Effective July 1, Indiana has a new rule on what information “criminal history providers” can report in employment background checks.
This latest version of Ind. Code § 24-4-18-6 makes a technical correction to the law and clears up a few things. Unlike previous versions of the statute, the new law allows reporting of non-conviction and pending records as long as the information is within the 7 year window required under the Fair Credit Reporting Act.
As it now reads, the law limits reporting of expunged records and sealed records — records that any compliant screening company wouldn’t give you anyway. It also prohibits reporting certain classes of felonies that have been reduced or converted to a misdemeanor, and creates a statutory cause of action for the intentional or “knowing” act of reporting an inaccurate record.
The law defines a “criminal history provider” to be a “person or an organization that assembles criminal history reports and either uses the report or provides the report to a person or an organization other than a criminal justice agency or law enforcement agency.” The law is aimed at consumer reporting agencies (CRAs) that typically provide background checks to employers.
Under the law, a criminal history provider may not knowingly provide:
The law provides an exception for positions where there is a state or federal law requiring the employer to obtain the information. There is also a carve-out for states or political subdivisions using the information solely in connection with the issuance of a public bond.
Previous versions of the law were problematic, preventing employers from seeing pending cases and getting a full and accurate picture of an applicant before making a hiring decision. While non-conviction information is not always relevant, there are certainly instances where pending cases or records with alternative dispositions should be considered.
Some employers are actually required by law to take into consideration arrests or even dismissals of certain types of offenses. This new version sets the record straight as to what is fair game and what employers can expect to receive from their screening company.
A few tips:
This was originally published on the EmployeeScreen IQ blog. EmployeeScreen IQ is not a law firm, and the contents of this article are not intended to be a substitute for legal advice.
