Written By ESR News Blog Editor Thomas Ahearn
Ride-sharing technology service provider Uber shut down operations in Kansas after the state legislature overrode Governor Sam Brownback’s veto of a bill – SB 117, The Creation of Kansas Transportation Network Company Services Act – that would require stricter background checks on drivers and increase the insurance needed for all vehicles, the Wichita Eagle reports.
Under SB 117 – also known as the “Uber bill” – drivers must undergo a Kansas Bureau of Investigation background check as well as have comprehensive and collision insurance on their vehicles. The Wichita Eagle reports that as soon as the Senate collected the two-thirds majority of votes necessary to overturn the veto of the bill, an Uber spokeswoman announced that the company had “ceased operations throughout the state.”
Governor Brownback – who vetoed the House Substitute for SB 117 on April 20 – issued a statement in response to the veto override of SB 117:
“As I said when I vetoed this bill, Kansas should be known as a state that welcomes and embraces innovation and the economic growth that comes with it. Over-regulation of businesses discourages investment and harms the open and free marketplace. Uber, and other innovative businesses, should be encouraged to operate, grow and create jobs here in Kansas.”
The Wichita Eagle reports that the veto override means SB 117 would become law on July 1. However, there is still time for Kansas lawmakers to work on a compromise and pass a second bill that could lure Uber back to the state. The full story is available at
As previously reported on the ESR News Blog, the Uber background check policy raised questions after a series of incidents that included missed felony convictions of some drivers, the arrest of other drivers who allegedly attacked passengers, and a class action lawsuit that claimed Uber performed illegal background checks that allegedly violated the Fair Credit Reporting Act (FCRA). These incidents led to Uber expanding the company’s background check process.
This trend of background checks in the new “sharing economy” not being limited to traditional employer-employee situations is typified by Uber and was one of the ‘ESR Top Ten Background Check Trends for 2015’ selected by Rosen. For more information about background checks, please contact Employment Screening Resources® (ESR) – ‘The Background Check Authority ®’ – by calling 888.999.4474 or calling http://www.esrcheck.com.
More Blogs about Uber and Background Checks
For more ESR News blogs about Uber and background checks for all companies in the new “sharing economy, ” please visit http://www.esrcheck.com/wordpress/tag/uber/.
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