What Exactly is a "Universal Background Check"?

No matter which side of the political fence you fall on, by now you are familiar with the phrase "Universal Background Check". It's the hot topic in the gun control debate and may soon become law. What you likely haven't heard is an explanation of what a background check for gun ownership does and does not consists of.  A question we've received a lot lately, and one that everyone should know the answer to.

First off, let's clarify on the terminology.  A "Universal Background Check" is called "Universal" in relation to the circumstances it takes place under, as opposed to what the background check includes.  In this case "Universal" would mean any sale/transfer of a firearm in the United States to a private citizen.

Background screening serves many different purposes and can be made up of completely different data depending on it's purpose and determined by who's performing the background check. The purpose of the "Universal Background Checks" in relation to gun ownership is to fill in the "gaps" or "loopholes" that are argued to exist when people purchase guns through private parties instead of licensed firearm dealers. Licensed dealers, known as "Federal Firearm Licensees" must conduct a background check when selling a firearm, even at a gun show.  Private sellers can sell guns to other private parties in the same state without any type of background check. This results in somewhere between 10% and 40% percent of guns sales requiring no background check, depending on who you ask. 

Where Does the Background Check Data Come From?
The information contained in these federal background checks overlaps but is not the same source data that you'll find in a pre-employment background check or "Nationwide Criminal Background Databases". There are multiple federal sources that make up the background check database collectively known as the National Instant Criminal Background Check System or "NICS" for short.  NICS is technically one of the databases used in the background check but also serves as an access point for all four databases to the end user such as a firearms dealer.  The four databases that collectively serve as a background check for licensed gun sales 

1. Interstate Identification Index (III): Criminal Histories
2. National Crime Information Center (NCIC): Warrants, Protection Orders and Criminal Records.
3. National Instant Criminal Background Check System (NICS): Known individuals who are prohibited from owning firearms due to: criminal records, mental disability, dishonorable military discharge, etc. (see list below)  
4. Department of Homeland Security, Immigration and Customs Enforcement (ICE): Used only if the customer is NOT a United States Citizen.

What Kind of Background History Would Prevent Someone From Purchasing a Firearm?
One or more of the following items found during a NICS background check would normally prevent someone from purchasing a firearm.

• A person who has been convicted in any court of a crime punishable by imprisonment for a term exceeding one year or any state offense classified by the state as a misdemeanor and is punishable by a term of imprisonment of more than two years.

• Persons who are fugitives of justice—for example, the subject of an active felony or misdemeanor warrant.

• An unlawful user and/or an addict of any controlled substance; for example, a person convicted for the use or possession of a controlled substance within the past year; or a person with multiple arrests for the use or possession of a controlled substance within the past five years with the most recent arrest occurring within the past year; or a person found through a drug test to use a controlled substance unlawfully, provided the test was administered within the past year

• A person who, being an alien, is illegally or unlawfully in the United States.

• A person who, being an alien except as provided in subsection (y) (2), has been admitted to the United States under a non-immigrant visa.

• A person dishonorably discharged from the United States Armed Forces.

• A person who has renounced his/her United States citizenship.The subject of a protective order issued after a hearing in which the respondent had notice that restrains them from harassing, stalking, or threatening an intimate partner or child of such partner. This does not include ex parte orders.

• A person convicted in any court of a misdemeanor crime which includes the use or attempted use of physical force or threatened use of a deadly weapon and the defendant was the spouse, former spouse, parent, guardian of the victim, by a person with whom the victim shares a child in common, by a person who is cohabiting with or has cohabited in the past with the victim as a spouse, parent, guardian or similar situation to a spouse, parent or guardian of the victim.

• A person who is under indictment or information for a crime punishable by imprisonment for a term exceeding one year.

• A person adjudicated mental defective (term used by FBI, not us) or involuntarily committed to a mental institution or incompetent to handle own affairs, including dispositions to criminal charges of found not guilty by reason of insanity or found incompetent to stand trial.

The Achilles' Heel.... Inconsistent Mental Health Records 

For example, at the time of the Virginia Tech Massacre of 32 people, Virginia did not submit mental health records to NICS so there was no record in NICS of the shooter receiving mental health treatment. Such a record may have prevented Seung-Hui Cho from purchasing firearms. That has since changed in Virginia and many other states.  Now 28 States have adopted laws requiring some mental health records be reported to NICS.  However, the degree to which each of these 28 states supply mental health records varies tremendously.  Some states have submitted less than 50 total records to NICS in total while others have submitted tens of thousands.  Eight states only require mental health records to be reported to an in-state database that can be accessed by firearms dealers within their home state along with NICS. If the person purchases a firearm in a different state, their mental health records would not come into play.

To make matters more confusing, there is no standard time frame for states (the one's that do report) to report this information.  On one side you have Virginia now reporting in 24 hours, while Tennessee reports only four times a year and Wisconsin only requires reporting "In a timely manner". 

The Bottom Line

Overall, the NICS background check for purchasing firearms is an incredibly in-depth system but certainly not perfect. Individual states are coming around when it comes to making mental health records available but it's a slow and tedious process.  The reason for so much hesitation is understandable.  Mental and physical health records are protected by a slew of state privacy laws as well as HIPAA and the Americans with Disabilities Act.  Chances are, the battle between privacy and safety won't end anytime soon.

*Statistics provided from the FBI, NRA, and Law Center to Prevent Gun Violence.

About the author:

Brad Jones is President of Background Screening Consultants LLC (DBA SafeScreener.com), an applicant background screening agency in Chicago. Brad has worked with hundreds of corporations, nonprofit organizations, and government agencies to establish FCRA compliant applicant screening protocols since 1996. Prior to being fully engaged with the background screening industry, Brad specialized in fraud investigations and complex due diligence related to corporate acquisitions. Brad is an active member of the National Association of Professional Background Screeners as well as a Chicagoland Chamber of Commerce member, serving on the Health and Wellness Coalition as well as the Workplace Well-Being Committee.  Brad can be reached at bjones@safescreener.com or 312.985.5010 x113

Please note: Any person or entity utilizing a third party to conduct applicant background checks for employment or leasing purposes must follow applicable federal and state laws including but not limited to EEOC Title VII, the Fair Credit Reporting Act and all applicable state laws.  Articles, blogs, newsletter and other materials issued by Brad Jones or any employee of Background Screening Consultants LLC (DBA SafeScreener.com) should not be regarded as, or substituted for, legal advice.  

Kmart Settles FCRA Class Action for $3,000,000

Are FCRA compliance laws being followed by your hiring managers, recruiters, or even yourself? Really? Let's face it, many very smart HR professionals assume they are compliant in their applicant screening processes because nobody has told them otherwise, and nothing consequential has happened...yet.  HR professionals wear a lot of hats and can't be on top of every changing law in every field they deal with day in and day out.
Kmart's HR personnel assumed they were compliant in their screening processes.  Yet this well respected retailer has been hit by a class action lawsuit for allegedly not abiding by the rules of the Fair Credit Reporting Act.

It's important to understand that there is a growing trend of class action attorneys actively seeking out missteps in the actions of hiring managers and recruiters for corporations viewed as having deep pockets.  In Kmart's case it was alleged that at least 64,500 applicants were affected by being denied their rights (actually the right to know what their rights were) when the company allegedly failed to provide "pre-adverse action" letters prior to declining employment to individuals that that were passed over due to the results of their background checks.  While that original reasoning for the class action lawsuit proved tough to prove, the class action attorneys were able to argue that the pre-adverse action forms used by Kmart had not been updated with required information regarding a simple change of contact data replacing the Federal Trade Commission (FTC) with the Consumer Financial Protection Bureau CFPB.  This change of contact information for the new enforcement agency of the FCRA was recently put into effect.  Officially Jan 1, 2013.

While Sears Holding Corp. has not admitted any wrong doing in this case, they have agreed to settle for three million dollars to avoid potentially costlier litigation.

According to the Kmart class action lawsuit, “Defendants knew or should have known about their legal obligations under the FCRA. These obligations are well-established in the plain language of the FCRA and in the promulgations of the Federal Trade Commission,”

THE BOTTOM LINE
F.C.R.A. compliance doesn't need be difficult or time consuming if two basic conditions apply.
1)  You work with a reputable screening company that offers you easy to use compliance tools and free training to those that utilize background checks.
2)  A consistent (and enforced) company policy exists that addresses the hiring managers role in F.C.R.A. compliance and assistance. Specifics of their role should be provided by your applicant screening company.
Keep in mind, while a reputable background screening provider will handle many aspects of F.C.R.A. compliance and send you compliance training materials, that does not mean that your hiring managers procedures are in (or know how to be) in compliance. Simple steps must be taking for BEFORE an applicant is rejected in part or entirely due to the results of a background check.  Request training sessions from your screening provider for each hiring manager or recruiter. Thirty minutes of training can save millions of dollars in settlement costs!

Pitt v. K-Mart Corp., Case No. 11-cv-00697, U.S. District Court for the Eastern District of Virginia

About the author:

Brad Jones is President of Background Screening Consultants LLC (DBA SafeScreener.com), an applicant background screening agency in Chicago. Brad has worked with hundreds of corporations, nonprofit organizations, and government agencies to establish FCRA compliant applicant screening protocols since 1996. Prior to being fully engaged with the background screening industry, Brad specialized in fraud investigations and complex due diligence related to corporate acquisitions. Brad is an active member of the National Association of Professional Background Screeners as well as a Chicagoland Chamber of Commerce member, serving on the Health and Wellness Coalition as well as the Workplace Well-Being Committee.  Brad can be reached at bjones@safescreener.com or 312.985.5010 x113

Please note: Any person or entity utilizing a third party to conduct applicant background checks for employment or leasing purposes must follow applicable federal and state laws including but not limited to EEOC Title VII, the Fair Credit Reporting Act and all applicable state laws.  Articles, blogs, newsletter and other materials issued by Brad Jones or any employee of Background Screening Consultants LLC (DBA SafeScreener.com) should not be regarded as, or substituted for, legal advice.  

Moving on up! (Or South)

With all this GREAT weather in Chicago, (currently 0 degrees with a wind chill of -15) we decided to move our offices closer to beautiful Grant Park and the lake front!  

Actually we just needed more space, but the park and lake will be an added bonus in the spring! Please make note that our new address is as follows...

Have questions, comments, or just want to say hello?  Feel free to call our offices anytime at 888.578.8600 or email us at contact@safescreener.com.  We're here to help!

NEW! Income Tax Return Verifications Give You CONFIRMED Income and Employment Information Directly from the IRS

We are pleased to announce the release of our new IRS Income Tax Return Verification Service.  This service provides verified income and W2 information directly from the IRS.   

Who Would Benefit From This Service?

Property Managers:  Provides you with verified income information directly from the IRS for your potential tenants.

HR Managers:  Provides IRS verified salary and employment history information in making upper management hiring decisions.

Mortgage Lenders:  Verified income information for the underwriting process.

Why Go Beyond a Standard Employment Verification?

Because direct IRS information...

•    Strengthens due diligence in processes.
•  Mitigates fraud in instances of false Social Security Number information.
•    Provides employers with factual salary history.
•    Helps landlords make secure rental decisions as it provides a verified income source. 

How Does it Work?

A 4506T (Click here to see a sample form) request form will need to be filled out and signed by the applicant for each year of tax return information to be released. This service will return information in relation to the following tax filings: (1040, 1065, 1120, 1120A, 1120H, 1120L, 11205) and Income (W2, 1099, 1098 series and 5498 series).

What's the Turn-around-time?

Once the signed authorization is submitted to SafeScreener, please allow approximately two business days for IRS to process the request. After two business days, SafeScreener will provide you with the results of the search. (Clickhere to view a sample return or here to view a sample W2.)

Contact us today at 888-578-8600 or contact@safescreener.com to get signed up to start processing your IRS Income Verifications today!

The Last Word: Finding the Value in Conducting Employee Exit Interviews

When conducted properly, exit interviews are a valuable tool in determining the best way to improve employee retention and morale within your organization.  However, getting employees to feel comfortable enough to share their true feelings about their soon to be former employer can be a tricky game.

Who Should Conduct an Exit Interview?

In order to receive the most honest, relevant feedback, it is recommended to utilize a neutral, non-biased third party.  Using a direct supervisor will certainly not provide the most candid feedback about that supervisor's performance or the functioning of a specific department.  Likewise, having Human Resources conduct the interview can cause the parting employee to become uneasy.  After all, "HR" holds the employment files and becomes a point of contact for a past employment verification.  The employee will not want any "skeletons" looming in their past employer closet.

When Should an Exit Interview Be Conducted?

You want to catch the employee at a time when they are still in the mood to talk about their past employer, but not at a time where they may still be disgruntled about the circumstances that caused them to leave.  The best feedback comes when the employee has had a reasonable amount of time to evaluate their departure from the company and reflect on their experience.  They'll be better suited to offer constructive criticism a week or longer after they have left the company.

What Should You Ask?

First of all, you want to be honest with your employees about why you are conducting the interview.  If the departed employee thinks it is being conducted so the company can get "the dirt" on other employees, or find out what company the person's now working with, they will be on the defensive.  Be upfront and let the employee know how the data is going to be used, if it's anonymous, and who will have access to the information.

In order to create measurable statistics, you will want to use a rating system for the majority of your questions.  A rating system will allow you to compare data across departments, positions, time frames or any other criteria that may reveal a trend you're looking for.  We often recommend a 1 through 5 rating scale, where 1 equals "Extremely Dissatisfied", all the way up to a 5, which would indicate "Extremely Satisfied".  Numerical data will allow you to quickly establish trends and patterns with the employees that leave your organization.

However, to get the most descriptive information out of your exit interviews, you will want to follow up with open-ended questions to obtain more specific information. Some examples of open-ended exit interview questions are, but are not limited to, the following:

• What are three things you think the company could do to improve employee retention?
• What was the most satisfying part of your role with the company?
•  If you could pick one policy or procedure to do away with, what would it be?
•  What type of support could the company have provided to help you conduct your job more effectively?
• What factors lead you to the rating of your immediate supervisor?

Be Consistent

Conducting exit interviews is a time consuming process.  Phone interviews will consume the most time, but also yield the most information when conducted by qualified interviewers.  To get the most out of the initiative, the interviews must be conducted consistently on all employees that leave the company by choice.  Keep in mind, if you aren't going to actually use the data to help improve your organization, this process isn't going to be worthwhile.

Look for trends

•  How long, on average, does your typical employee stay with the company?  Does it vary drastically by location, position or manager?
•  Do most of your departing employees rate their direct supervisors poorly?  It may be time to invest in leadership training. 
•  Do departing employees rave about the workplace culture or think the company lacks direction?
•   Is the geographic location your biggest deterrent to long term employees?
•  Did the departing employee leave for more pay and benefits, or simply a "better" company with the same pay?  Would a few perks have changed their perspective?

When used correctly, the data you receive is priceless.  The key is not to sit on the data.  Use what you learn to make improvements.  Your strongest areas will make excellent selling points to prospective new employees.

To receive a free evaluation of your current exit interview program, feel free to contact us 888-578-8600 or contact@safescreener.com.  SafeScreener.com offers several solutions in providing an optimal exit interview program to best suit the needs of your organization.

The Scoop for 2013 - New Background Authorization Forms For All!

In July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law and the Consumer Financial Protection Bureau (CFPB) was given the authority to enforce the Fair Credit Reporting Act. (Prior to this, the Federal Trade Commission held the primary enforcement authority over the FCRA.) The CFPB has implemented mandates to the required (per FCRA) applicant authorization forms for background checks.  These required text changes must be implemented by January 1, 2013.

What Forms Will be Updated?

The following documents will be updated:

•         A Summary of Your Rights Under the FCRA: (This document is optionally provided to applicants prior to the background check and always provided to an applicant when taking Pre-Adverse Action.)
•          Notice to Users of Consumer Reports: (This document states the obligations of users under the FCRA and should be kept on file by each of our clients.)

The main difference in these forms is that the CFBP is now listed as the contact for FCRA related information, as opposed to the Federal Trade Commission.

How Does This Impact You?

Each current user of SafeScreener PRO will receive a revised applicant authorization form via email which includes the required information update from the CFBP.  An updated document titled "Notice to Users of Consumer Reports" will also be provided for clients to simply retain on file. 

A representative from SafeScreener.com may contact you to address any questions or concerns you may have regarding these documents.  Prospective clients of SafeScreener.com will automatically receive the new forms from this point forward, to ensure compliance is met for the January 1 start date.

As always, if you have any questions about these new forms and how they will impact your background screening process, feel free to contact us at 888-578-8600 or contact@safescreener.com. 

Compliance Update: North Carolina E-Verify Laws Went Into Effect October 1, 2012

E-Verify, the government system that allows employers and designated agents of employers, to compare information on the "Form I-9" to the Department of Homeland Security and Social Security Administration to confirm employment eligibility, is now a requirement for some employers in the state of North Carolina.

The North Carolina General Assembly passed E-Verify legislation that became effective October 1, 2012 and will be phased in, until fully implemented, on July 1, 2013. Here's what you need to know:

• ·         October 1, 2012: Employers with 500 or more employees will be required to use E-Verify for NEW hires.
• ·         January 1, 2013: Employers with 100 or more employers will be required to use E-Verify for NEW hires.
• ·         July 1, 2013: Employers with 25 or more employees will be required to use E-Verify for NEW hires.

At this time, employers who hire seasonal workers for less than 90 days within a 12 month period, and employers with less than 24 employees, are not required to utilize E-Verify.

For quick reference, check out this link from the National Conference of State Legislatures, which breaks down E-Verify requirements by state: http://www.ncsl.org/issues-research/immig/e-verify-faq.aspx#9.

Need help with your E-Verify and Form I-9 compliance? We can help! Contact us at 888-578-8600 or contact@safescreener.com in order to discuss our E-Verify and Form I-9 solutions.