In 2024, several significant policy changes in the background screening landscape are worth discussing, especially for HR professionals and organizations aiming to stay compliant:
Clean Slate Legislation: This trend continues to grow, with new laws being enacted in states like California, Colorado, Connecticut, Delaware, and New York. These laws aim to automatically seal or expunge eligible criminal records, making them inaccessible for employment background checks. This change is designed to reduce barriers for individuals with past convictions and promote fairer hiring practices. For HR managers, this means updating background screening policies to avoid considering records that may be legally protected or sealed.
Marijuana Legalization and Drug Testing Regulations: As more states legalize cannabis for medical and recreational use, new regulations are emerging that affect pre-employment and workplace drug testing. States like California and Washington now restrict employers from discriminating against candidates based on off-duty cannabis use. Meanwhile, federal discussions about rescheduling marijuana from a Schedule I to a Schedule III substance are ongoing, which could further influence drug testing policies across industries.
AI in Hiring: The increased use of AI for background screening and hiring has raised concerns about potential biases. The Equal Employment Opportunity Commission (EEOC) and other regulatory bodies have been issuing guidance to ensure that AI tools do not result in discriminatory practices. Expect more regulations on using AI in hiring, especially around ensuring transparency and preventing unlawful discrimination in 2024 and beyond.
Adverse Action Requirements: The process of taking adverse action (i.e., rejecting a candidate based on background check results) is also evolving, with more jurisdictions requiring individualized assessments. This involves considering the nature of any criminal record in relation to the job applied for, rather than making blanket decisions.
Data Privacy and Background Checks: New data privacy laws in states like Montana, Oregon, and Texas have set stricter requirements on how personal information is handled during background screening. These laws emphasize the protection of candidate information, even while complying with the Fair Credit Reporting Act (FCRA).
These evolving policies highlight the need for organizations to regularly update their background screening practices to maintain compliance and avoid potential legal pitfalls. Western Verify can help businesses navigate these changes, ensuring that their screening processes remain thorough, fair, and up-to-date.