Excerpted from a Long Island Business News Blog by Ed Moltzen
Pressure to bring new employees on board in a tight labor market might lead a business to take shortcuts in the vetting process. However, that can create even bigger problems: tarred reputation, money loss, or legal liability if the wrong employee gets in the door.
Some Long Island legal experts say that while they understand the imperative to hire quickly, vetting is often needed to protect all parties—customers, employees and the business itself.
“Rushing through a background check could result in an employer skipping the analysis, thereby exposing itself to potential liability,” said Alyson Mathews, an attorney and partner with Bond, Schoeneck & King of Garden City.
In its most recent report for the Long Island region, the New York State Department of Labor estimated that unemployment here has hovered at around 3.8 percent—well below the national levels. In critical sectors such as healthcare, education and construction, the pressure to hire has increased against the necessity of vetting.
“The best way to avoid these pitfalls is to either train relevant HR personnel and/or speak with experienced employment counsel to ensure their policies are up to date,” said Nicholas Melito, counsel at Meltzer, Lippe, Goldstein & Breitstone.
“It has to be part of your normal onboarding process to decide as to whether a specific position warrants what type of criminal or other background check,” said Christine Malafi, senior partner at Campolo, Middleton & McCormick in Ronkonkoma.
Malafi said that thorough background checks and robust HR procedures are essential to prevent potential liabilities. She stresses that businesses, especially those handling sensitive information, must have clear, consistent hiring and onboarding practices.
This helps ensure all employees are vetted appropriately for their roles and minimizes risks related to safety and security.
In one recent case, Malafi said a company hired an employee without conducting a full background check, only to find out a week later, after she visited clients’ homes, that the new member of the team actually had prior convictions for identity theft.
“They literally had to shut their computer system off, shut their bank accounts down, everything down, because she went into a place she shouldn’t have been in their computer,” Malafi said.
For example, a job description should clearly outline the role’s duties and whether it involves access to sensitive information. This clarity helps determine the appropriate level of screening for each position.
And, as in many scenarios, compliance requirements are often updating or changing. Later this month, the New York State Clean Slate Act goes into effect. That puts even more importance on getting all the steps correct.
“Under this law, employers that obtain a criminal history background check will be required to send a copy of the report to the individual and notify the individual of his/her right to correct any incorrect information,” Melito said.
This development means companies must adjust their background screening procedures to comply with the new law while ensuring they are not missing critical information.
“Employers will no longer have access to some records, which increases the importance of reviewing the available information thoroughly and adhering to legal obligations,” Mathews explained.
For the full story, please click here.