Criminal Background Checks Drug Screening What You

Criminal Background Checks & Drug Screening: What You Don’t Know Can Hurt You September 28, 2011

Today’s Webinar 2 …Difference between “Employment Screens” and “Certification Screens” …Personal Data Controls and Governance you must consider as an employer …The screening trends and why ALL SCREENS are not CREATED EQUAL …Who Plus. One is and why we were invited to present to USA

Presenter: Craig Reilly President, Plus. One Solutions, Inc. 11301 Corporate Blvd Suite 215 Orlando, FL 32817 407 -359 -5929 craig. reilly@plusonesolutions. net

Plus. One’s Focus: US and Canadian Independent Servicing Companies… 4

…and the Companies who Depend on Them 5

Plus. One’s Corporate Focus is Providing Service Industry Solutions to All Stakeholders 6

Compliance is more than just Screenings Business l l l l l Corporate Entity Verification W-9 Verification Business Credit Bankruptcy, Lien and Judgment Check Business License Verification Business Reference Check Professional License Verification and Indexing Insurance Policy Verification and Certificate Management – (GL, Auto, WC, Umbrella, etc. ) Contract Management Document Capture and Storage Vendor Credentialing Principals & Employees l l l Identity Consistency Check – SSN, SIN Validation & Verification Criminal Record Search – Infractions – Felony & Misdemeanor Offenses – Indictable, Hybrid, and Summary Offenses – Sex Offender/Predator Search Motor Vehicle Record Check Terrorist Watch List Search Individual Credit Check Professional Trade Licenses

Plus. One Works Toward Industry Standardization Where Applicable… …and Pricing Transparency

Plus. One Currently Tracks Criminal Backgrounds for 70, 297 Active Technicians…(as of 9/10/11) Plus. One ID Client Company ID Company Tech ID ABALA 09161619 SUPERBUS CASTA 05172811 USACOSRV ABRAA 01307424 LAAPPL ACEVA 06248505 TBELECTR LOUCA 10208869 ALPRE BECKA 02018189 SKIELE 2 ACOSA 08074362 DTRTECH CASTA 02271382 ABBEY ADAMA 04072808 KIRE ALANA 06219698 WCES ALDRA 06055409 NAVEDO ALEMA 02116418 CLRNSND ALIAA 03204975 GOODMAN ALMEA 12158678 ELESVCIN 9 Client Tech ID ABALA 09161619 46722 CASTA 05172811 54108 ABRAA 01307424 44521 ACEVA 06248505 48558 LOUCA 10208869 49806 BECKA 02018189 45918 ACOSA 08074362 43694 CASTA 02271382 56184 ADAMA 04072808 33070 ALANA 06219698 45547 ALDRA 06055409 55815 ALEMA 02116418 54566 ALIAA 03204975 50194 ALMEA 12158678 40031 First FARRIN BRYAN ANTHINIO GREGORY JAMES DANIEL BRYAN EVAN JEFFERY BRIAN DZMITRY JAMES ANTONIO FRANCISCO Middle MICHAEL ADAM NMN NICHOLAS WILLIAM MARTIN Chad J ROBERT DELBERT SHIN THOMAS Last ABALOS CASTANEDA ABRAMIAN ACEVEDO LOUCHART BECKER ACOSTA CASTRONOVO ADAMS ALAND ALDRICH ALEMAN ALI ALMETER Suffix Overall Civil Crim Driv Drug SR. Y P N Y N P Y Y Y Y Y P Y Y Y O Y Y Y Y Y P Y Y F O Y Y Y Y O Y H Y Y Y Certified Recert Date Y 02/10/2010 02/01/2012 Y 01/14/2010 12/31/2011 F 02/08/2010 01/25/2012 Y 01/14/2010 01/07/2012 10/14/2009 08/27/2010 Y Y 02/11/2010 02/02/2012 Y 03/28/2010 03/07/2012 Y 01/04/2010 02/18/2011 Y 12/24/2009 11/30/2011 Y 03/17/2010 03/04/2012 Y 02/25/2010 02/25/2012 Y 03/08/2010 02/26/2012 Y 10/26/2009 10/15/2011 …Employed by over 20, 000 Independent Servicing Companies

So why is Criminal Background and Drug Screening such a HOT TOPIC today?

Business Trends & Contractual Requirements l l l 11 Global Companies are proactively applying consistent standards of consumer protection, and best service practices and avoiding mandates “In past 2 years there has been a significant increase in requests for criminal screens of employees at all layers of an organization and within all foreign borders. ” – Lexis. Nexis Contractual Requirements for service fulfillment mandate compliance standards

From a Customer’s Viewpoint Would you invite a known Sex Offender in to your home? Or a convicted thief? Violent criminal? When you schedule service, do you assume the service provider is not one of the above?

National Statistics: USA l l l l One Murder every 33 minutes One Violent Crime every 5. 5 seconds One Assault every 6. 5 seconds One Burglary every 10 seconds One Rape/Sexual Assault every 2 minutes One Identity Theft reported every 6 minutes One in 6 Women is a victim of Attempted or Completed Rape Source: Sue Weaver Cause

National Independent Consumer Research was Recently Completed

Consumers ASSUME Individuals Dispatched to Their Homes are Screened 15

The Media Highlight Marquee Companies when things Go Wrong 16

Local News Organizations Highlight the Risks “Of course I look Familiar. I was here just last week cleaning your carpets, painting your shutters or delivering your new refrigerator. ”

Consumers use sites like: www. Family. Watch. Dog. US

Without Completing a Background Investigation, you Never Really Know There are over 550, 000 registered sex offenders in the US. Over 100, 000 sex offenders fail to register in the US. Over 1, 000 Sex Offenders change their address everyday. Source: www. familywatchdog. us/facts. asp

How Safe do Consumers Feel when Individuals are in their Homes? Or After? 20

So what makes a good Criminal Background and Drug Screen that MINIMIZES RISK while MAXIMIZING VALUE?

Background Screens Vary in Price & Depth – No Consistency or Standard Variability of Rates are biggest complaint: – – – “Internet Specials” or “Teaser Rates”; “Low as $9. 99*” Ala carte Services increase costs Hidden “Access Fees” Multiply if Courts Searched Requires “Company Set-Up” Fees Results are not “Portable” Plus. One and USA supports “Adopting a Standard” And what you get, is not always what you need: – – – 22 – “National” Database or CPIC Only Single Local Court Search Only Missing Searches Non-compliance to FCRA or PIPEDA mandates

What’s Included in a “National Search” (Most Offered Searches) Not all Courts Report Up l l 17 States Do Not Report Misdemeanors and Most Felonies. Some only Sex Offenders. Counties Vary in Reporting – – 23 Seminole County FL reports ALL RECORDS Orange County FL reports NO RECORDS Unconfirmed Data reported such as “Name Match Only”

Top 6 Questions Screening Companies Do Not Want to Answer 1. 2. 3. 4. 5. 6. 24 Do you run a report to develop all known names and addresses to search against? Do you SEARCH ALL COUNTY COURTS for “Developed Names, Aliases, and Addresses” Regardless of the National Search? Does this Include a Driver’s License Search? Do you also search the Department of Justice Sex Offender Database and Federal Courts? Are all ACCESS FEES and Other Charges Included? Do you handle all “FCRA Mandated” Pre-Adverse Communication?

To Start: Four (4) Pieces of Data Are Critical To be effective, applicants must provide: – – Proper Name (+ Mother’s Maiden Name in Puerto Rico) Current Address Date of Birth SSN Anything short, or in error, results in improper results or “False Positives” 25

“De facto” Standard Background Screen Complete 7 -year check for all county courts of residence, including: l l l l Search for all residential addresses in prior 7 years County FELONY & MISDEMEANOR search for arrests, charges, & convictions and a state level search, if applicable National database search for felony and misdemeanor records Federal Court Search in current Federal jurisdiction in which the applicant resides OFAC (Office of Foreign Asset Control) restricted person search National & State Sex Offender Registries State Motor Vehicle Record review Social Security Number Verification

“De Facto” Standard Drug Screen 9 -Panel Urinalysis Drug Screen: l Tetrahydrocannabinol “THC” (marijuana, hashish) l Amphetamines l Cocaine (Incl. Crack Cocaine) l Opiates (Heroin, Opium, Morphine, Codeine) l Phencyclidine (PCP) l Methamphetamine (Incl. Ecstasy) l Methadone l Barbiturates l Benzodiazepines

Screening Governance and Handling Differences Between EMPLOYEMENT SCREENS versus a CERTIFICATION SCREEN?

Screening Industry & Collection of Personal Data is Highly Governed “Industry Watchdogs” range from Consumer Protection Advocates to the Federal Government: – – – Federal and State Trade Commissions Fair Credit Reporting Act (FCRA) and other similar State Acts/Regulations Driver’s Privacy Protection Act Federal & States Consumer Reporting Agencies (CRA): Lexis. Nexis, Choice. Point, First Advantage, USIS, etc. Annual On-Site Certifications

Significant Differences when used for Employment Reasons vs. Job Access l Employment Screens l l Highly Governed by State Laws and EEOC Requires Strict Adherence to Regulations and Processes Cannot be selective Certification Screens (Contractual Clauses) l l l Fewer Regulations Governing Contractual Requirements Do not necessarily effect employment status Only impacts certain jobs requiring access (i. e. Government Facilities, Schools, Safety Related, Contract Requirements, etc. ) 30

When an Individual Pre-Adverse Condition Appears Typically falls to Employer creating liability. Plus. One provides a level of protection to Servicing Companies by adhering to all FCRA Mandates regardless if “Employment” or “Requirement” Screen: 1. 2. 3. 4. 31 5. Provide an official copy of Screening Results Provide their “Summary of Rights” Provide a letter stating why they were not cleared and what options they have available Provide Adequate time and follow-up Protect applicant’s information/data retention

Not All Convictions and Service Technicians are Equal Disqualifying convictions “may place consumer, family, and her possessions at risk. ” Results vary by Industry and Education Level with Lower Failures seen with: 1. 2. 3. 4. 5. Increased Work Skills Higher Education Trade Licensed Industry Certified Association Membership High Failure Rates found in “Fly-by-Night”, “Trunk Slammers”, and other “Non-Professionals” 32

Viewed as an Industry HR Service Vendor Credentialing acts as a Service Industry Human Resource Department: l l Protecting the rights of the individual, the servicing company, and the retailers, manufacturers, and third party administrators Managing the all aspects of the Compliance Program – l Summary reporting to the technician & component level; – – 33 Communication, Applications, Scheduling, Decisions, FCRA, PIPEDA, OPC, and Global Processes, Disputes/Appeals, Reporting, Information Retention, and Data Protection Criminal, Driving, OFAC, Drug, etc. Pass, Fail, In-Process, and other indicators

Who Utilizes Plus. One’s Services

So What’s Important to Know? 1. 2. 3. 4. 5. 35 Ensure your Package is ALL INCLUSIVE Do you have a FIXED PRICE per Order? Who is responsible for FCRA and Employment Pre-Adverse Processes? How are you protecting the individual’s information? Can you advertise your compliance?

Questions?

11301 Corporate Blvd Suite 215 Orlando, FL 32817 www. plusonesolutions. net (407) 359 -5929 (877) 943 -0100 craig. reilly@plusonesolutions. net