The Equal Employment Opportunity Commission (EEOC) and the Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) have recently shifted their mandate from investigating cases of “intentional” discrimination to identifying and investigating cases of “systemic” discrimination. In order to ensure your organization’s selection process is in full compliance with these revised EEOC and OFCCP policies, firms must now prove not only that their Tests and Screening procedures deliver a better candidate . . . but they also must conform to the EEOC’s 4/5 Rule (80% Rule) and all the FCRA’s requirements to offer Consumers the Right of Recourse.

Lengthy and comprehensive third-party, double-blind studies – using PreScreen technology in applied settings, with supporting legal opinion – validate that PreScreen’ Character Risk Report is a highly accurate, reliable, and defensible assessment tool for making hiring-related decisions.

EEOC and OFCCP Compliance - 4/5ths Rule

More than 30 years of experience using PreScreen’ core technology in personnel selection for a wide-range of positions from a cross-section of more than 500 companies has consistently demonstrated that our technology is blind to, and has no disparate impact upon any of the protected classes. This experience, however, lacks the scientific method of a formal Validation Study. To remove any doubts, PreScreen contracted with a leading psychometrician and clinical psychologist, Dr. Jordan B. Peterson, to conduct a third-party, double-blind, 4/5ths Rule Validation Study following the validation guidelines and protocols of the OFCCP and EEOC. Dr. Peterson has over 70 peer-reviewed articles published in professional journals.

Download -- PreScreen International Validation Study: Ethnicity, Gender, Age

Study’s Determination of Adverse Impact using the 4/5ths Rule

Adverse impact refers to a selection process in hiring, promotion, or other employment decisions that works to the disadvantage of protected members of a race, gender, or age group. Adverse impact is said to occur when a selection rate for any protected group (based on race, gender, or age) is less than 4/5ths of the selection rate for the group that is not protected.

The ethnicity part of the study concluded that if 100 candidates were selected from an applicant population that was equally composed of Caucasians and African-Americans, then 49 of the hires would be Caucasian, and 51 would be African-American. The gender part of the study concluded, in a similar manner, that out of an applicant pool equally composed of Males and Females, 47 of the hires would be Male, and 53 of them would be Female. The age part of the study concluded, in a similar manner, that out of an applicant pool equally composed of candidates that are Above Age 38 and Below Age 38,
45 of the hires would be Below Age 38, and 55 would be Above Age 38.

As a result, PreScreen’ employment screening technology does not discriminate on the basis of ethnicity, gender or age, according to the OFCCP and EEOC guidelines for equality.

FCRA Compliance For Background Screening Firms

Since background screening firms are legally considered Consumer Reporting Agencies (CRAs) according to the Fair Credit Reporting Act (FCRA), compliance with the FCRA becomes an important issue. As a result, PreScreen is dedicated to ensuring that CRAs remain compliant within all FCRA requirements and protocols.

The below legal opinion details the best strategy for ensuring FCRA compliance for all parties. It was written by Larry D. Henry of the Law Offices of Rhodes Hieronymus Oklahoma, a respected Law Firm and member of the National Association of Professional Background Screeners (NAPBS). Mr. Henry is one of the founding members of NAPBS and an expert in FCRA compliance. Click on the link below to download a copy of his opinion:

Download: Larry Henry’s Legal Opinion

FCRA Consumer Right of Recourse

PreScreen also recognizes its obligations under the FCRA to offer Consumers the Right of Recourse. As a result, we provide recourse for any consumer who may disagree with the results of their Character Risk Report. PreScreen will respond directly to the consumer within 30 days of any consumer request. PreScreen will offer to re-test -- at no charge to the consumer. Upon completion of the second test, PreScreen will either confirm the original test or update the original Character Risk Report, providing the second report directly to the consumer . . . and to any recipient of the prior report, if the consumer requests.

Download: Larry Henry’s Legal Opinion

To gain additional insight into PreScreen’ use of movement-based biometrics, as well as the best practices for their implementation within your background screening firm, please contact us.