselling and Offshoring, visit www.pre-employ.com, email info@pre-employ.com, or call 1-800-300-1821.

tahearn@pre-employ.com

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S.D. Businesses Hit With Extra Charges Due To Rising Unemployment Claims

Tom Ahearn — Wed, 01 Jul 2009 09:08:00 -0700

In a sign of what may be in store for many U.S. employers the near future, ArgusLeader.com reports that South Dakota is charging private businesses $150 for every employee to help replenish the state’s unemployment fund.

According to the report, employers will pay an extra $36 million to the unemployment fund in 2010, in addition to contributing $26 million in standard unemployment insurance taxes. Some businesses will pay a surcharge on certain employees – mostly newly hired workers – for 2009's fourth quarter, bringing in an estimated $3.5 million by the end of January.

South Dakota law dictates that once the unemployment trust fund decreases to a specified amount, all private businesses are assessed a per-employee tax to replenish the fund. This is the first time many in the state can recall the statute going into effect.

For example, Midcontinent Communications – a communication company in Sioux Falls that employs roughly 500 people – will pay more than $70,000 to the unemployment insurance fund. Meanwhile, a Sioux Falls car sales executive estimates the surcharge will add about $75,000 in expenses to his company's payroll department.

A big increase in unemployment claims has led to an equally large decrease in the unemployment fund. In 2008, insurance benefits totaled a little over $25 million. This year, the Department of Labor (DOL) estimates that number will more than double to almost $63 million. Also, the number of South Dakotans receiving benefits quadrupled from 1,452 in the third week of June 2008 to 5,839 one year later.

With the cost of labor going up because of increasing unemployment claims, many businesses are using an Unemployment Claims Management Service to deliver a comprehensive program that relieves an organization from the stress of managing unemployment claims while also reducing risks and costs. Unlike other unemployment claims management services, Pre-Employ.com reduces claim-related costs at the initial level rather than at the hearing level, thus eliminating commonly assessed erroneous charges and immediately reducing unemployment claims costs. In addition, Pre-Employ.com offers an Unemployment Tax Service to assist tax and payroll departments in reducing employer tax liability.

The Unemployment Claims Management Service and Unemployment Tax Service are both part of Pre-employ.com’s fully-integrated suite of human resource (HR) solutions that includes background checks, drug tests, applicant tracking, job board systems, and I-9/E-Verify compliance. For more information on implementing a cost-saving program for managing unemployment claims, visit www.pre-employ.com, email info@pre-employ.com, or call 1-800-300-1821 to speak with a service representative.

View Archived Webinar: "5 Secrets to Gaining the Advantage in UI Claims."

tahearn@pre-employ.com

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New SHRM Reports Highlight 2009 Employee Trends for HR Leaders

Tom Ahearn — Mon, 29 Jun 2009 15:14:00 -0700

Containing information that Human Resources (HR) leaders dealing with tough economic times should find interesting, the Society for Human Resource Management (SHRM) – the world's largest association devoted to human resource management – recently released new data detailing the thoughts of employees on everything from job risk in the current down economy to overall job satisfaction and employee benefits trends.

The findings – from two surveys and one poll – were highlighted at the 61st Annual SHRM Conference & Exposition in New Orleans and included the following data.

SHRM Employee Benefits Survey:

60 percent of HR professionals say the recession has caused their organizations to scale back or hold steady on benefit offerings.
Compared to 2008, fewer organizations in 2009 were providing housing and relocation, business travel, and other employee benefits.
HR professionals reported fewer companies offering companywide performance awards, community volunteer program benefits, and discount ticket services, while some planned to reduce or eliminate holiday parties, company picnics, and company-purchased tickets to events during 2009.

SHRM 2009 Job Satisfaction Survey:

58 percent – a majority – of employees reported the current economy had no effect on their overall job satisfaction.
HR professionals (72 percent) and employees (63 percent) both placed job security at the top of the "very important" aspects of job satisfaction.
HR professionals (69 percent) and employees (60 percent) also ranked benefits high as an aspect of job satisfaction.

SHRM "Continued Economic Downturn: Employee Perspective" Poll:

The number of workers who believed their job is "not at risk" dropped slightly to 47 percent compared with 51 percent roughly six months ago, while those who think their job is "significantly at risk" held steady at six percent.
The percentage of employees who described their job as "slightly at risk" rose from 31 percent in January to 35 percent in June while those who believed their job to be "moderately at risk" held steady at 13 percent.
If the economy continues to decline over the next six months of 2009, 35 percent described their job as "not at risk" compared with 36 percent who said "slightly at risk." Seventeen percent reported "moderately at risk" and 11 percent reported "significantly at risk."

Pre-Employ.com – a nationally recognized background check and employer services provider – understands the myriad of problems and increased amounts of stress HR professionals face in this uncertain economy. The company offers a suite of flexible and cost-effective services to assist HR departments with pre-employment screening including background checks, drug test, and fingerprinting, as well as talent management, tax credits/incentives, unemployment claims, “green” initiatives, and FREE incoming employment/salary verifications.

For more information, download Pre-Employ.com's complimentary white paper "Your Employee Data, How To Prevent Its Reselling and Offshoring," visit http://www.pre-employ.com, email info@pre-employ.com, or call 1-800-300-1821. For HR professionals attending the 2009 Annual SHRM Conference & Exhibition from June 28 to July 1, 2009, in New Orleans, LA, visit Pre-Employ.com at Booth #1951. To read SHRM surveys, visit: http://www.shrm.org/Research/SurveyFindings/Pages/default.aspx.

Press Release: Pre-Employ.com Alerts HR Leaders To Dangers Facing Data Privacy At 2009 SHRM Conference

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Background Check Companies Should Protect the Privacy of Employee Personal Data

Tom Ahearn — Wed, 24 Jun 2009 09:28:00 -0700

During a typical employer background check – which more than 80 percent of U.S. businesses currently perform according to the Society of Human Resource Management (SHRM) – the job applicant voluntarily gives Personally Identifiable Information (PII) such as name, birth date, and Social Security number (SSN) – basically, everything needed to commit identity theft.

What most job applicants fail to realize is the likelihood that much of the PII collected during a background check will travel far beyond the security of U.S. privacy laws to a foreign call center or data warehouse with little to no standards for privacy protection. Why would a background check company offshore personal and secure data without permission from the rightful owner?

The most obvious reason is that the rightful owner of the Personally Identifiable Information does not even have to be notified when it is sent outside of the country, even though the protection of PII collected with background checks – or through an Applicant Tracking System (ATS) or Job Board System (JBS) – should be stressed given the importance of personal data privacy.

Still, many background check companies and ATS/JBS providers continue “offshoring” personal data to low-cost labor markets by using companies internationally to increase profits. While offshoring may help some U.S. background check firms and ATS/JBS providers lower costs, these activities bring great risk to the PII data of U.S. citizens in the form of identity theft.

Employee personal data can also be “repurposed” by background check companies and ATS/JBS providers to be used in another format or product, and also resold to skip tracers, lawyers, data aggregators, and marketing lists to be bought and sold again and again. The growing popularity of offshoring, repurposing, and reselling of PII data has led to identity theft and lost privacy.

Unfortunately, protection against identity theft through U.S. laws ceases to exist once PII is sent overseas by background check firms. While some countries outside of the U.S. have strong data and privacy protection laws, such as the European Union (EU) states, many places where information is sent offshore for processing have little or no practical identity theft protection.

As a result, U.S. citizens are unable to enforce their privacy rights overseas. It is neither practical nor cost-effective to access foreign courts, contact foreign police, lodge a complaint, or obtain assistance about identity theft. The lack of any meaningful protection once U.S. data is sent offshore by background check firms is a major hurdle in the effort to combat identity theft and to protect privacy.

Pre-Employ.com – recognized nationwide as one of the premier background check companies and employer service providers – is concerned with the privacy and protection of Personally Identifiable Information. It is Pre-Employ.com’s company policy and expectation that NO PII is to be resold, repurposed, or sent offshore for processing purposes without expressed written consent.

Pre-Employ.com also offers a “Personal Employee Information Protection Certification” where respondents answer the following five questions pertaining to data privacy and data security of PII:

Has your background check/ATS/JBS provider suffered any breaches in data privacy or data security involving PII in the last 5 years?
Does your background check/ATS/JBS provider “offshore” (send outside of the United States) PII data to a foreign land to be processed in any way beyond the jurisdiction of U.S. Privacy laws?
Does your background check/ATS/JBS provider repurpose (convert for use as another format or product) PII data for other uses such as marketing purposes?
Does your background check/ATS/JBS provider resell PII to skip tracers, collection agencies, lawyers, or marketing lists?
Does the parent company or any subsidiaries of your background check/ATS/JBS provider resell information for marketing purposes or sell information for profit?

If your background check/ATS/JBS provider is Pre-Employ.com, the answer to all of these questions is NO. For more information on data privacy, download our complimentary white paper "Your Employee Data, How To Prevent Its Reselling and Offshoring", or visit www.pre-employ.com, email info@pre-employ.com, or call 1-800-300-1821.

2009 SHRM Annual Conference & Exposition Attendees: Please visit Pre-Employ.com at Booth 1951 in Morial Convention Center, New Orleans, LA, from Sunday, June 28 to Tuesday, June 30! Thanks!

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Small Business Loses Big Money without Background Checks

Tom Ahearn — Mon, 22 Jun 2009 10:41:00 -0700

According to a recent survey from an online payroll provider as reported by Occupational Health & Safety, three out of four small business owners say they have hired at least one employee they later wished they had not, and more than one in ten (12 percent) of small business respondents indicate the hiring mistake resulted in a significant financial loss of over $10,000.

The survey reveals a growing trend in hiring mistakes caused by the difficult economic times which have placed many eager and competitive candidates into the job market. While businesses of all sizes are seeing more applicants lying on résumés or exaggerating skills in order to find work, small business owners in particular must be vigilant when hiring new employees in a bad economy.

According to the survey results, many small business owners are overlooking critical steps that can reduce the likelihood of a hiring mistake, the most of important of which is the pre-employment background check. Bad hiring decisions often result from a failure to accurately assess an employee's personality, character, and skills – information that can be uncovered during a background check.

By ignoring background checks and relying on “gut feelings” to determine if the candidate is qualified, business owners risk losing time and money on the recruitment and training of bad hires – and on the people needed to replace them – instead of generating revenue for the business.

Small businesses also cannot blame hiring errors and a lack of background checks on time constraints. Whatever time or money is spent on proper background check procedures will help save more time and money later if a person hired too quickly steals from the company and has to be fired and replaced.

Small business owners have less time and money to waste than their larger competitors. The best way to avoid making a bad hire is to conduct a background check, a proven and objective screening method that includes:

Background Checks: They ensure that the applicants hired are who they claim to be, and not criminals, sex offenders, or drunk drivers.
Drug Screening: Experts in toxicology research state that 75 percent of illegal drug users are employed, and many work for a small business.
Resume Validation: According to Human Resources studies, nearly half of all small business job applicants submit résumés with false information.

For small business owners especially, the economic strain of making a hiring mistake due to a missed background check can be a huge burden on the company. These hiring mistakes can be reduced or avoided altogether by implementing proper precautionary measures such as background checks.

Pre-Employ.com – a leading background check and employment services provider for Fortune 1000 companies – also offers flexible and cost-effect background check solutions for any small business. For more information on Pre-Employ.com’s background check services for small businesses, visit www.pre-employ.com, email info@pre-employ.com, or call 1-800-300-1821.

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Businesses “Going Green” To Create Environmentally (and Economically) Sustainable Workplaces

Tom Ahearn — Fri, 19 Jun 2009 10:53:00 -0700

Everywhere one looks these days, everyone and everything is “going green.” From new President Barack Obama touting the environmental and economic benefits of “green collar jobs,” to environmentalists urging the use of alternative “green energy” sources such as solar, wind, and hydro power, to families and individuals reducing, reusing, and recycling in everyday life, it seems like the whole country has gone green.

Even companies – from large global corporations to small businesses – are going for the green in an effort to create more environmentally (and economically) sustainable workplaces. A rapidly growing trend has companies emphasizing “green initiatives” for the adoption of greener business practices that will lead to more ecologically friendly and socially conscious relationships with both the environment and customers.

What is "Green"?

What does it mean for a company to be “green” (and we are not talking about a mixture of yellow and blue)? A company that goes green is preserving, restoring, or improving the environment by adopting green initiatives that will ultimately reduce its environmental footprint. Why should businesses go green? The most significant reason is to help preserve the world’s natural resources. Additional reasons to go green include:

Setting a positive example for employees and boosting morale and company loyalty.
Gaining a competitive advantage and enhancing business reputation.
Reducing energy use and supporting alternative energy sources.
Improving efficiency and lowering operating costs.
Providing a cleaner and healthier work environment for employees.
Minimizing the environmental impact in the local region.
Reducing the risk of running afoul of environmental regulations.

Green Consulting

Businesses can do many things to achieve greenness – almost too many things. When to begin is easy. The answer is now. But where to begin? Companies that understand why it is so important to go green need a workable roadmap to follow in order to reach the goal of sustainability. As with other business efforts, there could be a need for outside consultants (in this case, "green consulting") to help companies attain eco-friendliness.

A relatively new field that has quickly increased in popularity, green consulting helps companies become more ecologically friendly while also showing management how the greening of business practices is a way to improve employee morale, attract new customers, retain old customers, lessen overall ecological impact, enhance company reputation, and earn financial credits for being environmentally sustainable.

The typical sustainable workplace assessment (or “Eco-Audit”) during green consulting usually covers an environmental baseline, solutions for improved performance, and a cost-benefit analysis of proposed green solutions. Once the scope of the problem is established through green consulting, targets are set, opportunities are identified, and action plans are put in place. While they can vary, most Eco-Audits usually address key areas of business activity, such as:

Paper Consumption.
Solid Waste & Recycling.
Workplace Chemicals Use.
Energy Consumption (Lighting).
Business Travel & Employee Commuting.
Comprehensive Greenhouse Gas emissions.

Green consulting also handles employee training and education: from energy-saving tips, to recycling properly, to conservation and reuse. While greening the workplace may seem like a daunting task, the more green consulting helps a company recognize the importance of investing in sustainability efforts and green initiatives, the better the chance the business has of increasing efficiency, preserving resources, and saving money.

An example of a company saving “both types of green” (environment and money) is Internet search giant Google.com, whose data centers have become models of efficiency. Google streamlined all data center operations under one executive and encouraged employees to consider the total lifecycle cost of purchases. Today Google powers its data centers using less than half the energy as the industry average.

A nonprofit association of data center professionals estimates that Google's industry-leading data center efficiency practices have saved the company at least $500 million in capital expenditures, $33 million in annual depreciation, and $17 million in annual electricity costs, impressive numbers considering that data centers can account for up to 35% of overall energy consumption at non-manufacturing firms.

Green Initiatives

While the savings may not be as impressive as Google’s, smaller businesses – and many businesses are smaller than Google – can save considerable money and resources by going green. Pre-employ.com, a background screening services and employer solutions provider, helped make the world a greener place in 2008 and will continue to do so in 2009. Pre-Employ.com’s 2008 Green Initiative successes included:

Electronic queuing system for assignments eliminated paper based work distribution system.
Package management and record retention maintenance system.
Virtual Meetings saved fossil fuels through reduced auto/air transportation.
SANS solution scalability reduced e-waste and electrical use while increasing productivity.
Smaller, more energy efficient workstations produced less heat and saved cooling costs.
Shredded paper recycling bins saved trees and used 50% less water for paper production.
Recycled toner cartridges meant less waste in landfills and could be reconstituted by manufacturer.
Plastic/Aluminum/Glass recycling bins:
- Plastic bottles take up 1,000 years to decompose.
- 20 recycled aluminum cans use the same energy it takes to produce one can from new materials.
- Glass is 100% recyclable.

Pre-Employ.com’s 2009 Green Initiative goals include:

Increase Virtual Employment capabilities for applicable positions, across all departments, to reduce consumption of fossil fuels.
Institute Virtual Training for new employees, certification programs, and ongoing training to facilitate "Employee work at Home Program" for applicable positions.
Institute Virtual Supervision concept for Sales and Marketing positions to facilitate remote work practices.
Introduce Car Pooling/Ride Share program.

Now is the best time for any company – larger or small – to go green. Pre-Employ.com's “green team” of consultants can help any company achieve a more eco-friendly and environmentally (and economically) sustainable workplace through green consulting and green initiatives. For more information, and to receive valuable green solutions and email updates about products and services, please visit http://www.pre-employ.com/Green-Initiative.aspx, email info@pre-employ.com, or call 1-800-300-1821.

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Background Checks & the Offshoring, Repurposing, and Reselling of Personally Identifiable Information (PII)

Tom Ahearn — Wed, 17 Jun 2009 09:25:00 -0700

When an individual applies for a job, there is usually some type of a pre-employment background check before the actual hire. According to reports from the Society of Human Resource Management (SHRM), more than 80 percent of U.S. businesses currently perform some form of background check. In a typical background check, applicants agree to give background check companies “Personally Identifiable Information” (PII) such as name, date of birth, and Social Security Number – all the information needed to commit identity theft.

What most job applicants – and many Human Resources (HR) leaders – do not realize is that there is a strong likelihood that much of the Personally Identifiable Information collected during a background check will end up far beyond U.S. privacy laws, in a foreign call center or data processing location where there is little, if any, privacy protection. The reason is because many background check companies routinely “offshore,” “repurpose,” or resell information from clients – without informing them – in order to cut costs and increase profits.

“Offshoring” – or offshore outsourcing – is the business practice of transferring jobs, services, and PII data to low-cost labor markets by using companies internationally for tasks formerly performed in house. “Repurposing” means to repurpose something – in this case Personally Identifiable Information – for use or to convert for use in another format or product: such as marketing purposes. The PII data can also be resold to skip tracers, lawyers, data aggregators, or marketing lists.

While offshoring, repurposing, and reselling data may help background check firms lower costs and increase profits, these activities bring greater risk to the Personally Identifiable Information data of U.S. citizens in the form of identity theft. While many state and federal laws exist to protect PII data privacy – such as the Fair Credit Reporting Act (FCRA), Gramm-Leach-Bliley (GLB) Act, and Health Insurance Portability and Accountability Act (HIPAA) – all of these protections as a practical matter cease to exist once background check companies send Personally Identifiable Information out of the country.

While some countries outside of the U.S. have strong data and privacy protection laws, many places where Personally Identifiable Information is sent offshore for processing have little or no practical identity theft protection. As a result, American job applicants who have undergone background checks have no ability to enforce their privacy rights overseas. With little or no practical or cost-effective access to foreign courts, it is extremely difficult for a U.S. consumer to contact a foreign police department to lodge a complaint about identity theft or to obtain assistance for stolen PII.

The lack of any meaningful protection once Personally Identifiable Information is sent offshore is a major hurdle in the effort to combat identity theft and protect privacy. The challenge facing businesses such as background check companies today in the field of data privacy is how to share data when necessary while protecting each individual’s Personally Identifiable Information through effective data security and information security design.

Pre-Employ.com – a leading background check and employer service provider for Fortune 1000 companies – believes good data privacy and good data security equals good business. Pre-Employ.com’s data security policy keeps Personally Identifiable Information collected during background checks safe from corruption and suitably controls access, thus helping to ensure the privacy and protection of PII data. We believe Personally Identifiable Information belongs to the individuals providing the PII, and their privacy concerns are our privacy concerns.

HR leaders and decision makers would be wise to ask themselves the following questions:

Does your background check provider practice offshoring Personal Identifiable Information (PII)?
Does your background check provider resell PII data to skip tracers, lawyers, or marketing lists?
Does your background check provider repurpose PII data for other uses like marketing purposes?
Is your background check provider owned by a credit bureau or by data aggregators?

If your background check provider is Pre-Employ.com, the answer to all of these questions is NO. For more information about Pre-Employ.com’s background check services and Personally Identifiable Information (PII) privacy policy, please visit www.pre-employ.com, email info@pre-employ.com, or call 1-800-300-1821.

Contact Us @ Pre-Employ.com

tahearn@pre-employ.com

Downsized Economy Means More Talent, Less Verifications With Background Screening

Tom Ahearn — Mon, 15 Jun 2009 09:47:00 -0700

Businesses looking for a silver lining inside the rain cloud of today's downsized economy can agree on one thing – with over 14 million people currently unemployed in the U.S., there is plenty of qualified talent available for just about every job position in any industry. To help choose this talent, employers usually perform background screening which should include employment and salary verifications to validate whether the qualifications listed on a prospective employer’s resume are real.

However, the increase in the number of unemployed jobseekers means less employers are working in those downsized organizations, and many of these organizations are no longer sufficiently staffed to provide verifications in a timely manner – if at all – for former employees during background screening. Since they don’t add money to the bottom line and waste “company time,” verifications during background screening are considered an unimportant nuisance by some.

The larger impact of a downsized company’s inability – or unwillingness – to verify potential employees is that the employers performing the background screening risk passing on a stronger, but unverified candidate and hiring an inferior candidate with a complete background screening. This talent "mismanagement" is why businesses now hiring must find new ways to verify prospective employees during background screening, or suffer lost talent.

For these reasons, more companies are now outsourcing the verification process to a third party provider. Outsourcing verifications can benefit both past and future employers. Not only can outsourcing verifications performed for background screening save time and money for past employers, but it also protects them from possible liability from a “bad” verification. For future employers, they know that the quality of the verification information received during background screening will not be affected by a lack of staff due to downsizing.

While many companies find it hard to imagine how to turn employment and salary verifications into profit centers, Past-Employ.com – a service from leading background screening provider Pre-Employ.com – offers FREE employment and salary verifications at no cost to help companies save time and money by giving them 20 percent in revenues from incoming employment verification calls. Past-Employ.com’s service can:

Reduce the company’s potential liability.
Give valuable time back to company staff.
Impact the company's bottom line positively.
Turn HR/Payroll departments into profit centers.
Give companies 20% in revenues on verification calls.

For more information about FREE employment verifications, please visit www.past-employ.com, email info@past-employ.com, or call 1-888-330-7278. To find out more about other background screening services, please visit www.pre-employ.com, email info@pre-employ.com, or call 1-800-300-1821.

tahearn@past-employ.com

Five Good Reasons Why Background Screening Now Reduces Costs & Risks Later

Tom Ahearn — Thu, 11 Jun 2009 09:36:00 -0700

Most Human Resources (HR) professionals have long realized how important background screening applicants is to any company’s success. For those in the HR profession who are still sitting firmly on the fence, a quick look at the increased costs and risks of forgoing a pre-employment screening program is in order. Here are five good reasons for performing background screening.

Good Reason #1: High Turnover

Simply put, good background screening finds good employees, thus lowering one of the most significant costs businesses face, that of replacing workers because of high turnover rates. Background screening industry research shows the cost of a “bad hire” usually ranges from one to five times the applicant's annual salary, including recruitment, training, severance costs, and lost productivity. Background screening usually costs a fraction of replacing the lowest salaried employee, which is important to remember when, on average, at least half of all new hires by U.S. businesses simply “don't work out.”

Good Reason #2: Employee Theft

Avoiding employee theft is important in any economy, but particularly relevant in the current economic downturn, when every dollar counts. One employee – and one missed background screening process – can ruin a company. Research shows that 30 percent of all business failures are caused by employee theft, and nearly 15 percent of all applicants admit to theft of merchandise from an employer. Reducing the risk of employee theft with effective background screening – which can uncover a criminal past or drug problem (drugs being a main reason for stealing at work) – is another important cost to consider.

Good Reason #3: Lowered Morale & Productivity

Without good background screening, a single bad worker can create bad co-workers which can result in a bad company – which can then lose good customers. Think it can’t happen? A recent management survey revealed that there are significant consequences to a bad hire, including lowering employee morale by an astonishing 68 percent and decreasing employee productivity by an equally troubling 66 percent. So unless employers like losing two-thirds of morale and productivity, they should use a background screening program to help them decrease their risk for lost customers and reputation.

Good Reason #4: Unqualified Workers

The days of gaining employment with a firm handshake or a flashy smile are long gone – or at least should be. Despite many well-publicized revelations of executives who lied on resumes and damaged their organizations as a result, many companies still mistakenly believe that they can make fully-informed hiring decisions without conducting comprehensive background screening on each candidate. Research based on background screening in 2008 showed that seven percent of applicants had a criminal history, while 32% of employment and 39% of education verifications revealed discrepancies in resume information.

Good Reason #5: Workplace Safety & Security

Lastly, and in many ways most importantly, background screening can help nullify the sometimes deadly issue of workplace violence. In addition to helping to ensure a well qualified and honest hire, background screening is a critical step to maintaining workplace safety and security by avoiding candidates with violent pasts. The cost of a safety incident can be immeasurable and can leave employers open to liabilities for negligent hiring and retention. Employers have lost more than 79 percent of the negligent hiring cases with an average settlement reaching more than $1.6 million.

Pre-Employ.com – a leading provider of background screening and other employer services – believes that when evaluating the current costs of a background screening program, HR leaders should consider the substantial savings pre-employment screening provides by significantly reducing future risks and costs. For more information about Pre-Employ's suite of background screening services, please visit www.pre-employ.com, email info@pre-employ.com, or call 1-800-300-1821.

Contact Us @ Pre-Employ.com

tahearn@pre-employ.com

Motor Vehicle Records (MVR) An Important Part Of Background Screening

Tom Ahearn — Mon, 08 Jun 2009 11:17:00 -0700

A recent story from Gazette.net shows the importance of including a Motor Vehicle Records (MVR) search of a prospective employee’s driving history during pre-employment background screening, especially if that employee will be using a vehicle provided by an employer such as a company car or government owned vehicle.

Officials in Montgomery County, Maryland are reviewing the driving privileges of an Economic Development employee after police arrested her in March for allegedly driving drunk at 8 a.m. in a county-owned sport utility vehicle (SUV).

According to police and court records, the county employee has six prior convictions for driving under the influence (DUI) or driving while intoxicated (DWI) and is also required to have an interlock device, which is designed to block drunken driving, in her personal vehicles. It was the first time the woman was charged with a DUI in a county vehicle.

A county spokeswoman said the county – which manages a fleet of more than 2,200 cars and SUVs – should have been aware of the woman’s Motor Vehicle Record through background screening before allowing her access to a county-owned vehicle. In addition, the spokeswoman said that while the county performs background screening, they don't specify DUIs in a check of Motor Vehicle Records (MVR) but are looking to change that policy. The county’s chief administrative officer is also putting together a work group to consider whether new rules for background screening – including a closer look at Motor Vehicle Records (MVR) – are needed to prevent a similar incident.

While employees who operate vehicles for a living – like bus drivers or truckers – definitely need a Motor Vehicle Records (MVR) check during background screening, most workers who drive to and from work each day and sometimes during business hours should also have their MVR looked at too, especially if they drive a company car or government owned vehicle.

Pre-employ.com – recognized nationwide as one of the premier background screening companies and employer service providers – believes a Motor Vehicle Records examination is the ideal way to identify prospective employees with unsafe driving records to limit corporate or organization risk. In some states, convictions for driving under the influence of alcohol or drugs cannot be found on the criminal court record and can only be revealed with a MVR examination during background screening.

For more information about Pre-employ.com's background screening services – including a Motor Vehicle Records (MVR) check – please visit www.pre-employ.com, email info@pre-employ.com, or call 1-800-300-1821.

Contact Us @ Pre-employ.com

tahearn@pre-employ.com

Reduce Employee Theft with Increased Background Screening

Tom Ahearn — Fri, 05 Jun 2009 10:03:00 -0700

While many employees are honest, hard working, and – in this down economy – happy to have a job, it only takes a one “bad hire” due to poor background screening to take down an entire company.

Employee theft and other illegal acts can weaken or even ruin a corporation. However employee theft is defined – fraud, pilfering, larceny, embezzlement, etc. – the end result is that businesses lose because an employee unlawfully takes something from an employer. According to the Association of Certified Fraud Examiners (ACFE), employee theft costs businesses in the U.S. $6 billion and an average of 7% of revenues annually. The ACFE's Report on Occupational Fraud and Abuse shows how costly employee theft can be and includes these facts:

The median loss for companies caused by employee theft was $175,000.
More than one-quarter of employee theft involved losses of at least $1 million.
The most common employee theft was corruption (27%) and fraudulent billing (24%).
Financial statement fraud was the most costly employee theft with a median loss of $2 million.

Since a single person can destroy a business with employee theft, pre-employment background screening gains greater importance since it reduces the risk of a bad hiring decision. The first step to preventing employee theft is to perform background screening on job applicants thoroughly before hiring them in the first place. The background screening should include at least the following:

Social Security Number (SSN) Address Locator.
Criminal & Civil History.
Drug Testing.
Driver License Violations.
Verification of Education/References/Past Employment (including reasons for leaving).

Employers may also consider running a credit check during the background screening, since prospective employees with financial difficulties are more prone to commit employee theft. However, employers must follow federal Fair Credit Reporting Act (FCRA) guidelines for background screening that legally require employers to notify the job applicants in writing that a credit report may be requested. They also need to receive the applicant's written consent for the background screening.

Dealing with confusing federal regulations can be tricky business for employers, and can lead to legal troubles if those regulations are not followed correctly. By hiring a reputable background screening firm, businesses can protect their company from employee theft and ensure their survival during the current economic crisis.

Pre-Employ.com – a pioneer in the background screening industry and a founding member of the National Association of Professional Background Screeners (NAPBS) – helps companies maintain a safe and secure workplace by offering a suite of background screening services that include criminal checks, drug testing, verifications, and credit reports. For more information on background screening, visit www.pre-employ.com, email info@pre-employ.com, or call 1-800-300-1821.

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tahearn@pre-employ.com

Temporary Workers May Cause Permanent Problems Without Background Checks

Tom Ahearn — Wed, 03 Jun 2009 10:11:00 -0700

A recent article in an Abilene, TX business magazine asked the question: To hire or use a temp?

It is a simple question with a complicated answer – especially with regard to background checks.

Given these uncertain economic times, a growing trend involves employers hiring temporary workers instead of full-time or part-time employees to save money and reduce liability. Since these employers are worried about the future, the common belief is that they can lower their risk and overhead by hiring temporary workers.

Temporary work is as recession-proof as any job can be, since it is not driven by the economy as most other businesses. When the economy slows down, the need for temporary workers – or “temps” – speeds up. The reasons employers choose to hire temporary workers are many. "Temps" are employees of the staffing agency, not the companies that hire them, meaning the agency handles payroll, taxes, insurance, and other employment-related processes including background checks.

However, with more “temps” in today's job market comes the need for more efficient background checks on temporary workers. According to Texas Association of Staffing statistics, staffing firms in the state employed 861,324 people for temporary or contract work in 2007 – an average of 224,303 per day – and that the average length of employment was approximately 13.5 weeks (94-95 days).

A lot can happen in three months, which is why employers should perform thorough and extensive background checks on temporary and contract workers. Just because temporary workers are on the company payroll does not mean employers are relieved of all responsibility if "temps" create a hostile workplace or engage in criminal behavior while on the job. Employers need to know exactly what type of background checks staffing firms are performing on temporary workers and cannot assume those background checks are proper and professional. Background checks are necessary to ensure that employers do not expose customers, workers, workplace, or the public to an unqualified or possibly dangerous person.

Performing due diligence on temporary workers through background checks remains critical, even in this harsh economy. Employers are strongly advised to insist that appropriate background checks are conducted on ALL workers: full-time, part-time, and temporary. Pre-Employ.com – a leading provider of background checks and other pre-employment screening services nationwide – has worked with recruiters and staffing professionals to protect their clients with background checks that follow due diligence and best practice methods.

For more information, visit www.pre-employ.com, email info@pre-employ.com, or call 1-800-300-1821.

Contact Us @ Pre-Employ.com

tahearn@pre-employ.com

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E-Verify Federal Contract Rule Delayed (Yet Again) Until September 8

Tom Ahearn — Mon, 01 Jun 2009 12:42:00 -0700

For a fourth time this year, the effective date of the E-Verify requirement for federal government contractors is delayed, this time from June 30, 2009 until September 8, 2009. The delay gives the Obama administration additional time to review the regulation, which was originally scheduled to be implemented on January 15, 2009 after the Department of Homeland Security (DHS) designated E-Verify as the employment eligibility verification system for federal contractors.

On June 6, 2008, former President George W. Bush amended Executive Order 12989, directing all federal departments and agencies to require certain contractors use E-Verify, a free Internet-based system that allows enrolled employers to confirm the legal status of new hires within seconds. Operated jointly by the U.S. Citizenship and Immigration Services (USCIS) and Social Security Administration (SSA), E-Verify electronically matches information found on the Employment Eligibility Verification Form – or Form I-9 – against government databases and clears over 96% of applicants automatically. Over 120,000 U.S. employers currently use the E-Verify system, many voluntarily, with approximately 1,000 new employers signing up each week.

The litigants in the case over the legality of the E-Verify federal contractor rule – Chamber of Commerce of the United States of America, et al. v. Napolitano – have agreed to push back the effective date of the rule from June 30 until September 8 to give the new Administration more time to review the case and determine its position. Initially, federal contractors were supposed to be required to use E-Verify beginning on January 15, but the rule was put on hold three separate times: first to February 20, then until May 21, and most recently to June 30. September 8, 2009 is the fourth (and final?) extension date.

If the September 8, 2009 date is indeed final, then certain Federal contractors and subcontractors will be required to begin using the E-Verify system to verify their employees’ eligibility to legally work in the United States. This new rule would require federal contractors to agree – through language inserted into their federal contracts – to use E-Verify to confirm the employment eligibility of all persons hired during a contract term, and to confirm the employment eligibility of federal contractors’ current employees who perform contract services for the federal government within the United States.

Full compliance with government legislation requires careful planning. The integration with E-Verify can be time consuming and users within a company must undergo training and pass the online mastery test. This can take several hours per employee. In addition, management of the data, reproduction of reports for audits, electronic storage of documents, pre-set reminders for expiring documents, automatic notification of document expiration, and step by step instructions for filling out the form are not included with the E-Verify system.

Because not every company is prepared to take on the task or dedicate staff members to maintain an employment eligibility program that will ensure full Form I-9 and E-Verify compliance, many companies have chosen to use third party E-Verify solution providers to limit the possibility of government audits due to violating compliance regulations. More information on what federal contractors and subcontractors would need to know if the E-Verify requirement takes effect on September 8 can be found in an informational white paper from I-9Compliance.com – 15 Facts You Should Know About I-9 Compliance: Questions and Answers – available at http://www.i-9compliance.com/whitepaper/.

I-9Compliance.com – a service offered by leading pre-employment screening provider Pre-Employ.com – can make any business owner a I-9 Form and E-Verify expert while maintaining full I-9 compliance, reducing risks and liability, virtually eliminating errors, and improving the economy by ensuring jobs for legal Americans. For more information about I-9Compliance.com’s Form I-9 and E-Verify solutions, please visit us at www.i-9compliance.com, email us at sales@i-9compliance.com, or call us at 1-800-300-1821.

tahearn@i-9compliance.com