In the dynamic landscape of human resources and talent acquisition, staying ahead is crucial. Keeping up with the ever-changing legal landscape of new background screening laws and employment hiring regulations can be challenging on your own. However, understanding the laws and legislations that may impact your organization’s hiring practices is essential for mitigating risk and maintaining compliance.
To help employers like you prepare for a new year of hiring and recruitment, Verified First put together a comprehensive overview of relevant employment and background screening laws coming into effect in 2024. Let’s explore 2024 employment screening regulations and how your organization can respond.
Labor laws rapidly evolved in the past few years and many organizations are struggling to keep up with best practices. Employers should prepare for several background screening compliance laws and legislations in 2024 regarding the hiring process, criminal background screening, and more.
In 2023, the Consumer Financial Protection Bureau released minor changes to the Fair Credit Reporting Act Summary of Rights disclosure form. These changes reflected updated contact information for various federal agencies, as well as technical corrections regarding certain business types.
The updated form came into effect in April of 2023. However, as of March 20, 2024, employers will be required to use another new document. For Verified First clients, this form is reflected in our platform.
The United States Citizenship and Immigration Services (USCIS) recently announced a shortened version of Form I-9 that employers must use for every new hire. In the past, employers had to physically examine new hire’s documents to complete the Form I-9 process. New updates allow employers using E-Verify to review documents remotely via video conferencing.
The new Form I-9 includes a checkbox denoting if employee documentation was reviewed using an authorized procedure. No new form is required for current employees.
AI has the potential to automate and streamline countless HR practices, however, this does not come without some concerns. Since 2020, federal laws and initiatives regarding the use of AI for employment and hiring have quickly developed.
In May of 2023, the Equal Employment Opportunity Commission (EEOC) released updated guidance regarding the application of Title VII of the Civil Rights Act for the use of AI in employment decisions. The goal of this announcement was to help employers determine the effectiveness and possible biases of automated systems and AI. Employers should expect further legislation regarding AI to come in 2024, specifically at the state level.
Another compliance trend from last year that we expect to continue in 2024 is the implementation of Clean Slate legislation. Clean Slate laws aim to create equal employment opportunities for ex-offenders by allowing courts to automatically expunge eligible criminal records on a much larger scale than ever before.
Unlike Ban the Box laws, Clean Slate legislation completely removes certain criminal records to reduce barriers to employment. In 2023, Michigan joined 10 other states by implementing the Michigan Clean Slate Law. The following states are expected to adopt new or more Clean Slate legislation in 2024, as well:
As Clean Slate laws gain more traction, many employers are re-examining their hiring practices. Partnering with an accredited background screening provider can help your organization maintain compliance with changing legislation. The right provider can also help prevent applicants from feeling unfairly treated based on inaccurate or incomplete information reported on their background checks.
More states are legalizing medical and recreational cannabis use. Unsurprisingly, regulations regarding cannabis screening for employment are also evolving and expected to become more relevant in 2024.
Employers in California and Washington are already in the midst of these changes. California Assembly Bill 2188 (AB 2188), Senate Bill 700 (SB 700), and Washington State Senate Bill 5123 (SB 5123) took effect January 1, 2024, and are impacting how employers can respond to off-duty cannabis use. Here’s a look at other states implementing cannabis testing regulations for employment in 2024:
Since new legislation limits cannabis testing, you may have potential safety concerns. Let’s explore alternative testing options and how your organization can respond:
A consistent compliance trend throughout 2023 was leveling the playing field for previously discriminated people. In an effort to promote pay transparency and equity, many jurisdictions are implementing laws regarding applicant’s salary history.
In 2024, expect more legislation that prohibits employers from asking questions about applicant’s prior wages and benefits. Here are some jurisdictions that plan to adopt these regulations in 2024:
Employment and background screening laws are constantly evolving, and we are already seeing some of these changes in 2024. Keeping up to date with regulations that impact your organization can be challenging. However, maintaining compliance is key to avoiding legal errors and missteps that could damage your organization's reputation and livelihood. Partnering with an experienced background screening provider can help your organization simplify compliance, increase efficiency and productivity, and ultimately save you money.
Verified First is here to help you easily achieve screening success. We offer compliant checks for every industry, including drug screens, criminal background checks, civil records, and more. Verified First is accredited by the Professional Background Screening Association (PBSA), meaning we have the expertise to stay on top of new and developing legislation. Contact us to see how we can help your organization prepare for new legislation in 2024.
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