August 2025
Message from the Editor
Welcome to another edition of Inside Background Screening, our newsletter. Our goal is to bring to you cutting-edge news and information about what is happening in the background screening world to help keep you informed and to position you to make the best possible hiring decisions.
We hope you enjoy Inside Background Screening and that you will share your interest and thoughts with us.
Lorenzo
Lorenzo Pugliano
CEO
Lpugliano@nsshire.com
Minneapolis and Washington State Impose ‘Fair Chance’ Requirements on Employers That Consider Criminal History
Minneapolis and Washington State have expanded fair-chance laws to restrict how employers use criminal history in hiring and employment actions. Starting Aug. 1, 2025, Minneapolis bars employers from making decisions based on “justice-impacted status” unless they can justify it with a six-factor individualized assessment. Washington’s amended law, effective July 1, 2026 (for large employers; smaller ones by Jan 1, 2027), requires employers to wait until a conditional job offer before considering criminal history, conduct written assessments, and avoid blanket exclusions.
Read more
Black Workers Sue Walmart, Alleging Discriminatory Background Check Practices
A new class-action lawsuit alleges Walmart’s criminal background check policy disproportionately excludes Black and Latinx job applicants, even when convictions are old or unrelated to the role. The complaint argues the company applies broad, centralized screening without assessing rehabilitation, mitigating circumstances, or job relevance. One plaintiff reportedly completed internships and had supervisor endorsements yet still lost the job. Advocates say the policy perpetuates racial disparities and violates Title VII and state anti-discrimination laws.
Read more
Florida’s HB 975’s New Background Screening Requirement
As of July 1, 2025, Florida will require Level 2 fingerprint-based background checks for most health care practitioners, both new applicants and those renewing licenses, to comply with HB 975. The law expands screening to previously exempt professions, centralizes results in the state’s Care Provider Background Screening Clearinghouse, and enables ongoing monitoring via Rap Back. Failure to complete these checks will prevent license issuance or renewal.
Read more
Minnesota Department of Education to Strengthen Hiring Practices — After Alpha News Reports
A convicted sex offender was previously employed in a high-ranking auditing role at Minnesota’s Department of Education, sparking controversy. After the hire was revealed, the department dismissed him and pledged new safeguards. Effective immediately, all new hires must undergo criminal background checks, with enhanced policies in development to protect student data and sensitive operations. Officials cited the need for stricter oversight following external reporting and legislative scrutiny.
Read more
Washington Overhauls Employment Laws on Reductions in Force and Background Checks
Washington State has enacted significant changes to its employment laws, effective July 27, 2025. The new “mini-WARN” Act requires employers with 50 or more employees to provide 60 days’ notice before mass layoffs or business closures, aligning with federal standards but with stricter provisions. Additionally, amendments to the Fair Chance Act, effective July 1, 2026, restrict when and how employers can consider criminal history in hiring decisions, aiming to reduce employment barriers for individuals with past convictions.
Read more
June 2025 FCRA Complaints and Lawsuits Stats
In June, FCRA cases decreased by (-1.2%). Year to date trends, FCRA (+15.8%) up from last year.
In other news, putative class actions represented 9% of FCRA lawsuits filed last month.
Complaint Statistics: 661 FCRA, 6 FCRA Class Action (0.9%) increase
Statistics Year to Date: 3,752 FCRA total lawsuits for 2025.
Source: Webrecon
Washington’s Amended Fair Chance Act Will Impose Additional Obligations on Covered Employers
Washington State’s amended Fair Chance Act, effective July 1, 2026, introduces significant changes for employers regarding criminal background checks. Employers must now wait until after extending a conditional job offer before inquiring about criminal history. They are prohibited from taking adverse actions based solely on arrest records or juvenile convictions. If considering an adverse action based on adult convictions, employers must conduct an individualized assessment and provide written notices, including the opportunity for applicants to respond. Penalties for noncompliance have increased, with fines escalating for repeated violations.
Read more
1 in 343 Job Applicants is Now a Fake from North Korea, This Security Company Says
Roughly one in every 343 job applicants is a fabricated profile linked to North Korea, according to a security firm. These fake candidates often use AI-generated résumés, stolen or fake identities, and even deepfake technology to pass interviews. Once hired remotely, they funnel salaries to Pyongyang and may engage in espionage, deploy malware, or steal data. Experts warn companies to enforce stringent identity and video verification to prevent breaches and support sanctions enforcement.
Read more
(continued in next message)
(continued – August 2025 Newsletter for WordPress Gutenberg)
Mass. Teacher Arrested, Accused of Faking Degrees and Military History
A Massachusetts teacher, Lissa Lagasse, 57, has been arraigned on 21 charges including falsifying undergraduate and graduate degrees, claiming combat veteran status and a Purple Heart, and identity fraud. Prosecutors say she used those fabricated credentials to secure jobs in Lowell, Worcester, and Haverhill. Additional allegations include reckless child endangerment tied to an incident involving an uncertified “service” dog, procurement fraud, larceny, and witness intimidation. Bail is set at $25,000 with GPS-monitored home confinement and a hearing on July 28.
Read more
Employers Warned as AI Drives Rise in CV Fraud
A significant rise in CV fraud linked to AI tools has been reported across UK businesses. According to research by Hedd, 67 percent of large companies have observed an increase in job application fraud, attributing it to AI tools used to enhance or fabricate experience or qualifications. Nearly half (45 percent) of large companies discovered that applicants had provided false information about their qualifications, such as claiming degrees they did not earn or inflating grades. Experts urge employers to review their recruitment policies and implement secure verification processes to combat this growing issue.
Read more
Medical Marijuana Eligibility Could Soon Expand in Texas. Here’s What’s Included in HB 46
Texas Gov. Greg Abbott vetoed Senate Bill 3, which sought to ban all THC products, including delta-8 THC, preserving the state’s multibillion-dollar hemp industry. The veto came just before the legal deadline. Senate Bill 3, strongly supported by Lt. Gov. Dan Patrick and backed by law enforcement and some medical and education professionals, would have criminalized the possession, sale, and manufacture of THC products. Delta-8 THC, a less psychoactive variant of traditional cannabis legalized in Texas in 2019, is often used with CBD for therapeutic purposes.
Read more
Legislation Seeks to Add Hair Drug Tests to FMCSA’s Database
A bill introduced on July 10, 2025, H.R. 4320, the Drug & Alcohol Clearinghouse Public Safety Improvement Act, would allow positive hair drug test results to be entered into the FMCSA Drug & Alcohol Clearinghouse. Proponents, including the Trucking Alliance, argue hair testing detects drug use up to 90 days and closes safety gaps. Opponents like OOIDA counter that hair tests may be racially biased and less effective at detecting recent use.
Read more
Oral Fluid Tests Are Not Valid Indicators of Cannabis Exposure or Impairment
Oral fluid (saliva) testing is not a valid measure of cannabis impairment or timing of use. A meta-analysis of seven clinical trials (116 participants) found highly inconsistent THC levels, even among people consuming identical amounts, making these tests unreliable for determining recent use or impairment. In contrast to breathalyzers for alcohol, saliva tests often flag users long after effects have faded, leading to false positives and misclassification.
Read more
Blockchain Employment Verifications Still Faces an Uphill Battle
Blockchain technology is advancing in employment verification, offering tamper-proof records and faster processing. By addressing issues like data inaccuracies and fraud, it enhances trust and efficiency in hiring. However, challenges remain, including integration complexities, data privacy concerns, and the need for industry-wide standards. Despite these hurdles, blockchain’s potential to revolutionize background checks is evident, and ongoing efforts aim to overcome these obstacles for broader adoption in the hiring process.
Read more
(final part next…)
(final part – August 2025 Newsletter for WordPress Gutenberg)
Chicago Lifeguard Who Allegedly Shot Teens Passed All Background Checks
A Chicago Park District lifeguard, Charles Leto, 55, has been charged with first-degree murder and attempted murder after shooting two unarmed teenagers at Douglass Park on June 26, killing 15-year-old Marjay Dotson and critically wounding 14-year-old Jeremy Herred. Leto resigned immediately and is barred from future rehiring. An internal review exposed failures in documenting prior complaints and employee behavior. In response, the district is implementing reforms including enhanced training, centralized incident reporting, permanent park security, and community safety planning.
Read more
Legal Landscape for AI Use in Candidate Recruiting and Screening Is Changing
Employers using AI in hiring face increasing legal scrutiny. A California lawsuit alleges Workday’s AI tool discriminated against a candidate based on race, age, and disability, with the court allowing the case to proceed under Title VII, ADEA, and ADA. States like Colorado and Illinois are enacting laws requiring transparency and anti-discrimination measures in AI hiring practices. HR departments must ensure their AI tools comply with evolving regulations to mitigate legal risks.
Read more
Washington Overhauls Employment Laws on Reductions in Force and Background Checks
Washington State has enacted significant employment law changes affecting reductions in force (RIFs) and background checks. Effective July 27, 2025, the new “mini-WARN” law requires employers with 50 or more employees to provide 60 days’ notice before mass layoffs or business closures, mirroring federal WARN Act provisions but with broader protections, including restrictions on layoffs during Paid Family and Medical Leave. Additionally, HB 1747 amends the Fair Chance Act, delaying criminal background checks until after a conditional job offer and limiting adverse actions based on criminal history.
Read more
E-Verify Users Must Now Generate Status Change Reports to Identify Terminated Work Authorizations
Employers enrolled in E-Verify are now required to regularly generate the new Status Change Report, launched June 20, 2025, to identify employees whose Employment Authorization Documents (EADs) have been revoked by DHS, especially for CHNV parolees. Upon detection, employers must reverify via Form I-9 Supplement B using a new valid List A or C document. Employers bear the compliance burden and must protect sensitive data in the report.
Read more
Disclaimer: All information presented is for information purposes only and is not intended to provide professional or legal advice regarding actions to take in any situation. Nationwide Screening Services makes no representations for any products or services that are mentioned and accepts no responsibility for any actions or consequences taken without the guidance of a licensed attorney or professional consultant.
We would love to hear from you.
Email us at info@nsshire.com
