Standard Operating Procedure For s2

Arnold Center, Inc. Standard Operating Procedure for Background Check Policy I. PURPOSE:

The purpose of this Background Check Policy ("Policy") is to establish the background check requirements and processes for Arnold Center, Inc. prospective employees, current employees, and certain volunteers, interns and contractors to protect employees, program participants, and agency assets.

Any questions regarding this Policy should be directed to the Arnold Center’s Administrative Office Manager or Vice President.

II. DEFINITIONS:

1. Adverse Action is a negative employment action such as not hiring an applicant; not promoting or not retaining an employee.

2. Applicants are current, former, or prospective employees who submit information to be considered for positions at the Arnold Center, including individuals not currently employed by the Arnold Center and current Arnold Center employees seeking promotional or transfer opportunities to different positions. This Policy shall apply to all Applicants for the following types of positions at the Arnold Center:

1. All full and part-time employees

2. Temporary position employees regardless of the duration of their employment.

3. Anyone else the Arnold Center employs (Employer of Record).

4. Volunteers and Interns

3. Authorization is the process of obtaining written permission from the applicant/employee for the background investigation to be conducted.

4. Background Check means the process of gathering and reviewing criminal history records, reference checks, drug checks, LEIE checks, recipient’s rights checks, and motor vehicle records.

5. Conviction means a guilty verdict, a guilty plea or a plea of no contest of felony or misdemeanor, other than minor traffic offenses.

6. Criminal History Check means the process of gathering and reviewing criminal history records or information furnished by a criminal justice agency or third party vendor in the business of obtaining and providing criminal history records relating to an individual's criminal convictions. Criminal records, when possible, include in-state, out-of-state and international criminal history, including misdemeanor and felony convictions. 1 | P a g e 7. Disclosure refers to the document and the process of informing an applicant/employee that he/she will be the subject of a background report.

8. Excluded Parties List System Check (LEIE) means the process of reviewing the federal electronic, web-based system that identifies those parties excluded from receiving Federal contracts, certain subcontracts, and certain types of Federal financial and nonfinancial assistance and benefits.

9. Final Adverse Action: Referring to the document and the process when a negative employment decision is made, the applicant/employee receives notice of the decision.

10. Final Applicant means a current, former, or prospective employee recommended for hire, transfer or promotion and to whom a contingent offer will be made.

11. Financial History Check means the process of gathering and reviewing financial history records or information furnished by any court of civil law, credit reporting agency (credit report), or a third party vendor in the business of obtaining and providing credit reports.

12. Hiring Manager refers to the individual in an agency department with the authority to make hiring decisions. The hiring manager is typically a department director or other management level employee. The hiring manager is accountable for the personnel actions occurring within their department(s).

13. Motor Vehicle Check means the process of gathering and reviewing motor vehicle and/or driver's license records or information, including motor vehicle records from any state where the individual has resided.

14. Preliminary Adverse Action refers to a document and the process when a negative employment decision is being considered; the applicant/employee receives notice, a copy of his/her background report, and A Summary of Your Rights under the Fair Credit Reporting Act. This is also referred to as “Pre-Adverse Action” and “First Notice.”

15. Privileged Access are rights to computer or application systems that have been granted to an individual beyond that of a typical user that can bypass, modify, or disable technical or operational security controls. Examples may include the ability to install software; install or modify system processes; create or modify system configurations; create or modify system access controls; and/or view or control the screen of the user through remote access technologies in order to assist them.

16. Promotion refers to job advancement, title enhancement, and/or pay increase action or process open to current Arnold Center employees and which involve increased and/or different job duties and responsibilities.

17. Reference Check means the process of contacting individuals directly including current and former employers, companies, and educational institutions that may reasonably be relied upon to provide relevant information regarding fitness for employment.

2 | P a g e 18. Security-Sensitive means work that meets one or more of the following criteria:

1. Positions that provide services to program participants;

2. Positions managing and storing confidential and classified information;

3. Positions with information technology responsibilities that meet the criteria for Privileged Access.

19. Transfer refers to a lateral movement in the same job class title and with the same or similar job responsibilities. A transfer typically involves moving to a position in a different department and/or with a different hiring authority.

20. Volunteer refers to an individual who is not an employee or an Applicant, and who is providing a service to the agency without expectation of remuneration.

III. ARNOLD CENTER ADMINISTERED BACKGROUND CHECK POLICIES

1. Roles and Responsibilities The agency’s Administrative Office Manager is authorized to conduct and oversee the Background Check process described in this policy on behalf of the Arnold Center. The Administrative Office Manager may work with internal personnel and with outside agencies, such as Covenant, to execute any of the obligations set forth in this Policy. The Administrative Office Manager and hiring manager, in consideration of the attached Background Screening/Targeted Job Matrix, is responsible for making decisions regarding what type of Background Check is appropriate, interpreting Background Check records and information, determining whether an Applicant is eligible for employment, and for making personnel recommendations.

a. Notwithstanding this Policy, nothing precludes the Administrative Office Manager from conducting a background check on any individual when, the Administrative Office Manager in consultation with the Hiring Manager, President and Vice President determine that a background check is necessary.

b. The Hiring Manager is typically responsible for initiating the background check process by meeting with the Administrative Office Manager to formally develop a schedule for on-boarding.

c. All Arnold Center employees are responsible for ensuring the integrity and confidentiality of the Background Check process.

2. Applicant Background Check General Requirements

a. Consent and Providing False Information. Applicants must consent to a Background Check to be considered for a position. Any Applicant who refuses to consent to the Background Check, refuses to provide information necessary to conduct the Background Check, or provides false or misleading information will not be considered

3 | P a g e for the position for which s/he has applied. Any Applicant who has already been hired or promoted and is subsequently found to have provided false or misleading information related to the Background Check may be subject to disciplinary action, up to and including termination.

b. When are Background Checks Conducted. Background Checks are typically conducted after a single Final Applicant has been identified; however, they may be conducted prior to that time for the president’s, vice president’s and chief financial officer’s positions where the Administrative Office Manager, in consultation with president or vice president or board, as the case may be, determines that there is potential for the Arnold Center to suffer reputational harm if the check is not conducted on more than one potential Final Applicant.

c. Offers are Contingent. All offers of employment and continued employment are contingent upon a satisfactory Background Check. Employment shall not be effective until the Administrative Office Manager has notified the department that the Applicant has satisfactorily completed the Background Check.

d. Promotions. Applicants or employees who are otherwise considered for a Promotion or Transfer shall be subject to a Background Check, unless the Administrative Office Manager previously conducted a Background Check, appropriate for the position, within the previous three years.

3. Type of Background Check Required Background Checks apply to all job classifications in consideration of each job’s essential functions. Depending on the requirements of the position one or more of the following background checks may be required (refer to the attached Background Screening/Targeted Job Matrix): a. Reference Checks must be completed for all Final Applicants. The hiring manager/department director is responsible for conducting Employment Reference Checks (3 are required). b. A Criminal History Check must be conducted for all Final Applicants, unless a Criminal History Check has been conducted within the previous three years. c. Financial History Check must be conducted for Final Applicants for the following positions: department managers, all fiscal department staff, vice president and president and any other positions assigned responsibility for managing agency fiscal or physical resources. d. Credentials and License Verification: Credentials verification means ensuring that the selected candidate possesses all education credentials listed on the application, resume or cover letter or otherwise cited by the candidate that qualify the individual for the position sought. License verification” means ensuring that the selected candidate possesses all the licenses listed on the application, resume, or cover letter or otherwise cited by the candidate that qualify the individual for the position sought and verification of any license required for the position, including verification of the status of such

4 | P a g e licenses. This includes any motor vehicle drivers licenses required for the associated position. Only certified documents received directly from the accrediting institution/organization serve as verification exception the case of GED’s and high school diplomas where copies serve as sufficient documentation. e. A Motor Vehicle Check must be conducted for Final Applicants for positions whose job description specifies a valid driver’s license is required. f. An Excluded Parties List System Check (LEIE) must be conducted for all Final Applicants. g. Drug Screening is scheduled immediately following an offer of employment. A drug test is done on all employment potential candidates regardless the position for which they have applied. Positive test results will result in adverse action. h. Office of Recipients Rights Check: this background check is used to verify whether or not an applicant has committed any violations(s) of Recipients Rights. 4. Post-Employment Background Checks The Arnold Center may conduct post-employment Background Checks on employees as needed such as, but not limited to, following any workplace violence incident involving the employee or when it is required to do so pursuant to agency policy revisions, state or federal laws, rules, or regulations. As a condition of continued employment, employees must consent to any post- employment background check as determined necessary by the Administrative Office Manager in consultation with the Hiring Manager, President and Vice President.

5. Vulnerable Population Programs Volunteers, interns and contractors providing services for the Arnold Center shall be required to satisfactorily complete a Criminal History Check. Hiring managers/supervisors of volunteers, interns and contractors are responsible for compliance with this requirement and shall initiate, or troubleshoot any questions about, the Background Check process with the Administrative Office Manager.

IV. POLICY AND PROCEDURE FOR REVIEWING BACKGROUND CHECK RECORDS AND INFORMATION

1. Arrests are not Considered, Charges and Convictions are considered The Administrative Office Manager will not consider arrest information unless the arrest resulted in pending criminal charges. In such circumstances, the Hiring Manager will contact the Applicant, and may contact other parties, to obtain further information in order to assess reliability of the charge information. The Administrative Office Manager will consider any information revealed regarding Convictions, as defined above in Section II - 1, although a Conviction shall not automatically preclude initial or continued employment.

2. Job-relation and Business Necessity Criteria When considering pending charges and Convictions, the Administrative Office Manager in consultation with the Department Director, President and Vice President will evaluate the time

5 | P a g e frame, nature, gravity, and relevancy of the Conviction or charged offense as it relates to the job duties and Arnold Center’s business necessities.

3. Excluded Parties are Not Eligible for Hire The attached Background Screening/Targeted Job Matrix will be used by the Administrative Office Manager to determine a candidates eligibility. Applicants who are on the Excluded Parties List System are not eligible for hire. Current employees who are placed on the Excluded Parties List System may be subject to disciplinary action including, but not limited to, termination.

V. ADVERSE ACTION NOTIFICATION PROCEDURES

If information is revealed in a reference check report (refer to section III -3 above) received from a Consumer Reporting Agency (CRA) that could potentially result in an adverse action, the Administrative Office Manager shall take the following steps:

1. Pre-Adverse Action Notification letter (refer to following letter) The Administrative Office Manager will notify the Applicant in writing that negative information was revealed during the Background Check process which may impact the employment decision and will provide a copy of the supporting report to the Applicant or employee. Upon receipt of the letter and supporting documentation the Applicant or Employee will be provided an incident specific number of work days to challenge the information provided in the CRA report and take steps to correct inaccuracies or provide explanation. The applicant will also be provided the follow documents:

 The name, address, and phone number of the vendor Consumer Report Agency

(CRA) that supplied the report

 Summary of Rights Under the Fair Credit Reporting Act

2. Decision Stay A final employment decision shall not be made until the Applicant's or employee’s new information has been considered or such time that the Applicant or employee fails to respond as required.

3. Adverse Action Notification letter If after considering any Applicant or Employee’s response, the Administrative Office Manager and the Department Director, President and Vice President determine that the negative information revealed results in an adverse employment decision, a second written notification will be sent to Applicant or Employee. This notice shall include the following:

 a notice of the individual's right to dispute the accuracy or completeness of any information the agency furnished, and his or her right to an additional free consumer report from the agency upon request within 60 days and to dispute with the CRA, the accuracy or completeness of any information in a consumer report furnished by the agency.

VI. Employee Self-Disclosure Requirements

6 | P a g e 1. Criminal Conviction or Felony Charge All current employees are required to self-disclose post-employment criminal Convictions or felony charges filed against them that occur on or after the Effective Date of this Policy within three business days of the Conviction or felony charge to the Administrative Office Manager. Employees failing to self-disclose may be subject to disciplinary action, up to and including termination. Hiring Authorities notified of a post-employment Conviction or felony charge have an obligation to report the information to the Administrative Office Manager within 24 hours. Hiring Authorities failing to report the information may be subject to disciplinary action, up to and including termination.

2. Driver's License Suspension or Revocation All current employees with primary responsibility for driving as demonstrated in the position description are required to self-disclose the post-employment suspension or revocation of a driver's license that occurs on or after the Effective Date of this Policy within three business days of the revocation to the Administrative Office Manager. Hiring Authorities notified of the post-employment suspension or revocation of a driver’s license has an obligation to report the information to the Administrative Office Manager. Hiring Authorities failing to report the information may be subject to disciplinary action, up to and including termination.

Arnold Center, Inc. Background Screening/Targeted Job Matrix

Scope: This policy applies to all job classifications in consideration of each job’s essential functions. Charges that do not result in convictions cannot be considered. 7 | P a g e Type of Offense Severity of Offense Time frame since completing Recommended Action (Felony/Misdemeanor) Sentence/Probation/Parole Offenses against people: Felony Any time Decline (e.g., murder, manslaughter, sexual assault, assault and battery, child molestation , public Misdemeanor Anytime Decline indecency and other violent crimes) Offenses against property: Felony Within 5 years Decline (e.g., theft, forgery, criminal trespassing, NSF checks with Felony Over 5 years Evaluate evidence of rehabilitation intent to defraud, burglary, credit (e.g., successfully holding other jobs) card fraud, shoplifting, and relationship of offense to the embezzlement, weapons position. Consider engagement. possession) Offenses against property: Misdemeanor Anytime Evaluate evidence of rehabilitation and (e.g., theft, forgery, criminal relationship offense to the position. trespassing, --- checks, credit card Consider engagement. fraud, shoplifting, weapons possession) Drug offenses: Distribution, sale, Anytime Decline trafficking, manufacture drugs 2 years Decline All other drug offenses 2 – 4 years Evaluate evidence of rehabilitation. Consider engagement. Over 4 years Engage Driving offenses: Within 2 years  Any offense of DUI: decline  Revoked or suspended license: Note: Only relevant to decline assignments which require  Multiple offenses of speeding driving (essential function of the reckless driving, etc.: decline job). Must be insurable by the  Non-moving violations: engage agency’s auto insurance carrier.  Evaluate all other offenses on a case-by-case basis Note: Any instance of a 2 – 4 years  Single offense of speeding: suspended license must be engage evaluated on a case-by-case basis,  Multiple offenses of speeding or regardless of time frame single offense of DUI: decline  Multiple offenses of DUI: decline  Motor vehicle homicide: decline Over 4 years Any offenses except multiple DUI: engage Work history: Within 10 years Evaluate on a case-by-case basis Pattern of discharge from employment Non-verifiable background Cannot obtain 5 years of information variable background N/A Decline information through reasonable means

Important: Do not engage any applicant who is dishonest on an application

Administrative Office Manager and Hiring Manager’s Instructions for Pre- Adverse Action Obligations

If information in a consumer credit report influences your decision whether to hire, fire, reassign, or promote, before taking an adverse action you must provide the applicant or employee with (1) a 8 | P a g e summary of his rights under the Fair Credit Reporting Act (FCRA), including the right to find out what the report contains and dispute inaccurate information, and (2) a copy of the report that influenced your decision. Once the applicant or employee is notified, he or she must be given the opportunity to correct or explain any information included in the report before you are permitted to take the adverse action. The law is silent on how long you must wait before undertaking an adverse action after complying with your obligations. Generally, you should wait a reasonable amount of time (such as five days) between the pre-adverse action notice and final adverse action. The opinion letters also say that the facts of a particular situation will dictate the amount of time needed.

Pre-Adverse Action Notification Letter

Dear Prospective Employee:

As you know, the Arnold Center may use consumer reports in making its hiring decisions. You signed an authorization allowing the Arnold Center to obtain a consumer report about you. You also received a statement of your rights under the Fair Credit Reporting Act.

The Arnold Center has received a consumer report about you. Enclosed with this letter is a copy of that report. This report may be used in making a decision about your employment, and in fact, the Arnold Center has concerns about the information contained in that report. By this letter, the Arnold Center is providing you notice of your opportunity to correct and explain any information contained in that report before it takes any adverse action against you. We are also enclosing a copy of the summary of your rights under the Fair Credit Reporting Act (FCRA) which includes your right to find out what the report contains and dispute inaccurate information. Because of the nature of the employment action, we request that if you wish to respond, you do so within 7 days of receiving this notice.

If you have any questions, please do not hesitate contacting me. Very truly yours,

Enclosures:  Copy of your background check report  Summary of Your Rights Under the Fair Credit Reporting Act

Instructions for Notice of Adverse Action

Once you have provided the applicant or employee with a copy of the report and summary of rights under the FCRA and waited for a reasonable amount of time, you may take adverse action. You must once more give the applicant or employee notice of the adverse action, either orally, in writing, or

9 | P a g e electronically. Written notifications are strongly encouraged because they help to show compliance with the FCRA.

The adverse action notification must include:  the name, address, and telephone number of the consumer reporting agency that supplied the report (including a toll-free telephone number established by the agency if the agency compiles and maintains files on consumers on a nationwide basis);  a statement that the consumer reporting agency didn't make the decision to take the adverse action and is unable to provide the applicant or employee with the specific reasons the adverse action was taken;  a statement that the applicant or employee may dispute the accuracy and completeness of any information in the report with the consumer reporting agency; and  a statement that sets forth the applicant's or employee's right to obtain free disclosure of her file from the consumer reporting agency within 60 days of a request for the report.

Notice of Adverse Action Letter

Dear Applicant:

The Arnold Center has decided not to offer you employment. It based its reasons in part on a consumer credit report. Under the law, you have certain rights relating to that consumer report which we have previously provided to you.

The consumer report was obtained from ______whose address is ______and telephone number is ______. The consumer reporting agency did not make the decision about your employment and is unable to provide you with the specific reasons for the adverse action. However, under the law you may dispute the accuracy or completeness of any information contained in the report with the consumer reporting agency. Further, you have the right to obtain free disclosure of your file from the consumer reporting agency within sixty (60) days of a request for that report.

Sincerely yours,

Para información en español, visite www.consumerfinance.gov/learnmore o escribe a la Consumer Financial Protection Bureau, 1700 G Street N.W., Washington, DC 20552.

A Summary of Your Rights Under the Fair Credit Reporting Act

10 | P a g e The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies (such as agencies that sell information about check writing histories, medical records, and rental history records). Here is a summary of your major rights under the FCRA. For more information, including information about additional rights, go to www.consumerfinance.gov/learnmore or write to: Consumer Financial Protection Bureau, 1700 G Street N.W., Washington, DC 20552.

• You must be told if information in your file has been used against you. Anyone who uses a credit report or another type of consumer report to deny your application for credit, insurance, or employment – or to take another adverse action against you – must tell you, and must give you the name, address, and phone number of the agency that provided the information.

• You have the right to know what is in your file. You may request and obtain all the information about you in the files of a consumer reporting agency (your “file disclosure”). You will be required to provide proper identification, which may include your Social Security number. In many cases, the disclosure will be free. You are entitled to a free file disclosure if:

• a person has taken adverse action against you because of information in your credit report; • you are the victim of identity theft and place a fraud alert in your file; • your file contains inaccurate information as a result of fraud; • you are on public assistance; • you are unemployed but expect to apply for employment within 60 days.

In addition, all consumers are entitled to one free disclosure every 12 months upon request from each nationwide credit bureau and from nationwide specialty consumer reporting agencies. See www.consumerfinance.gov/learnmore for additional information.

• You have the right to ask for a credit score. Credit scores are numerical summaries of your credit- worthiness based on information from credit bureaus. You may request a credit score from consumer reporting agencies that create scores or distribute scores used in residential real property loans, but you will have to pay for it. In some mortgage transactions, you will receive credit score information for free from the mortgage lender.

• You have the right to dispute incomplete or inaccurate information. If you identify information in your file that is incomplete or inaccurate, and report it to the consumer reporting agency, the agency must investigate unless your dispute is frivolous. See: www.consumerfinance.gov/learnmore for an explanation of dispute procedures.

• Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information. Inaccurate, incomplete or unverifiable information must be removed or corrected, usually within 30 days. However, a consumer reporting agency may continue to report information it has verified as accurate.

• Consumer reporting agencies may not report outdated negative information. In most cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old.

• Access to your file is limited. A consumer reporting agency may provide information about you only to people with a valid need – usually to consider an application with a creditor, insurer, employer, landlord, or other business. The FCRA specifies those with a valid need for access.

11 | P a g e • You must give your consent for reports to be provided to employers. A consumer reporting agency may not give out information about you to your employer, or a potential employer, without your written consent given to the employer. Written consent generally is not required in the trucking industry. For more information, go to www.consumerfinance.gov/learnmore.

• You may limit “prescreened” offers of credit and insurance you get based on information in your credit report. Unsolicited “prescreened” offers for credit and insurance must include a toll-free phone number you can call if you choose to remove your name and address from the lists these offers are based on. You may opt-out with the nationwide credit bureaus at 1-888-567- 8688.

• You may seek damages from violators. If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in state or federal court.

• Identity theft victims and active duty military personnel have additional rights. For more information, visit www.consumerfinance.gov/learnmore.

States may enforce the FCRA, and many states have their own consumer reporting laws. In some cases, you may have more rights under state law. For more information, contact your state or local consumer protection agency or your state Attorney General. Federal enforcers are:

TYPE OF BUSINESS: PLEASE CONTACT:

Consumer reporting agencies, creditors and others not listed Federal Trade Commission: consumer Response Center – below. FCRA Washington, DC 20580 1-877-382-4357 National banks, federal branches/agencies of foreign banks Office of the Comptroller of the Currency Compliance (word “National” or initials “N.A.” appear in or after bank’s Management, Mail Stop 6-6 Washington, DC 20219 800- name) 613-6743 Federal Reserve System member banks (except national Federal Reserve Board Division of Consumer & Community banks, and federal branches/agencies of foreign banks) Affairs Washington, DC 20551 202-452-3693 Savings associations and federally charted savings banks Office of Thrift Supervision Consumer Complaints (word “Federal” or initials “F.S.B.” appear in institutions Washington, DC 20552 800-842-6929 name” Federal credit unions (words “Federal Credit Union” appear National Credit Union Administration 1775 Duke Street in institution’s name) Alexandria, VA 22314 703-519-4600 State-charted banks that are not members of the Federal Federal Deposit Insurance Corporation Consumer Response Reserve Systems Center 2345 Grand Avenue, Suite 100 Kansas City. MO 64108-2638 1-877-275-3342 Air, surface, or rail common carriers regulated by former Department of Transportation, Office of Financial Civil Aeronautics Board or Interstate Commerce Commission Management Washington, DC 20590 202-366-1306 Activities subject to the Packers and Stockyards Act, 1921 Department of Agriculture Office of Deputy Administrator – GIPSA Washington, DC 20250 202-720-7051

12 | P a g e 13 | P a g e Arnold Center, Inc Mandatory Background Checks by Position

Referenc Credential Criminal Drug Recipient Motor Financia Excluded e s (ICHAT) Rights Vehicle l Parties Checks (CMH) Check (LEIE) (3) Production Employee X X X X X X

Lead Production Employee X X X X X X

Customer Service Rep X X X X X X X

Auction Clerk X X X X

Auction Cashier X X X X X

Support Staff X X X X X X X

Receptionist X X X X X X X

Lead Support Staff X X X X X X X

Truck Driver X X X X X X X

Accounting Clerk X X X X X X X

Production Supervisor X X X X X X X X

Service Coordinator X X X X X X X

Auction Coordinator X X X X X X X X

Job Placement X X X X X X X

Vocational Evaluator X X X X X X X

Accounting Assistant X X X X X X X X

Administrative Office X X X X X X X X Manager

Production Manager X X X X X X X X

Service Director X X X X X X X X

Chief Financial Officer X X X X X X X X

Vice President X X X X X X X X

President X X X X X X X X 14 | P a g e Submitted by: Date:

Reviewed by: Date:

Established: 6/28/2017 KE

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