Hospitality Services Background Checks

Hospitality Employee Background Check Laws

Hospitality employers must comply with the following background check laws, keeping in mind that there may also be local or state hospitality employee background check laws.

The Equal Employment Opportunity Commission (EEOC) ensures that employers practice fair employment decisions, like hiring, promoting, and reassigning. The EEOC enforces federal laws and prohibits taking adverse employment action based on national origin, race, sex, color, or religion.

Running hospitality employee background checks also requires compliance with the Fair Credit Reporting Act (FCRA), enforced by the Federal Trade Commission (FTC). The FCRA requires employers to inform applicants before obtaining background checks. The notice cannot be on a job application and must be provided to the applicant in writing. If the employer runs an investigative report, the applicant or employee must be given written notice with a description of their rights. Hospitality employers must also obtain written permission from the applicant or worker before running background checks.

Information obtained in a background check must not be used to discriminate, and employers must hold the same standards for all applicants and employees. If an employer takes adverse employment action, like not hiring someone or firing an employee based on background check results, the applicant or employee must be given written notice beforehand with a copy of the consumer report and a summary of their rights under the Fair Credit Reporting Act.

The employer must also provide a waiting period before taking adverse action, allowing time for the applicant or employee to explain background check results. They have the right to review the report and explain or discuss information found in the report before the employer takes adverse action. Then, after the waiting period, the employer will provide an adverse action notice stating why the decision was made. They are entitled to a free copy of their background check report.

Hospitality Industry Crime Stories

In Indian Rocks Beach, FL, in 2022, a former hotel employee stole more than $3,500 from hotel guests after making a key card and accessing the rooms herself. In June of that year, she stole a wallet from a Louisiana resident and used a credit card at a local 7-11 and Family Dollar. She was caught on surveillance footage at both locations wearing hotel clothing. The next day she stole from three rooms, altogether a total of about $4,200.00.

In 2019, a Bay City, Michigan bar manager was arrested for embezzling about $30,000 from the bar he managed. The 36-year-old man stole the money from Keno funds, a Michigan lottery draw game. After each shift, the man was responsible for printing off slips stating how much money was owed to the state. However, he was printing the slips four hours before the bar closed and used the extra money to purchase his own Keno tickets. He was also seen on the surveillance camera unplugging the Keno machine and trying to break it.