In 2024, several key trends are shaping the landscape of employment background checks. These include legislative changes, technological advancements, and evolving employer practices. Here are some of the most notable trends:
1. Pay Transparency and Clean Slate Laws:
- New laws requiring employers to disclose salary ranges are gaining traction, impacting how salary information is used in hiring decisions. States like Washington, New York, and Hawaii have already implemented such laws, with more states expected to follow suit.
- Clean Slate legislation is becoming more common, automating the expungement or sealing of eligible criminal records. This trend aims to reduce employment barriers for individuals with past criminal records, impacting the availability of such records for background checks.
2. Regulatory and Compliance Changes:
- The Consumer Financial Protection Bureau (CFPB) and the Equal Employment Opportunity Commission (EEOC) are increasing their focus on ensuring fair use of personal data and preventing discrimination in hiring, especially with the use of artificial intelligence (AI).
- The Form I-9 has been simplified to allow for remote verification of documents, reflecting the ongoing shift towards more digital and remote hiring processes.
3. Technological Advances and AI:
- The use of AI in hiring processes is under scrutiny to ensure compliance with anti-discrimination laws. Employers are advised to carefully assess their use of automated systems to avoid unintentional biases.
Advancements in HR technology, particularly Applicant Tracking Systems (ATS), are enabling more efficient and integrated background check processes.
4. Court System Challenges:
- Delays and access restrictions in court systems are making it more challenging for background screening companies to provide timely and accurate reports. Issues such as removing personal identifiers and upgrading court systems are contributing to these delays.
5. Marijuana Legislation:
- As more states legalize marijuana, employers face complex legal landscapes regarding drug testing and employment protections. This necessitates continual updates to drug testing policies to stay compliant with varying state laws.
These trends highlight the importance for employers to stay informed about legislative changes and leverage technological advancements to maintain effective and compliant background check processes.
