Under the federal Fair Credit Reporting Act (FCRA), an employer has legal responsibilities regarding adverse action notices where a consumer report, in whole or in part results in an employer making a determination that they intend to take an adverse action in regards to employment, such as not hiring a person, or not retaining, not reassigning or not promoting. The required notices must include:
It is critical that you, the business owner, correctly determine whether the individuals providing services are employees or independent contractors. Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors.
Back in 2006, we covered the topic of applicant rejection letters in a post linking to an article in Assessment Council News (Considerations in Rejecting Applicants, on p.4). Since today’s economy is resulting in more applications — and thus more rejected job applicants — we decided to give the topic another look.
How to stay out of trouble with federal agencies!
Did you know that last year (2007) the Equal Employment Opportunity Commission (EEOC) clarified the prohibition of discrimination in the areas of recruiting, hiring and promotion? You may say, so what? How does it affect how I go about my business of recruitment? And so, what if I do not care to follow the guidance?
"'The Equal Employment Opportunity Commission" - EEOC has been urging companies to take caution in regards to utilizing credit checks in their employment screening decisions. Credit Checks have a potential for discrimination Under Title VII, unless of course there is a legitimate business necessity..