With over half of 2024 completed, employers in every industry are bracing for compliance trends impacting recruitment and hiring in the second half of the year. HR departments nationwide have faced countless regulatory compliance changes and updates over the last few years. Due to this, it can be challenging to monitor hiring trends and laws on top of normal day-to-day responsibilities.
Organizations like yours are grappling to stay updated with key compliance updates and best practices. Don’t stress! We’ve identified the top three compliance trends impacting employers like you in the second half of 2024 and provided best practices to help you compliantly recruit and hire top talent.
Over the past few years, restrictive screening legislation has gained momentum. From ban the box to clean slate laws, and now credit check bans, employers must stay on top of screening restrictions at the state, local, and federal levels to remain compliant.
Clean slate legislation is a fast-growing legal initiative employers must continue watching throughout the rest of 2024. Clean slate legislation is growing at both the local and state levels (take Michigan for example), making it a key trend to keep an eye on.
Regarding screening, clean slate legislation allows the removal of certain criminal records from public court records. Clean slate legislation aims to equal the playing field for job seekers while increasing the candidate pool for employers. However, this means employers in these counties and states may not access certain records previously available via background checks.
Here’s an overview of states with clean slate laws slated for 2024:
Earlier this year, the Massachusetts House of Representatives passed legislation that would prohibit employers from using credit checks during pre-employment screening. Similar to recent Clean Slate and Ban the Box legislation, Massachusetts’ credit check ban aims to create a standard of fair and equal hiring practices throughout the state.
In the first half of 2024, pay transparency and equity were hot discussion topics for HR departments nationwide. We saw new legislation that prohibited employers from asking about an applicant’s salary and benefits history in a few states (Minnesota and Columbus, Ohio), and we can expect to see similar regulations in the second half of the year.
At the beginning of this month, the Department of Labor updated its overtime policy as it relates to the Fair Labor Standards Act (FLSA). This rule, which went into effect July 1, 2024, increases the standard salary level to which salaried workers are entitled to overtime pay protections under the FLSA. Under this new overtime regulation, salaried employees who earn less than $844 per week will be eligible for overtime pay. And on Jan. 1, 2025, salaried workers who make less than $1,128 per week will also become eligible for overtime pay.
The use of medical and recreational marijuana has become more widely accepted in the United States, leading to new state and federal regulations. More than 35 states legalized medical marijuana, and 23 have gone even further making recreational cannabis use legal, too.
In order to keep up with changing trends, laws and regulations relating to cannabis use and workplace drug testing are coming into effect across the country (consider California and Washington for example. Employers must stay updated with relevant drug screening laws and how they impact their organization. Here are some states enacting new drug testing regulations in 2024:
Employers in these states should seek legal counsel regarding their organization’s drug screening policy. But, in light of changing regulations, many HR departments are reassessing their drug testing requirements. The following considerations can help employers maintain compliance and ensure a safe and productive workplace amidst evolving drug screening regulations:
Background screening, drug testing, and compliance regulations are constantly evolving. HR departments across the country saw massive changes in screening and compliance trends in the first half of 2024 and should expect the same to continue throughout the remainder of the year.
With so much on your plate, it can feel impossible to stay up to date with regulations and requirements that impact your organization. Partnering with an experienced background screening provider can help your organization streamline compliance so you can focus on what really matters: your people.
Verified First can help you achieve screening and compliance efficiency, without breaking the bank. We offer comprehensive, compliant checks for every industry, including drug screens, criminal background checks, civil records, and more.
We are proud members of the Professional Background Screening Association (PBSA)
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