This article originally aired in the June/July Digital Edition of BIC Magazine. It is one of the top-rated articles of 2020.
Each year brings new laws, changes to existing laws, and regulations that can affect employers and their background check programs and procedures.
This year has already brought a number of new "ban the box" laws to some cities and states, including Iowa and Michigan, as well as a statewide ban in Maryland. Regardless of whether your state and/or city is included in this year's updates, employers should always stay alert and aware of their state's laws to maintain compliance when conducting background checks on their job applicants or employees.
- Waterloo, Iowa: Effective July 1, the "city of Waterloo, Iowa's Fair Chance Initiative," or "ban the box" ordinance, will restrict employers from inquiring about candidates' criminal record information. The ordinance states that it's an unlawful discriminatory practice for an employer to make any inquiry or require any person to disclose or reveal any convictions, arrests or pending criminal charges during the job application process. In addition, an employer cannot make an adverse hiring decision based solely on the applicant's record of arrests, pending criminal charges, or any criminal records that have been erased or expunged without a legitimate business reason.
- Grand Rapids, Michigan: The state of Michigan currently allows employers to inquire about criminal history information, but on Dec. 1, 2019, the city of Grand Rapids enacted a human rights ordinance that protects against discriminatory practices, including during an employer's hiring process. "Ban the box" laws are not allowed in the state of Michigan, so this ordinance circumvents that by defining it as a discrimination law. Employers are also not allowed to consider arrests not leading to a conviction, nor to refuse to hire an applicant based on his or her criminal record without determining whether the crime would pose a risk to the "health, safety or welfare of other employees or persons or to property." The ordinance also allows individuals to report unlawful discrimination to the City Office of Diversity and Inclusion (ODI) within 180 days of an incident.
- The state of Maryland: On Jan. 30, the Maryland General Assembly overrode a veto Gov. Larry Hogan made during the 2019 legislative session for the "Criminal Records Screening Act," or "ban the box" law. Effective Feb. 29, this overturn prohibits employers with 15 or more full-time employees from inquiring about an applicant's criminal history before the first in-person interview is conducted. Employers must also abide by the more restrictive ordinances enacted by Montgomery County, Prince George's County and the city of Baltimore, if applicable.
Looking ahead
In St. Louis, the "Ban the Box Ordinance" restricts employers from basing their hiring decisions on an applicant's criminal history unless that employer can prove its relevance to the job-related decision. Effective Jan. 1, 2021, employers must bring their hiring practices up to compliance standards or risk losing their business licenses. In addition, employers are restricted from inquiring about an applicant's criminal history until after it is determined he or she is qualified for the job, or unless the applicant is part of a final pool of other applicants qualified for the job and all applicants are asked.
How your TPA can help
Third-party administrators (TPAs) such as DISA Global Solutions help employers make informed hiring decisions by ensuring the integrity of their organization. With new laws and amendments to laws passing in 2020, employers' next step should be to determine whether their company's background check program needs to be revised according to new state and/or city requirements. DISA's unique service offerings and products can help you build a background check customized to your industry needs, including: automatic renewal notices, Fair Credit Reporting Act compliance assistance, online tracking and reporting, and more.
For more information, visit www.disa.com, call (800) 752-6432 or email sales@disa.com.
