NAVIGATING BACKGROUND CHECKS IN THE SHIP REPAIR INDUSTRY

Background checks are one tool used by human resources to screen applicants.  In the ship repair industry, background checks are not limited to those conducted by human resources.  Background checks are conducted by:

• The Department of Homeland Security (DHS) - E-Verify, to allow companies to determine the eligibility of employees to work in the United States.
• Commander Navy Installation Command (CNIC) - RAPIDGate, to allow access to Navy bases.
• Commander, Navy Region Mid-Atlantic (CNRMA) - to allow access to Navy ships.
• Transportation Security Administration (TSA) - to allow access to Maritime Transportation Security Act (MTSA)-regulated facilities and vessels.  

For most ship repair positions, access is a condition of employment.

Employers must comply with federal laws.  When compiling background information, you must: 

• Comply with the Fair Credit Reporting Act (FCRA) enforced by the Federal Trade Commission (FTC). 
• Inform the applicant you are conducting a background check. Note that you must obtain written permission from the applicant separate from the applications.
• Certify that you will not discriminate against the applicant. 

To avoid problems with the Equal Employment Opportunity Commission (EEOC) you must apply the same standard to everyone, regardless of their protected class.  Before taking an adverse action based on a background check, you must provide notice containing a copy of the consumer report used and a copy of “A Summary of Your Rights Under the Fair Credit Reporting Act.” After taking the adverse action, you must tell the applicant orally, in writing, or electronically that he or she has been rejected because of information contained in the report received; provide contact information for the company providing the background check; and inform that he or she has a right to dispute the accuracy or completeness of the report.  Be sure to keep records related to the background checks for a minimum of two years or until a charge of discrimination case has been closed, whichever is greater.  Conducting background checks post-offer reduces required paperwork and helps contain costs if your company has high turnover.  Employers should deny employment only to candidates whose backgrounds would prevent them from performing their jobs or those who can be shown to pose a risk to the company (e.g. you would not hire an applicant with a larceny conviction to work in your payroll department).

Be sure that anyone involved in the hiring process is aware you cannot ask about arrests, pending arrests, and charges that have been expunged.  It is a misdemeanor in the state of Virginia.

Once an employee has passed your background check and E-Verify, he or she is subject to the scrutiny of CNIC, CNRMA, and the TSA. They look for felony convictions within the past 10 years; misdemeanor convictions within the last five years for crimes of violence, larceny, and drugs; habitual offenders; and convictions for sex offenses.  RAPIDGate’s background screen goes back as far as the county and national record data exists.  There is a waiver procedure, but there are some offenses that cannot be waived such as felony convictions for rape, child molestation, sex offender registry, trafficking in humans, espionage, sabotage, treason, or terrorism.

When it comes to background checks, perhaps the best advice is to work hard to retain your current employees so you can limit the need to conduct them! 

About the Author

Linda Hyatt is a certified human resources professional with over 25 years of experience.  She currently holds the position of Director of Human Resources for Marine Hydraulics International, Inc. and is a member of the Virginia Ship Repair Foundation’s Board of Directors.  Her experience also includes human resources management positions in retail and restaurant management, manufacturing, and distribution.  

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