Beware of ATS/HRIS Default Language

Seems that every week, a new ATS/HRIS platform enters the employment software space. In turn, employers now have hundreds of payroll software providers to their avail. At Validity, we stick to what we know. Ask us about ERISA or income tax rates for various states, we’ll kindly pass. What we do know, however, is how the FCRA and so many other federal and state laws affect your employment screening process.

Over the past several months, Validity has noted more and more FCRA violations within what appears to be “default language” in third-party, online job applications. These issues are not limited to small companies. Over the past month, we have identified non-compliant language on job applications provided by:

  • A regional Professional Employment Organization (PEO)
  • A regional payroll provider
  • A new(ish) Applicant Tracking System (ATS), and…
  • One of the country’s largest payroll providers

Be aware of language in your contract that most assuredly insulates the vendor from liability arising from FCRA, or other, claims. Such indemnification doesn’t exactly provide the motivation to ensure compliant text. The bottom line is that utilizing the embedded application of a software service provider may present a false sense of security regarding your responsibilities under various federal and/or state laws. Validity’s Compliance Automation Software is the only intuitive employment screening compliance platform that functions as a standalone solution or as an integrated utility to your existing software. Feel free to schedule a live demo of the software’s multitude of features and leave screening compliance management to the experts.

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