Employee Background Check Bills Signed into Law

WILMINGTON, DE – Today, Delaware Governor Matt Meyer signed two pieces of legislation into law that allow Delaware’s Department of Labor and Department of Finance to expand their ability to conduct background checks on employees and protect sensitive taxpayer information from misuse.

House Bill 20 expands the positions that the Department of Labor has authorization for obtaining criminal background checks related to employment with the agency including new hires, transfers, promotions, contractors, and subcontractors. It also enables the Department to participate in the state’s Rap-back process in the background check system, which alerts employers of an employee’s new arrest or conviction in the state. House Bill 19 enables the Department of Finance to participate in the state’s Rap-back process in the background check system, which alerts employers of an employee’s new arrest or conviction in the state.

The Delaware Departments of Labor and Finance sent a letter to legislative leaders in June 2024 that included a report on financial irregularities found in the Department of Labor’s Division of Unemployment Insurance and recommendations for improvement. Among those recommendations were expanded background checks for employees that had access to financial and other confidential information.

“It’s incredibly important that we have the best people possible working at our state agencies, especially when they are handling sensitive information,” said Rep. Ed Osienski. “By giving our agencies the tools they need to fully vet candidates before, during, and after the hiring process, we can help to protect taxpayer dollars and make sure that sensitive information doesn’t end up in the wrong hands.”

“I thank Rep. Osienski and Governor Meyer for supporting this important legislation that equips the Department of Labor with the tools we need to make well-informed hiring and retention decisions,” said Department of Labor Secretary LaKresha Moultrie. “We continue to make improvements to the Department of Labor’s systems and procedures, including modernizing antiquated information systems, and have brought on new leadership to help us achieve these priorities.”

“House Bill 19 doesn’t just improve our ability to respond to risk — it strengthens the integrity of our operations by adding a real-time layer of oversight,” said Secretary of Finance Michael Smith. “While our existing security and vetting practices remain robust, this measure expands our toolbox, allowing us to act swiftly and responsibly in the unfortunate event of an emerging risk. We especially thank our partners in state government who recognized the value of proactive protection and made this advancement possible.”