‘Mutual Associations’ Under Attack

What started out years ago as an informal way local retailers could share information on employees separated for a security-related reason to avoid hiring them elsewhere has turned into a viable third-party business. And one that is now under attack by labor lawyers, federal regulators and job candidates who say the data could be incorrect, misleading or unfair as well as difficult to challenge and correct.

For a fee, retailers join these so-called mutual associations and input information regarding those who have admitted to employee theft, shoplifting and other specific retail crimes. These retailers then can access the database as a pre-hire screening tool in order to determine if candidates have a known history of employee theft.