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Correct!
Answer: C or D. This is a bit of a trick
question in the way it is written. The most risk averse
response is not to apply any hiring criteria of a client's.
But, many CRAs feel that they can add value to their clients
by assisting them with this process. If you are going to
grade or adjudicate reports, we recommend that you be cautious
about giving input into an employer's hiring criteria. The
Equal Employment Opportunity Commission has been targeting
CRAs alleging that they are "joint employers"
under Title VII and are making employment decisions by applying
such criteria, or are "agents" or are "aiding
and abetting" their clients in violating Title VII
if the hiring criteria has a disparate impact on certain
minority groups. We have seen a huge up rise in these types
of administrative charges and investigations by State Attorney
Generals as well. The more input or guidance that you provide,
often the more the argument can be made that you assisted
in the hiring decisions. But, there is a fine line of applying
a criteria that is not legally compliant as well. It is
a good idea to remember the old adage, "no good deed
goes unpunished", when thinking of applying hiring
criteria.
If an employer asks a CRA to
"grade" its consumer reports, the CRA's most risk-averse
response should be:
a)
"Absolutely, we will handle everything and will apply
our standard hiring criteria for you."
b)
"Absolutely, we will be happy to apply your hiring criteria
once we have it approved by our legal counsel and given you
feedback."
c)
"No way, that is way too risky."
d)
"Absolutely, we will be happy to apply your hiring criteria
as long as you sign an agreement absolving us from liability
and indemnifying us from claims relating to that process.
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