Earlier this month, the Consumer Financial Protection Bureau (CFPB) published an updated version of “A Summary of Your Rights Under the Fair Credit Reporting Act.” Many also know this crucial FCRA publication as the “Summary of Consumer Rights.” The CFPB’s website also provides Spanish and English versions of the Summary.

FCRA Requirements

Both consumer reporting agencies and employers must provide this Summary to employees and applicants. Providing this Summary ensures they comply with the Fair Credit Reporting Act (FCRA). In addition, employers must provide applicants with this Summary whenever they give an applicant a pre-adverse action notice.

The CFPB has issued this final rule to make non-substantive corrections. In addition, the agency included updates to the contact information of the CFPB and other Federal agencies mentioned in several regulations. Interested parties may find this information throughout Regulation V, which implements the FCRA. It includes the Federal agency’s contact information supplied with a “Summary of Your Rights Under the FCRA.”

The “Office of the Comptroller of the Currency (OCC); the Federal Deposit Insurance Corporation (FDIC); the National Credit Union Administration (NCUA); the Department of Transportation (DOT); the Surface Transportation Board (STB); the United States Department of Agriculture, Agricultural Marketing Service (USDA-AMS); the United States Small Business Administration (SBA); the Securities and Exchange Commission (SEC); and the Federal Trade Commission (FTC),” will also see corrections. Interested parties can find relevant information in Appendix A of Regulation B. The CFPB will also correct its contact information, found in Appendix D.

When to Expect the Change

The final rule will take effect on April 19, 2023. When it takes effect, it will also make various non-substantive changes in Regulation V. But, the mandatory compliance date for the amendments to Appendix K to Regulation V will be later on March 20, 2024, as stated in the final rule. Therefore, employers and CRAs must ensure they update their forms by March 20, 2024. However, employers and CRAs could delay changing their forms because the Summary has a typo that the CFPB has not fixed.

This change is a good example of how employment-related rules and forms frequently change. The best way to ensure your company stays up-to-date with changes related to background checks is to partner with a trustworthy background check company.

Disclaimer:

Information provided here is for educational and informational purposes only and should not constitute as legal advice. We recommend you contact your own legal counsel for any questions regarding your specific practices and compliance with applicable laws.

Source

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Maine legislators recently held a public hearing concerning a decriminalization bill. This bill aims to decriminalize the possession of illegal drugs and increase investment in treatment for substance abuse disorders. The Health and Human Services Committee will review this bill, LD 1975, and consider its effects. 

One such effect includes the repeal of current statutes that make possession of Schedule W, X, Y, and Z drugs, as well as drug paraphernalia, illegal. Additionally, LD 1975 would establish a Substance Use, Health, and Safety Fund. These Schedules include all controlled substances classified as scheduled drugs within the state. As such, LD 1975 would legalize all recreational drugs, including cocaine, heroin, hallucinogens, and opioids, among others. 

The Department of Health and Human Services (HHS) needs this legislation to allocate funds yearly; it would start sometime by June 30, 2024. The Department would use these funds to make investments in more community care. This project would assist individuals with substance use disorders and be available voluntarily. Furthermore, service providers could receive grants from these funds to help struggling individuals further. Grant recipients must provide services to individuals free of charge, though they may seek reimbursement from insurance providers.

According to Representative Crafts, removing the penalty for possession would stop criminalizing some substances. She also explained the difficulties individuals face due to substance abuse disorders, even without incarceration. As such, LD 1975’s public health approach would help people rebuild their lives through evidence-based medical intervention. It would also provide vital social support and increased connections. Representative Crafts believes incarceration impedes this goal.

The measure has received considerable mixed reactions from stakeholders. The competing opposition and support stems from a fundamental disagreement over the best way to address substance abuse. One stance that both sides agree upon is the importance of treatment and recovery. However, those opposing LD 1975 believe decriminalizing the possession of controlled substances would only enable their use. Conversely, supporters argue that criminalization stigmatizes those who need treatment for their addictions.

Currently, the future of the legislation remains uncertain at best. Due to the current reactions, it may never proceed and become law. Employers should watch Maine legislators debate LD 1975 and prepare for what may come. For example, they could review their policies concerning criminal records related to substance abuse. Providing second chances to those with criminal backgrounds could expand the labor pool of potential workers. One way to get started is by working with an employment screening provider experienced in second-chance-hiring.

Disclaimer:

Information provided here is for educational and informational purposes only and should not constitute as legal advice. We recommend you contact your own legal counsel for any questions regarding your specific practices and compliance with applicable laws.

Source

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The Consumer Financial Protection Bureau (CFPB) has issued new guidance for consumer reporting agencies. This guidance addressed inaccurate background checks and careless sharing of credit files. According to the CFPB, the advisory opinions intend to ensure that all consumer reporting companies compile accurate and reliable information. Furthermore, they stressed how the companies must ensure they do not prevent individuals from accessing their own information.

The CFPB’s first advisory opinion concerning background check reports stressed the requirement for accurate and complete reports. Additionally, it warned that the reports must not include duplicate, expunged, sealed, or dated information. They also cannot allow public access to legally restricted information.

The second advisory opinion regarding file disclosure emphasizes people’s right to access any information in their consumer report when requested. The opinion also mentioned the importance of allowing access to the source or sources of the report’s data. According to the CFPB, this includes the original sources and any vendor or intermediary sources.

Credit File Disclosure

Everyone should know what is in their credit file and where the information comes from. This knowledge allows individuals to correct any inaccuracies in their reports. As such, consumer reporting agencies must provide a copy of the report when a consumer with proper identification requests it. 

The agencies should supply the complete file presented in a way an average person could understand. It should also be in a format that helps individuals find and recognize misinformation that could negatively impact them. As such, it should prove easy for consumers to find inaccurate or incomplete information, dispute it, and understand how the adverse information affects them.

Background Checks

Employers and landlords frequently use background checks in making employment and rental decisions. These reports typically contain information about criminal arrests and convictions, credit history, employment, rental history, and other data. Unfortunately, these background check reports frequently have incorrect, old, or misleading information. 

As such, the CFPB’s advisory opinion issued a reminder for consumer reporting agencies. According to the CFPB, agencies covered by the Fair Credit Reporting Act (FCRA) must have reasonable procedures to “avoid producing reports with false or misleading information.” To do this, consumer reporting agencies should:

• “Prevent the reporting of public record information that has been expunged, sealed, or otherwise legally restricted from public access.
• Ensure disposition information is reported for any arrests, criminal charges, eviction proceedings, or other court filings that are included in background check reports.
• Prevent the reporting of duplicative information.”

The new advisory opinions by the CFPB serve as reminders to businesses and consumer reporting agencies. They must understand the importance of complying with the FCRA.

Disclaimer:

Information provided here is for educational and informational purposes only and should not constitute as legal advice. We recommend you contact your own legal counsel for any questions regarding your specific practices and compliance with applicable laws.

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January 09, 2024

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New York City’s city council has passed the Fair Chance for Housing Act. This bill will determine how real estate brokers, landlords, and others can consider the past convictions of individuals applying for housing. 

However, it does not limit a business’s ability to use background checks to the extent that the previously debated version did. The Fair Chance for Housing Act passed in a vote of 39 to eight. It now awaits the governor’s signature. If signed, it will take effect in 2025.

The Process for Passing

The bill’s sponsor explained that the council held several conversations about affordable housing. They discussed the necessity of more affordable housing so people are not displaced. According to the sponsor, they must focus on “making it easier for people to get into housing.” He also added how this is particularly true of people with past convictions trying to rehabilitate.

There were attempts in the past to pass similar bills. Until now, no version has acquired enough support to pass. Last year’s bill would have banned criminal background checks throughout the screening process, only allowing checks of the sex offender registry. However, there was an exemption for two-family owner-occupied homes.

This exemption is in the Fair Chance for Housing Act that passed. This version also allows sellers, landlords, and brokers to consider the recent criminal history of applicants. For example, they may review misdemeanors in the past three years and felonies in the past five years when deciding to approve or disapprove applications. 

The look-back window starts from the applicant’s release from incarceration or sentencing if not incarcerated. One lawmaker said the look-back period allows applicants to show they have not re-offended. Additionally, the lawmaker expressed that getting housing makes them even less likely to re-offend.

Concerns About the Act

Some real estate groups voiced several concerns about the original bill. For example, they do not believe contact with the criminal justice system should be the sole reason for denied housing. However, they feel it is irresponsible to look past recent convictions if they involve harmful or violent conduct. They claimed this would be a disservice to current tenants.

Passing the Fair Chance for Housing Act addresses this concern. It also requires landlords to notify applicants of their intention to conduct a background check. Landlords who reject applicants due to past convictions must allow them time to correct any errors in the report. Landlords must also explain to the applicant how their “reviewable criminal history affected a legitimate business interest.”

As a reminder, the Fair Chance for Housing Act still allows landlords to conduct background checks. As such, affected landlords should prepare by reviewing the law’s provisions to ensure compliance. They can also work with a trustworthy background screening company to ensure compliance. The right provider will deliver accurate, timely reports to ensure landlords make informed decisions.

Disclaimer:

Information provided here is for educational and informational purposes only and should not constitute as legal advice. We recommend you contact your own legal counsel for any questions regarding your specific practices and compliance with applicable laws.

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January 01, 2024

The post Ohio May Ease Expungement Process for Some Marijuana Convictions appeared first on JDP.

December 29, 2023

The post Presidential Proclamation Expands Eligibility for Marijuana Pardons appeared first on JDP.

The federal agencies in charge of immigration affairs recently released their regulatory agendas for the upcoming months. These agencies include the Department of Labor, the Department of State, and the Department of Homeland Security. These agendas outline some of their key employment-based immigration priorities and timelines.

DOL

The Department of Labor (DOL) indicated its intent to solicit public feedback. The Department hopes to expand the list of occupations exempt from the permanent labor (PERM) certification process. This list, called Schedule A, has not been updated in decades.

Recently, the Department received an executive order to expand the list to assist in AI research. This requirement led to the agency submitting a Federal Notice to the Office of Management and Budget (OMB). This notice is to solicit feedback. Should the expansion succeed, it would include STEM workers in the PERM process.

The DOL also affirmed its plans to introduce H-2B visa program changes. These changes include prevailing wage regulations, temporary labor certification updates, and more. Many expect a publication of the proposed rule sometime in the coming year.

DOS

The Department of State (DOS) updated the timeframe for the expected implementation of its domestic visa renewal program for H-1B visa holders. This long-awaited program will begin in February 2024. The DOS also expects to release a Federal Register notice with further information about the program in the upcoming weeks. Many expect it to include eligibility requirements.

The DOS also plans to issue a final rule permitting waivers in certain circumstances. This rule would require immigrant visa applicants to appear before a consular office. The DOS will publish it in February 2024. In addition, many expect the DOS to issue a final rule this month permitting individuals to accompany applicants to certain U.S. citizen visa appointments.

DHS

The Department of Homeland Security (DHS) will issue a proposed rule in October 2024. This rule would modernize the policies and procedures governing Employment Authorization Documents. Such regulations include the governing work authorization for certain non-immigrants who lose their employment and certain spouses of non-immigrant workers.

The DHS also postponed a regulation to raise the fees for most employment-based petitions and applications to April 2024. Similarly, a Customs and Border Protection rule to apply 9-11 Response fees to H-1B and L-1 extension petitions has also moved to April 2024.

These regulatory agendas indicate what these federal departments intend to prioritize in the coming days. Many of these regulations may significantly change the employment process for foreign national workers. As such, employers should watch how these proposed rules progress.

Disclaimer:

Information provided here is for educational and informational purposes only and should not constitute as legal advice. We recommend you contact your own legal counsel for any questions regarding your specific practices and compliance with applicable laws.

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December 22, 2023

The post New York City Workers’ Bill of Rights To Become Law appeared first on JDP.

December 19, 2023

The post Delaware Supreme Court Rules Out of State Convictions Cannot Bar Expungement appeared first on JDP.