New Jersey’s Opportunity to Compete Act (OTCA), which restricts an employer’s ability to make hiring decisions on the basis of an applicant’s criminal background, was signed into law on August 11. A recent LawFlash by Morgan Lewis’s Labor and Employment Practice provides an overview of the OTCA—the latest in a wave of “ban the box” legislation that is sweeping the United States—and its implications for employers.

It is not unusual, as part of any outsourcing or services relationship, for a customer and service provider to agree to some form of background checks for service provider personnel assigned to the customer’s account. With the increasing trend toward “ban the box” legislation, both customers and service providers should consider the effect of such laws and the ability to require criminal background checks in certain states.