Background screening may become more difficult for employers this year as they try to comply with new laws restricting access to candidates' information.
Legal developments include the heightened federal and state oversight of the use of artificial intelligence (AI) and automation in screening technology; the growing momentum behind "clean slate" and privacy laws that limit access to public records; and the ongoing challenge of balancing drug testing with expanded marijuana legalization.
"Background screening deals with employment, which is so fundamental to people's lives, so anything that impacts employment gets looked at closely by policymakers," said Les Rosen, an attorney in the San Francisco area and founder of Employment Screening Resources, recently acquired by ClearStar.
Federal Agencies Respond to Emerging Tech
Employers conducting background checks for employment purposes are used to complying with federal laws, regulations and guidance enforced by the Equal Employment Opportunity Commission (EEOC), the Federal Trade Commission (FTC) and, since 2011, the Consumer Financial Protection Bureau (CFPB).
These agencies are sharpening their focus on new automated systems used in the hiring process, including screening and selection technologies.
"The CFPB continues to push employment background screeners to take basic steps to [ensure] the information reported about job applicants is accurate," said Scott Paler, an attorney in the Madison, Wis., office of DeWitt LLP...
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