PROPOSED LEGISLATION
FEDERAL: Consumer Data Protection Act would amend the FCRA to address data breaches
Summary: A federal bill has been introduced that would amend the Fair Credit Reporting Act to "to provide protections for consumers after a data breach at a consumer reporting agency."
Impact(s): FCRA compliance – for general legal review
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NEW JERSEY: Three bills to make expunging criminal records easier pass the state Senate and Assembly and are sent to governor to sign into law
Summary: Three bills sent to the New Jersey governor for signature would increase the number of convictions that can be expunged, reduce the waiting period to expunge a juvenile record and prohibit employers from discriminating against job applicants who have expunged records.

The first bill (A5036/S3306) would strengthen the state's so-called "Ban the Box" law, by prohibiting employers from asking about expunged records. A second bill (A5037/S3308) reduces the waiting period to expunge a juvenile record from five to three years. The last bill (A5038/S3307) increases the number of offenses a person can expunge from three to four and reduces the expungement eligibility waiting period from 10 years to six years, among other changes.
Impact(s): New Jersey employers
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COURT OPINIONS
U.S. DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA: Evidence employer knew of employees' criminal histories long before termination supports discrimination claims
Summary: Because an employer may have known about the criminal histories of two African-American employees for months, if not years, before firing them for lying about their convictions on their employment applications, a reasonable fact finder could conclude the reason for terminating them was pretextual, a federal court in Pennsylvania ruled, denying summary judgment against their race discrimination claims.
Impact(s): For general legal review
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U.S. DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA: Employee who failed to submit proof of medical prescription after positive drug test can't challenge firing
Summary: A school bus driver who was fired after failing a random drug test, and who failed to provide any medical documentation supporting her claim that she had taken a doctor-prescribed pain killer after her shift on the date in question, failed to defeat summary judgment on her federal and state-law disability bias and failure-to-accommodate claims as there was no evidence suggesting pretext or that another job was available.
Impact(s): FCRA compliance – for general legal review
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COURT OF APPEALS FOR NEW YORK: Highest court in the State of New York establishes standard for punitive damages under the NYC Human Rights Law
Summary: The New York Court of Appeals (the highest state court in New York) was asked to determine the standard for finding a defendant liable for punitive damages under the New York City Human Rights Law (NYCHRL), and concluded that punitive damages are appropriate in cases with "conduct having a high degree of moral culpability which manifests a conscious disregard of the rights of others or conduct so reckless as to amount to such disregard." This standard requires neither a showing of malice nor awareness of the violation of a protected right. The court's decision now makes clear that the standard for punitive damages under the NYCHRL is broader, and more plaintiff-friendly, than under Title VII.

NYCHRL encompasses New York City's "Fair Chance Act," which governs background checks, and includes several provision that impact employers, including "Ban the Box" (with a requirement that employers delay asking applicants for authorization to obtain a background check until after a conditional offer of employment is made) as well as additional pre-adverse requirements that go beyond the FCRA.
Impact(s): New York employers
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COURT OF APPEALS OF OHIO FOR THE TENTH APPELLATE DISTRICT: Ohio Appellate Court dismisses FCRA class claim for lack of Article III Standing
Summary: An Ohio Court of Appeals affirmed the dismissal of a putative FCRA class claim against a major university on the basis that the plaintiffs lacked standing to assert their no-injury, statutory claim in Ohio state court. The state appellate court declined to adopt a "statutory standing" doctrine in Ohio that would allow standing for a federal statutory claim without the existence of an alleged injury-in-fact.

The plaintiffs, individually and on behalf of a class of others similarly situated, had filed suit under the FCRA. They alleged that as part of their application and hiring process, the university provided a background check disclosure and authorization to each of them that improperly included extraneous information and a liability release in violation of the FCRA's "stand-alone" disclosure requirement.
Impact(s): FCRA compliance – for general legal review
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U.S. SUPREME COURT: U.S. Supreme Court turns away notable employment cases
Summary: The U.S. Supreme Court on refused to take up a challenge to a Ninth Circuit decision that revived an FCRA suit against an employer, passing up an opportunity to address questions over the interpretation of last year's Spokeo decision. The high court's decision to deny the petition for writ of certiorari lets stand a Ninth Circuit decision from January that plaintiff Sarmad Syed had alleged an injury sufficient to establish Article III standing under the Supreme Court's May 2016 decision in Spokeo. The Ninth Circuit ruled that Syed had met that bar by alleging that the employer unlawfully placed a liability waiver on forms disclosing to job applicants that the company may obtain their consumer reports.
Impact(s): FCRA compliance – for general legal review
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OTHER UPDATES
FEDERAL: U.S. Department of Transportation publishes guidance for updating drug and alcohol testing policies
Summary: In light of its recent rule adding opioids to required drug testing, the DOT released guidance for employers on updating drug testing policies, and stated that employers do not have to make any changes if their current DOT policies simply refer to adhering to "… Part 40." [49 CFR Part 40].
Impact(s): Employers subject to DOT regulations
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