by Kyle Dull, Alan Friel - Privacy World
On January 8, New Jersey’s General Assembly and Senate passed a consumer privacy bill, S332, which would grant New Jersey residents several rights, and obligate controllers and processors of New Jersey residents to take action. The law is similar to consumer privacy laws passed last year in other states, with some distinctions.
Read more: https://www.privacyworld.blog/2024/01/new-jersey-legislature-passes-consumer-privacy-bill/#page=1
by William J. Simmons, Haley Norwillo - Littler
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.
by David Baron, Elyse Moy, Anne Patin, Seward & Kissel LLP - JDSupra
Delaware court declines to enforce restrictive covenants in LLC agreement but grants interlocutory appeal.
In Sunder Energy v. Jackson, et al., a company, Sunder, sued a former employee, Jackson, for breaching a non-compete and employee non-solicit. The covenants were in Sunder’s LLC agreement (the “LLCA”), which had been amended in 2019 and 2021 to include them, and by which Sunder claimed Jackson was bound through his receipt of incentive units. As drafted, the covenants ran while Jackson held the units and for two years thereafter. None of the eight named parties resides in Delaware. The only tie to the state is that Sunder is a Delaware LLC.
Read more: https://www.jdsupra.com/legalnews/employment-litigation-roundup-december-8340143/
by Philip M. Berkowitz - Global Banking & Finance Review
Numerous federal, state and local laws require banks to run criminal background and credit checks on employees and applicants for employment. These include the Federal Deposit Insurance Act (FDIA), the Securities and Exchange Act, the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act), the Truth in Lending Act (TILA), and various FINRA rules. The background checks may also need to be re-run periodically during employment to assure the continued accuracy of the information received during the recruitment process, and to assure that the individual continues to be qualified to fill their role.
by Pennsylvania Human Relations Commission
HARRISBURG, PA – On Wednesday, November 22, 2023, the Pennsylvania Human Relations Commission (PHRC) asked a federal court to dismiss a lawsuit filed by Uber Technologies, Inc. against a former Driver who filed a complaint with the PHRC against Uber alleging discrimination due to Uber's overly-broad criminal background check procedures.
Read more: https://www.media.pa.gov/pages/pa-human-relations-commission-details.aspx?newsid=163
by Kelly M. Cardin, Sandi F. Dubin, Zachary V. Zagger - Ogletree Deakins
On November 16, 2023, New York Governor Kathy Hochul signed a bill into law requiring records of certain past criminal convictions to be sealed. The legislation is intended in part to prevent discrimination in hiring against previously incarcerated individuals who have satisfied their sentences.
by Brownstein Hyatt Farber Schreck, Sarah Auchterlonie, Courtney Bartkus, Leah Dempsey, Joel Herberman, Leah Regan-Smith - JD Supra
On Sept. 21, 2023, the Consumer Financial Protection Bureau (CFPB) officially announced it is considering a rulemaking to address several consumer reporting topics under the Fair Credit Reporting Act (FCRA). Under the process established by Congress in the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), the CFPB is required to consult with representatives of small entities likely to be affected directly by the regulations. Thus, the CFPB convened a panel of Small Entity Representatives (SERs) to consider and provide feedback on its proposals and alternatives under a condensed time frame of approximately one month.
Read more: https://www.jdsupra.com/legalnews/cfpb-seeks-to-fundamentally-alter-the-2005551/
by Alonzo Martinez - Forbes
The Denton City Council is exploring the adoption of a Fair Chance Hiring Ordinance that would restrict an employer’s inquiry into a job applicant’s criminal history. While the ordinance promotes inclusivity and provides individuals with prior criminal records a fair chance in the job market, it imposes additional compliance requirements on employers.
by Jake Proudfoot, Akerman LLP - JDSupra
A scary surprise is fun to encounter when you are in a haunted house at a Halloween event, but not so much fun when you are performing a background check on a potential employee. Even worse is finding out after the fact that you failed to comply with one of the many legal requirements, and that your company is now suddenly facing a fine or lawsuit. This Halloween, make background checks and hiring much less spooky by avoiding these common mistakes.
Read more: https://www.jdsupra.com/legalnews/looking-for-skeletons-in-the-closet-6454570/
by Barbara Hoberock - Tulsa World
OKLAHOMA CITY — Lawmakers are expected to revise an effort next session to make it easier for felons who have served their time to get jobs.
Last session, Sen. Jack Stewart, R-Yukon, filed Senate Bill 1077, called the Ban the Box legislation. It would bar employers from asking on a job application or during the hiring process whether a candidate has felony conviction.
But the bill would allow employers to request a background report if a conditional employment offer has been made.
