For compliance officers and HR leaders, mid-year is rarely a quiet time. This July brings a significant wave of state-level legislation that directly alters how organizations screen applicants and manage workplace drug testing.

Specifically, new laws in Washington, Maine, and Georgia introduce rigid procedural boundaries. If your organization hires or manages talent in these states, your background check and screening workflows require immediate review. Here is what you need to know to stay compliant.

1. Washington State: Sweeping Expansions to the Fair Chance Act (HB 1747)

Effective Date: July 1, 2026 (For employers with 15 or more employees)

Washington is transitioning from a traditional “Ban the Box” state to one of the most strictly regulated background screening environments in the country. The passage of HB 1747 places heavy procedural burdens on how criminal history is requested, evaluated, and documented.

• Strict Conditional Offer Timing: Employers are completely prohibited from inquiring about, running, or reviewing a criminal background check until after a conditional job offer has been extended.
• The Unsolicited Self-Disclosure Rule: If an applicant voluntarily discloses a criminal record during an interview prior to an offer, the employer must immediately provide them with a written notice of their Fair Chance Act rights and a copy of the state Attorney General’s Fair Chance Act Guide.
• A Ban on Specific Records: Under the new law, employers may not take adverse action based on arrest records (where no conviction occurred) or juvenile conviction records.
• Mandatory Written Assessments and the 2-Day Position Hold: Blanket “automatic disqualification” policies are illegal. If an adult conviction is revealed, employers must conduct a detailed, written Individualized Assessment proving a “legitimate business reason” directly tied to the job’s duties. Furthermore, if you initiate the pre-adverse action process, you must hold the position open for at least two business days to give the candidate time to dispute the record or provide evidence of rehabilitation.
• The Cost of Non-Compliance: Penalties are steep and scale per applicant, per violation—starting at $1,500 for a first offense and escalating up to $15,000 for subsequent violations.

2. Maine: A Regulatory Reset on Workplace Drug Testing

Effective Date: July 29, 2026

Maine has overhauled its Substance Use Testing Law, eliminating what it classifies as “arbitrary” drug screening and tightening candidate protections.

• Say Goodbye to Arbitrary Testing: Testing tied to arbitrary milestones—such as a job anniversary, a standard promotion, or a client requirement to access a specific job site—is no longer permitted for general employees unless the role is formally designated as “safety-sensitive.”
• Strict Reasonable Suspicion Requirements: If an employer suspects on-the-job impairment, they must document the specific “observable behaviors” (appearance, speech, odor, etc.) in writing and hand that statement to the employee before the drug test can legally be administered.
• New Laboratory and MRO Steps: Job applicants and employees must be given a clear opportunity to contest a “non-negative” result with a Medical Review Officer (MRO) before it is formally reported to the employer. Additionally, the mandated rehabilitation period that employers must offer following a confirmed positive test has dropped from six months down to 12 weeks.
• State Approval Required: All employers conducting testing in Maine must have their written drug testing policies formally reviewed and approved by the Maine Department of Labor.

3. Georgia: Legalized Medical Marijuana Landscape

Effective Date: July 2026 Context

Georgia has solidified its medical marijuana registry for patients with specific, severe medical diagnoses (such as cancer, ALS, or PTSD).

However, from a screening and policy perspective, the state has chosen not to implement explicit employment protections. Employers are not legally required to accommodate or permit the use or possession of marijuana on or off duty. Organizations retain the right to maintain strict, zero-tolerance drug-free workplace screening programs.

Action Items for Employers

To protect your organization from compliance gaps, we recommend a three-step audit before the July deadlines:

1. Audit Inquiry Timing: Ensure your hiring managers and applicant tracking systems (ATS) do not initiate background checks in Washington until the conditional offer phase is complete.
2. Review Adverse Action Notices: Update your pre-adverse action workflows for Washington candidates to include the mandatory two-business-day hold and written individualized assessment files.
3. Validate Drug Testing Policies: Ensure any screening matrices used for Maine-based talent strictly align with their newly narrowed testing categories and have state DOL approval.

Need to update your background screening packages or verify your adverse action workflows? Reach out to our compliance team today to ensure your screening pipelines stay fully compliant