ENACTED LEGISLATION
SUFFOLK COUNTY, NY: Ban the Box enacted
Summary: On March 18, 2020, the Suffolk County Legislature voted to "Ban the Box" which will remove the conviction history check box from applications for employment and will delay the inquiry until after the initial interview.
Impact(s): All Suffolk County employers
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COURT OPINIONS
NINTH CIRCUIT COURT OF APPEALS: Ninth Circuit clarifies prohibition against "extraneous" information in background check disclosures
Summary: On March 20, 2020, the Ninth Circuit issued its third opinion on the question of when an employer's background check disclosure satisfies the so-called "standalone" disclosure requirement in the Fair Credit Reporting Act (FCRA).

Upon an offer of employment being revoked, plaintiff filed a class action against a supermarket chain alleging that the disclosure form contained "extraneous" information in violation of the FCRA. Plaintiff also alleged that he was not offered the opportunity to discuss the report directly with the employer. Defendant filed a motion to dismiss which was granted.

On appeal, plaintiff argued that the disclosure contained "extraneous" information in violation of the FCRA's "clear and conspicuous" requirement. According to the court, the disclosure itself is a "plain statement that a consumer report may be obtained for employment purposes." The criteria for determining whether anything other than the plain statement can be included is whether the text furthers the purpose of the disclosure requirement by "helping" the applicant understand the disclosure. The court examined only the text of the employer's specific disclosure and found that text discussing an applicant's rights other than the right to the disclosure itself is extraneous.

Impact(s): FCRA compliance – for general legal review
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NEW JERSEY SUPREME COURT: Medical marijuana use outside of the workplace is protected under state law
Summary: The New Jersey Supreme Court recently held that employees can maintain an action under the New Jersey Law Against Discrimination (NJLAD) for disability discrimination when an employee suffers an adverse employment action as a result of their lawful use of medical marijuana outside of the workplace during non-working hours. Employees may also bring a failure to accommodate claim under the NJLAD based on their lawful use of medical marijuana.

The court further confirmed that there is no conflict between the New Jersey Compassionate Use Medical Marijuana Act (CUMMA) and the NJLAD. In other words, although the CUMMA does not impose a duty to accommodate medical marijuana use in the workplace, it does not immunize actions that might violate the NJLAD, such as refusing to accommodate or discriminating against employees for medical marijuana use outside the workplace.

Impact(s): New Jersey employers
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OTHER NEWS
U.S. DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA: California brewery files motion to dismiss in FCRA violations case
Summary: Plaintiff alleges that a brewery violated the Fair Credit Reporting Act (FCRA), and the Investigative Consumer Reporting Agencies Act, among others, when its disclosure for a consumer report and an investigative consumer report were combined and not issued as stand-alone documents.

In response, the defendant argues that the report was secured upon the plaintiff having signed the authorization form. Defendant also contends that the plaintiff was knowledgeable of the background check per the contents of a job offer letter issued in April 2015 which expressly indicated that his employment hinged on the satisfactory results of a background check. In support of its motion to dismiss, defendant contests that the plaintiff failed to plead allegations of actual damages or demonstrate evidence of a willful violation of the FCRA. The defendant also argues that by waiting four years to file his suit, plaintiff missed the two-year statute of limitations under the FCRA.

A separate motion to compel arbitration was also filed by defendant. The motion argues that when plaintiff applied for the job, he agreed (by separately initialing an arbitration provision) to arbitrate all claims and disputes related to his employment.

Impact(s): FCRA compliance – for general legal review
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DEPARTMENT OF TRANSPORTATION: DOT & FMCSA issue guidance on compliance with drug and alcohol testing programs amidst COVID-19 pandemic
Summary: In light of the COVID-19 pandemic, the DOT and the FMCSA have issued guidance on compliance with DOT drug and alcohol testing programs, in effect until June 30, 2020.
Impact(s): All transportation employers
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