RELIABLE BACKGROUND SCREENING INDUSTRY NEWS AND ARTICLES

Businesses utilize background checks for a variety of permissible business purposes. Listed below are just a few: Employee/Independent Contractor Screening Resident/Tenant Screening Franchisee Screening Membership Screening Client Screening Board of Director Screening Vendor Screening Volunteer Screening. Most often background checks are performed to protect against negligence liability in the hiring or selection of applicants, and the accompanying harm or injury that an applicant may inflict upon employees and/or customers of the organization. Injurious actions by applicants need not be physical in nature. They can take the form of financial, identity theft, and emotional harm as well. However, too often, businesses overlook the [...]

California, arguably the most consumer-friendly state, has once again placed itself at the forefront of legislation, this time with a law impacting data protection, by enacting – in one week from the time it was drafted – the California Consumer Privacy Act (CCPA). If it seems reckless to pass legislation in such a short period of time, most reasonable people would probably agree. Nevertheless, this law will take effect on January 1, 2020, although the California Attorney General will not begin to enforce it until July 2020. It will affect for-profit businesses that either have annual gross sales in excess of $25 [...]

Even companies within the same industry have different business needs. One company may require certain educational credentials and/or professional licenses, while another may not. One may have felonies and certain misdemeanors as disqualifiers, while another may consider only certain felony convictions as cause for adverse action, i.e., not selecting the applicant for the particular business purpose ̶ such as employee, resident or tenant, client, member, volunteer, franchisee, etc. Also, the “look-back” period may vary, some companies review the past seven years for criminal history, while other companies may consider a shorter or longer period of time. When mitigating risk, companies should evaluate [...]

The Franchise Disclosure Document (FDD) is a federal requirement that franchisors must prepare in order to sell franchises. It is a document that requires disclosure to potential franchisees in every state, registration in some states, and filing in some other states. Many hours of time and legal fees are invested in its development. One of the items that is determined during the FDD process is the franchise fee. Each franchisor has their own expectation for what their franchise fee should be. Unfortunately, too often one of the issues that is forgotten is the procedure for vetting a potential franchisee, specifically the franchisee [...]