TenantScreeningUSA.com Highly Recommends Landlords and Property Managers Understand the Doctrine of Disparate Impact and its Affect on Tenant Screening
Waltham, MA (PRWEB) July 22, 2013 -- On June 11, 2013 the Equal Employment Opportunity Council took legal action against BMW and Dollar General for utilizing illegal background screening policies and, subsequently, denying employment to individuals based upon those actions. These actions are of interest to landlords and property managers as well as employers.
Two federal lawsuits brought by the Equal Employment Opportunity Commission last week spotlights an issue that is getting increasing attention from home mortgage lenders, rental property owners, local governments, and now the U.S. Supreme Court: “disparate impact.” http://www.inman.com/2013/06/18/disparate-impact-doctrine-troubling-property-owners-mortgage-lenders-and-employers/
In February the Department of Housing and Urban Development (HUD) released disparate impact rules. The ruling states, in part:
The Federal Department of Housing and Urban Development (“HUD”) issued a new rule on February 15, 2013, that calls into question whether landlords/management companies can deny tenancy to a prospect simply because of a prior criminal record or arrest. http://www.lexology.com/library/detail.aspx?g=b61bb45c-0c97-4631-b23e-e058c0b0705c
The policy of a landlord/property manager, in regards to their tenant screening policy and use of criminal history as a part of that policy, calls these rules into question. Subsequently, these polices may become suspect if the use of such policies and procedures do not have "a legitimate business purpose and protects a legitimate business interest." http://www.lexology.com/library/detail.aspx?g=b61bb45c-0c97-4631-b23e-e058c0b0705c
Disparate impact is a complex legal term.
It holds that even if you have no intent to discriminate against a “protected class” of persons under the U.S. Civil Rights Act — whether racial or ethnic minorities, senior citizens, handicapped individuals or others — you may be in violation of the law if your policy or action disproportionately harms that class. http://www.inman.com/2013/06/18/disparate-impact-doctrine-troubling-property-owners-mortgage-lenders-and-employers/
The use of the disparate impact doctrine could, potentially lead to increase legal action and, subsequently, the potential for significant cost. Further, there is the possibility of conflict between existing local/state law and federal law. http://www.inman.com/2013/06/18/disparate-impact-doctrine-troubling-property-owners-mortgage-lenders-and-employers/ Ultimately, the doctrine of disparate impact is complex and confusing.
Adam Almeida, President and CEO of TenantScreeningUSA.com states: "The potential of legal action over disparate impact is very high. With new HUD regulations and recent court action by the EEOC it is clear that the legal and compliant use of criminal histories both for employment and tenant screening is under scrutiny."
It is critical that landlords and property managers, as well as any individual that may rent a property, understand the significance of recent legal actions, especially in regards to disparate impact. Almeida states: "If you are renting a property, from single-unit to multi-unit complexes, it is critical landlords and property managers stay compliant with local, state, and federal law. Understanding the complexities of recent legal actions could help avoid expensive leasing mistakes."
TenantScreeningUSA.com is a third-party tenant screening firm that remains current on all state and federal laws and legal actions that may impact the tenant screening industry. Specializing in small to mid-size rental properties, TenantScreeningUSA.com can greatly assist a landlord/property manager remain legally compliant in the use of all public records, including criminal histories, in their use with Tenant Screening.
Dan Adams, Criminal Background Records, http://www.criminalbackgroundrecords.com, +1 (877) 811-6557, [email protected]
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