ENACTED LEGISLATION
GEORGIA: Rules amended for residential mortgage brokers and lenders
Summary: Effective July 29, 2019, Georgia's Department of Banking and Finance amended certain disclosure and employee background check requirements that apply to residential mortgage brokers and lenders. To determine if an applicant is eligible for employment, the rule provides that employee files must contain documentation that shows that both the Georgia Department of Banking and Finance website and NMLS Consumer Access were searched for public records. Failure of any licensee to examine the Department's website and NMLS Consumer Access prior to employment is subject to a fine of $1,000 for each violation. It removes the requirements that a licensee obtain prior approval before a change in executive officers is made and it eliminates language that previously permitted a mortgage lender to avoid providing a Georgia-specific mortgage foreclosure statement by complying with a substantially similar disclosure as required by federal law.
Impact(s): Georgia residential mortgage brokers and lenders
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ILLINOIS: State passes law to legalize recreational marijuana; prohibits discrimination in employment context based on "lawful use" of marijuana
Summary: Signed by Gov. J. B. Pritzker on June 25, 2019, the Illinois Cannabis Regulation and Tax Act (the "Cannabis Act"), legalizes the possession, use and purchase of recreational marijuana by individuals 21 years of age and older. The law will take effect on January 1, 2020.

The law continues to allow employers to prohibit the use of marijuana in the workplace and to allow employers to discipline/terminate employees who violate employment or workplace drug policies. However, the law also amends the Illinois Right to Privacy in the Workplace Act by defining "lawful products" to mean products that are legal under state law. As a result, under the Right to Privacy Act, Illinois employers are prohibited from discriminating against applicants and employees who use lawful products (i.e., marijuana) off the premises of the employer during nonworking and non-call hours.

The law includes some exceptions. Employers regulated by the U.S. Department of Transportation's drug and alcohol testing regulations are exempt from the provisions of the act. Likewise, employers are not bound by the act if it interferes with the employer's ability to comply with federal or state laws or could result in the loss of federal or state funding.

Impact(s): Illinois employers
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MISSOURI: School district volunteers are required to submit to a background check
Summary: Effective August 28, 2 019, SB 295 will require Missouri school districts to conduct criminal background checks on volunteers. If the volunteers are not checked, they cannot be left alone with a student or have access to student records.
Impact(s): Missouri schools
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COLUMBIA, SOUTH CAROLINA: Ban the box enacted
Summary: The City of Columbia passed an Ordinance, effective August 6, 2019, which will remove the criminal history question from city job applications and delay it until after a conditional offer of employment. It also prohibits the city from inquiring into an applicant or employee's salary history.
Impact(s): All City of Columbia public employers
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COURT OPINIONS
CANADA: Pardons to be issued for those with cannabis possession convictions
Summary: A new pardon system is now in place for individuals who have cannabis possession convictions. The new system will allow Canadians to apply for a pardon without having to wait five years or pay fees to the Parole Board of Canada (requirements under the old system). Pardons may be given to individuals whose only criminal record is a cannabis possession conviction.
Impact(s): Canada – for general legal review
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U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION: Agreement reached with major retailer resolving race discrimination claim
Summary: A claim was filed with the EEOC against a major retailer alleging race discrimination. The claimant alleged that he was denied a position as an assistant manager after a criminal background check was conducted. The EEOC initiated an investigation and found that the company's "use of criminal records limited the employment opportunity of the job applicant based on his race, black, in violation of Title VII of the Civil Rights Act of 1964." Based on the EEOC's findings, the company agreed to a two-year conciliation agreement with the EEOC and to pay the claimant $20,000.00.
Impact(s): EEOC compliance – for general legal review
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OTHER OPINIONS
U.S. COURT OF APPEALS FOR THE FIFTH CIRCUIT: Federal appeals court strikes down EEOC's guidance on the use of criminal records in employment decisions
Summary: The U.S. Court of Appeals for the Fifth Circuit affirmed a district court's decision that the EEOC violated the Federal Administrative Procedure Act (APA) in issuing its 2012 Enforcement Guidance on the Consideration of Arrest and Conviction Records in Employment Decisions. The court found that the guidance was a final agency rule that it could review and that Texas had standing to challenge it, and then upheld the district court’s injunction on a broader basis. The court enjoined the EEOC from enforcing the Guidance, holding that the Guidance was a substantive rule and federal law does not authorize the EEOC to promulgate substantive rules to implement Title VII.
Impact(s): All employers
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