Is the HR House in Order? — CheckPoint HR and Sterling Testing Collaborate to Help Organizations Integrate Background Checks into the Hiring Process

Edison, NJ (July 12, 2006) – CheckPoint HR, LLC, an innovator and leading Administrative Service Organization (ASO) that offers small- to mid-size organizations a single source for human resources, payroll services and benefits solutions, today addressed the importance of background checks during the hiring process by collaborating with Sterling Testing Systems, Inc., a leading provider of employment screening services.

According to Richard Seldon, president of Sterling Testing Systems, Inc., while background checks are not required by law in most industries, employers can benefit by confirming that the applicant is accurately representing him/herself; ensuring the person has the appropriate skill set, is qualified, and can perform the job. Most importantly, the screening process enables employers to minimize risk and litigation.

“We have a long standing relationship with Sterling Testing that dates back to the inception of CheckPoint HR five years ago,” said Steve A. Rosenthal, co-founder and CEO, CheckPoint HR. “Integrating the Sterling Testing offering into our CheckPoint Human Resources Management System (HRMS) gives our clients the comfort of having their HR ‘house in order,’ especially with the changing labor laws and recent legislation surrounding immigration reform.”




“Companies must develop a system of best practices for background checks without stepping over the boundaries of privacy,” said Seldon. “During the employee application process, background checking should be narrowly tailored to obtain job-related information with respect to the position at issue.”

Seldon cautions that the background check process must be in compliance with guidelines from the Federal Fair Credit Reporting Act (“FCRA”) since it directly affects an employer’s ability to obtain background information on applicants and current employees through contracts with third-party “consumer reporting agencies.” Other preventive strategies include finding red flags in the application process and following up on them, having job applicants sign a statement on an employment application acknowledging that providing false information is grounds for disciplinary action up to and including termination, and centralizing verification procedures.

“Recent studies suggest that almost 50% of all job seekers lie on their resumes with a disturbingly high degree of misinformation concerning past employment and educational background. Information obtained during the application process must be tested and validated,” Seldon added.

Background Check Best Practices:

>>> Review for employment applications for legal compliance, include good disclaimer language, and require applicant to complete entire form

>>> Train interviewers to ask lawful questions that are designed to elicit relevant job-related information

>>> Offer a position contingent upon the successful completion of a background check.

>>> Conduct a thorough background check tailored to the particular position

Key Verification Metrics:

>>> Social Security Trace
>>> Consumer Credit Reports
>>> Criminal Conviction History Search
>>> Prior Employment/References
>>> Educational Verification
>>> Department of Motor Vehicle Reports
>>> Substance Abuse Testing
>>> Integrity Survey/Testing
>>> Sexual Offender Search
>>> Office of Foreign Asset Control (OFAC)
>>> Professional License Verification
>>> Electronic fingerprinting
>>> Annual Rechecks


“Both companies fully understand the critical importance of hiring the right people. That is why we are working in tandem to prompt employers to get to know prospective employees before hiring them and encouraging them to conduct effective background checks without violating employee rights while protecting their own,” concluded Rosenthal.

About CheckPoint HR
Since 2001, CheckPoint HR, based in Edison, New Jersey, has helped small- to mid-size organizations automate all aspects of their human resource operations. As a leading Administrative Service Organization (ASO), CheckPoint HR’s innovative Web-based Human Resource Management System (HRMS) technology platform offers an affordable, comprehensive solution to manage payroll services and benefits administration, as well as other business-critical human resources processes. This allows small- mid-market organizations to deliver world-class services to its employees, reduce costs, and improve operational efficiencies. Clients include such names as The American Stock Exchange (Amex), Kara Homes, Starwood Capital, Aculabs, LaBranche Financial Services, and Quintum Technologies. Further completing its HR management solutions, CheckPoint HR boasts one of the largest insurance agencies in the Northeast through The Wilshire Group, its wholly owned subsidiary that offers its customers benefits procurement backed by a sales team of licensed insurance brokers. For more information on CheckPoint HR, please visit www.checkpointhr.com or call 800.385.0331.


About Sterling Testing Systems
Sterling Testing Systems are business information providers and the foremost experts in pre-employment screening, harnessing 30 years of expertise to help companies hire right the first time and avoid costly mistakes. Sterling maintains a 99% client retention rate among its 6000 clients from the Fortune 500 to small to mid-sized enterprises in a wide range of industries including healthcare, financial services, retail and publishing. Sterling's proprietary technology rapidly links HR professionals to the background check data they need, and its SterlingDirect testing module seamlessly integrates into more than 15 unique HR software programs.

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Copyright © 2006 CheckPoint HR, LLC. All rights reserved.

Industry keywords: Human Resources, HR Outsourcing, Payroll Services, HRIS, HRMS, Administrative Service Organization (ASO), Benefits Administration