Compliance In Recruiting:

How Ideal's Technology Prioritizes Compliance

Compliance in your recruiting and hiring is generally a legal requirement.

Depending on your location, you may need to comply with federal, state/provincial, and local city compliance laws. Here’s an overview of compliance laws in the US, Canada, and the EU and how Ideal works within them.

Section 1

What are the federal laws on compliance in recruiting in the US?

U.S. Equal Employment Opportunity Commission (EEOC)

The EEOC prohibits adverse impact, defined as a substantially different rate of selection in hiring which works to the disadvantage of members of a race, sex or ethnic group.

A rule of thumb is used to determine what “a substantially different rate of selection” is. The 4/5ths or 80% rule is when the selection rate for a group of applicants is less than 4/5ths or 80% than the selection rate for the highest group of applicants.

U.S. Office of Federal Contract Compliance Programs (OFCCP)

The OFCCP enforces compliance with affirmative action programs that require companies to recruit minorities, women, persons with disabilities, and covered veterans.

The OFCCP also enforces compliance with the data collection requirement of the race, gender, and ethnicity of “internet applicants”.

Section 2

What are the federal laws on compliance in recruiting in Canada?

Canadian Human Rights Commission (CHRC)

Similar to affirmative action, the CHRC enforces employment equity programs that require employers to ensure full representation of the four designated groups (women, aboriginal peoples, persons with disabilities, members of visible minorities) within their organizations.

The CHRC also ensures no person in the four designated groups “shall be denied employment opportunities or benefits for reasons unrelated to ability.”

Section 3

What are the federal laws on compliance in recruiting in the EU?

EU Directive 2000/78/EC

The EU prohibits discrimination in hiring, defined as when “one person is treated less favourably than another is, has been, or would be treated in a comparable situation.”

It also prohibits indirect discrimination, defined as when “where an apparently neutral provision, criterion or practice would put persons having a particular religion or belief, a particular disability, a particular age, or a particular sexual orientation at a particular disadvantage compared with other persons.”

General Data Protection Regulation (GDPR)

On May 25, 2018, enforcement of the General Data Protection Regulation (GDPR) begins affecting any company that does business in the European Union (EU).

The GDPR is a comprehensive European data protection law designed to provide EU residents more control and privacy over their personal data.

Whether or not you are geographically located within the EU, the GDPR affects you as long as you are collecting, processing, and storing personal data of people who live there.

Personal data of data subjects includes names, photos, email addresses, bank details, posts on social networking websites, medical information, and even computer IP addresses.

Section 4

How does Ideal’s technology prioritize compliance in the US?

EEOC: US private employers

Ideal integrates directly with your existing ATS.

If your organization collects demographic data on the race, sex, and ethnic group of your applicants in your ATS, Ideal can ignore these demographics during its sourcing, screening, and rediscovery, test for adverse impact based on the 4/5th rule, and remove any potential bias to remain compliant with the EEOC’s hiring discrimination laws.

OFCCP: US federal contractors and subcontractors that fall under affirmative action

Ideal integrates directly with your existing ATS.

Your organization is required to collect demographic data on the race, gender, disability status, and veteran status of your applicants, which is usually captured in your ATS.

Ideal can ignore these demographics during its sourcing, screening, and rediscovery, analyze the conversion rates of these groups, and remove any potential bias to remain compliant with the Department of Labor’s affirmative action programs.

Section 5

How does Ideal’s technology prioritize compliance in Canada?

CHRC: For employers that fall under employment equity

Ideal integrates directly with your existing ATS.

If your organization collects demographic data on your applicants in your ATS, Ideal can ignore these demographics during its sourcing, screening, and rediscovery, analyze the conversion rates of the four designated groups, and remove any potential bias to remain compliant with Canada’s employment equity programs.

Section 6

How does Ideal’s technology prioritize compliance in the EU?

EU: For private and public sector employers

Ideal integrates directly with your existing ATS.

If your organization collects demographic data on your applicants in your ATS, Ideal can ignore these demographics during its sourcing, screening, and rediscovery, analyze the conversion rates for different groups, and remove any potential bias to remain compliant with the EU’s hiring discrimination laws.

GDPR: For employers who collect, process, and store personal data of EU residents

Under the General Data Protection Regulation (GDPR), Ideal is a data processor. Here are the details of how Ideal’s system will maintain compliance with the GDPR.

Screening

Processing resumes and other relevant information is a “legitimate interest” of a company (“controller”) who is trying to evaluate candidates for employment per Article 6; Ideal does not need to obtain consent from job applicants to screen, rank, and grade their resume data and other candidate data.

Ideal’s customers do not need to obtain consent from job applicants to transfer their personal data from the EU to the US or Canada per Article 46; Ideal’s data center holds SOC2, Type II certification.

Ideal has features to allow for the correction or deletion of personal data at predetermined time intervals as well as on-demand from our own systems per Article 17.

Rediscovery

Rediscovery may involve contacting candidates for job opportunities they did not directly apply for.

For the purpose of rediscovery, Ideal will work with software applications (e.g., applicant tracking systems, Human Resources Information Systems) that collect consent from their candidates that includes the ability to be contacted for relevant future job opportunities that they did not explicitly apply for per Article 7.

Candidate Messaging

To remain compliant with the right to restriction per Article 18 and objection to processing per Article 21, Ideal’s candidate messaging feature (e.g., chatbot) allows for job applicants to opt-out at any time.

Compliance In Recruiting:

How Ideal's Technology Prioritizes Compliance