March 2026
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
Check on the Checking: FCRA Requirements on Employee Background Checks
There are key Fair Credit Reporting Act (FCRA) requirements employers must follow when conducting background checks through third-party consumer reporting agencies. Before obtaining a report, employers must provide a separate written disclosure and obtain written consent, and if adverse action is considered, they must give the applicant a copy of the report and rights notice with time to respond. Non-compliance risks legal liability and highlights the need for careful policy implementation.
Five Things Employers Need to Consider as Background Screening Shifts in 2026
Employers face evolving background screening challenges in 2026 due to AI use, rising fraud, and tighter regulation. AI can speed screening but must be paired with human judgment. Rising sophisticated fraud means stronger checks are needed. One-time pre-hire screening is being replaced by ongoing monitoring, and digital identity verification is now an essential first step in hiring. Regulatory complexity is increasing, requiring employers to stay informed and compliant.
HHSC Adopts Changes to Texas Criminal History Requirements Charts
The Texas Health and Human Services Commission (HHSC) has adopted updates to its Criminal History Requirements Charts used in childcare background checks. These charts list offenses and how they affect whether someone can be present in regulated child-care settings and foster/adoptive placements. HHSC reviews and revises the three charts annually and publishes changes in the Texas Register and on its Child Care Regulation background check webpage.
LEGAL ISSUES
Conducting Criminal Background Checks? What the Phath Decision Means for Employers
What is the Phath v. Central Transport decision’s impact on employers conducting criminal background checks in Pennsylvania? The Criminal History Record Information Act (CHRIA) applies whenever an employer considers an applicant’s criminal history, regardless of how it was obtained. Employers must evaluate only job-related convictions, document decisions, and provide written notice if a hire is rejected due to criminal history. They must also comply with federal (e.g. FCRA) and local fair-chance laws.
Top-Rated Worker Sues Dental Staffing Firm Over Unseen Background Check
A top-rated dental assistant, Melissa Helgerod, has filed a class-action lawsuit against staffing company Cloud Dentistry after her account was suspended based on a background check report she never received. She alleges Cloud Dentistry violated the Fair Credit Reporting Act (FCRA) by taking adverse action without providing her with a copy of the report or a summary of her rights, spotlighting ongoing compliance issues in employment screening.
Applicant Sues Allied Universal for Pulling Offer Over Flawed Background Check
A job applicant is suing Allied Universal Compliance and Investigations after the company rescinded his job offer because a background check falsely reported he’d pled guilty to a violent crime and been charged with possessing a machine gun—neither true. The lawsuit claims Allied Universal never provided him with the report before withdrawing the offer, violating Fair Credit Reporting Act (FCRA) requirements and seeking class damages.
So, You Hired a Fraudulent Employee — Now What?
When an employer discovers an employee has misrepresented their identity — such as using a stolen name, Social Security number, or AI-altered identity — it must act quickly to terminate access, preserve evidence, and conduct a forensic review of system activity. If sensitive data was accessed, it could become a security incident. Employers should also audit and strengthen hiring, verification, and IT controls to prevent future fraudulent hires.
OCCUPATIONAL / HIRING FRAUD
Fake Connecticut Doctor Examined Patients, Prescribed Medicine in Medicaid Fraud Scam
A man in East Hartford, Connecticut, posed as a doctor without a valid medical license, examining patients and prescribing medications at Silver Lane Medical Group while his employer, Dr. Sultan Quraishi, allegedly knew of the deception. State investigators say the scheme, tied to Medicaid fraud and fraudulent billing, ran from 2021 to 2025. Both the impostor, Mohammad Siddiqui, and Quraishi now face multiple charges including health insurance fraud and larceny.
Fake Nurse Owned Med Spa, Allegedly Used Stolen RN License and Botched IV Treatments
A Watford City, North Dakota med spa owner, Kendra Cain, was arrested for posing as a registered nurse without any medical license, allegedly using a staff member’s credentials to schedule patients, order medications, and perform IV treatments. A patient nurse later reported unsafe IV practices, including being coached through the procedure and seeing air in the line. Cain faces charges including practicing without a license, reckless endangerment, and identity misuse.
Fake Nurse Gets 75 Months in Prison for Identity Theft and Fraud
A Michigan woman, Leticia Gallarzo, was sentenced to 75 months in federal prison for repeatedly posing as a licensed registered nurse by using fake credentials and another person’s identity to obtain health-care jobs, including in Michigan, Illinois, and California. This marked her third conviction for impersonating a nurse after earlier convictions in Michigan and Texas. Authorities said she had no valid nursing license or real training, raising serious patient-safety and fraud concerns.
DRUG & ALCOHOL SCREENING
Up in Smoke: Should Businesses Still Drug Test for Marijuana?
Should employers continue drug testing for marijuana as legalization spreads across many U.S. states? While marijuana remains federally illegal, changing state laws are prompting employers to reconsider testing policies, especially where off-duty use is protected. Employers are encouraged to tailor policies to their industry and location.
Marijuana’s Restrictive Federal Classification Isn’t Supported by Science, New Study Concludes
A new scientific review concludes that marijuana’s restrictive federal classification as a Schedule I drug — implying high danger and no accepted medical use — isn’t supported by current science. Researchers argue that marijuana and some other substances are less harmful than laws written nearly 50 years ago suggest.
Bill Would Require Mandatory Drug Testing for All Public Employees in W.Va.
A new West Virginia House bill would require mandatory drug testing for all public employees in county government, state government, K-12 schools, and the State Board of Education. It mandates pre-employment testing and random annual testing for 10 percent of employees.
2026 Marijuana Bills Signal Big Shifts in Drug Testing Compliance
Early 2026 marijuana bills signal evolving legal expectations that affect workplace drug-testing compliance. The overall trend shows cannabis laws moving faster than many workplace policies, prompting employers to modernize drug-testing practices.
Hair Testing More Reliable for Detecting Illegal Drug Use, HHS Panel Told
A recent Drug Testing Advisory Board meeting highlighted evidence suggesting hair drug testing may be more reliable than urine testing for detecting illegal drug use, especially in trucking. Hair tests offer a longer detection window and are harder to adulterate.
DATA PROTECTION & PRIVACY ISSUES
House Approves Kuhn Bill to Strengthen Maine’s Data Privacy Laws
The Maine House approved a bill to strengthen data privacy protections through data minimization and restrictions on selling sensitive information such as race, gender, health data, and minors’ information.
Norton Rose Fulbright’s 21st Annual Litigation Trends Survey Reveals Increased Data Privacy Risk Amid an Evolving Regulatory Landscape
A new survey shows U.S. corporate counsel face growing litigation risks, especially in data privacy. Forty percent of respondents reported experiencing data privacy class actions.
The Fix Is In: New Jersey Tweaks Its Privacy Law
New Jersey amended its comprehensive state privacy law, adjusting definitions and exemptions and expanding certain health-related data protections.
Connecticut Data Privacy Act Updates Go into Effect This Year
Revisions to the Connecticut Data Privacy Act broaden its scope, expand sensitive data definitions, and strengthen consumer rights.
The Patchwork of Data Privacy Laws: Recent Developments and Implications
The U.S. data privacy landscape continues to evolve rapidly, creating compliance challenges for organizations operating across multiple states.
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