2024's Hiring Law Shake-Up: What Your Business Can't Ignore in 2025

If you've been watching the employment compliance landscape this year, you know 2024 was a rollercoaster. States across the country rolled out groundbreaking legislation that has fundamentally changed how organizations approach hiring, screening, and workplace management. Let's be clear – these aren't just minor policy updates. We're talking about massive shifts that are reshaping the entire employment ecosystem.

As we've tracked these changes throughout the year, four major areas have emerged that are keeping HR departments on their toes:

• Pay transparency laws that turned the compensation conversation on its head.

• Clean Slate legislation that's rewriting background screening rules.

• AI hiring regulations that finally put some guardrails around automated decisions.

• Marijuana workplace policies that continue to blur traditional employment lines.

Here's the reality: whether you're operating in multiple states or running a single location, these changes matter to your bottom line. Compliance isn't optional and the cost of getting it wrong has never been higher.

As we wrap up 2024 and look toward what's coming next, it's crucial to understand not just what changed, but what these changes mean for your organization's hiring practices. We're breaking down the most significant developments of the year and, more importantly, what you need to do to stay ahead of the curve in 2025.

Let's dive into what really mattered in 2024 and how to position your organization for compliance success moving forward.

Pay Transparency: The New Normal in Hiring

Pay transparency laws redefined hiring practices across the country in 2024, bringing new requirements that significantly impact how organizations recruit and engage with candidates. While these changes create new compliance obligations, they also offer opportunities to streamline hiring processes and enhance candidate communication.

Key Developments in 2024

This year saw many jurisdictions implement comprehensive transparency requirements.

• Hawaii's law went into effect January 1, 2024, requiring employers to disclose salary ranges in job postings and to current employees upon request.

• Massachusetts joined the trend with its pay transparency law, effective July 1, 2024, requiring wage ranges in job postings.

• New York State's law, effective September 2023, saw its first full year of implementation in 2024, affecting all employers with four or more employees.

These changes have fundamentally altered the hiring landscape. Job postings now require specific salary ranges, changing not just how organizations advertise positions, but how they engage with candidates throughout the entire hiring process. This shift has actually streamlined many hiring conversations, setting clear expectations from the start.

The Real Impact on Your Business

For employers, these changes create both challenges and opportunities in the hiring process, including:

• More efficient candidate screening as expectations are set upfront.

• Streamlined negotiations with clear salary parameters established early.

• Updated job posting procedures that save time in the long run.

• New training opportunities for hiring managers to handle compensation discussions professionally.

Looking Ahead to 2025

The trend toward transparency in hiring continues to gain momentum. States, including Washington, Illinois, and California, are already signaling plans to enhance their existing requirements. We're also seeing movement toward standardized posting requirements across jurisdictions – a potential benefit for multi-state employers looking to streamline their hiring processes.

What's particularly promising is how these changes are creating more efficient hiring processes. Organizations that embrace these requirements are finding they can focus more on candidate qualifications and fit, rather than getting caught up in prolonged compensation discussions.

For employers, the key to success lies in viewing these changes not just as compliance requirements, but as tools for more effective recruitment. Organizations that adapt their hiring practices now will be well-positioned to attract and engage top talent in 2025 and beyond.

Clean Slate Laws: Expanding Second Chances

Clean Slate legislation made significant strides in 2024, transforming how organizations approach background screening and talent acquisition. With major developments in states like New York, California, and Michigan, these changes are creating new opportunities to expand qualified talent pools while maintaining workplace safety and compliance.

Key Developments in 2024

New York's Clean Slate Act represents the state's latest step in modernizing its approach to criminal justice reform. Under the new law, certain records are may be sealed after specified waiting periods:

• Three years for misdemeanors.

• Eight years for eligible felonies. 

• Multiple convictions can be sealed, provided they meet timing requirements.

• Timing is calculated from the completion of any supervision or incarceration.

Violent felonies, sex offenses, and class A felonies, excluding drug offenses, will never be eligible for sealing in New York.

Michigan pioneered automated record-clearing in 2021, establishing the first true Clean Slate law in the United States. Under this legislation:

• Eligible misdemeanors are automatically cleared after 7 years from sentencing.

• Eligible non-violent felonies are cleared after 10 years from sentencing or release from custody.

• Up to two felonies and four misdemeanors total can be automatically cleared.

• Certain offenses, including violent crimes, serious misdemeanors, and crimes of dishonesty, are excluded.

• Employers cannot access cleared records through standard background checks.

California's system has recently undergone significant changes with Senate Bill 731 (effective mid-2023). They’ve expanded eligibility to include most felony convictions, including violent crimes (except sex offenses). California created a two-tiered approach to record clearing.

Petition-based system:

• Must have fully served their sentence including probation.

• Must have gone two years without re-arrest.

• Judges have final say and can consider rehabilitation evidence and prosecutor opposition.

• Limited implementation so far (e.g., 26 felony expungements in Sacramento County, 72 in Kern County, and 48 in Riverside County since mid-2023).

Automatic sealing (started July 2024):

• Will automatically seal non-serious, non-violent, and non-sexual felony convictions.

• Applies when the defendant completes their sentence and has no new convictions after 4 years.

• Expected to affect about 225,000 Californians initially.

Illinois currently maintains a petition-based system for record clearing, with significant gaps between eligibility and actual relief.

• Allows for sealing a broad range of misdemeanors and felony convictions after waiting periods.

• Requires individuals to petition for relief - no automatic process.

• The current system processes fewer than 6,000 conviction sealings annually.

• A complex petition process creates barriers to access.

• Average wait time exceeds 2 years for sealing or expungement processing.

These changes don't eliminate background screening – they refine it. Organizations can still conduct thorough background checks and maintain their commitment to workplace safety. The key difference is how certain historical records are handled and evaluated in the hiring process.

The Real Impact on Your Business

For employers, adapting to Clean Slate laws requires strategic updates to hiring practices, such as:

• Streamlined background check procedures focusing on relevant, accessible records.

• Updated hiring policies aligning with new legal requirements while maintaining safety standards.

• Enhanced training for hiring managers on evaluating available background information.

• Refined application processes that reflect current legal requirements.

These adjustments often lead to more efficient screening processes and access to broader talent pools. Many organizations are finding these changes help identify qualified candidates who might have previously been overlooked.

Looking Ahead to 2025

Clean Slate legislation continues to gain momentum nationwide. Several states are expected to introduce similar legislation in 2025 and existing programs will likely expand their automated record-clearing systems. This evolution in background screening practices presents an opportunity for organizations to update and enhance their hiring processes.

Particularly noteworthy is the growing integration of technology in compliance management. Automated systems are making it easier for employers to maintain compliance while conducting thorough background checks. These technological advances are helping organizations balance fair hiring practices with workplace safety requirements.

The key to success under these new regulations lies in viewing them as an opportunity to enhance hiring practices rather than a limitation. Organizations that adapt their screening procedures now will be well-positioned to access expanding talent pools while maintaining compliant hiring practices.

AI in Hiring: Increased Regulation and Scrutiny

The regulation of artificial intelligence in hiring processes took center stage in 2024, with multiple jurisdictions implementing groundbreaking legislation. These new requirements are reshaping how organizations leverage AI tools throughout their hiring processes, from initial screening to final selection.

Key Developments in 2024

This year saw major jurisdictions establish clear guidelines for AI use in employment decisions:

• Illinois expanded its AI Video Interview Act with new requirements for employee notification and anti-discrimination measures. 

• Colorado introduced comprehensive legislation prohibiting algorithmic discrimination in hiring decisions. 

• New York City's Local Law 144 set the standard for AI accountability with mandatory annual bias audits.

These regulations don't prevent organizations from utilizing AI tools – they establish frameworks for responsible implementation. The focus is on transparency, fairness, and maintaining human oversight in the hiring process.

The Real Impact on Your Business

For employers utilizing AI in their hiring processes, compliance now requires:

• Clear notification systems for candidates about AI tool usage.

• Implementation of regular bias auditing procedures.

• Documentation of AI-driven decision processes.

• Enhanced training for HR teams on AI tool oversight.

• Development of alternative assessment methods when needed.

Many organizations are finding that these requirements actually strengthen their hiring processes by ensuring more consistent and equitable candidate evaluation.

Looking Ahead to 2025

The AI regulatory landscape continues to evolve rapidly. States like New Jersey and Vermont are already signaling new legislation, and federal guidance on AI use in employment decisions is anticipated. This expansion of AI regulation suggests that organizations should prepare for:

• More stringent transparency requirements.

• Standardized approaches to bias testing.

• Enhanced focus on human oversight in AI-driven decisions.

• Greater emphasis on candidate consent and communication.

The key to success lies in developing AI hiring practices that embrace both innovation and compliance. Organizations that implement transparent, well-documented AI processes now will be better positioned to adapt as regulations continue to evolve.

Marijuana in the Workplace: Evolving Standards

The landscape of workplace marijuana policies continued its rapid evolution in 2024, requiring organizations to balance employee rights with workplace safety. As more states refine their approach to marijuana in the workplace, employers are adapting their policies to meet both legal requirements and operational needs.

Key Developments in 2024

This year marked a significant shift in workplace testing and accommodation policies. States increasingly restricted pre-employment marijuana testing while expanding protections for off-duty use. The focus has moved away from blanket testing policies toward more nuanced approaches prioritizing workplace safety while respecting employee privacy.

The most notable change has been the refinement of "safety-sensitive" position definitions. Organizations can still maintain strict policies for roles that directly impact safety, while adopting more flexible approaches for other positions. This balanced approach allows employers to maintain workplace safety standards while adapting to changing legal requirements.

The Real Impact on Your Business

For employers, these changes require strategic updates to workplace policies.

• Revised drug testing protocols that focus on current impairment.

• Clear definitions of safety-sensitive positions.

• Updated reasonable suspicion procedures.

• Enhanced supervisor training for recognizing and documenting impairment.

• Modified pre-employment screening processes.

Many organizations are finding these updated policies actually improve both compliance and workforce management by focusing on current workplace safety rather than historical use.

Looking Ahead to 2025

The trend toward more nuanced marijuana policies continues to gain momentum. Employers should prepare for:

• Further restrictions on pre-employment testing.

• More sophisticated testing methods focused on current impairment.

• Enhanced protections for medical marijuana users.

• Additional guidance on safety-sensitive position requirements.

• Possible federal standards, particularly for regulated industries.

Success in this evolving landscape requires policies that maintain workplace safety while respecting changing legal standards.

This isn't about relaxing safety standards – it's about implementing smarter, more effective policies that protect both employer and employee interests. The key is developing precise, legally compliant approaches that focus on current workplace safety rather than outdated testing models.

Prepare Your Organization for Future Success

As we've seen, 2024 brought significant changes to the employment compliance landscape. From pay transparency to AI regulation, Clean Slate laws to marijuana policies, these changes are reshaping how organizations approach hiring and workforce management. However, compliance isn't a destination – it's an ongoing journey that requires vigilance and expertise.

Staying ahead of these changes isn't just about compliance – it's about maintaining competitive advantage in talent acquisition and risk management. As these requirements continue to evolve, having the right compliance partner becomes increasingly crucial.

Don't Navigate These Changes Alone

Our compliance experts are here to help you understand how these changes impact your screening program. Whether you're dealing with multiple jurisdictions or focusing on a single state, we can help you:

• Evaluate your current compliance stance.

• Identify potential gaps in your screening program.

• Develop strategies for upcoming regulatory changes.

• Implement compliant screening processes.

Don't wait for compliance issues to impact your hiring process, call (518) 271-7546 or email info@cichecked.com to speak with our sales team. Let's ensure your screening program is ready for whatever 2025 brings!