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
New Jersey Looks to Limit Use of Criminal History in Hiring Decisions
New Jersey’s Opportunity to Compete Act, advanced by the Assembly Labor Committee, would ban employers from asking about criminal history before making a conditional job offer. The bill also limits what offenses can be considered and requires written consent for background checks. Employers must provide applicants a chance to respond if an offer is rescinded. It exempts small businesses and will be enforced by the Division of Civil Rights, not through private lawsuits.
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NJ State Police Agree to Clear Expungements In 120 Days
The New Jersey State Police have agreed to process expungement orders within 120 days, resolving a lawsuit over yearslong delays that left 46,000 orders unprocessed. The backlog grew after marijuana legalization increased expungement requests. Mediated by retired Justice Jaynee LaVecchia, the agreement includes progress monitoring, an online status portal, and new tech tools. Officials say the deal supports second chances and ensures people are no longer burdened by past convictions after expungement.
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Background Checks Surge for Substitute Teachers, as State No Longer Requires Bachelor’s Degree
Ohio has experienced a nearly 40% increase in background checks for substitute teachers following the removal of the bachelor’s degree requirement. The Ohio State Board of Education is facing increased demands with fewer staff. Since 2020, several bills have relaxed certification requirements for substitutes, allowing schools to hire based on their own criteria. The number of background check requests has risen from 2,400 in the 2019–2020 school year to 5,200 in 2022–2023. Despite the changes, only 5.1% of Ohio teachers were found to be improperly certified, which is lower than the national average of 6.9%. Ohio ranks among the states with the fewest improperly certified educators.
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Kansas Has a New Law on Background Checks After State Missed Ex-Official’s Fraud
Kansas enacted a new law requiring background checks for state employees handling sensitive financial data, following revelations that Jonathan L. Clayton, a Commerce official with a financial felony record, oversaw $100M in pandemic relief funds. Previously, background checks weren’t performed due to legal uncertainty. The law, signed by Gov. Laura Kelly, aims to prevent similar incidents and ensure proper screening of applicants in the future.
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Employment Law Update: U.S. District Court Denies Right to Use Medically Prescribed Marijuana at Work
In a Maryland case, a federal court ruled that the ADA does not protect employees who use medically prescribed marijuana during work hours, since marijuana remains a federally illegal substance. The court upheld the employer’s right to terminate the employee, despite state law permitting medical marijuana. However, it emphasized that the employee’s underlying medical condition, like anxiety, remains protected. The decision highlights a legal gray area, urging employers to seek legal advice before disciplining for marijuana use.
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Maryland Targets Credit Reports After DOGE Federal Layoffs
In March 2025, over 275,000 jobs were lost due to federal agency eliminations by the Department of Government Efficiency (DOGE), prompting Maryland lawmakers to propose HB 1557. The bill aims to protect displaced workers by freezing adverse credit reporting and limiting evictions, foreclosures, and utility shutoffs. However, ambiguous language—especially the undefined term “adverse information”—raises compliance concerns for employers and background screeners. If passed, HB 1557 could significantly impact credit reporting in employment decisions.
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H 2179 Bars Pre-Employment Marijuana Testing in Massachusetts
Massachusetts lawmakers are considering House Bill 2179, which could end pre-employment marijuana testing. The bill, introduced by Rep. Chynah Tyler, would prevent employers from requiring marijuana tests before offering a conditional job offer, unless mandated by law. While not directly banning marijuana testing, it could effectively eliminate it for most private employers. This follows court rulings that limit employment testing for marijuana, with ongoing uncertainty about the bill’s passage. Employers may need to adjust their hiring processes accordingly.
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Magic Mushroom Therapy Legalized in Third State
New Mexico has become the third state to legalize psilocybin for therapeutic use, following Oregon and Colorado. Governor Michelle Lujan Grisham signed SB219, the Medical Psilocybin Act, into law, allowing psilocybin treatment for mental health conditions like PTSD and depression. Administered in state-regulated facilities, treatment centers are expected to open in 2028. This legislation follows a feasibility study and bipartisan support, marking a significant step in the growing acceptance of psychedelics for medical use, despite federal restrictions.
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Wisconsin Supreme Court Tackles Thorny Contours of Arrest Record Discrimination
In Oconomowoc Area School District v. Cota, the Wisconsin Supreme Court ruled that protections against arrest record discrimination under the Wisconsin Fair Employment Act extend to non-criminal offenses, such as municipal citations. The court found the school district unlawfully terminated employees based on arrest records, not an independent investigation. The decision highlights the narrow interpretation of exceptions and urges employers to handle arrest records with caution and review their employment practices accordingly.
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Minn. Worker Says Honeywell Nixed Job Offer Over Drug Test
A Minnesota man, Ratana Vanara, is suing Honeywell International Inc. after the company rescinded a job offer following his positive cannabis test, despite his enrollment in the state’s Medical Cannabis Registry. Vanara uses medical cannabis for PTSD and claims Honeywell violated the Medical Cannabis Therapeutic Research Act by discriminating against him. He also alleges violations of the Minnesota Human Rights Act and the state’s Drug and Alcohol Testing in the Workplace Act. The case is ongoing in federal court.
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Pennsylvania Federal Court Follows State Ruling That Medical Marijuana Use Is Not a Disability Under State Law
A Pennsylvania federal court ruled that medical marijuana use does not qualify as a disability under the Pennsylvania Human Relations Act (PHRA), dismissing a job applicant’s discrimination claim. The applicant, Brian Davis, alleged the company rescinded his offer due to his medical marijuana use. However, the court allowed his claim under the Medical Marijuana Act (MMA), which protects medical marijuana cardholders from employment discrimination. This decision offers guidance for employers on medical marijuana-related employment protections in Pennsylvania.
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Supreme Court Rules Lost Wages May Be Recoverable Under RICO for False Advertising After Drug Test Dismissal
On April 2, 2025, the U.S. Supreme Court ruled that a truck driver who lost his job after testing positive for marijuana can pursue RICO claims for lost wages against sellers of a fraudulently marketed pain relief product. The Court found that damages to “business or property” under RICO could include economic harms from personal injury. The decision expands RICO’s civil reach but leaves open questions about the scope of recoverable economic harms in employment-related cases.
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Toking the Line: Where Medical Marijuana Meets Employment Law
Medical cannabis is legal in 39 states, and some states protect employees from discrimination based on medical cannabis use. However, cannabis remains a Schedule I controlled substance under federal law. Federal courts have ruled that employers are not required to accommodate medical marijuana use under the ADA. A recent Pennsylvania decision clarified that while no state requires employers to accommodate on-site use, some states may require accommodations for off-duty use, creating a complex legal landscape for employers.
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Immigration Policy Changes Bring Updates for Employers to Consider
The 2025 U.S. immigration policy changes significantly impact both workers and employers. Key updates include stricter enforcement actions like ICE raids and Form I-9 audits, and the end of birthright citizenship for children of non-permit holders. Temporary Protected Status for Haitian and Venezuelan workers has also been shortened or revoked. While most policies tighten restrictions, Executive Order 14179 seeks to attract global AI talent. Employers must review hiring practices, employee documentation, and legal compliance to avoid steep penalties.
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Montana House Votes Down Harsher Penalties for Employers Hiring Immigrants in US Illegally
Montana’s House narrowly rejected House Bill 536, which proposed harsher penalties for employers hiring undocumented immigrants, including license revocations and a $5 million DOJ task force. The bill also introduced a private right of action, raising concerns about financial burdens on small businesses. Critics, including agricultural advocates, warned of unintended consequences for farms hiring under tight deadlines. The bill failed 50-49, while a less costly alternative—House Bill 226—has advanced with strong bipartisan support.
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Staying I-9 and E-Verify Compliant: Updates for Employers
USCIS released a new Form I-9 dated January 20, 2025, valid through May 31, 2027, with updates aligning with policy changes, including language revisions and an updated DHS Privacy Notice. Previous August 1, 2023, editions remain valid. Employers using electronic I-9s must update systems by July 31, 2026. E-Verify now reflects the revised checkbox “An alien authorized to work,” effective April 3, 2025. Employers must select this updated language in E-Verify, even if employees use older form versions listing “A noncitizen authorized to work.”
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Trump’s Immigration Enforcement Against Employees Has Been Gradual. That May Soon Change.
Immigration enforcement has intensified under the Trump administration, prompting legal experts to advise employers—especially in construction, hospitality, and agriculture—to prepare for increased Form I-9 audits and ICE raids. Small businesses have been targeted, with ICE reportedly aiming to expand audits using existing staff and contractors. Employers face significant penalties for violations, especially with electronic I-9 systems. Experts recommend preemptive audits, legal guidance, and employee training to mitigate risks and ensure compliance with federal immigration laws.
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Disclaimer: All information presented is for informational purposes only and is not intended to provide legal or professional advice. Nationwide Screening Services accepts no responsibility for any actions taken without consulting a qualified attorney or expert.
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