Message from the Editor:
Welcome to another edition of ‘Inside Background Screening’ our new 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
EMPLOYMENT SCREENING
Labor & Employment Law Roundup: 2025 in Review and 2026 Outlook, Part 2 of 2
A new article highlights key 2025 state-level labor and employment law developments and what employers should expect in 2026. States such as New York and others are expanding leave laws, including prenatal care and neonatal care leave, while New York implements new laws like the Trapped at Work Act, Fair Credit Reporting Act amendments, higher minimum wages, and the Secure Choice retirement program. New York City’s new mayor proposes broader worker protections and enforcement changes.
New York State to Restrict Use of Consumer Credit Information in Hiring and Employment
New York has passed a new law (S3072) that will take effect on April 18, 2026, restricting most employers from requesting or using an applicant’s or employee’s consumer credit information in hiring and other employment decisions, making such use an unlawful discriminatory practice under state law. The law defines “consumer credit history” broadly and includes several narrow exemptions for specific roles such as law-enforcement, security-sensitive, or legally required positions. Employers must update screening practices to comply.
Illinois ‘Clean Slate’ Law Allows Automatic Sealing of Nonviolent Criminal Records
Illinois Governor J.B. Pritzker signed the Clean Slate Act, which will automatically seal nonviolent criminal records for millions of residents who’ve completed sentences and met waiting-period requirements. The law makes the sealing process automatic beginning in 2029, covering convictions as well as dismissed or reversed charges, and aims to improve employment and re-entry opportunities. Serious offenses like DUIs and violent crimes remain ineligible, and sealed records won’t be visible in most public background checks.
The Massachusetts Wage Transparency Act: Guidance for Employers
Massachusetts’ Wage Transparency Act requires employers with 25+ employees to disclose salary or hourly pay ranges in all internal and external job postings and to provide this information to applicants and current employees upon request, starting October 29, 2025. Covered employers must also submit workforce demographic (EEO) data if they have 100+ employees. The law prohibits retaliation for requesting pay information, and violations can lead to warnings and fines enforced by the Massachusetts Attorney General.
2026 Fair Chance Hiring: Background Check Compliance Updates
In 2026, fair chance hiring laws expand beyond basic “Ban the Box” rules, requiring employers to delay criminal background inquiries until later in the process and perform individualized assessments when criminal history affects hiring decisions. Employers must document decisions, provide notices, and offer candidates a chance to respond. These evolving requirements, informed by EEOC guidance and state/local laws, aim to reduce discrimination and legal risk while widening talent pools.
New TN Law Creates Repeat Domestic Violence Offender Registry
Tennessee’s Savanna’s Law creates the nation’s first public registry for repeat domestic violence offenders, effective January 1, 2026. The database, maintained by the Tennessee Bureau of Investigation, lists individuals convicted of multiple domestic violence offenses with names, photos, and conviction details. The law honors Deputy Savanna Puckett, who was murdered in 2022 by an abuser with prior convictions. It aims to improve victim safety and public awareness of persistent offenders.
What 2026 Means for Workforce Screening
In 2026, workforce screening is shifting from a routine step to a strategic priority in hiring, with organizations emphasizing security, governance and trust. Employers are increasingly integrating pre- and post-employment checks, enhanced digital identity and social media screening, and rigorous credential verification. AI tools assist but human judgment remains vital. Screening also adapts to “polyamorous employment” and skills-first hiring trends, making screening central to modern HR strategy.
How AI and Human Expertise are Converging to Reshape Modern Background Screening Without Losing Trust or Integrity
Artificial intelligence is transforming background screening by speeding up data analysis and uncovering insights at scale, while human experts provide context, ethical judgment, and oversight to maintain fairness and trust. Combining AI’s efficiency with human review helps enhance accuracy, reduce bias, and ensure compliance with legal standards. This hybrid approach aims to build confidence among employers and candidates without sacrificing integrity in screening practices.
The AI Paradox in Candidate Screening and Vetting
AI in candidate screening is a paradox: it enables sophisticated fraud while also offering tools to detect deception. Many organizations still rely on outdated manual processes and are unprepared for rising AI-driven threats. Employers must adopt AI-driven screening tools alongside human oversight, with continuous monitoring and policy updates to stay ahead of evolving risks.
LEGAL, DRUG & PRIVACY ISSUES
New Florida Law Compels Certain Employers to Include Background Check Resource in Job Listings
A recent Florida law requires certain employers — especially those working with children and vulnerable adults — to include a link to the Agency for Health Care Administration’s (AHCA) background check resource in job postings for roles requiring Level 2 background screening. Employers must update listings and annually maintain AHCA resource information.
The Evolution of Workplace Drug Testing: What Employers Need to Know for 2026
Workplace drug testing is evolving in 2026 due to marijuana rescheduling discussions, expanding legalization, fentanyl risks, and new testing methods. Employers must update policies, coordinate with vendors, and train supervisors to address shifting legal and compliance challenges.
CDL Drug Testing Faces Uncertainty After Trump Executive Order
Rescheduling marijuana to Schedule III could remove it from DOT testing requirements, creating uncertainty for CDL programs. Employers must monitor regulatory guidance closely.
Test Negative: Clear Choice Synthetic Urine Inquiries Surge 300% in January 2026
Inquiries surged as job seekers navigated inconsistent drug testing policies amid expanding cannabis use. The trend highlights regulatory gaps between legalization and employment screening.
2026 Cannabis Predictions: It’s Deja Vu All Over Again?
Federal rescheduling momentum continues, though litigation may slow progress. State markets remain largely unchanged while operators prepare for regulatory shifts.
Marijuana Rescheduling Fact Sheet
The National Drug & Alcohol Screening Association issued a fact sheet clarifying the impact of the December 18, 2025 Executive Order on testing programs.
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.
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