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Changing Background Checks to Protect the New Generation

As the face of the workforce population begins to change in 2018, employee background checks will need to transform in accordance with the Fair Credit Reporting Act (“FCRA”).  As millennials, people aged 18 to 34, continue to out number the baby boomer population and take over the workplace market, this younger and more technologically savvy group of people are invested in their credit report and online personal information.  To adapt to this growing generation while on the hunt for employment, background checks are predicted to become more accessible and easier to conduct. 

Ensuring Information Won't Be Compromised

This new generation has been raised with computers and technology since birth. When entering the job market, employers need to be sensitive to the fact that this population must be made aware of employment background checks into their personal and financial affairs.  This younger group of people need to have a sense of comfort that their private information won’t be compromised when looking to be hired. 

Instilling a New Security & Computer Software

To adapt to this changing population, new computer software is constantly being introduced that ensures new protection of personal information over the internet.  More and more, the young population is becoming aware of data breaches and are afraid of compromising their financial information when most of their banking, bill payment, and shopping is done over the internet.  This is a group of people who rely on their smart phones and computers to do almost everything for them, from purchasing movie tickets, grocery shopping, booking airline tickets, even buying a car.

Baby Boomers vs. Millennials

In contrast to the baby boomer population, studies have shown that millennials have a much smaller amount of background information to pull from.  Millennials have a limited employment history and not much credit history to review.  Millennials pay bills using services such as PayPal, Quick Pay and Venmo and in lieu of buying cars, prefer ride services such as Uber and Lyft.  This modern approach makes conducting a background screening more difficult, as the information contained in their credit files is minimal.

How Employers Should Conduct a Background Check

When initiating a background check with millennials, employers need to be cautious and transparent.  Employers need to make sure they are direct and clear about what they are looking for when delving into a potential employee’s background report.  The information provided when conducting a background check as currently required under the FCRA should be concisely stated and provide contact information in case the applicant has any questions.  Currently, under the FCRA, there is no law restricting a potential employer from looking into an applicant’s social media accounts.  Millennials need to be aware of what they are posting and who is looking, especially in a situation when they do not have extensive information contained in their credit report.

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If you believe your rights have been violated under the FCRA and you would like the advice or assistance of counsel, contact SmithMarco P.C. for a completely free case review.

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