RELIABLE BACKGROUND SCREENING INDUSTRY NEWS AND ARTICLES

As a nation we are all adjusting to a new normal because of the COVID-19 national emergency. The CARES Act (Coronavirus Aid, Relief, and Economic Security Act) was passed by Congress and signed by the President last week. It was enacted to provide various relief measures to help sustain our economy, as 97{5460a4de8013038d4595608f48191d314818d6c27f4872c4c47bcc9e4b7b3c2b} of the nation’s population is now under “shelter-in-place” orders, except for businesses providing “essential” services. One of the benefits of the CARES Act is that it allows consumers to obtain deferment of debt payments, classified as “accommodations” under this Act, from credit card companies, banks, and other loan providers, [...]

On February 25, 2020, the National Labor Relations Board (NLRB) released its final joint employer rule that favorably defines joint employer conditions, so that entities such as franchisees and their franchisor will generally not be considered to be joint employers going forward. This NLRB ruling follows the Department of Labor similarly issuing its final joint employer rule in January. The NLRB rule states: “Under this final rule, an entity may be considered a joint employer of a separate employer’s employees only if the two share or codetermine the employees’ essential terms and conditions of employment, which are exclusively defined as wages, benefits, [...]

Every year about three hundred new franchise brands are launched in the United States alone. The franchisee applicant pays the franchisor a franchise fee, and must also have sufficient liquidity and net worth, in order to be considered for approval of being granted a franchise. However, too often the franchisor pays for the franchisee screening report, when in fact it can be passed through to the franchisee applicant. In fact, most franchisee applicants will actually appreciate paying for their own thorough franchisee vetting. Really, but why? The typical franchisee applicant is investing a substantial amount of their personal wealth, often approaching $500,000 [...]

On January 12, 2020, the Department of Labor (DOL) released its final rule that defines joint employer situations in a manner, so that entities such as franchisees and their franchisor will likely not be considered to be joint employers going forward. The ruling utilizes a four-factor test that analyzes if the respective company: Hires or fires the employee Supervises and controls the employee’s work schedule or conditions of employment to a substantial degree Determines the employee’s rate and method of pay, and Maintains the employee’s personnel records. Possibly more important are the factors that will be disregarded when determining whether a joint [...]