Maryland recently became the first state to pass legislation prohibiting employers from requesting or requiring user names or passwords for the social media accounts of employees or job applicants. If Governor Martin O'Malley signs the legislation, the new law will take effect on October 1, 2012.

Under this new law, employers may not discharge, discipline, or penalize employees for refusing to disclose any user name, password, or other means for accessing a personal account or service and may not refuse to hire an applicant who declines to provide such information. The law excludes actions taken by an employer during an investigation into an employee suspected of downloading unauthorized information or engaging in misconduct through social media websites.

Other states are expected to follow Maryland's lead. Lawmakers in California, Illinois, New Jersey, and Washington have proposed or expressed an interest in similar bills. Members of Congress are also considering federal legislation to address the concerns of employees and job applicants who have been asked to provide login information for their social media accounts, and U.S. Senators Charles Schumer and Richard Blumenthal recently called on the Equal Employment Opportunity Commission and the Department of Justice to investigate the practice of conducting social media background checks of job applicants.

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