AI Chatbot Compliance: What Your Business Needs to Know

by Maureen E. Fulton, Nathan T. Sheeley - Koley Jessen

At least twelve states have enacted laws regulating consumer-facing AI chatbots, and more are expected to follow. Core obligations generally fall into three categories: AI-identity disclosure, suicide and self-harm prevention protocols, and protections for minors. With a handful of such laws containing a private right of action and the ability to recover statutory damages, businesses that deploy AI chatbots should evaluate their public-facing AI deployment.

Read more: https://www.koleyjessen.com/insights/publications/ai-chatbot-compliance-what-your-business-needs-to-know

Hadestown Casting Reversal Raises Questions for Employers About Social Media Searches and Employment Decisions

by Matthew Windman, McCarter & English, LLP - JD Supra

Employers can learn a great deal about job applicants and employees from social media, but what they can and should do with that information is far less clear. Should employers proactively review publicly available social media accounts before making a hiring decision? Could doing so identify potential issues before an offer is made or publicly announced? Or does routinely searching applicants’ personal online activity create more legal and practical risks than benefits?

Read more: https://www.jdsupra.com/legalnews/hadestown-casting-reversal-raises-3082519/

Illinois Curbs Ability to Require Driver’s License in Job Postings

by Kwabena Appenteng, Rod Fliegel, Littler - JD Supra

Effective January 1, 2027, Illinois will limit the discretion covered employers have to insist on a driver’s license1 in job postings.2 HB4758 amends the Illinois Job Opportunities for Qualified Applicants Act—commonly referred as the state’s “Ban the Box law”—to restrict covered employers from stating in a job posting that applicants must have a valid driver’s license unless driving is an essential function of the job and a business necessity.3 If a license is required, the posting must include a brief explanation of why that requirement is necessary. Employers that violate the law are subject to penalties imposed by the Illinois Department of Labor.

Read more: https://www.jdsupra.com/legalnews/illinois-curbs-ability-to-require-5437986/

San Francisco Expands Fair Chance Ordinance To Bar Use Of Certain Out-of-state Convictions In Hiring Decisions

by Everett McLean II, Brittany Sachs, Heather Sager, Ashurst Perkins Coie - JD Supra

If your business operates in San Francisco, a recent expansion of the city’s Fair Chance Ordinance (FCO) could change how you handle criminal background checks for employment decisions.

San Francisco recently enacted Ordinance No. 128-26, amending the FCO to prohibit employers from considering certain out-of-state criminal convictions and arrests in employment decisions. The amendment takes effect on August 10, 2026.

Read more: https://www.jdsupra.com/legalnews/san-francisco-expands-fair-chance-6004067/

California Courts of Appeal Split on State Law Standing Requirement for Federal Fair Credit Reporting Act (FCRA) Violations

by Rod M. Fliegel and Rachel E. Simons - Littler

On June 4, 2026, California’s First District Court of Appeal held that the state’s law on “standing” requires no “concrete” injury to pursue federal Fair Credit Reporting Act (FCRA) claims in state court. The court’s opinion in Askins v. CRST Expedited reflects stark differences between federal and state standing requirements and deepens the split of authority in the California Courts of Appeal. Standing is not a merits issue but, rather, is a threshold requirement that a lawsuit must meet to proceed in court.

Read more: https://www.littler.com/news-analysis/asap/california-courts-appeal-split-state-law-standing-requirement-federal-fair

Alaskans with certain low-level marijuana convictions can keep record private under new law

by Corinne Smith - Alaska Beacon

Alaskans who have been convicted for low-level marijuana possession will be able to apply to keep their records confidential so they do not appear in background checks, under a new law that takes effect in 2027. 

The change is part of a wide-ranging omnibus crime package that was approved by the Alaska Legislature and allowed to pass into law without Gov. Mike Dunleavy’s signature in June. 

Read more: https://alaskabeacon.com/briefs/alaskans-with-certain-low-level-marijuana-convictions-can-keep-record-private-under-new-law/

New York Should Improve Its Oversight of Nursing Homes’ Compliance With Background Check Requirements

by Office of Inspector General

Why OIG Did This Audit

• Employee background checks are an important safety measure that can help protect long-term care residents. Approximately 1.2 million people reside in nursing homes, with more than half of them relying on Medicare and Medicaid to pay for their long-term care.

• This audit assessed whether New York ensured that selected nursing homes complied with Federal requirements that prohibit the employment of unlicensed individuals and those with disqualifying backgrounds during calendar year 2023. We reviewed 10 staff members at each of 10 nonstatistically selected nursing homes.

Read more: https://oig.hhs.gov/reports/all/2026/new-york-should-improve-its-oversight-of-nursing-homes-compliance-with-background-check-requirements/

New Jersey Appellate Division Rules Employees and Job Applicants Can Sue Employers Under CREAMMA for Cannabis-Related Hiring Discrimination

by Sophia Breene, John Losinger, Michael Shortt, Saiber LLC - JD Supra

In May, 2026, the New Jersey Appellate Division held that individuals have an implied private right of action against employers under the Cannabis Regulatory, Enforcement Assistance, and Market Modernization Act (“CREAMMA”) when an employer refuses to hire or takes adverse employment action based on a positive test for cannabinoid metabolites. The case, Sanders v. The Levari Group, LLC, is the first New Jersey state court decision to address the question, and it carries significant implications for New Jersey employers that maintain pre-employment drug testing programs or condition offers of employment on drug screening results.

Read more: https://www.jdsupra.com/legalnews/new-jersey-appellate-division-rules-1700937/

Louisiana Enacts Comprehensive Consumer Privacy Law

by Hunton.com

Louisiana recently enacted Senate Bill 386, the Louisiana Data Privacy Act (“LDPA”), becoming the 22nd U.S. state to adopt a comprehensive consumer data privacy law. The LDPA follows the now-familiar controller/processor and consumer-rights framework seen in many state comprehensive data privacy laws, with certain distinctions.

Read more: https://www.hunton.com/privacy-and-cybersecurity-law-blog/louisiana-enacts-comprehensive-consumer-privacy-law

CWS 3.0 - Contingent Workforce Strategies

by Malin A. Ehrsam - Staffing Industry Analysts

Fair Credit Reporting Act exposure in contingent workforce programs is rarely the result of bad actors. Rather, as discussed in a previous CWS 3.0 article, the risk is built into how screening workflows are structured.

Compliance cannot be addressed through policy language or vendor selection alone. It must be addressed by examining how screening decisions occur, and where those processes break down in practice.

Programs that embed the FCRA into process design, system controls and governance are better positioned to manage risk at scale. Those that do not are left relying on assumptions embedded in workflows that were never designed with compliance in mind.

The distinction is not subtle. It is the difference between containing risk and scaling it.

Read more: https://www.staffingindustry.com/editorial/cws-30-contingent-workforce-strategies/solving-the-fcra-risk-in-contingent-hiring-from-exposure-to-execution