Pre-Employment Background Checks: Complying with Strict Bank Regulatory Requirements

12-11-2024 1:00 PM EST

Financial institutions are required by federal regulations to conduct background checks on prospective employees in addition to complying with other employment laws. Failure to do so can result in charges of negligent hiring practices and reckless endangerment. Additionally, the institution may expose itself to increased security and reputational risks. Bank regulators are particularly vigilant in enforcing background, reference, and other pre-employment checks. However, prospective employees also have rights when they believe they have been “victimized” by improper background checks. There are legal challenges under the Fair Credit Reporting Act, discrimination laws, and invasion of privacy laws. Additionally, the EEOC has issued rules governing the improper use of criminal record background checks and is bringing cases against employers. Regulations governing pre-employment checks can be extensive and conflicting, which may cause confusion when a bank faces seemingly contradictory requirements, exposing it to additional legal and business risks. This program covers bank employers' need for secure and effective hiring while avoiding improper screening practices.

Our speaker, Bob Gregg, is a highly regarded labor and employment attorney with over 30 years of experience. He will discuss banking background checks, negligent hiring, criminal background checks, Fair Credit Reporting Act requirements, reference checks, pre-employment screening, the ADA, Title VII discrimination, honesty, right fit, assessment, and the increasing use of Artificial Intelligence screening during his presentation.

What You’ll Learn

In this highly informative program, Mr. Gregg will discuss:

• Bank regulations for pre-employment checks
• Laws and regulations governing pre-employment testing that apply to all employers, including financial institutions
• Improper pre-employment screening is a potential liability. It is possible for screening devices, tests, or the manner in which they are administered to violate the ADA, Title VII, and other laws pertaining to discrimination and privacy.
• The increasing use of artificial intelligence for employee selection.
  What makes a screening method valid? What is illegal? What should you do and what should you avoid?
• Inadequate background checks or references can be considered negligent hiring.
• Fair Credit Reporting Act requirements
• Protections when giving and receiving references
• EEOC guidance on background checks
• Conducting pre-employment screening, right fit, and honesty tests in accordance with the ADA, Title VII, and civil suit parameters