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As your business prepares for a strong start for the coming year, it’s important to keep up with new laws that might affect you. Here are some trends to watch for.

Drug Testing

Numerous states have legalized medicinal and/or recreational marijuana use, and more are expected to follow. As these laws go into effect, employers need to be aware of any drug screening limitations or requirements. For example, California’s SB 700 makes it unlawful for employers to ask about an applicant’s prior use of cannabis unless they are required to do so by law.

There are various laws that cover cannabis usage, and some prohibit screening for marijuana. However, employers everywhere may continue to enforce drug free policies at the workplace.

Expungements

As the Second Chance movement continues to progress, more states and cities are creating allowances for residents to expunge low-level criminal records. This is particularly common when marijuana use is legalized. That leaves many people with convictions for actions that are no longer deemed crimes, so expunction opportunities are often deployed soon after.

Employers may not consider criminal records that have been expunged. To help avoid this, businesses are encouraged to work with a Consumer Reporting Agency (CRA) that is accredited by the Professional Background Screening Association (PBSA). CRAs must show that they follow reasonable procedures to ensure maximum accuracy in the background checks they produce. A crucial aspect of this is only including up to date records in every report.

Wages

To help reduce pay gaps due to gender or other factors, various laws are calling for wage transparency and fairness. These laws vary, but can include topics such as:

• Prohibiting employers from asking job applicants about their current level of compensation.
• Requiring employers to include information about salary ranges in their job postings.
• Clarifying that employees who do comparable work under comparable circumstances must receive comparable compensation.

Artificial Intelligence

As the use of Artificial Intelligence (AI) to help make hiring decisions increases, laws are being created to help create a fair experience for everyone. These laws are likely to cover topics such as:

• Establishing requirements that are intended to help prevent inadvertent discrimination.
• Protecting data privacy.
• Creating task forces to study how AI is used.

Businesses that use AI to help with hiring decisions should keep up with forthcoming legislation.

Individual Assessments

Multiple states have passed Clean Slate laws and 2024 is likely to bring more. A common topic in these laws is how employers must handle any convictions that are found during the background screening process. Specifically, hiring managers might be asked to individually assess each record to better determine if one warrants an adverse action. Those assessments commonly include considering:

• How long ago an offense occurred.
• If the offense has any bearing on the position being sought.
• Whether the person has undergone any form of rehabilitation.

Preparing For A Successful 2024

As your business prepares for another year, this is a good time to review your hiring and background screening policies. It is recommended to have those documents reviewed by legal counsel to ensure they are compliant with relevant laws.

When you’re ready to start bringing on employees, contractors or volunteers, please contact us. Our experienced team can help you customize screening packages based on relevant laws, industry best practices and your specific needs. We are available to assist you Monday through Friday from 5am to 6pm PT.