Employers must now be wary of improperly using criminal background information to exclude candidates and employees. Following a $31 million settlement with a global beverage company for its strict policy excluding anyone with a criminal record from employment, the EEOC recently issued new, comprehensive guidelines solidifying its long-held position that improper use of criminal background information in making employment decisions could constitute unlawful race discrimination under Title VII. As a result, employers may feel stuck choosing between potential liability under Title VII for screening employees and applicants in good faith, or risking liability for negligent hiring if they neglect to perform criminal background checks or to monitor employees with criminal backgrounds. It is crucial for employers to develop a non-discriminatory policy as it relates to criminal background checks.

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