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The Bar Has Been Lowered – Congress Further Relaxes Hiring Restrictions for Banking Personnel with Criminal Histories

  • FY 2023 National Defense Authorization Act loosens restrictions on hiring those with criminal records at FDIC-member banks and NCUA-insured credit unions.
  • Sections 19 of the Federal Deposit Insurance Act and 205(d) of the Federal Credit Union Act should no longer be relied upon as a basis to automatically disqualify applicants convicted of certain offenses.




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Updated FCRA Summary of Consumer Rights Released with a Mandatory Compliance Deadline of March 20, 2024

Updated March 24, 2023: The CFPB has edited its updated Summary of Rights document to include the correct contact number. 

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California Seeks to Ban Criminal Background Checks for Most Private Sector Employers

  • Lawmakers in Sacramento seek to outright ban criminal background checks by most private sector employers in California in a bill that would scrap California’s existing fair chance law and replace it with the most restrictive fair chance law in the United States.
  • While the sweeping bill’s future is uncertain, employers should be mindful of the bill’s progress given the drastic impact even a narrower version of the bill would have if enacted into law.




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California bill would ban most criminal background checks

Alice Wang and Rod M. Fliegel say the Fair Chance Act of 2023, a California bill under consideration in the state senate, “would more or less upend the ordinary hiring process for just about every employer in California,” if passed.

HR Dive

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Washington, DC Legislative Roundup

The District of Columbia continues to implement broad employment initiatives, ranging from wage and hour laws to stricter civil penalties. The following is a rundown of key developments for employers to keep an eye on as we move into the next quarter of 2023.

DC Tipped Wage Workers Amendment Act




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California Bill Would Limit Use of Criminal History Information

Rod Fliegel discusses California’s proposed Fair Chance Act of 2023, which would further restrict how employers can use information about the criminal histories of job seekers and employees, and offers tips for complying with the current Fair Chance Act.

SHRM Online

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

For nearly a decade, Chicago has maintained a “ban-the-box” ordinance restricting employer’s use of criminal records in employment screening. This ordinance largely mirrored the requirements of Illinois’ state-wide Job Opportunities for Qualified Applicants Act (JOQAA), albeit with some important differences.




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New York Legislature Bans Consideration of Most Older Convictions in Employment Decisions

UPDATE: Governor Hochul signed this bill on November 16, 2023, which will take effect one year from signing.

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New York Bans Consideration of Sealed Convictions in Employment Decisions

Michael Paglialonga and Stephen Fuchs discuss New York’s new Clean Slate Act, which will prohibit employers from inquiring about sealed records or discriminating against applicants or employees based on sealed records.

SHRM Online

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Changes in California’s Regulations Regarding Criminal Records Approved

The California Civil Rights Council previously issued draft revisions to the Fair Employment and Housing Act’s regulations governing inquiries into and consideration of a job applicant’s criminal history in making hiring decisions.  On July 24, 2023, the Office of Administrative Law approved the Council’s proposed modifications to the regulations. 




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Second Chance Employment: Addressing Concerns About Negligent Hiring Liability

Rod Fliegel co-authors a report that explains negligent hiring, employers’ risks and how they can protect their company. 

Legal Action Center

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California Laws Come into Effect Regarding Off-Duty Marijuana Use

Two new laws will take effect next year that restrict how employers may respond to worker off-duty cannabis use.  One law will restrict employers’ ability to ask about prior cannabis use in the hiring process, and the other will limit employer actions based on positive marijuana drug tests.




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Negligent Hiring Risk Less Than Employers Believe

Rod Fliegel says he's seeing an uptick in negligent hiring concerns because of the growth of gig work.

SHRM Online

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The FDIC Proposes Revised Regulations Concerning Section 19 of the Federal Deposit Insurance Act to Conform to the Fair Hiring in Banking Act

  • The FDIC has proposed revised regulations implementing Section 19 of the Federal Deposit Insurance Act.
  • Section 19 generally prohibits individuals convicted of certain offenses from participating in the affairs of an FDIC-insured depository institution.
  • The rule would affect approximately 4,680 FDIC-insured depository institutions.
  • Comments to the rule are due by January 16, 2024.




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Background Checks in Banks, and Conflicts with Ban-the-Box Laws

Philip M. Berkowitz talks about background checks and “Ban-the-Box” laws that financial services organizations must comply with when hiring.

Global Banking & Finance Review

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New Pennsylvania Legislation and Philadelphia Ordinance Amendment Tackle Pardoned Convictions, Expunged Records, and Negligent Hiring Liability

Pennsylvania and Philadelphia recently enacted changes that impact employer criminal background screening.

State Law

Enacted on December 14, 2023, and effective February 12, 2024, Pennsylvania’s House Bill No. 689 amends Pennsylvania law relating to the expungement of certain criminal record information and employer immunity when hiring individuals with expunged records. 




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New Illinois and Chicago Laws for 2024

Illinois state and local legislatures kept busy in 2023 with the enactment of numerous new labor and employment laws, including significant changes to paid and sick leave for employees and new protections for temporary laborers and independent contractors. While some laws took effect during 2023, implementation of others was pushed to 2024. These are some significant employment law changes requiring employer compliance in the new year.

IL Paid Leave for All Workers Act




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Continuing Privacy Headache for Ordering Criminal Background Checks in California

Companies that hire employees and engage independent contractors in California should brace themselves for an even greater slowdown in background checks that include criminal record searches in Los Angeles County.1 This will result from the drastic impact of the court of appeal’s 2021 opinion in All of Us or None v.




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County of Los Angeles Enacts a Sweeping Fair Chance Ordinance for the Unincorporated Areas of the County that Far Exceeds Federal and California Law

  • New Los Angeles County ordinance goes into effect September 3, 2024.
  • The ordinance, which has a private right of action, requires significant changes to job postings, conditional offer letters, procedures for adjudicating criminal history, and related notifications for the unincorporated areas of Los Angeles County.
  • The ordinance purports to cover relationships beyond traditional employment relationships, such as contract and freelance work.




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Massachusetts Latest State Expected to Restrict Access to Credit Reports for Employment Purposes

On March 14, 2024, the Massachusetts House of Representatives passed legislation that would add a new provision to the Massachusetts Consumer Protection law and would bar the use of true credit reports for employment purposes, i.e., for the purpose of evaluating an individual for employment, promotion, reassignment, or retention as an employee.  The legislation, entitled An Act Reducing Barriers to Employment Through Credit Discrimination (H.1434), is expected to be adopted by the Massachusetts Senate and promptly signed into law by Governor Maura Healy.  Once adopted, th




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Clean Slate Laws Are Spreading

Mike Paglialonga and Stephen Fuchs talk about the complicated patchwork of “clean slate” laws that multistate employers must consider when hiring.

SHRM Online

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Employers Face June 1, 2024 Deadline to Comply with Lehigh County, Pennsylvania’s New Expansive Anti-Discrimination Ordinance

The Lehigh County Human Relations Ordinance was enacted February 26, 2024, establishing county-specific non-discrimination requirements for employment, housing, education, health care and public accommodations.  The ordinance also creates a Lehigh County Human Relations Commission charged with investigating and enforcing claims of discrimination.  The ordinance becomes effective June 1, 2024.

Expanded Protected Characteristics and Employer Coverage




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California Court of Appeal Thwarts Efforts to Conceal Important Driving History Information from Employers

Employers with operations in California are all too familiar with how state and local officials continue to restrict the access employers have to public records, including criminal history information.1 For example, lengthy delays in completing standard criminal background checks are now routine in California.2 Apart from criminal background checks, many employers rely on motor vehicle record checks (MVRs) to vet candidates for positions that require driving as part of the job.  In Doe v. California Dept.




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The County of Los Angeles Will Soon Post Notice and Sample Documents to Comply with the County’s Sweeping Fair Chance Ordinance

Starting after Labor Day, employers with jobs located in the unincorporated areas of the County of Los Angeles, including work-from-home and hybrid positions, must comply with the County’s fair chance hiring ordinance.  The ordinance, which imposes obligations well beyond existing federal and state law, and which extends to con




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FDIC Approves Final Rule to Update Its Section 19 Regulations – Insured Depository Institutions Have Until October 1, 2024 to Comply

  • The FDIC has approved a final rule, effective October 1, 2024, to update its Section 19 regulations to conform to the Fair Hiring in Banking Act.
  • While the FDIC made certain clarifying changes based on public comments received, as predicted, the final rule largely aligns with the proposed rule.
  • Insured banks and credit unions must undertake a “reasonable, documented inquiry” to verify that a person with a covered offense on their record is not hired.




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Prince George’s County, MD Amends Criminal Background Check Law

The Prince George’s, Maryland County Council recently enacted Bill CB-019-2024, amending the county's Fair Criminal Record Screening Standards. Effective September 16, 2024, the ordinance—renamed “Access to Employment for Returning Citizens”—significantly restricts employers' ability to conduct criminal background checks on job applicants. Changes to the law include a smaller threshold for employer coverage, expanded limitations on employer inquiries into applicant criminal histories, and expanded protections for employees.

Employer Coverage Threshold




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San Diego County Adds a New Layer to California’s Complex Web of Laws Regulating the Use of Criminal Records in the Hiring Process

  • Effective October 10, 2024, employers in San Diego County must assess compliance with new criminal record screening regulations.
  • The ordinance applies only in the unincorporated areas of San Diego County.




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The CFPB Cautions Employers About Using Technology to Track, Assess, and Evaluate Workers

  • Employers should be mindful of whether workforce tracking technology, including AI, may provide information, such as employee performance scores, that triggers FCRA compliance.
  • The FCRA protects both job applicants and employees.
  • Education about basics of the FCRA is key for all employers, including in-house counsel, due to the proliferation of such tracking and scoring technology.




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What's Next For Calif. Employers After AI Bias Bill's Failure

Joy Rosenquist discusses what California employers should watch for after the state’s AI bias bill failed and its Civil Rights Department continues work on proposed regulations that could be game-changing.

Law360 Employment Authority

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Experts Weigh in on Implications of Failed FTC Non-Compete Ban

James A. Paretti Jr. and Melissa McDonagh offer insights into the implications of the court’s rejection of the Federal Trade Commission’s (FTC) proposed nationwide ban on noncompete agreements.

Thomson Reuters

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Minding Wage and Hour Laws in Your Drycleaning Business (Part 2)

Bradford Kelley and Mike Paglialonga explain the basics of wage and hour laws and why it’s critical for business owners to ensure their business complies with federal, state and local laws and regulations.

American Drycleaner

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Minding Wage and Hour Laws in Your Drycleaning Business (Conclusion)

Bradford Kelley and Mike Paglialonga explain the basics of wage and hour laws and why it’s critical for business owners to ensure their business complies with federal, state and local laws and regulations.

American Drycleaner

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The artificial intelligence angle: Loper Bright's impact on federal and state AI legislation, regulations, and guidance

Bradford J. Kelley and Maria Malaver-Reyes discuss how Loper Bright will impact federal and state administration of AI statutes, regulations and guidance.

Westlaw Today

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New York, California Take Lead to Shape Workplace Violence Laws

Rebecca Goldstein talks about new workplace violence prevention laws in California and New York.

Bloomberg Law

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DOD Imposes New Requirements for Employers Participating in SkillBridge Military Internship Program

To support personnel transitioning from the military to the civilian workforce, the U.S. Department of Defense (DOD) in 2011 instituted the SkillBridge internship program, which provides service members with valuable civilian work experience through unpaid internships during their last 180 days of service, while the military continues to pay their wages and full benefits.




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Under half of US firms have AI policies, report finds

Bradford Kelley says the U.S. still lacks comprehensive AI legislation, but C-suite executives are taking note of a sharp rise in regulatory activity to address AI use in the workplace.

International Employment Lawyer

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Lessons from Recent IER Settlements

Over the past few months, the Immigrant and Employee Rights Section (IER) of the Department of Justice has entered into several settlements from which employers can learn some valuable lessons so that these discriminatory practices are not followed.

In a recent settlement, a transportation and parking management company agreed to settle an IER charge to resolve IER’s determination that the company discriminated against the Charging Party when it refused to honor the employee’s valid Employment Authorization Document (EAD).




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Politics in a California Workplace

  • California law provides robust protections for employees’ political activity, including anti-discrimination and retaliation protections.
  • California law also provides employees broad protections for lawful off-duty conduct.
  • California employers are required to provide employees with time off to vote and post a notice explaining those rights. For the upcoming election, this notice must be posted by October 26, 2024.




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California Eliminates Employers’ Ability to Require Employees to Use Vacation Before They Receive State Paid Family Leave Benefits

  • Employers will no longer be able to require employees to use up to two weeks of vacation before they receive paid family leave insurance benefits.
  • Employees will have access sooner to paid family leave insurance benefits.
  • Changes can have a knock-on effect concerning substitution of paid leave under federal FMLA and California CFRA, but should not impact San Francisco PPLO compliance.




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California Limits the Discretion Employers Have to Insist on a Driver’s License Even for Jobs that Require Driving for Work

Starting in January 2025, California’s Fair Employment & Housing Act (FEHA) will prohibit employers from including a statement in a job advertisement, posting, application, or other material that an applicant must have a driver’s license unless the employer “reasonably” anticipates driving to be an essential job function that cannot be comparably performed by alternative means. The stated purpose of the new FEHA amendment is to help facilitate employment for non-drivers who rely on ride hails, public transportation, biking, and walking as their primary means of transportation.




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New Jersey Legislature Tells Employers: No Transparency? No Doing Business Here!

New Jersey is the latest state to advance pay transparency requirements.  On September 26, 2024, the New Jersey state legislature passed Senate Bill 2310, which if signed and enacted by Governor Murphy (as is expected), would mandate that certain New Jersey employers disclose wage or salary ranges and general benefits information in each job posting/advertisement. The bill would also require that employers take “reasonable” steps to make opportunities for promotions known to current employees.

Applicability




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New Legislation and New PAGA in CA, New Administration in DC – How Can Employers Thrive in 2025?




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Maryland WARN Act Does Not Provide a Private Right of Action to Terminated Workers

Kerry E. Notestine, Chad J. Kaldor, Shawn Matthew Clark and Garrick D. Josephs compare and contrast the Maryland WARN Act and its federal counterpart, the Worker Adjustment and Retraining Notification (WARN) Act.

SHRM

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U.S. Admits Qatar to Visa Waiver Program (VWP)

The United States has announced that Qatar will soon be officially admitted to the U.S. Visa Waiver Program (VWP), allowing visa-free travel to the United States by Qatari citizens for up to 90 days. Per the Final Rule published by the Department of Homeland Security on September 26, 2024, Qatar will be added to the VWP no later than December 1, 2024.




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Unlocking New Benefits: Is the SECURE 2.0 Student Loan Match Right for Your Workforce?

  • The Qualified Student Loan Payment (QSLP) match program allows an employer to match an employee’s student loan repayments by making matching contributions to the employer’s defined contribution plan, such as a 401(k) plan.
  • IRS Notice 2024-63 provides guidance for plan sponsors that offer (or wish to offer) a QSLP match program.




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California Eliminates Employers' Ability to Require Employees to Use Vacation Before They Receive State Paid Family Leave Benefits

Adam Fiss and Sebastian Chilco review updates to California’s paid leave law.

Wolters Kluwer

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Politics In California Workplaces: What Employers Must Know

Bradford Kelley and Britney Torres predict politics in the workplace will remain an issue beyond the election and so California employers need a long-term plan measures for issues that include voter intimidation and discrimination and employees taking time off to vote.

Law360

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DOD imposes new requirements for employers participating in SkillBridge military internship program

Bradford J. Kelley and James A. McGehee discuss mandates for employers involved in the SkillBridge internship program, which provides military members with civilian work experience.

Westlaw Today

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California Eliminates Employers’ Ability to Require Vacation Use Before Receipt of State Paid Family Leave Benefits

Adam Joshua Fiss and Sebastian Chilco discuss a new California law that will eliminate employers’ ability to require employees to use up to two weeks of company-provided vacation before they start receiving paid family leave benefits.

SHRM

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N.J. Legislature Tells Employers to Be Transparent About Pay, Promotions

Lauren J. Marcus, Amber M. Spataro and Francis A. Kenny discuss New Jersey’s new bill that would require employers to disclose wage or salary ranges and general benefits information in each job posting/advertisement.

SHRM

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