Greg Davis Interviewed in HR Executive

The May issue of HR Executive includes a Q/A article ("Navigating the Background Boom") with Greg Davis in which he shares his insight into the latest concerns and challenges within the background-screening industry.   "The background-checking industry is hot. Indeed, some estimate annual industry growth rates of 25 percent to 35 percent. But while background checks have clearly become the norm, experts are quick to remind HR executives that the employment-screening process is fraught with dangers. Few people are more knowledgeable about the dangers of background checks -- and what companies should and shouldn't be doing -- than Gregory M. Davis, a partner with Seyfarth Shaw in Chicago. Davis frequently counsels employers and suppliers on compliance requirements under the Fair Credit Reporting Act, co-chairs Seyfarth Shaw's nationwide task force on the FCRA and serves on the board of the National Association of Professional Background Screeners."

Among the issues Greg addressed were: 

• A common mistake employers make when it comes to background screening is not understanding that The Fair Credit Reporting Act provides very stringent and burdensome compliance requirements for employers to follow if they're going to obtain background reports from third-party providers.   Employers need to focus on what kind of background check is appropriate for the kind of job that's being sought.  The problem with obtaining background information is that the sources of information often are not as accurate as we might hope and want. 
• Technology issues employers need to keep in mind are e-signatures as it relates to e-applications for jobs. One of the things employers are doing more and more is listing applications online or through kiosks. As a result, they're often forced to rely on electronic signatures as authorization for the application or acknowledgement on the application.  That carries with it concerns of compliance under the federal E-Sign Act and state corollary laws that are designed to give some assurance that the electronic signature that is given actually belongs to the individual. 
• On the privacy front, employers need to worry about privacy torts or negligence torts. If they handle personal-identifier information and background-screening reports irresponsibly and that information gets into the wrong hands and is compromised -- and somebody suffers damage as a result -- then the employer stands a good chance of being held liable for that damage.