Challenges to Background Screening Continue to Expand; Opines

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It used to be that Ban-the-Box legislation was the biggest challenge in background screening but now a new challenge has begun to appear: Pay Equity Laws. Adam Almeida, President and CEO of opines: “Pay equity laws add to an already complex and complicated pre-employment background screening process and further signals that employers should be working with a well-qualified third-party background screening agency, such as, in order to stay abreast and aware of new laws potentially affecting the background screening process.”

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Every time there is significant shift in law hiring managers should be alerted to ensure ALL hiring policies are compliant with law.

A new complexity, Pay Equity Laws, has been added to the complexities of pre-employment background screening and, when combined with Ban-the-Box legislation, creates greater challenges for HR Departments and Hiring Managers. Adam Almeida, President and CEO of opines: “The added complexity of Pay Equity Laws, highlights an urgent need for hiring managers to work with a well-qualified third-party pre-employment background screening agency, such as, in order to stay current with new laws and trends affecting background screening.”

A new evolution in hiring is the addition of Pay Equity Laws. Combined with Ban-the-Box legislations, hiring and background screening just got a little more challenging.

From (Aug 05, 19):

This new regulatory trend, which is gaining steam even faster than Ban the Box, prevents employers from asking about candidates’ prior salary history in an effort to eliminate gender-based salary disparities. (1)

Adam Almeida, President and CEO of opines: “Pay Equity Laws have spread across the country and essentially state that hiring managers, or anyone involved with the hiring process and interviewing candidates cannot, by law, ask about salary.”

A number of states across the country have enacted Pay Equity Laws and New Jersey and Illinois stand among the most recent.

Acting Governor Sheila Oliver recently signed Assembly Bill 1094 into law.

From (Aug 02, 19):

New Jersey employers will no longer be able to ask applicants for salary history or use an applicant's prior wages, salary, or benefits to make compensation decisions unless the information is voluntarily disclosed by the applicant. The law will go into effect on January 1, 2020. (2)

Failure to comply could result in substantial financial penalty.

From (Aug 02, 19):

Employers who violate the new rules face civil penalties, including fines of up to $1,000 for the first offense, $5,000 for the second and $10,000 for any subsequent violations, collectible by the Commission of Labor and Workforce Development in a summary proceeding. (3)

Almeida opines: “Every time there is significant shift in law hiring managers should be alerted to ensure ALL hiring policies are compliant with law.”

The laws in Illinois are set to change, further altering the hiring landscape.

From (Aug 02, 19):

Joining the ranks of several other states and local jurisdictions that have taken similar steps in the fight against pay disparity, Illinois will soon prohibit employers from asking job applicants about their salary history as part of the hiring process. The new law – signed into law on July 31, 2019, and set to take effect on September 29, 2019 – also includes other pay equity provisions that will require you to immediately adjust your hiring practices. (4)

Almeida concludes: “The only constant is change and when change is significant, such as the trend of Pay Equity Laws, hiring managers should be alerted to ensure all policies regarding pre-employment background screening are fully compliant by working with a third-party provider such as” is a third-party employment screening company, a member of NAPBS and advocate of SHRM that can provide compliant solutions for all screening requirements. From pre-employment to post-hire screening, as well as volunteer, caregiver and nanny checks, provides background screening services across a broad array of industries. From the smallest organization to the largest corporation, can fulfill every background screening requirement.

(3)    ibid

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