If 2025 had a mantra, it might be “the only constant is change.” That certainly applies at the federal level right now, in ways that touch on many aspects of our lives—not the least of which, the hiring process!
In such fast-moving times, Asurint General Counsel Kelly Uebel’s Top Trends: Background Screening in 2025 proves especially valuable. Did you miss the session with her 2025 outlook? You can access the full video here. Or if you’re more of a reader, start with our summary of the four most important issues below.
#1 It’s All About AI
The whole world seems to be turning to AI in the search for efficiencies. This is as true in recruitment as in any other field. One might say that no action happens without legislative, regulatory, and/or litigation reaction, though, so topics like algorithmic discrimination and automated (rather than individualized, human) decision-making are coming to the fore at the federal and state levels.
For example, a bipartisan report by the U.S. House of Representatives last December highlighted concerns that AI use could infringe on civil rights. President Trump, for his part, appears to be less worried about AI-based discrimination, so it remains to be seen whether Congress will keep up the cross-party collaboration here.
Even if the federal government steps back, it’s not an “all clear” for employers. Already, California and Texas—usually considered to fall on opposite ends of the political spectrum—are getting involved. The Texas action comprises a new potential law, while California is considering regulations aimed at ensuring transparency and human oversight over AI systems. Other states, such as New Jersey, are clarifying that their anti-discrimination laws apply to algorithms.
Employers utilizing AI in the hiring process will likely want to discuss with legal counsel how these new laws and regulations may impact them. Ignorance of how AI systems might discriminate may not be enough to deter lawsuits or government enforcement action. In fact, liability could extend to third-party tools that employers don’t directly control, so this is a tricky one to get on top of.
As with so much about AI (and compliance in general!), it’s an evolving landscape, so employers must take a proactive stance—staying up to date on developments and seeking legal advice where they might affect policies and processes.
#2 Federal Agencies Revamped
The Trump administration moved swiftly to upend the regulatory ecosystem. It wasn’t long before he tried to dismantle the Consumer Financial Protection Bureau (CFPB), although that action has been blocked by the courts (as of this writing).
Regardless of the fate of the legal case, industry watchers are mostly confident that a full about-face is in the works. The CFPB’s intense focus on background screening practices and consumer reporting agencies (CRAs) may be placed on the backburner. In particular, worrisome rulemaking efforts that could have put data brokers under the scope of the Fair Credit Reporting Act (FCRA) may be on ice.
Speaking of the FCRA, the Federal Trade Commission (FTC), which plays a key role in its enforcement, is also embroiled in legal disputes after the President fired two commissioners, the only Democrats on the board. Whether or not the firings stand, employers may still need to track FTC enforcement on issues ranging from non-compete bans to privacy.
A similar play, removing Democratic commissioners, was made at the Equal Opportunity Employment Office. When combined with the myriad changes related to diversity, equity, and inclusion, one can probably assume that topics surrounding the use of criminal history in hiring and potential impacts on protected classes will not be a primary focus in Washington, DC, for a while. This shift comes after 2024’s record year for the EEOC, during which the agency collected nearly $700 million in discrimination cases!
Nonetheless, employers should not abandon FCRA compliance and fair hiring measures. FCRA lawsuits increased 10% in 2024, with adverse action remaining a prime target. Kelly offers more details and suggestions in the full webinar.
#3 Criminal Justice Reform Hits States and Localities
Equal opportunity may not be a federal obsession in 2025, but criminal justice reform still boasts bipartisan support in many states and localities. Employers will need to keep a lookout on several fronts. Clean slate laws, which automatically expunge criminal records after a set period, are expected to expand. States like California, Minnesota, and Michigan already have such laws, and implementation can be challenging, leading to delays in record updates for employers and thus in hiring decisions.
Fair Chance laws are a little different, affecting when and how employers can consider criminal history. Legislation is being considered in a number of states including Texas, Kentucky, and South Carolina, as well as localities like New York City where revised rules impacting the city’s Fair Chance Act may be finalized in 2025. These laws can be complex, particularly at the local level, where changes can take effect immediately without much notice.
Not to harp on lawsuits, but improper use of criminal history can get an employer into legal hot water, too. Plus, enforcement bodies like the California Civil Rights Department continue to be very active.
Stream the webinar for other areas we’re seeing activity, along with some issues to discuss with legal counsel.
#4 Marijuana Legalization Battles Simmer Down – For Now
This is one area where compliance watchers are seeing a little less activity, perhaps welcome relief to employers who have been scurrying to adapt marijuana and drug testing policies. Legislative activity related to marijuana slowed in 2024, and many 2024 ballot initiatives to legalize either medical or recreational marijuana failed. Legalization of psychedelics also earned a “no” from Massachusetts voters.
Local laws are still creating headaches for employers, however. Kelly offers insights about a Pittsburgh ordinance making medical marijuana users a protected class, among other local happenings from across the U.S. Sadly, lawsuits are part of the picture, so give the webinar a listen so you can mitigate risk!
Ending with a Robust Q&A
Perhaps the best part of any Top Trends webinar is the Q&A. We always encourage HR professionals to participate live when schedules allow, so they can get answers to their specific questions. Like what?
Check out the recording to hear how Kelly fields a full array of inquiries, including:
- What are the compliance implications of using social media screening in hiring decisions?
- Must applicants disclose an arrest if the record has been expunged?
- Is South Carolina considering new laws regarding criminal history use in hiring?
- What’s the status of New York City’s AI discrimination laws? Has action been taken against employers or software companies yet?
Compliance is a nuanced topic, so no summary can do justice to the detail Kelly provides over the course of a full hour. Definitely hit this link to hear the full story on those and other issues.
And check back here for blog updates covering compliance. There’s always a lot happening, so we post frequently!
Clients should also keep an eye on their inbox for our monthly newsletter about new regulations and legal changes. Helping you keep up with compliance is part of the premium-level service we’re proud to provide at Asurint, so please don’t hesitate to reach out if we can be of assistance!