BACKGROUND CHECK AND LICENSE VERIFICATION POLICY

Effective Date: October 1, 2017

1. Introduction

Loconomics Australia has designed this Background Check and License Verification Policy (this “Policy”) with the goal of helping Clients feel at ease when scheduling Service Professionals, while creating work opportunities for Service Professionals that may have been served by our justice system. Loconomics intends to facilitate the provision of Services in a manner that is both informed and fair. In most cases, Background Checks will be done only at the option of the Service Professional, and Loconomics will not perform a Background Check without the consent of the Service Professional. However, for providers of “Sensitive Services,” defined below, Loconomics does require a Background Check. In addition, Loconomics requires License Verification for Service Professionals providing “Licensed Professional Services,” also defined below. The policy for and use of Background Check and License Verification information is detailed in this Policy below.

Information discovered through the Background Check and License Verification processes will be used solely for the purpose of evaluating a Service Professional’s suitability to provide Sensitive Services, Licensed Professional Services, or other Services. It will not be used to discriminate against a Service Professional on the basis of race, color, religion/creed, sex/gender, age, sexual orientation, gender identity/expression, national origin, genetic information, marital/familial status, disability, military, veteran status, or any other classification protected by law.

2. Definitions

The “Authorized Initiator” is the person(s) formally designated by Loconomics as authorized to initiate Background Checks and License Verifications with Loconomics’ Background Researcher. The Authorized Initiator oversees the Background Check process, by managing Loconomics’ Background Researcher, informing the Background Researcher of the identities of people for whom it wishes to run Background Checks and License Verification, making decisions regarding what type of Background Check and License Verification is appropriate, interpreting Background Check and License Verification records once provided by the Background Researcher and displaying information using the Red/Yellow/Green Tiering system described in this Policy, including determining whether a Service Professional is eligible to provide Sensitive Services or Licensed Professional Services.

A “Background Check” is defined as carrying out any one or more of the following on a Service Professional:

• a) criminal background check;

• b) license/certification history check;

• c) verbally confirming references or employment;

• d) educational history check;

• e) sex and/or violent offender check;

• f) healthcare sanctions check

• g) credit history check; or

• h) others.

The nature and scope of the Background Check will vary on a position-by-position basis and will be determined at Loconomics’ sole discretion.

A “Background Researcher” is either

• a) a third-party vendor (which, as of October 2017, is HireRight) chosen by Loconomics to conduct Background Checks or License Verification, or

• b) a Loconomics staff member tasked with conducting License Verification.

A “Service Professional” is defined as a person who has created a User Account to provide Services through the Loconomics Service.

“Licensed Professional Services” are defined as services for which a Service Professional’s state imposes licensure, certification, registration, or similar requirements upon the persons who perform these services.

A “License Verification” is defined as carrying out research to verify that a Service Professional has any legally required professional license, certification, or registration required in connection with the type of Services to be offered by the Service Professional.

“Sensitive Services” are defined as services offered to and specifically targeting vulnerable persons, such as those involving care for children, persons with disabilities, and the elderly. The mere offering of Services to the general public, including the elderly, children, and persons with disabilities, does not make the Services Sensitive Services. Rather, Services specifically targeted at these vulnerable populations are Sensitive Services. Loconomics shall have sole discretion to determine which Services offered via its Service constitute Sensitive Services.

3. Required Background Checks

Sensitive Services.

Background Checks are required for any Service Professional offering to provide Sensitive Services via the Loconomics Service.

• a) The Background Check shall be carried out in accordance with the procedures outlined in this Policy.

• b) Loconomics shall publicly post the results of the Background Check only in summary form, utilizing the Red/Yellow/Green tiering system described below in order to provide Clients information upon which to make informed decisions. In no event shall Loconomics post specific information regarding the results of the Background Check (e.g., Loconomics shall not post any information about specific offenses committed or the particular type of conviction involved). Loconomics shall consider the Service Professional’s privacy at all times when posting the results of the Background Check.

• c) Any Service Professional who does not wish to undergo a Background Check may inform Loconomics that the Service Professional no longer wishes to provide Sensitive Services via the Loconomics Service by e-mailing support@@loconomics.com.au or submitting a help ticket.

Procedures for Carrying out a Background Check in Connection with the Provision of Sensitive Services.

• a) Service Professionals will be notified at the time they indicate their intent to provide Sensitive Services that they must successfully pass a Background Check prior to offering to provide Sensitive Services via the Loconomics Service.

• b) Background Checks will be conducted in accordance with applicable law. Once a Service Professional indicates their intent to provide Sensitive Services, Loconomics or appointed third-party vendor will provide the Service Professional an authorization form in accordance with the Fair Credit Reporting Act (FCRA) and/or California Investigative Consumer Reporting Agencies Act (ICRAA) or other similar laws in other states, if applicable. If requested, the Service Professional will be provided a copy of this Background Check policy. Any Service Professional who refuses to sign and return this authorization form consenting to a Background Check, refuses to provide information necessary to conduct the Background Check, or provides false or misleading information will not be permitted to offer to provide Sensitive Services.

• c) Upon receiving the Service Professional’s signed authorization form, the Background Check will be initiated by the Authorized Initiator. All Background Checks will be conducted by a third party service provider (the “Vendor”) at the direction of the Authorized Initiator.

• d) Upon completion of the Background Check, the Vendor will forward the results to the Authorized Initiator. The Vendor shall also inform the Service Professional of the results, provide the Service Professional an opportunity to review the report, and inform the Service Professional of their rights under the Fair Credit Reporting Act and the California Investigative Consumer Reporting Act, or similar laws in other states, if applicable.

• e) The Authorized Initiator will review the results in accordance with the Red/Yellow/Green Tier guidelines described below, provide Pre-Adverse Action Notices and/or Adverse Actions Notices as may be required below, and will make the final determination as to the Red/Yellow/Green Tier assigned to the Service Professional on the Service Professional’s profile page. If a Service Professional receives a Red Tier rating, the Service Professional may not offer to provide Sensitive Services via the Loconomics Service. The Service Professional may, however, offer to provide non-Sensitive Services via the Loconomics Service.

• f) The Loconomics online Service shall not permit a Service Professional to create a listing offering to provide Sensitive Services unless that Service Professional has passed a Background Check with satisfactory results. If the Service Professional attempts to create a listing offering to provide Sensitive Services without having undergone a Background Check, the Loconomics online Service will not permit the Service Professional to create this listing and will instruct the Service Professional as to the Background Check requirement. If the Service Professional attempts to add a category of Sensitive Services to that Service Professional’s profile page, the Loconomics online Service will block the Service Professional from offering these Sensitive Services via the Loconomics online Service.

4. Discretionary Background Checks

Service Professionals not Providing Sensitive Services.

If a Service Professional is not required to undergo a Background Check as described in Section 3, the Service Professional may voluntarily choose to complete a Background Check. Background Checks may be required for Service Professionals at the discretion of Loconomics for any Service Professional or position not otherwise defined herein for any reason and at any time. In the event that a discretionary Background Check is carried out, the Service Professional may choose to withdraw as a Service Professional from Loconomics if the Service Professional does not wish to undergo or share results of a Background Check. If the Service Professional opts to the complete the Background Check, Loconomics shall publicly post the results of the Background Check in summary form, utilizing the “Red/Yellow/Green” tiering system described below in order to provide Clients information upon which to make informed decisions. In no event shall Loconomics post specific information regarding the results of the Background Check (e.g., Loconomics shall not post any information about specific offenses committed or the particular type of conviction involved). Loconomics shall consider the Service Professional’s privacy at all times when posting the results of the Background Check.

5. Required License Verification

Licensed Professional Services.

License Verification is required for any Service Professional seeking to provide Licensed Professional Services.

• a) The License Verification shall be carried out in accordance with the procedures outlined in this Policy.

• b) The License Verification may involve the verification of a professional license, certification, or registration.

• c) Loconomics shall either (a) publicly post or link to the results of the License Verification in summary form; or (b) publicly post the results of the License Verification in summary form, utilizing the Red/Yellow/Green tiering system described below in order to provide Clients information upon which to make informed decisions.

• d) Any Service Professional who does not wish to undergo a License Verification may inform Loconomics that the Service Professional no longer wishes to provide Licensed Professional Services via the Loconomics Service by e-mailing support@@loconomics.com.au or submitting a help ticket.

Procedures for Carrying out a License Verification in Connection with the Provision of Licensed Professional Services.

• a) Service Professionals will be notified at the time they indicate their intent to provide Licensed Professional Services that Loconomics will carry out a License Verification. Service Professionals are required to disclose all required professional licenses, certifications, or registrations to Loconomics, and failure to do so may serve as the basis for Loconomics to terminate the Service Professionals’ User Account or to take other action Loconomics deems appropriate to protect Loconomics and its Clients.

• b) Loconomics shall verify that any license or certificate required by law and issued to a Service Professional is valid and unexpired and that the Service Professional is in good standing with the Licensed Professional Services’ regulatory board(s).

• c) Loconomics’ reliance on publicly available, online information posted by the relevant professional’s regulatory board shall be considered reasonable and sufficient to meet the requirements for the Background Check for Service Professionals offering Licensed Professional Services.

6. Timing

• a) A Background Check or License Verification is not required as a prerequisite of registering to offer Services through the Loconomics Service.

• b) A required Background Check shall be carried out prior to the time at which a Service Professional offers to provide any Sensitive Services via the Loconomics Service.

• c) A required License Verification shall be carried out prior to the time at which a Service Professional offers to provide any Licensed Professional Services via the Loconomics Service.

• d) A discretionary Background Check may be required by Loconomics at any time, but a Service Professional has the right to dissociate from using the Loconomics Service if the Service Professional does not wish to undergo the discretionary Background Check.

• e) Service Professionals who have a completed an initial Background Check are not required to have an additional Background Check performed unless they do not provide any Services via the Loconomics Service for more than 2 years, or unless otherwise required by Loconomics, at their sole discretion.

7. Red/Yellow/Green Tiering System

Results from a Background Check or License Verification will be considered in the following manner:

• a) Automatic Green Tier. If the results of the Service Professional’s Background Check show no flagged items or only minor traffic violations, the Service Professional shall be ranked in the “Green Tier.” If the results of the Service Professional’s License Verification show that all relevant certifications, licenses, and registrations are in current and in good standing, the Service Professional shall be ranked in the “Green Tier.”

• b) Presumptive Red Tier. If the results of the Service Professional’s Background Check show that the Service Professional has been convicted of an offense involving serious violent acts, or child or persons with disabilities or elder abuse (excluding statutory rape offenses), then the Service Professional shall presumptively be ranked in the “Red Tier,” subject to the Pre-Adverse Action Procedures described below. The Service Professional shall not be permitted to offer to provide Sensitive Services unless the Service Professional demonstrates a compelling reason why such a “Red Tier” ranking is inappropriate. In the event that the Service Professional is assigned a “Red Tier” ranking, the Service Professional may offer to provide non-Sensitive Services, but Loconomics shall post the “Red Tier” notation assigned to the Service Professional on the Service Professional’s profile page (either directly or accessible by link).

• c) Yellow Tier. For Service Professionals who, after a Background Check, are not ranked as a Presumptive Red Tier or Automatic Green Tier, Loconomics will conduct a case-by-base review pursuant to the procedures outlined in section (d) below. After conducting this review, if Loconomics believes that the Service Professional’s suitability to offer Sensitive Services is below-average, but that the Service Professional should be permitted to offer these Sensitive Services, then Loconomics shall assign the Service Professional a “Yellow Tier” ranking in order to aid Clients in making informed decisions, subject to the Pre-Adverse Action Procedures described below.

• d) Case-By-Case Consideration. For Service Professionals who, after a Background Check, are not ranked as a presumptive Red Tier or Automatic Green Tier, determination of the Service Professional’s suitability to offer Sensitive Services will be made on a case-to-case basis and in accordance with applicable law. Loconomics’ consideration shall include, but not be limited to, the following factors:

• Number of offenses or misconduct and the circumstances of each;

• Length of time between the offense or misconduct and the time at which the Background Check is carried out;

• Age of Service Professional at the time of the offense;

• Other employment history;

• Evidence of rehabilitation efforts (or lack thereof);

• Severity and specific circumstances of the offense or misconduct;

• The relevance of the offense or misconduct to responsibilities of the position;

• Nature of work to be performed;

• Whether the Service Professional has pending charges; and

• Any other relevant information, including information submitted by the Service Professional or requested by the Authorized Initiator.

• Once Loconomics has considered the offenses in light of the factors above, Loconomics will determine whether the Service Professional should be assigned the ranking of Red Tier (meaning that the Service Professional is prohibited from offering Sensitive Services), Yellow Tier (meaning that the Service Professional may offer Sensitive Services, but that the Service Professional’s suitability for offering such services is below average), or Green Tier (meaning that the Service Professional’s Background Check showed no indication that the Service Professional is unsuitable to offer Sensitive Services).

• e) Arrest Information. Loconomics will not consider arrest information unless the arrest resulted in pending criminal charges. In such circumstances, Loconomics will contact the Service Professional, and may contact other parties to obtain further information in order to assess reliability of the charge information. Loconomics will consider any information revealed regarding convictions, although a Conviction (defined as a guilty verdict, a guilty plea, or a pleas of Nolo Contendere of felony or misdemeanor, other than minor traffic offenses) shall not automatically preclude the individual from offering Sensitive Services or obtaining a “Green Tier” ranking.

• f) Assignment of Tier Ranking, Pre-Adverse Action Notices, and Adverse Action Notices. After the Authorized Initiator has evaluated the results in accordance with the guidelines above, the Authorized Initiator shall assign the Service Professional a Red, Yellow, or Green Tier ranking. If a “Yellow Tier” or “Red Tier” ranking is assigned, Loconomics shall follow the procedures described below with respect to Pre-Adverse Action Notice and Adverse Action Notice. The tier ranking shall be posted or linked to on the Service Professional’s profile page along with an explanation as to the meaning of the ranking. This explanation may entail a general overview as to the types of offenses that might justify the ranking, but the explanation shall not include detail as to the particular offenses committed by the Service Professional or otherwise inappropriately disclose the Service Professional’s private information.

• g) Failure to Show Necessary License/Certification/Registration. If the results of a License Verification show that the Service Professional lacks any license, certification, and/or registration required in connection with Licensed Professional Services to be offered, then the Service Professional shall not be permitted to offer Licensed Professional Services unless the Service Professional provides information clearly confirming the existence and good standing of such license, certification, and/or registration. In the event that the Service Professional fails to show any required such license, certification, and/or registration, the Service Professional may offer to provide Services other than Licensed Professional Services.

• h) Pre-Adverse Action Notices. To the extent required by applicable law, Loconomics will notify the Service Professional in writing that adverse information was revealed during the Background Check or License Verification process that may impact the Service Professional’s ability to offer to provide services. Loconomics will provide a copy of the supporting Background Check or License Verification report to the Service Professional along with a copy of “A Summary of Your Rights Under the Fair Credit Reporting Act.” The Service Professional will be given no less than five days to challenge the information provided in the report and take steps to correct inaccuracies or provide explanation.
  A final adverse decision will not be made until the Service Professional’s new information has been considered or such time that the Service Professional fails to respond as required.

• i) Pre-Adverse Action Notices. To the extent required by applicable law, Loconomics will notify the Service Professional in writing that adverse information was revealed during the Background Check or License Verification process that may impact the Service Professional’s ability to offer to provide services. Loconomics will provide a copy of the supporting Background Check or License Verification report to the Service Professional along with a copy of “A Summary of Your Rights Under the Fair Credit Reporting Act.” The Service Professional will be given no less than five days to challenge the information provided in the report and take steps to correct inaccuracies or provide explanation.

• j) Adverse Action Notice. If, after considering the Service Professional’s response, Loconomics determines that the negative information revealed results in an adverse decision (e.g., that the Service Professional cannot offer to provide Sensitive Services, or that the Service Professional will be assigned a “Yellow Tier” or “Red Tier” ranking), a second written notification will be sent to the Service Professional. This notice shall include the following:

• The name, address, and phone number of the vendor Consumer Report Agency (CRA) that supplied the report;

• A statement that the CRA supplying the report did not make the decision to take the adverse action and cannot give specific reasons for it; and

• A notice of the Service Professional’s right to dispute the accuracy or completeness of any information the CRA 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.

8. Responsibility for Costs

Service Professionals may be responsible for the costs associated with one Background Check each for offering to provide Sensitive Services. Service Professionals offering Licensed Professional Services may be responsible for the costs, if any, associated with License Verification. Should the Service Professional wish to carry out any further Background Checks, the Service Professional shall be solely responsible for the costs associated with such additional Background Checks. Loconomics shall clearly post on its Fees page whether Service Professionals are responsible for any fees associated with Background Checks and License Verification, and, if so, the amounts of such fees.

9. Ongoing Self-Disclosure Requirements

All Service Professionals providing Sensitive Services and/or who opted into a discretionary Background Check are required to self-disclose to Loconomics all post-Background Check criminal convictions or felony charges filed against them that occur on or after the date they become a Service Professional within three business days of the Conviction or felony charge. All Service Professionals offering Licensed Professional Services are required to fully and accurately disclose to Loconomics any changes to their professional licenses, certifications, and registrations.

10. Disclaimer and Limitation of Liability

Loconomics cannot and does not assume any responsibility for the accuracy or reliability of Background Check and License Verification information, the Tier System, and the decisions made thereunder, or any other information provided by or about Service Professionals. The scope of Background Checks and License Verification is limited and any information that is provided to Clients by Service Professionals, including but not limited to educational background, skill-level, and other self-descriptive information is offered on a solely volunteer basis by each Service Professional and is not verified by Loconomics unless specifically stated otherwise. Loconomics does not endorse any self-descriptive statements by Service Professionals and does not confirm nor deny the accuracy of these statements unless otherwise noted. BACKGROUND CHECK AND LICENSE VERIFICATION INFORMATION IS PROVIDED AS A COURTESY TO CLIENTS AND SHALL BE USED AT CLIENT’S OWN RISK. NEITHER LOCONOMICS NOR ITS AFFILIATES OR LICENSORS IS RESPONSIBLE FOR THE CONDUCT, WHETHER ONLINE OR OFFLINE, OF ANY SERVICE PROFESSIONAL OR CLIENT OF THE SERVICE AND YOU HEREBY RELEASE LOCONOMICS AND ITS AFFILIATES OR LICENSORS FROM ANY LIABILITY RELATED THERETO. LOCONOMICS AND ITS AFFILIATES AND LICENSORS SHALL NOT BE LIABLE FOR ANY CLAIM, INJURY, DAMAGE, OR LOSS INCLUDING BUT NOT LIMITED TO NEGLIGENT, INTENTIONAL, AND OTHER TORTIOUS OR CRIMINAL ACTS, ARISING IN CONNECTION WITH YOUR USE OF THE SERVICE WHEN COMMITTED BY ANY SERVICE PROFESSIONAL OR CLIENT OF THE SERVICE. NEITHER LOCONOMICS NOR ITS AFFILIATES OR LICENSORS SHALL BE LIABLE FOR ANY CLAIM, INJURY, DAMAGE, OR LOSS SUSTAINED BY SERVICE PROFESSIONALS IN CONNECTION WITH CLIENTS’ USE OF THE BACKGROUND CHECKS, TIER RESULTS, OR OTHER SUMMARY INFORMATION, INCLUDING MISUSE OR DISTRIBUTION OF THESE RESULTS BY CLIENTS. NEITHER LOCONOMICS NOR ITS AFFILIATES OR LICENSORS SHALL BE LIABLE FOR ANY CLAIM, INJURY, DAMAGE, OR LOSS SUSTAINED BY SERVICE PROFESSIONALS IN CONNECTION WITH LOCONOMICS’ DETERMINATION OF TIER RANKING OR PUBLICATION OF A SUMMARY OF BACKGROUND CHECK OR LICENSE VERIFICATION INFORMATION. NEITHER LOCONOMICS NOR ITS AFFILIATES OR LICENSORS SHALL BE LIABLE FOR ANY CLAIM, INJURY, DAMAGE, OR LOSS SUSTAINED BY CLIENT RESULTING FROM INACCURATE OR INCOMPLETE BACKGROUND CHECKS OR LICENSE VERIFICATION, MISREPORTED TIER RESULTS, OR ANY OTHER INACCURATE OR INCOMPLETE SUMMARY INFORMATION PROVIDED TO A CLIENT OR TO THE PUBLIC.

Loconomics reserves the right to modify this Background Check Policy in whole or in part at any time. This Policy is intended as a guideline to assist in the consistent application of Loconomics’ policies and programs for Service Professionals. This policy does not create a contract, express or otherwise, with any Service Professional. Disqualification of a candidate based on information discovered in the Background Check is not subject to grievance or appeal by the Service Professional.