Cengage Advantage Books: Business Law Today, The Essentials 10th Edition by Roger LeRoy Miller

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National Aeronautics and Space Administration v. Nelson
FACTS The National Aeronautics and Space Administration (NASA) is an independent federal agency charged with planning and conducting "space activities." One of NASA's facilities is the Jet Propulsion Laboratory (JPL) in Pasadena, California, which is staffed exclusively by contract employees.
In 2007, under newly implemented standards, contract employees with long-term access to federal facilities were ordered to complete a standard background check-the National Agency Check with Inquiries (NACI). The NACI is designed to obtain information on such matters as counseling and treatment for illegal drug use, as well as mental and financial stability.
Robert Nelson and other JPL employees filed a lawsuit in a federal district court against NASA, claiming that the NACI violated their privacy rights. NASA argued that the employees' privacy rights were already protected by the Privacy Act of 1974, which allows the government to retain information only for "relevant and necessary" purposes and requires written consent before disclosure. The trial court ruled in favor of NASA, but the U.S. Court of Appeals for the Ninth Circuit reversed. NASA appealed to the United States Supreme Court.
ISSUE Does subjecting private employees who work at government facilities to a standard (NACI) background investigation violate their privacy rights?
DECISION No. The United States Supreme Court reversed the judgment of the federal appellate court and remanded the case. The inquiries made by the NACI are reasonable and do not violate an individual's right to privacy. The Privacy Act protects against the disclosure of private information.
REASON The Court reasoned that the government can ask reasonable questions as part of an employment background check even if those questions may touch on an individual's constitutional right to privacy. The Privacy Act provides safeguards against the public disclosure of an individual's private information without the individual's consent. The government has conducted employment investigations of applicants for the federal civil service for more than fifty years, and it simply extended this requirement to contract employees with longterm access to federal facilities. "Reasonable investigations of applicants and employees aid the Government in ensuring the security of its facilities and in employing a competent, reliable workforce." The Court concluded that a government employer's reasonable questions as part of a background check do not violate the right to privacy.
CRITICAL THINKING-Social Consideration Suppose that after the decision in this case, a JPL employee refused to cooperate in an NACI background check. What would be the most likely consequences?