FCRA Compliance updatess

2020 Q3 FCRA Compliance Update

As we enter the fall of 2020, it is a good time to take a look at your company’s policies and processes. This new season will bring different challenges and opportunities for businesses. Whether you plan on hiring this fall or not, it’s always in your best interest to stay up to date with new FCRA compliance policies.

The first half of 2020 brought some policy changes in the world of hiring and screening. Here, we’ll cover some of the most prominent new FCRA compliance policies to keep your hiring practices compliant with state and local laws.

Salary History Bans

Recent measures have been taken that prevent employers from asking applicants about their salary history. They are intended to stop employers from basing their pay on previous compensation. In general, these bans seek to increase pay equity and ensure employees are paid fairly—regardless of any previous salary.

Maryland recently passed a version of salary history ban that includes additional expectations for employers. After October 1, 2020, employers must upon request provide applicants with a range of wages they expect to pay the person they hire. Employers cannot retaliate against an applicant for requesting pay information. Additionally, employers can’t use previous earnings as a baseline to set pay for new hires.

Toledo, Ohio and Philadelphia, Pennsylvania also each passed salary history bans in their local governments. Both bans went into effect in June 2020.

Ban-the-Box Laws

A ban-the-box law delays the time an employer can ask about an applicant’s criminal history. Instead of inquiring about criminal history at the beginning of the hiring process, employers under ban-the-box laws must wait. A potential criminal record must be obtained later in the hiring process. Ban-the-box laws can also change the way an employer is allowed to respond to a candidate’s criminal record.

In Waterloo, Iowa, organizations with 15 or more employees cannot take adverse action against applicants based on arrests, pending charges or expunged records. They also cannot take adverse action against any criminal charge without a “legitimate business reason.” The new law in Waterloo defines a “legitimate business reason” as instances where a criminal record would pose a risk to other employees, the public or any vulnerable populations served by the business.

The communities of Suffolk County, New York and St. Louis, Missouri also just passed ban-the-box laws. Suffolk County’s law goes into effect on August 25, 2020. St. Louis’s ban-the-box ordinance will start on January 1, 2021.

Whether or not these new laws impact your business, they reflect trends that may spread to your community. As you develop plans and policies for the coming months, One Source will keep you updated on compliance laws and help you find screening solutions. Learn more about our tailored background check solutions here or get in touch with our Client Relations team.