February 9, 2021
Mayor Jim Kenney signed Bill 200479 to revise the Fair Criminal Record Screening Standards (FCRSS) ordinance. The FCRSS created limitations on how organizations may use criminal records. It effectively prevented them from screening current employees or contractors.
Bill 200479 changes the definition of an employee to “any person employed or permitted to work at or for a Private Employer within the geographic boundaries of the City, including as an independent contractor, transportation network company driver, rideshare driver, or other gig economy worker.”
The bill also amends the definition of covered employers to: “any third-party person or entity that facilitates the relationship of work for pay between two other parties, as full-time or part-time employees or as independent contractors.”
With Bill 200479 in place, background screening and due diligence is expected to increase in Philadelphia.
Due to the wording of the FCRSS, employers in the City of Brotherly Love were only able to consider a candidate’s criminal history if they were applying for a new position. The ordinance seemed to eliminate the option for businesses to run criminal searches on their staff. That created difficulties because ongoing monitoring and background checks for promotions or other job changes are essential employment tools.
200479 clarifies that employers may consider criminal records for existing employees. This gives organizations the ability to see if anyone who already represents them incurs a new conviction of which they should be aware.
Mayor Kenney also signed Bill 200413, which changed the city’s credit ban ordinance. With this bill, credit screening remains unlawful under most circumstances. However, there are now allowances for law enforcement agencies and financial institutions that need credit reports for specific reasons, such as if city, state, or federal law requires an employee to be bonded. Learn more.
This bill also offers a reminder that employers must follow the Fair Credit Reporting Act (FCRA) process for taking adverse actions based on the results of a report. This involves informing the subject that an action is being considered and providing them with a copy of their report and other documents. The person must be given time to review and file a dispute if they feel it is warranted. If a dispute is made, additional laws apply.
Organizations that operate in Philadelphia should be aware of and compliant with these bills. We recommend consulting with legal counsel and revising written hiring policies as needed.
When brining on new employees or considering position changes for existing staff, employers can take advantage of comprehensive background checks. These reports provide an array of useful data that helps organizations make informed decisions, build strong teams and maintain safe workplaces.
If your business needs to screen applicants, staff or contractors, please contact us. Our experienced team can help you customize screening packages for any position. We are available to answer questions and assist you Monday through Friday from 5am to 6pm PT.
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