Under EEOC regulations, employers can utilize credit checks when hiring employees, provided that the information is relevant to the position. For example, an individual who will be responsible for providing sound investment advice to clients, must prove to the company that their own credit is satisfactory. However, many vendors sell packages to employers that include information that is not relevant, thereby requiring employees to provide too much information.
Regarding the Equifax breach, employers should seriously consider the information that they are requesting for background checks and subsequently storing on their company’s computers or servers. Employers typically utilize I-9 Forms, which house SSNs, driver’s license numbers, addresses, and even direct deposit information when hiring new employees. Ensuring that only those that require access to the sensitive information is also equally as important. Training your internal personnel on cyber security and your company’s policies, is imperative to protect your data.
Finally, for employers that utilize Equifax’s Workforce Solutions, the information could potentially be comingled with Equifax’s consumer credit reporting products. While the extent of the breach is still being investigated, for employers that use this service, it may be prudent to notify your employees and direct them to the Equifax website to place a block on their records or their credit information.
At Innovative, we are committed to ensuring that our clients are kept abreast of important information. In this age of technology, cyber security breaches have become more frequent, therefore, now is the best time to discuss a credit monitoring solution for your employees. Please do not hesitate to contact us for more information credit monitoring solutions.
