Are you putting your company at risk as a hiring manager? With more and more access to candidates’ information, you could be running the risk of finding out too much.
From the bottom of the career ladder (recent class-action lawsuits against retail and fast-casual chains over FCRA violations) to the top, if you commit any of these hiring sins, you run the risk of legal action against your company.
Ten Mistakes That Could Cost Thousands
Recently, an article on ERE.net shared the top blunders committed by employers during the application, interview, and hiring process that run the risk of fines, penalties, and lawsuits.
1. Asking for Social Media Passwords
- Illegal in many states, including Illinois. For current legislation, see the NCSL page.
2. Paying Top Negotiators (as Opposed to Most Highly Qualified) More
- Studies show that white males are the best negotiators, and if hiring two or more equally qualified candidates at different rates based on negotiations, you’re at risk.
- Asking Female Candidates about Daycare Plans
- Asking Minorities about Reliable Transportation
- Bragging about a Young, High Energy Workforce
4. Looking at information too early in the hiring process
- Beware using sites like Facebook or Twitter, in which you may find out more than you want to about religion, disability, sexual preference, or race.
5. Failure to Make Accommodations during Application and Hiring Process
- Wal-Mart recently was sued for refusing alternate drug test methods to candidate with renal cancer.
6. Ignoring HR’s Advice Surrounding Fair Consideration and Discrimination
- They’re there for a reason
7. Using Illegal Hiring Tests
- Physical, psychological, and other tests could have disproportionate bias against certain genders or races.
8. Using “Coherent People Profiles” from Aggregators like Spokeo
- Spokeo hit with Violation of Fair Credit Reporting Act (FCRA)
- Employers risk violating EEO/ADA
9. Lax, Nonexistent, or Illegal Drug and Background Tests
- Ignoring “Ban the Box” Laws
- Choosing a Third-Party Background Check Company not in compliance with FCRA
10. Hiring Based on Anything Besides Qualifications
If you need a short refresher on what not to do during the hiring, interview, onboarding, or even firing; learn more from the following links:
- EEOC Prohibited Policies and Practices
- EEOC Laws and Statutes
- NOLO Guide to Wrongful Termination
- The FindLaw Guide to Hiring [PDF]
- Monster’s Guide to Illegal Interview Questions
- Americans with Disabilities Act of 1990, Amendments of 2008 and 2010
How to Avoid This Process Altogether
A great deal of The Overture Group’s 4-step hiring process deals with sourcing, interviewing, and showing you candidates based on credentials and cultural fit. In working with your organization, we will find you the top candidates for the job for which you’re hiring quickly and most importantly legally.
Learn more about how we help, who we’ve helped, and contact us to see how we can help you find top talent that will fit your team perfectly.