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 Pugliano CEO


Baton Rouge Contractors Now Require to ‘Ban the Box,’ Intended to Give ExConvicts Job Opportunities  

A new ordinance in Baton Rouge bars contractors and sub-contractors doing work with the city-parish from asking job applicants about their criminal history until late in the hiring process. Background checks are still permitted, but not until after making a conditional offer of employment. If the offenses have nothing to do with the work to be performed, employers are encouraged to hire people with criminal records.  

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Chicago Enacts Amendments to and Expands Requirements of its Criminal History Screening Ordinance  

The City of Chicago has published and amended ban-the-box ordinance that takes immediate effect, 1. Creating a new individualized assessment requirement, 2. Requiring a pre-adverse and final adverse action notice when employers are assessing criminal records and 3. Requires additional language in an adverse action notice.  

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ADP Background Check Allegedly Incorrectly Reported Job Seeker Was a Drug Dealer, Lawsuit Claims  

A lawsuit has been filed against ADP’s background-check screening arm alleging a violation of the Fair Credit Reporting Act (FCRA) when it incorrectly reported a Connecticut job seeker was a convicted drug dealer. The individual applied for a position at a Connecticut dental practice, and he was offered the job contingent on a successful background check. ADP Screening and Selection Services violated the FCRA when it failed to “follow reasonable procedures to assure maximum possible accuracy.”  Read more  

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Processing Sensitive Personal Information Under U.S. State Privacy Laws  

There are now nine states that have passed comprehensive privacy laws or have plans to put laws into effect soon. Each of the states have adopted three different approaches to processing sensitive personal information (SPI). California residents have the right to limit the use of SPI, six states require data protection assessments and opt-in consent before processing SPI and two states require the consumer be provided a clear notice and the right to opt out.  

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Tennessee Information Protection Act with NIST Security Standards Enacted  

Tennessee has become the eighth state to enact a comprehensive consumer data privacy law. Effective July 1, 2024, controllers and processors must create, maintain, and comply with a written privacy program that reasonably conforms to the National Institute of Standards and Technology (NIST) Privacy Framework.  

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Indiana Enacts Comprehensive Consumer Data Privacy Laws  

Senate Bill 5 has been signed in Indiana, making it the seventh state to enact a comprehensive consumer data privacy law. The law applies to any person that conducts business in Indiana or produces products or services that are marketed to residents of Indiana and that during a calendar year 1. Controls or processes personal data of at least 100,000 consumers who are Indiana residents or 2. Controls or processes personal data of at least 25,000 consumers who are Indiana residents and derives more than 50% of gross revenue from the sale of personal data.  

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Latest Setback for the EU-US Data Privacy Framework  

The Members of European Parliament (MEPs) have voted to reject the DPF and urged the European Commission not to endorse it until fundamental rights concerns are fully addressed. On May 11, the Parliament voted 306 in favour and 27 against for a resolution opposing the adoption of a US adequacy decision under the DPF.  

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Montana Governor Signs Big Sky’s Privacy Law  

Montana now has a comprehensive privacy law, which will go into effect Oct. 24, 2024. Key provisions of the law include notice, consumer rights, sensitive personal data, contracts, and enforcement. There is a long list of exemptions, including entities covered by HIPAA and GLBA.  

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Newly Passed Florida Privacy Law Bill  

The Florida Digital Bill of Rights has been passed in Florida, which, if signed by the governor, would make it the ninth state of the Union to enact its own comprehensive consumer privacy law. The primary purpose of SB 262 is to provide Florida consumers with many of the rights that residents of other states with existing comprehensive privacy laws enjoy.   

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State of US State Privacy Legislation 

State-level momentum for comprehensive privacy bills is at an all-time high. The IAPP Westin Research Center actively tracks the proposed and enacted comprehensive privacy bills from across the United States to help our members stay informed of the changing state privacy landscape. Please note these resources only include those bills intended to be comprehensive approaches to governing the use of personal information. Industry, informationspecific, or narrowly scoped bills (e.g., data security bills) are not included.

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5 Things Kentucky Employers Need to Know About the State’s New Medical Cannabis Law  

Kentucky has legalized medicinal cannabis; however, its reach is limited. Qualifying medical conditions are not expansive and the law provides for strict regulation of the industry by the Cabinet for Health and Family Services. Employers are not required to permit or accommodate the use of cannabis and may prohibit employees from using equipment, machinery, or power tools if an unreasonable safety risk is believed to be present.

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Delaware Legalizes Recreational Marijuana  

Delaware has legalized recreational marijuana, making it legal for individuals who are 21 years of age of older to possess and use up to one ounce of marijuana. Nothing in the law is “intended to impact or impose any requirement or restriction on employers with respect to terms and conditions of employment including but not limited to accommodation, policies or discipline.” 

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Drug Testing Companies Agree to Collectively Pay $1.7 Million to Resolve    False Claims Act Allegations  

Blue Waters Assessment and Testing Services, LLC, and VerraLab JA, LLC, (doing business as BioTap Medical) have agreed to collectively pay $1,740,620 to resolve civil allegations that they improperly billed urine drug tests to Medicare and Kentucky Medicaid. Doing so violated the False Claims Act, a federal law that prohibits the submission of false or fraudulent claims for payment to the federal government.  

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Federal Railroad Administration Drug Testing Requirements for Contractors  

The Federal Railroad Administration has updated its existing alcohol and drug testing regulations and expanded the requirements to now cover Mechanical Employee as of March 4, 2022. The expansion of DOT FRA Park 219 includes contractors, suppliers and vendors and increases the requirements for contractors to be compliant to work in the railroad industry.  

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How to Handle Drug or Alcohol Impairment in the Workplace?  

With marijuana laws changing across the country, it can be hard for employers to determine whether an employee is impaired at work. Employers can take a few steps to ensure compliance with the Americans with Disabilities Act, while also keeping the workplace safe. The first step is to have a clear policy, which is distributed to all employees and posted in the workplace that prohibits employees from working while impaired. They should also implement their policy and have an evaluation and testing protocol in place.  

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Kentucky’s New Medical Marijuana Law: What Employers Need to Know And do

Senate Bill 47 was recently signed into law in Kentucky, legalizing marijuana in the state for the treatment of certain medical conditions. Employers will have substantial legal safeguards that allow them to restrict the use of medical marijuana in the workplace.  

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Washington State to Bar Employers from Relying on Off-Duty Use of  Marijuana in Hiring Decisions  

Effective Jan. 1, 2024, Washington’s SB 5123 will prohibit employers from making hiring decisions based on off-duty use of cannabis or positive pre-employment drug test results that find an applicant to have nonpsychoative cannabis metabolites in their hair, blood, urine, or other bodily fluids. The law does not prohibit employers

from basing initial hiring decisions on scientifically valid drug screening conducted through methods that do not screen for nonpsychoactive cannabis metabolites.  Page 2

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Clearing the Haze: The Method and the Madness Behind the New Cannabis  Law in California and Washington  

California has amended its primary employment discrimination law to specifically regulate the drug testing methodologies that employers may use during hiring, termination, and other employment decisions relating to cannabis users. In addition, effective Jan. 1, 2024, a Washington employer cannot discriminate against a person in the initial hiring for employment if the discrimination is based on cannabis use off the job and away from the workplace or an employer-required drug test that has found the person to have nonpsychoactive cannabis metabolites in their hair, blood or urine or other bodily fluids.  

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Florida Passes EVerify for Private Employers

The Florida Legislature has passed a bill that, if enacted, will require private employers with 25 or more employees to use the federal E-Verify system to verify the employment eligibility of newly hired employees beginning July 1, 2023. The bill, SB 1718, is expected to be signed into law by Governor Ron DeSantis.

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Illinois Legislature Advances Proposed Amendment to Right to Privacy in the Workplace Act  

The Illinois legislature passed Senate Bill 1515, which would amend the Illinois Right to Privacy in the Workplace Act to mandate a specified process employers would need to follow if they choose to take an adverse employment action against an employee after receiving notice from any Employment Eligibility Verification Systems of a discrepancy between an employee’s name or social security number.  

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FTC Issues Policy Statement on Biometric Information and Section 5 of the FTC Act to Address Concerns About Misuse               

The Federal Trade Commission has issued a policy statement warning that the use of consumer biometric information and related technologies raises “significant concerns” regarding privacy, data, security, and bias and discrimination. The statement also clarifies the FTC’s commitment to addressing unfair or deceptive acts and practices related to biometric information.  

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US FTC Posts 6-Point Biometrics Policy to Protect Customers   

The Federal Trade Commission has published six practices related to biometric use that businesses should know could bring sanctions. Five are related to what businesses should do and one is a warning about what not to do. Two of the five reminders involve foreseeable problems.   


  Disclaimer: All information presented is for information purposes only and is not intended to provide profes- sional 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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