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
Resume Fraud: The Shocking Cost of Who You May Be Hiring
Resume fraud is becoming increasingly costly and sophisticated, driven by AI tools that make fake credentials and work histories easier to create. It highlights how employers often fail to detect misrepresentation during hiring, leading to bad hires that cost businesses significant money in lost productivity, rehiring, and training. The piece emphasizes that companies should strengthen verification processes like background checks, reference validation, and skills testing to reduce the financial and operational risks of fraudulent resumes
When “Can We Contact Your References?” Isn’t Enough Anymore
Traditional reference checks are no longer sufficient for employers trying to verify job candidates. While asking “when can we contact your references?” was once a standard step, it has become less reliable due to fabricated references, coached responses, and AI-assisted job fraud. Employers are now encouraged to go beyond basic calls and use structured interviews, skills assessments, and deeper verification methods to confirm experience and credibility. hiring decisions require more robust, multi-layered evaluation processes today.
LEGAL ISSUES
California Court Allows Case to Move Forward Due to Background Check Form Technical Violation
The California Fourth Appellate District, Division One, recently held that an employee or job applicant does not need to prove actual harm beyond establishing a statutory violation to have standing under the California Investigative Consumer Reporting Agencies Act (ICRAA) (Parsonage v. Wal-Mart (2026). The court concluded that the California Legislature intended the ICRAA to provide stronger consumer protections than its federal counterpart — the Fair Crediting Reporting Act (FCRA). Employers can now face liability regardless of whether the employee or job applicant was harmed by not getting the job or promotion. Now, potential plaintiffs merely must show noncompliance with the disclosure requirements of ICRAA.
When “Disclosure” Isn’t Enough: A California Court Expands Risk Under ICRAA
A recent California court decision is a strong reminder that compliance in the background screening space is not just about checking the box — it’s about getting every detail right. In an alert, Atkinson, Andelson, Loya, Ruud & Romo highlights a case allowing claims under California’s Investigative Consumer Reporting Agencies Act (ICRAA) to move forward — despite arguments that federal law should preempt those claims. Employers — and consumer reporting agencies — often assume that compliance with FCRA standards is sufficient. This ruling reinforces that California operates on a higher standard, and state-specific requirements can stand on their own.
Reasonable Reinvestigation, Not Legal Adjudication: CRAs and Furnishers under the FCRA
Under the FCRA, consumer reporting agencies and furnishers must conduct reasonable investigations — not act as courts. Liability arises only when an alleged inaccuracy is objectively and readily verifiable through a reasonable reinvestigation. Courts consistently hold that CRAs and furnishers are not required to resolve complex legal disputes, interpret unsettled law, or adjudicate ownership or validity challenges. Their duty is limited to correcting clear factual errors, not deciding underlying legal obligations.
Virginia’s Ban on Salary History Questions: What Hiring Managers Need to Know
Virginia’s SB 215, effective July 1, 2026, bans employers from asking applicants about prior salary and requires every job posting to include a good-faith salary range. Employers may use voluntarily disclosed salary history only to confirm it or offer higher pay — not to justify lower offers. The law adds anti-retaliation protections and creates a private right of action with damages up to $10,000. Employers must update applications, set salary ranges, train hiring staff, and revise policies.
CANDIDATE FRAUD
Fake Nurse Faces Up to 100 Years in Prison, Indicted on 34 Counts
A grand jury has indicted Margarita Gonzalez on 34 counts, including identity theft, nursing without a license, abuse of a resident, distribution of controlled substances to a minor, and fraud, after investigators say she worked as an unlicensed nurse at four facilities. The New Mexico Department of Justice alleges Gonzalez dispensed narcotics to eight juvenile inpatient residents and nearly administered an incorrect insulin dose that could have killed a patient. If convicted, Gonzalez faces up to 100 years in prison. The case has been referred to courts in both Las Cruces and El Paso, where she allegedly tried to land additional nursing jobs using other nurses’ identities.
Maryland Man Sentenced 21 Months for $1.5M Fake Nursing Diplomas
A Maryland man, Patrick Nwaokwu, was sentenced to 21 months in federal prison for running a $1.5 million scheme selling fake nursing diplomas, transcripts, and licenses. Prosecutors said he helped unqualified individuals obtain credentials and pass exams, allowing them to work in healthcare. Authorities warned the fraud endangered patients and undermined trust in the profession. The case is part of a broader crackdown on fraudulent nursing credential schemes across multiple states.
Fake Nurse, Physician, Sentenced to Prison After Working at 9 Assisted Living Facilities
A Pennsylvania man was sentenced to prison after impersonating a nurse, nurse practitioner, and physician at multiple assisted living facilities. Investigators said he worked at nine systems. The case underscores growing concerns about healthcare impersonation and the need for stricter credential checks.
Two Years in Federal Prison for Florida Identity Thief
A Honduran woman has been ordered to serve 26 months in federal prison after a judge found she used a stolen identity to secure a job in Pinellas County, Florida. Nidia Roxana Maradiaga-Flores was sentenced by U.S. District Judge Steven D. Merryday following her January 14, 2026, conviction. The charges included aggravated identity theft, false representation of a Social Security number, and making a false claim of United States citizenship for the purpose of employment. The case centered on a March 2022 job application. Maradiaga-Flores, who lacked lawful status in the United States, sought employment with the Archer Western-de Moya Group Joint Venture II.
FAIR & SECOND CHANCE/CLEAN SLATE
California May Be Redefining How Employers Use Criminal History
A proposed California measure could significantly change how employers use criminal history in hiring decisions. Building on the state’s existing “ban-the-box” law, it would further limit when and how criminal records can be considered and may classify criminal history as a protected characteristic. Employers would need to show a direct link between a conviction and job duties, document individualized assessments, and provide applicants with a chance to respond before denial. Supporters say it promotes fairness, while critics warn of added compliance burdens.
Maine Governor Vetoes Clean Slate Bill
Maine Governor Janet Mills vetoed a bipartisan “clean slate” bill that would have automatically sealed many misdemeanor convictions after five crime-free years. Mills cited concerns about domestic violence cases, court administration costs, transparency, and constitutional issues. Supporters argued the bill would improve access to jobs and housing for more than 100,000 residents with records. Legislative efforts to override the veto failed, though advocates pledged to reintroduce the proposal in a future session.
Rhode Island Proposes Clean Slate Law and Automatic Expungement
Rhode Island lawmakers introduced the Rhode Island Clean Slate Act, legislation that would automate expungement for eligible criminal records and potentially help about 77,000 residents clear past convictions. Currently, individuals must petition courts for expungement, but the proposed law would shift the process to automatic electronic sealing handled by state agencies and the judiciary. Supporters say the measure would improve access to jobs, housing, and economic opportunities while modernizing record-clearing processes already adopted in several other states.
DATA PROTECTION & PRIVACY
U.S. House Committee Releases SECURE Data Act to Establish New Federal Privacy Framework
The proposed SECURE Data Act is a federal privacy bill introduced by House Republicans to create a nationwide framework for consumer data protection. The legislation would establish rights for consumers to access, correct, delete, and limit the use of personal data while requiring companies to strengthen data security and minimize unnecessary data collection. The bill would also preempt many state privacy laws, giving the Federal Trade Commission primary enforcement authority and creating a more uniform national privacy standard.
Privacy in Bloom: Four States Reshape the Data Protection Landscape This Spring
Four states are reshaping U.S. privacy law through new legislation and enforcement efforts. Oklahoma and Alabama enacted comprehensive consumer privacy laws, while Virginia banned the sale of precise geolocation data. California regulators also backed stronger restrictions on sharing sensitive personal information under the CCPA. The piece highlights the growing patchwork of state privacy rules, expanding consumer rights, and increasing compliance burdens for businesses that collect, process, or monetize personal data across multiple jurisdictions.
IMMIGRATION & EVERIFY
ICE’s New I-9 Guidance Raises the Stakes for Routine Form Errors
ICE’s updated Form I-9 inspection guidance significantly raises employer risk by reclassifying many previously “technical” errors — such as missing birth dates, incomplete Section 2 document details, or absent employer-representative information — as substantive violations subject to immediate fines. Penalties now range from $288 to $2,861 per form, creating major exposure for large workforces. The guidance also tightens expectations for remote verification and electronic I-9 systems, prompting employers to reassess onboarding, conduct internal audits, and retrain staff.
DRUG & ALCOHOL SCREENING
DEA Clarifies That the Synthetic Cannabis Compound HHC Is Federally Banned, and Doesn’t Count as Legal Hemp
The DEA clarified that hexahydrocannabinol (HHC), a synthetic cannabinoid often derived from hemp-based CBD, is federally illegal and classified as a Schedule I controlled substance. The agency said chemically converted cannabinoids do not qualify as legal hemp under the 2018 Farm Bill, even when sourced from hemp. DEA assigned HHC its own federal drug code to strengthen regulation and enforcement. The move reinforces the agency’s broader stance against synthetic cannabinoids, though some federal courts have challenged DEA interpretations of hemp legality.
Drug Testing Coming to White-Collar Jobs as Cocaine Use Booms
Workplace drug testing is expanding beyond traditionally safety-sensitive industries into white-collar professions as cocaine use rises in Australia. Employers are increasingly concerned about the effects of drug use on productivity, workplace safety, decision-making, and company reputation. Drug testing companies say they are detecting more cocaine use among corporate employees, reflecting broader social trends. Experts note that businesses are adopting stricter testing policies and education programs to manage risks associated with substance use in professional environments
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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