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  • As a small business owner, it’s important to maintain a safe working environment. One of the ways that employers can create a safe workplace is to implement a random drug testing policy.

    Random drug and alcohol tests are a popular choice in workplaces because they discourage employees from coming to work while under the influence. Of course, there are plenty of rules and regulations that dictate some of the details around your drug testing policy, especially as more states legalize marijuana for medicinal use. Let’s break down what you should and shouldn’t do when designing and implementing a random drug testing policy for your business.

    Do: Notify And Educate Employees About Your Drug Testing Policy

    If you want to maintain a reasonable drug-free workplace and expect your employees to comply with mandatory drug testing, you need to notify them about the policy. Give your group of employees plenty of notice before the policy comes into effect and make sure to explain what their responsibilities are.

    There are multiple ways to advertise your drug policy, such as putting posters around the workplace and sending emails with educational resources. You’ll also want to hold a meeting to explain why you’re implementing a random drug testing policy and give your employees a chance to ask questions.

    Don’t: Skimp On Details

    A good drug testing policy is a thorough one. Your drug testing policy is there to protect you as well as your workforce, so make sure you have everything in writing. This means that your policy should cover several details, including:

    • Why you’re conducting drug tests.
    • What substances you’re testing for.
    • What testing method you’re using, and which company will be testing the samples.
    • The potential for false positives, if known.
    • How employees can appeal positive drugs tests and the details of your retesting policy.

    Do: Provide Proper Notice Of Upcoming Drug Tests

    While it’s tempting to think you can ask any employee to take a drug test at any time, your employees have the right to be given advance notice and to refuse a drug test if that notice has not been given. Most states require advance notice of drug tests, so it’s best to plan ahead and avoid potential problems.

    To protect both yourself and your employees, confirm in writing that the employee has been requested to take a drug test and make sure the correspondence is dated and logged. This process prevents employees from claiming they did not receive the request, or that they did not receive enough notice.

    Don’t: Ignore Local Laws

    Proper notice isn’t the only requirement that vary from state to state. You’ll have to tailor your policy to your location, as many states have their own laws regarding how to give notice to employees, what testing can be performed, and how employees can contest the results. The ACLU has an in-depth breakdown of each state’s requirements to help you keep your policy compliant.

    Do: Consult With An Attorney

    Before you talk to any of your employees about your drug testing policy, you’ll want to run it by a legal expert. Consult with an attorney to ensure that your policy complies with any relevant regulations. Between local, state, and federal laws, it’s best to leave some details to an expert. As such, attorney guidance can help you navigate tricky situations regarding marijuana laws, discrimination, and other factors that directly impact your drug testing policy.

    Don’t: Share Positive Tests Publicly

    Just because an employee tests positive doesn’t mean everyone should know. Your employees have a right to privacy and sharing that an employee has tested positive for drugs with their coworkers, other employers, or even their friends and family is illegal.

    Have internal policies in place to keep drug test results private between managers and their employees. These tests should also be stored securely to limit the chances that information and testing equipment are safe.

    Do: Clearly State The Consequences Of Violating Your Drug Policy

    It’s important that your employees know exactly what will happen if they fail a test. The exact consequences can vary depending on each policy. For example, you may choose to have a zero-tolerance attitude towards any substance if the employee works with heavy machinery or vehicles. However, a retail business may be more lenient with its disciplinary action.

    Your policy should also clearly state what happens following a positive drug test, and what rights the employee has to appeal the decision. Again, you should discuss with an attorney what’s considered reasonable based on the risk a non-sober employee presents.

    Don’t: Let Your Opinions Get In The Way

    Another key responsibility as a business owner is to be impartial during the drug testing process. You can’t let personal relationships with employees result in different consequences or processes, as this opens the door for discrimination cases. Every employee should be treated the same way and every meeting following a positive test should include an impartial third party.

    Do: Work with Experts to Build a Proper Drug Testing Policy

    Drug testing policies play a large role in keeping workplaces safe. However, it’s not easy to put together the proper policy and procedures to legally test your employees. That’s where GMS can help.

    GMS is a Professional Employer Organization that provides businesses with the HR tools and resources needed to help their business grow and succeed. Our experts can advise you on how to build a drug testing policy, as well as review your policy drafts to ensure that you and your employees are protected. Contact GMS today about how we can support your business through dedicated service and support.

  • A good background check is a protective measure that allows employers to make a fully-informed decision on a job candidate. Whether your business is hiring for an entry-level position or for a position of trust, these checks will help you identify potential issues up front as opposed to leaving unpleasant surprises in the future.

    There are several components to a good background check. Each of these parts provide different bits of information to help employers gain a better understanding of who an applicant is and if there are any issues. However, you also need to make sure that you’re following legal guidelines while you investigate candidates’ backgrounds as well. Keep reading for a breakdown on background checks for small businesses.

    How To Maintain Background Check Compliance

    In general, background checks are regulated by the Fair Credit Reporting Act (FCRA) and the Equal Employment Opportunity Commission (EEOC). One FCRA requirement is that you notify job candidates that you will perform a background check and have them sign off on this before you can turn to a Consumer Reporting Agency (CRA) to begin any checks or searches.

    The FCRA also requires employers to take certain steps if they decide not to hire, promote, or retain a job candidate, also known as adverse actions, due to information uncovered in a background report. First, an employer must notify the subject of the background check. This can be done orally, in writing, or electronically. Second, an employer must provide this person with an adverse action notice. According to the Federal Trade Commission, this notice includes:

    • The name, address, and phone number of the consumer reporting company that supplied the report
    • A statement that the company that supplied the report did not make the decision to take the unfavorable action and can’t give specific reasons for it
    • A notice of the person’s right to dispute the accuracy or completeness of any information the consumer reporting company furnished, and to get an additional free report from the company if the person asks for it within 60 days

    Another important detail to note is that some history may be too old to be picked up during a background check. The FCRA notes that “in most cases, a consumer reporting agency may not report negative information that is more than seven years old.”

    A small business background check for a new job applicant.

    What You Should Include In Background Checks

    A comprehensive background check should account for a variety of red flags. Small businesses should consider including the following types of checks whenever they investigate a potential employee’s background.

    Social security validation

    Tracing a social security number is a good place to start a background check. This process allows employers to complete a couple of key tasks:

    • Verify that a candidate’s social security number is legitimate
    • Uncover any additional aliases or name variations used by the candidate in the past, along with dates of birth and addresses associated with the number

    These details can help uncover any criminal records or other unsavory information that wouldn’t normally fall under the name given by the candidate. Traces can be performed through the Social Security Number Verification Service.

    Criminal records check

    If an employee has a criminal history, you’ll want to know. There are three variations of criminal records checks that will provide insight on whether an applicant has been in trouble with the law.

    • National Criminal Record Database (NCRD) search – The NCRD houses millions of searchable criminal records and sex offender registries, which can quickly point out any red flags. While an NCRD background check is a good starting point, these screenings may not include every jurisdiction or not offer enough detail for your needs.
    • Statewide criminal records check – These checks narrow down your search to a specific state, which can offer more detailed information about any potential felonies or misdemeanors.
    • County criminal records check – While county criminal background checks cover the smallest geographic area, they can offer the greatest amount of detail, including the places that an applicant with a criminal record has lived or worked.

    Employment history

    According to CNBC, 78% of candidates either misrepresented themselves on their application or would consider lying on their resume. An employment history check can help you verify job titles, dates of employment, the reason someone left a job, and rehire eligibility. Employer verification can be done through a CRA and calling a candidate’s references.

    Motor vehicle report

    This report allows employers to verify a candidate’s driver’s license verification and review driving records. According to the DMV, this information can include:

    • Past and current driver’s license statuses including suspensions, revocations, and cancellations
    • Driver’s license class
    • Special driver’s license endorsements
    • Any restrictions on your license
    • Traffic violations, such as:
      • Traffic citations
      • Vehicular crimes
      • Accident reports
      • Driving record points
      • DUI convictions

    This information is crucial for employers hiring a driver, although it can be insightful for any other job candidates as well. Motor vehicle screening services can be completed by a consumer reporting agency or through your state’s driver’s license agency, which can be found via the DMV.

    U.S. terror watch list check

    In addition to criminal records, background screenings can also include a review of the U.S. terror watch list. Third-party checks can compare candidates to various government watch lists, which can be important for any jobs where security is involved.

    Drug testing

    While drug testing is not technically a part of a background check, it’s commonly done in conjunction with pre-employment screening. In addition, past drug-related offenses can also surface during criminal record checks.

    There isn’t a single, comprehensive law that covers drug testing, so you’ll need to review your state’s specific drug testing regulations for specifics on what is and isn’t restricted. The American Civil Liberties Union keeps a list of each state’s regulations online.

    How To Run A Background Check

    Running a background check is a multi-part process that requires some initial planning and consistent application. The following five steps will help your company lay the groundwork for pre-employment background checks.

    1. Have a background check policy in place

    A written background check policy makes it easier for companies to lay out guidelines for a fair, consistent process. This policy should include the following details:

    • Which background checks your company will conduct
    • How and when the company will conduct these screenings
    • How the results of these check will be used in employment decisions
    • The responsibilities of the hiring managers and HR team when it comes to the screening process

    2. Choose a background check partner

    There are several professional background check companies that provide screening services, but not all of them are right for your business. Narrow your search to FCRA-compliant partners who can scale with your business and offer a range of screenings that will help you make the most informed hiring decision.

    3. Notify candidates of the background check

    As mentioned above, it’s essential to notify candidates of any background checks. Employers must also give candidates the aforementioned adverse action notice and have them sign a release form for any screenings before they begin.

    4. Allow for explanation

    If a candidate’s background check uncovers some information that would impact your offer of employment, give them a chance to clear any mistakes or explain the situation. Employers are required to allow candidates to review their background check results and file a dispute with the screening service if they choose to go that route.

    In addition, there are candidates who simply want to be honest and open about their past. For example, an applicant with a past misdemeanor could have learned from their mistake and be a great fit. That decision comes down to the employer, but it’s important to give employees the ability to exercise their FCRA rights before you make a call either way.

    5. Make a decision

    Once you have all the necessary information, it’s time to make the best call for your company. If the candidate is the right fit, then you’re all set to make an employment offer and prepare for the onboarding process.

    How Long Does A Background Check Take?

    On average, a typical background check is completed in three to seven days. There are times when checks are delayed due to incomplete or inaccurate check request forms or release forms. However, the majority of checks should be complete within a week. One exception is that any FBI checks can take around 30 days, but most jobs won’t require that type of timeframe.

    Can A Background Check Be Done Before A Job Offer?

    While background checks are traditionally done after an employer selects a final candidate, there is no federal law that prevents employers from running checks before an employment offer is made. There are certain state laws that dictate when you can run background checks during the hiring process, along with which types of checks are allowed. Make sure to check your local laws before if you want to test early background checks.

    Protect Your Business with Proper Background Checks

    While we highlighted several areas that should be included in a background check, there are several other areas that may be important depending on the nature of a business. Financial institutions may want to run a credit report. Other companies may want to verify an applicant’s educational degrees and school history. The answers to these inquiries are crucial, as a bad hire can lower morale, hurt company productivity, and cost as much as three times the salary of the person being replaced.

    Regardless of how much an employer decides to include, a thorough background check is a complicated process that can pull business owners away from other important tasks. As a Professional Employer Organization, GMS has the human resources experts to manage the background check process and many other critical HR functions. Contact GMS today to talk to one of our experts about human resource outsourcing and how it can save you time and money.

  • The last election cycle may have added to the number of states with legalized marijuana, but is your business ready for it? Michigan became the 10th state to legalize recreational marijuana this past midterm election, ushering in the creation of the Michigan Regulation and Taxation of Marihuana Act (MRTMA). As more states adopt these measures, it’s a good time to consider how legal marijuana affects your business and what you can do to protect yourself.

    A small business owner and an employee reviewing marijuana policies in the employee handbook.

    What Does Legalized Marijuana Means for Small Business Owners?

    While MRTMA does legalize the use of recreational marijuana, it doesn’t do so at the expense of business owners. In fact, the new law doesn’t change much in terms of an employer’s ability to maintain the same drug and alcohol policy that was in place before the law. Per the MRTMA itself, the act still allows employers to do the following:

    • Ban conduct allowed by this act in any workplace or on company property
    • Discipline, discharge, or take other adverse employment actions against an employee for violations of a workplace drug policy or for working while under the influence
    • Refuse to hire a person after failing a pre-employment drug test or take adverse action against an existing employee in terms of tenure, terms, conditions, or employment privileges for working under the influence

    There’s also the fact that recreational marijuana is still illegal in terms of federal law, which has generally trumped state laws in marijuana-related cases so far. While Michigan’s new law and federal law in general doesn’t reign in an employer’s ability to maintain a drug-free workplace, that doesn’t mean that you shouldn’t takes steps to protect your business. It’s up to you to set clear guidelines that make your company’s policies are clear to your employees.

    What You Can Do to Protect Your Company

    Institute a Drug-Free Workplace Policy

    Regardless of whether you’re in a state like Michigan that has legalized recreational marijuana or not, it’s good to establish a written drug-free workplace policy (DFWP). This policy should make it clear that employees should never have any illicit substances on company grounds.

    Consider Drug Testing

    If you plan to test your employees for drug use, you need to have your policy carefully outlined to make sure that your employees have a clear understanding of your drug testing policy. This includes expectations and rules associated with each type of test, such as when they can happen, testing timelines and steps, and what’s expected of the employees. The types of drug test include:

    • Pre-employment tests for applicants
    • Probable cause tests for reasonable suspicion
    • Arbitrary tests on set dates (such as work anniversaries)
    • Random tests

    Of course, how you administer these tests can vary depending on your state. For example, Michigan has no law addressing drug testing regulations for private employers if your policies are not found to be discriminatory or violate any other legal provision. Other states may have set regulations for what types of test can be done and how those tests and conducted. OHS, Inc. provides abstracts of each state’s workplace drug testing laws, although it’s good to check local laws yourself to make sure you’re in compliance with any necessary rules and regulations.

    Set Discipline Standards

    In a way, marijuana can be treated the same way as alcohol; employees can’t come to work impaired, and they’ll be in trouble if they do. You’ll want to set firm policies to protect your business in case there are any incidents, but you should also consider whether your state has any protections in place for marijuana users, especially for places where medical marijuana is allowed.

    Of course, these potential protections can vary greatly based on your location. The Society for Human Resource Management notes that employers in Vermont and Minnesota “can’t fire someone for the first failed drug test if the employee agrees to complete a rehabilitation program.” The Small Business Association of Michigan highlights a Maine law that “prohibits adverse actions against employees for using marijuana outside of work.” Federal law may generally prevail, but adjusting your discipline standards to fit local laws can help you avoid costly legal battles while still affording your company some protection.

    It’s also crucial that, no matter how you decide to discipline employees for failed drug tests, you treat everyone equally. If you use a failed test as the basis for firing one employee but refrain from punishing a separate long-term employee, the fired employee could argue that your inconsistent application of your own rules was discriminatory. That could lead to litigation and a long, costly headache that could be avoided.

    Another good item to include is some language involving what it means if an employee attempts to delay a test or outright refuses to take one. If you decide to drug test employees, you should include a clear definition of “refusing to test” to offer you some protection. If you find that an employee is too evasive about drug testing and should be dismissed.

    Prepare Your Business for Marijuana Laws

    It’s not going to get any easier trying to figure out how marijuana laws will impact your business. Between new states adding legal marijuana and various regulations, it can be an absolute headache to keep track of everything your business should do to protect itself unless you’re an expert. If an employee gets hurt while under the influence of marijuana, the process can be even more complicated. Because of that, it’s best to turn to an expert to make sure you stay on top of federal and state marijuana laws.

    A Professional Employer Organization like GMS can help you navigate through confusing, ever-changing regulations and update your handbooks to protect your business. We have experts in multiple locations across the country, including at our Detroit office. Contact us today to talk to one of our experts about how we can help you prepare for marijuana regulation and strengthen your business in other ways.