By LISA BROWN lbrown@post-dispatch.com 314-340-8127
If a lawsuit or prior arrest is part of your past, your new
employer increasingly wants to know.
As the economy improves and companies add to their ranks,
many are taking the opportunity to revamp their hiring processes. And, with
many people still out of work and vying for a limited number of jobs, employers
can be pickier than ever.
Two years ago, World Wide Technology began conducting
criminal background checks on new employees who oversee buying and selling
equipment — the first time it required this check in the company’s 23-year
history.
Now, the systems integration firm, which employs more than
2,000 people, is mulling making criminal background checks a requirement for
all new employees.
“That will be the next step, because of our growth and
increased visibility and liability” said Paul Koetting, World Wide Technology’s
director of human resources. “We’re always trying to protect the company from
all angles. When we were a smaller company, it wasn’t as important. When you
get bigger, you can become a target.”
Maryland Heights-based World Wide Technology, which has
about 100 current openings, is one of a growing number of employers making
employment background screening a part of the hiring process.
At the AAIM Employers Association, a Brentwood-based
provider of employer-related business services to 1,600 Missouri and Illinois
employers, the number of companies utilizing the background checks and drug
tests that AAIM offers its members more than doubled last year while its
membership rose only marginally.
In 2012, 810 companies sought AAIMCheck background checks or
drug tests from the organization, up from 392 in 2011.
The group’s background checks include employment and
education verification, driving records and criminal histories.
However, county civil record searches that detail a
prospective employee’s past or current civil lawsuits was the category that
AAIM saw the most growth from 2011 to 2012, company executives said. A standard
search dates back seven years.
Overall, AAIMCheck ran 19,215 background checks in 2012, up
from 8,313 in 2010. The number of drug tests it conducted for its members grew
from 502 in 2010 to 4,236 last year.
Philip Brandt, AAIM’s president and CEO, said the sharp rise
in the number of checks isn’t due to increased hiring activity by its members.
Instead, employers are increasingly becoming aware of the
high costs when they don’t pre-screen employers, he said.
“Hiring people costs money,” Brandt said. “To get it right
the first time is what employers are more focused on now.”
An added danger, Brandt said, is the greater exposure
companies are faced with when a high-ranking employee is caught flubbing
information on his or her resume.
Examples of executives whose resumes contained errors that
proved embarrassing for their employer include Yahoo! Inc.’s former CEO Scott
Thompson, who was ousted from the company a year ago after news broke that he
claimed a degree in computer science he hadn’t earned.
“There’s more and more awareness when hires go wrong,”
Brandt said. “That can be devastating for their business.”
The increase in activity is leading to growth for AAIM,
which currently has 25 employees and plans to hire five employees this year.
The St. Louis Zoo, which employs up to 800 people in the busy
summer months, made drug testing mandatory three years ago for all seasonal,
part-time and full-time employees.
“We want to know as much as we can about new employees,”
said Dustin Deschamp, the zoo’s HR director. “It is becoming almost industry
standard to perform background checks and drug testing because of the liability
issues you’re facing.”
But with the increase, employers need to make sure they
don’t run afoul of federal law.
“It’s a trend that we’ve been noting for several years,
particularly after 2011,” Michelle Rodriguez, staff attorney for the National
Employment Law Project, said about increasing number of employers conducting
background checks and drug tests. NELP is an employee advocacy nonprofit
organization based in New York.
Rodriguez said the number of companies that offer these
services is increasing, and technology is making it faster and easier for the
checks and tests to be performed.
Her nonprofit group is fielding more complaints from people
who say background checks are making it impossible to find work, she said.
“Unfortunately, there are too many companies that have
blanket bans” based on criminal history or other factors, Rodriguez said.
The U.S. Equal Employment Opportunity Commission provided
new guidance last April that said the use of some background checks in hiring
can violate prohibitions against employer discrimination in Title VII of the
Civil Rights Act.
For example, a company could be in violation of Title VII if
it uses criminal history information for applicants in different ways for
different groups, based on applicants’ race or national origin.
The zoo follows all labor laws when it uses information
gleaned from background checks and drug tests, Deschamp said.
“We don’t automatically disqualify anybody based on what we
see in background checks,” he said. “We want to make sure we are doing
everything we can to make sure the zoo is as safe as possible for visitors and
co-workers.”
David Minton, president and CEO of Clayton-based Heartland
Bank, said the bank, which employs 300 people, has used background checks and
drug tests on all new hires for at least six years.
“We’re obviously handling one of customers’ most important
possessions, their money,” he said. “We want to make sure that we do that with
employees of the highest caliber.”
But even with the information the background checks and drug
tests can offer, Minton said employers should also rely on other factors to
make their hiring decisions.
“There’s no substitute for checking references,” he said.