LegalShore, Parrent Smith Team Up to Provide Online Employment Law Compliance, Background Checks

Los Angeles, CA (PRWEB) February 27, 2007

LegalShore and Parrent Smith Investigations have entered into a teaming agreement.

LegalShore, founded in December 2005, offers customized employee handbooks, human resource-related content, and employment law compliance tools through Flexpoint, an online SaaS, or "Software-as-a-Service" product. Parrent Smith Investigations, a Southern California-based private investigation firm, has a combined 75 years of experience providing investigative services to attorneys, corporations, financial institutions, insurance companies, and consumers worldwide, including some of the largest law firms in California.

LegalShore's Flexpoint system contains a portal for businesses to obtain management-related compliance information, as well as to obtain services from third-party providers. LegalShore is building a nationwide network of preferred service providers that can be accessed through the Flexpoint system by end user businesses. The system is flexible, however, and can link to the provider of choice for any particular client.

Spencer Hamer, co-founder of LegalShore, stressed the importance of offering the background check option to clients. "We want to have a network of providers with services that complement Flexpoint, available to assist clients online. Background checks are an important component of a legally compliant work environment, and we are excited about adding Parrent Smith as a linked resource for our providers and end user clients."

The background check field is exploding. According to Joanne Parrent of Parrent Smith, about 80% of all large employers now use background checks, and, among small businesses, the rate is nearly as high, at 70%. The number of employers using background checks has increased substantially due in part to heightened awareness by businesses of the problem of employee theft. The Department of Commerce, the American Management Association, and other organizations estimate that employees steal over a billion dollars a week from their unknowing employers. Other studies estimate that nearly one-third of all bankruptcies are caused by employee theft, and that it takes approximately $20 in sales to offset every $1 lost to theft.

Another factor in the increase in background checks has been the emergence of a host of new companies that offer inexpensive "instant" background checks online. The problem with many of these inexpensive online services, according to Parrent, is that while they have lower costs, the information they are relying on is not always independently vetted and verified for accuracy. Data can be wrong for a number of reasons. Local clerks entering incorrect information, data becoming outdated, confusion resulting from common names, or false information being given to authorities to hide identity are typical reasons for inaccurate data. Thus, the risk exists that a company relying on data from online "instant" background checks will make a hiring decision based on inaccurate information.

By contrast, Parrent Smith investigators physically visit courthouses to check for and verify records. All background checks are conducted or reviewed by licensed investigators. Parrent Smith prepares a comprehensive report that summarizes the significant findings, analyzes the information, contains discrepancy alerts, and makes recommendations for further investigation where warranted. The firm also presents the information in an easily understood format.

Through the Flexpoint system, LegalShore clients will be able to request three levels of pre-employment background checks from Parrent Smith at an exclusive rate. The Bronze Essential provides social security number verification and address trace, as well as a state, county, and federal criminal record check, and is recommended for all non-key employees. The Silver Essential includes the Bronze Essential features plus employment verification, education verification, and reference checks. The Gold Essential includes all Bronze and Silver Essential features, plus nine additional searches, including a media search, an officer/director records search, and civil litigation searches. Parrent Smith also provides several custom reports, including license/certification verification, credit report history, motor vehicle report, and in-depth personal profiles.

For additional information on the news that is the subject matter of this release, contact Spencer Hamer or Joanne Parrent.

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