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Should You Conduct Employee Background Checks?

Despite the cost of conducting background checks, hotel owners should think of the check as an investment in the hotel’s overall security and reputation. 
By Charles A. Conine
May 22, 2015 | 4:54 P.M.

Could the following scenario happen at your hotel or resort?
 
A hotel human resources director is pleased she’s finally found a personable candidate for the hotel controller position who comes equipped with positive written reference letters. Months of searching for just the right candidate appear to have finally paid off. 
 
“He had every qualification we sought,” she later recalls. But a nagging doubt remains. “Was he too perfect?” 
 
Trusting her intuition, the HR director requests authorization from the GM to spend $100 on a background check to verify the candidate’s statements from his employment application. What comes back shocks her. The “too perfect” candidate never worked at two of the companies listed as prior employers. Worse: He was fired from one job for embezzling funds. 
 
What happens at those properties that opt not to do background checks and a problem applicant is hired? And are background checks always necessary?
 
Earlier this year an Arizona Senate panel approved a bill that would make background checks of hotel employees mandatory and bar convicted sex offenders from having guestroom access. At a news conference state Senator Katie Hobbs said that the bill was reasonable. “I think if you are running a hotel, you want them to be safe.”
 
The Arizona legislation was prompted by the cases of two women who allege they were raped by an employee who worked at two well-known franchised hotel brands in Mesa, Arizona. The women told investigators a man entered their rooms with a key and raped them; security video allegedly shows the man using a key to enter a guestroom. The alleged perpetrator was a front-desk clerk at the hotels, investigators revealed, adding that he is a Level-3 sex offender, information that would typically be disclosed during background checks. 
 
While Arizona legislators continue to evaluate the bill, the victims have filed lawsuits against the hotels. 
 
Major hotel, restaurant and tourism companies have long conducted various types of background checks for some or all positions. Management candidates are routinely screened. These checks most always include verification of statements applicants provide on resumes and employment applications, including, for example: prior employment; educational degrees/certificates; and current and prior addresses. 
 
The practice of screening non-management employees is less consistent. Those with access to financial or other sensitive information and those who handle credit cards and cash are often checked out. Some companies also check those with access to guestrooms such as housekeepers and bell staff. 
 
At smaller properties, the cost of even one background check might seem daunting or unnecessary, especially if employee turnover is low and a candidate has a pleasing personality. 
 
Legal liability versus legal challenge
Despite the cost of conducting background checks, legal experts advise hotel owners to act conservatively and think of the check as an investment in the hotel’s overall security and reputation. 
 
James McDonald, managing partner at the labor/employment law firm of Fisher & Phillips, said that while background checks are not specifically required by law, they are nevertheless a good idea to help employers avoid potential liability under several legal theories. 
 
“It only makes good sense for hospitality employers to know as much as they can legally learn about the people they hire via background checks and to screen out those with a documented history of theft or violent behavior,” he said. 
 
Legal protections for job applicants and employees help prevent practices that fair employment agencies believe can lead to unlawful discrimination. 
 
McDonald advises it’s important to remember the rules: “An employer cannot automatically exclude every candidate who has a prior criminal conviction. The relatedness of the conviction to the job, the age of the conviction and the person’s record since the conviction all should be considered.” 
 
McDonald also notes that applicants convicted of crimes “involving violence, sexual impropriety, theft or embezzlement can be safely excluded from jobs involving guest contact or their possessions.” 
 
He also counsels it’s important to know whether a state limits background checks. “State laws change frequently, so know the law of the states in which you operate.”.
 
Before deciding whether to conduct a background check, consider the risks of not doing one. Would the hotel be able to withstand negative publicity and claims such as in the Arizona rape cases? Just as with any other financial decision the GM and human resources director must balance these risks with the cost of inaction, and make certain to ask the experts. In this case, a few minutes of advice from the hotel’s labor and employment attorney might be a wise investment. 
 
Chuck Conine is managing partner of Hospitality HR Solutions. He is a graduate of the Cornell University School of Hotel Administration and a Senior Certified Professional in Human Resources. Contact Chuck at 949-783-0200 for assistance.
 
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