New Background Check Laws Employers Need to Know [2025]

As an HR professional, you know that employment background check laws are constantly in flux.

You must keep current with the changes in the regulations and laws to ensure your company remains compliant.

Even unintentional violations of the background check laws could expose your business to legal liability, penalties, and reputational harm.

Several new employment background check laws and regulations have recently gone into effect at the local, state, and federal levels, and they might change your screening procedures.

Based on our experience conducting employment background checks for employers across the U.S., we wrote this guide covering the new laws you should know about in 2025.

New Background Check Laws You Should Know About in 2025

Federal Laws

Fair Chance to Compete for Jobs Act of 2019

The Fair Chance to Compete for Jobs Act of 2019 (Fair Chance Act) was added to the National Defense Authorization Act of 2020 and signed into law by former President Donald Trump. This law went into effect on Dec. 20, 2021.

The Fair Chance Act is a federal ban-the-box law that covers federal agencies and employers that have civilian or defense contracts with the federal government.

Under this law, covered employers are prohibited from asking prospective job candidates about their criminal history before they extend conditional offers of employment.

There are some exceptions to this law, including the following:

• Jobs requiring a security clearance
• Positions with law enforcement duties
• National security positions
• Jobs for which employers are legally required to consider criminal history information by other laws or regulations

The Fair Chance Act also prohibits employers from trying to find this type of information from other sources before making conditional job offers.

Federal Compliance Updates

The Consumer Financial Protection Bureau (CFPB) has updated the “Summary of Your Rights Under the Fair Credit Reporting Act” disclosure form.

The updated form became effective on April 19, 2023, with mandatory compliance required by March 20, 2024.

Employers must ensure they are utilizing the correct version to remain compliant with federal regulations.

Additionally, on December 3, 2024, the CFPB issued a proposed rule aimed at protecting consumer information from harmful data broker practices.

This proposed rule seeks to expand the scope of the Fair Credit Reporting Act (FCRA) and impose new requirements on covered parties, such as data brokers.

Employers should monitor these developments to ensure ongoing compliance.

State and Local Laws

If your company operates in one of the states or municipalities listed below, make sure you comply with these new laws.

Clean Slate Laws by State

California

California’s Clean Slate Law, enacted through Senate Bill 731 and effective January 1, 2023, automates the sealing of certain criminal records.

This law builds on prior expungement efforts by automatically sealing eligible felony convictions (after completing all terms, including probation) and many misdemeanor records. Exceptions apply, such as for serious violent offenses or sex crimes, which remain visible.

For employers, this reduces the scope of criminal history visible in background checks, as sealed records will not appear in most reports.

Businesses relying on background screening must adjust expectations, as candidates with past convictions may now present cleaner records.

This law reflects California’s commitment to reducing employment barriers for rehabilitated individuals, requiring employers to stay informed about what records are still accessible under state law.

Michigan

Michigan implemented its Clean Slate Law on April 11, 2023, automating the expungement of certain criminal convictions to help over a million residents clear their records.

This law covers eligible misdemeanors after seven years and some felonies after ten years, provided no new crimes are committed in that time.

Serious offenses, like violent crimes or DUIs, are excluded from automatic expungement.

For employers, this means fewer criminal records will surface in background checks over time, as eligible convictions are systematically removed from public view.

Companies hiring in Michigan should verify that their screening processes account for these changes and ensure compliance with state fair hiring laws, like Michigan’s existing ban-the-box rules.

The law supports second chances by limiting the long-term impact of past convictions on job prospects.

Pennsylvania

Pennsylvania pioneered Clean Slate legislation in 2018 and expanded it with House Bill 689, which was signed into law on December 14, 2023.

The new provisions, effective February 12, 2024, broaden automatic record sealing to include certain nonviolent drug felonies and unconditional pardons.

Specifically, less serious drug felonies are eligible for automatic sealing after 10 years without subsequent convictions, while some property-related felonies, like thefts, require a court petition for sealing.

Additionally, the waiting period for sealing misdemeanors has been reduced to seven years, and summary offenses to five years.

For employers, this means that more criminal records will be sealed and thus not visible in standard background checks.

Companies operating in Pennsylvania should update their hiring practices to account for these changes and ensure compliance with state laws regarding the consideration of sealed records.

Utah

Utah’s Clean Slate Law, enacted through HB 431 in 2019, became effective on Feb. 10, 2022.

This legislation mandates the automatic expungement of certain misdemeanor records for individuals who have remained crime-free for a specified period.

Eligible offenses include Class A misdemeanor drug possession offenses, most Class B misdemeanors, most Class C misdemeanors and infractions, provided that all court-ordered obligations have been satisfied.

However, offenses such as domestic violence, DUIs, and sex-related crimes are excluded from automatic expungement.

Employers in Utah should be aware that expunged records will not appear in background checks, potentially altering the assessment of a candidate’s criminal history.

Make sure you know which records are accessible under your state’s laws—it’s key to keeping your hiring practices fair.

New Jersey

New Jersey implemented its Clean Slate Law in 2019, establishing a process for the automatic expungement of certain criminal records.

Under this law, individuals can have their entire criminal record expunged 10 years after their most recent conviction, payment of fines, satisfactory completion of probation or parole, or release from incarceration, whichever is latest.

However, serious offenses, such as violent crimes, sex offenses, or robbery, are excluded from eligibility.

For New Jersey employers, this means many older criminal records might no longer show up in background checks.

It’s important to update your screening process and stay aligned with New Jersey’s fair hiring laws.

Connecticut

Connecticut’s Clean Slate Law, effective January 1, 2023, provides for the automatic erasure of certain criminal convictions.

Eligible offenses include misdemeanors after seven years and specific low-level felonies after 10 years, provided the individual has remained conviction-free during that period.

However, offenses such as family violence and sex crimes are excluded from automatic erasure.

As these records are erased, they won’t appear in background checks—something Connecticut employers need to keep in mind when making hiring decisions.

Make sure you stay up to date on which records are accessible under state law so you can stay compliant with fair hiring practices.

Delaware

Delaware’s Clean Slate Act, signed into law in 2021, commenced its automatic expungement process on August 1, 2024.

The law provides for the automatic expungement of eligible records, including arrests not leading to convictions, certain misdemeanors after five years, and specific felonies after 10 years.

However, serious offenses are excluded from automatic expungement.

If you’re an employer in Delaware, be aware that many criminal records may no longer show up in background checks.

Make sure to adjust your hiring practices and stay compliant with state laws on expunged records.

Minnesota

Minnesota’s Clean Slate Law, enacted in 2023, took effect on January 1, 2025. This law automates the expungement of eligible criminal records, including certain misdemeanors and felonies, after specified waiting periods.

Misdemeanors are eligible for expungement after two to three years (based on the class), while qualifying felonies require a five-year waiting period, provided the individual remains conviction-free during that time.

Serious offenses, such as violent crimes and sex offenses, are excluded from automatic expungement.

As an employer in Minnesota, you’ll need to rethink how you assess candidates—many criminal records won’t show up in background checks anymore, so stay sharp on what your state allows.

New York

New York’s Clean Slate Act, signed into law in 2023, became effective on November 16, 2024.

The law provides for the automatic sealing of certain criminal records—specifically, misdemeanors after three years and eligible felonies after eight years, provided the individual has remained conviction-free during that period.

However, serious offenses, such as sex crimes and Class A felonies, are excluded from eligibility.

As records are sealed, they won’t show up in New York background checks, so make sure you’re up to date on state laws to keep your hiring practices fair and compliant.

Oklahoma

Oklahoma’s Clean Slate Law, enacted in 2022, provides for the automatic expungement of certain criminal records.

The law allows for the automatic expungement of non-conviction records and eligible misdemeanors. It also allows for the automatic expungement of low-level felony convictions that have since been reclassified as misdemeanors.

The implementation of automatic expungement is set to begin in 2025.

In Oklahoma, many criminal records may no longer appear in background checks, so you’ll need to review your hiring process and make sure it aligns with state rules on expunged records.

Virginia

Virginia’s Clean Slate Law, enacted in 2021, is scheduled to take effect on July 1, 2026. The law provides for the automatic sealing of certain criminal records, including some misdemeanors and felonies, after specified waiting periods.

Misdemeanors are eligible for sealing after seven years, while certain felonies require a ten-year waiting period, provided the individual remains conviction-free during that time.

However, serious offenses, such as violent crimes and sex offenses, are excluded from automatic sealing.

Virginia employers should know that sealed records won’t show up in background checks, which can impact hiring, so it’s important to stay current on what’s legally accessible to stay compliant with fair hiring laws.

Colorado

Colorado enacted its Clean Slate Law in 2022, with implementation beginning in 2024.

The law automates the sealing of certain criminal records, aiming to give individuals a second chance without the burden of past convictions.

Under this law, eligible petty offenses and misdemeanors are automatically sealed 4 years after the case is closed, while eligible felonies are sealed after 7 years, provided there are no subsequent convictions.

Non-conviction records are also included in the automatic sealing process.

However, serious offenses—such as crimes involving violence or sex offenses—are excluded from eligibility.

If you’re an employer in Colorado, many lower-level offenses won’t appear in background checks anymore—so now’s the time to review your screening process and make sure it aligns with the state’s Clean Slate law and fair hiring standards.

Washington, D.C.

Washington, D.C.’s Clean Slate Law, enacted in 2023, is set to begin automatic expungement processes in January 2026.

The law provides for the automatic expungement of certain criminal records, including arrest records without a conviction, some misdemeanors after ten years, and certain marijuana offenses.

However, serious offenses are excluded from automatic expungement.

If you’re hiring in Washington, D.C., keep in mind that many criminal records may no longer show up in background checks, so it’s important to update your screening practices and follow local laws on expunged records.

Virginia’s Updated Record Sealing Laws

Virginia’s legislature has enacted significant changes to its record sealing laws, with the new provisions set to take effect on January 1, 2026.

The legislation introduces automatic sealing for certain misdemeanor non-conviction and conviction records, provided the individual has no prior convictions and no new charges within a specified period.

Eligible misdemeanor convictions that will automatically be sealed include:

• Petit larceny
• Shoplifting or altering price tags
• Trespass following a previous prohibition to enter
• Instigating others to trespass
• Trespass on posted property

Additionally, individuals may petition for the sealing of certain felony convictions, including Class 5 and Class 6 felonies, after a designated period and upon demonstrating rehabilitation.

These reforms aim to facilitate better employment opportunities for individuals with eligible records.

Marijuana Laws

Connecticut Marijuana Use Consideration

Connecticut Gov. Ned Lamont signed SB 1201 into law on June 22, 2021. This law legalized the recreational use of cannabis and also enacted some important changes for employers.

Under the new recreational cannabis law, employers will be prohibited from taking adverse employment action against employees or job applicants for off-duty or pre-hire marijuana use beginning on July 1, 2022.

Covered employers cannot prohibit non-exempt employees from using marijuana when they are off duty.

The law still allows employers to maintain a drug-free work environment, however.

Employers can take adverse action against employees who are impaired by marijuana at work or who use it at work.

However, employers must have a written drug testing policy to take adverse action based on reasonable suspicion of at-work drug use or impairment.

Employers in certain industries are exempt from the employment requirements of this law, including manufacturing, healthcare, jobs requiring driving, jobs supervising children, and those that affect public safety.

Virginia Cannabis Oil Law

Former Virginia Governor Ralph Northam signed HB 1862 into law on March 25, 2021, which was effective beginning on July 1, 2021.

This law prohibits employers from making adverse job decisions for current employees or job applicants based on their lawful use of medical cannabis oil.

Employees or applicants must provide a practitioner’s written certification that they are being treated with cannabis oil for medical conditions.

Employers can still take adverse action against current employees when they are impaired at work by their use of medical cannabis oil and can prohibit the possession or use of it during work hours.

Employers are not required to do anything that might violate federal law, result in the loss of federal funding or contracts, or retain or hire employees or applicants who test positive for THC in excess levels in defense jobs.

Pennsylvania Appellate Decision

As previously discussed in our blog about new laws in Pennsylvania, the Pennsylvania Superior Court’s decision in Palmiter v. Commonwealth Health Systems, 2021 PA Super 159 (2021) substantially changed how employers can handle pre-employment drug tests for marijuana for medical marijuana users.

The court found that 35 P.S. Health and Safety § 10231.2103 of the Pennsylvania Medical Marijuana Act allows employees and applicants who are medical marijuana users to file lawsuits against employers that base adverse employment decisions on their use of marijuana.

Employers can’t take adverse employment actions against certified medical marijuana users based on positive marijuana drug tests under this law.

Philadelphia Ban on Pre-Employment Marijuana Drug Tests

Philadelphia Code Chapter 9-4700 was passed by the Philadelphia City Council on April 22, 2021, and was effective on Jan. 1, 2022.

Under this ordinance, employers in Philadelphia are prohibited from conducting pre-employment marijuana drug tests.

This law applies to private employers, labor organizations, and employment agencies when they extend conditional employment offers based on drug tests.

The following types of employers are exempted under this new ordinance:

• Law enforcement
• Employers engaged in providing care for vulnerable populations, including people with disabilities, children, medical patients, and others
• Employers hiring for positions requiring commercial driver’s licenses
• Employers hiring for positions that could affect public health and safety

Drug testing required by other federal or state laws for security or safety reasons is also exempted.

Federal contractors that are required to conduct pre-employment drug screens to receive contracts or grants and those with collective bargaining agreements that call for drug tests as a condition of employment are also exempt.

Ban-the-Box and Fair Chance Hiring Laws

Multiple states have enacted ban-the-box and fair chance hiring laws.

Louisiana

Louisiana Governor John Bel Edwards signed HB 707/Act 406 into law on June 16, 2021, with an effective date of Aug. 1, 2021. This law is a fair chance hiring law.

Under the Act, employers are prohibited from asking for or considering arrest records not resulting in convictions to make hiring decisions.

Employers are allowed to consider the criminal history of job applicants only when they individually assess records in direct relationship to the duties required by the positions.

Job applicants can request copies of their background screening reports in writing under the law, and employers must provide copies to the applicants when the applicants request them.

Maine

Maine Governor Janet Mills signed LD 1167/HP 845 into law on July 6, 2021. This law is a ban-the-box law that was effective as of Oct. 18, 2021.

Under the law, employers are prohibited from asking applicants about criminal history information on their applications.

Employers also can’t include statements that discourage applicants with criminal records from applying in their job advertisements.

The law includes the following exceptions:

• When state or federal laws or regulations mandate that certain criminal convictions disqualify applicants from consideration
• When state or federal laws prohibit employers from hiring applicants who have been convicted of specific offenses
• When state or federal laws require certain employers to conduct criminal background checks

Employers who violate Maine’s ban-the-box law can face fines ranging from $100 to $500 per violation.

Colorado

Colorado passed the Chance to Compete Act in 2019, and it was effective for employers with 11 or more employees on Sept. 1, 2019.

The Chance to Compete Act became effective for all employers regardless of size on Sept. 1, 2021.

Under this law, employers cannot do the following things:

• Include statements in job advertisements that applicants with criminal records can’t apply
• Include statements on applications that applicants with criminal records can’t apply
• Ask about criminal history information on initial applications

Philadelphia

Philadelphia amended its Fair Criminal Record Screening Standards ordinance and expanded it to include gig workers, independent contractors, and current employees.

This amendment was effective on April 1, 2021. Employers are prohibited from asking candidates about criminal history information on applications.

They cannot conduct criminal background checks until they have made conditional job offers.

New York City

New York City initially passed the Fair Chance Act in 2015. Amendments to the law became effective on July 29, 2021.

Under the amended Fair Chance Act, employers can’t perform criminal background checks until after they extend conditional job offers. They must conduct other types of pre-employment screens before making conditional offers.

This means that employers should split their pre-employment background checks into two phases.

Birth Date Redaction Laws

Two states passed birth date redaction laws in 2021.

California

As we previously noted, the California Court of Appeal made background checks more difficult in its decision in All of Us or None of Us v. Hamrick, 64 Cal.App.5th 751 (2021).

This decision found that the inclusion of identifiers on publicly available criminal court records is prohibited by Cal. Ct. Rule 2.507 and ordered court clerks to redact birth dates and driver’s license numbers.

Employers should work with an experienced pre-employment background check company like iprospectcheck to conduct comprehensive employment background checks.

Michigan

As we previously reported, the Michigan Supreme Court issued two court rules that would have required court clerks to redact dates of birth from court records beginning on Jan. 1, 2022.

The Supreme Court revised the court rules to allow employers to access birth dates on criminal court records for identity matching as long as the applicant consents.

Volunteer Background Checks

California

California AB 506 became effective on Jan. 1, 2022.

Under this law, all volunteers, employees, and administrators of organizations that provide services to youth must be subjected to background checks.

Any volunteers, employees, or administrators who are revealed to have a history of child abuse or neglect must be excluded from employment.

Salary History Ban

Nevada

Nevada SB 293 was effective on Oct. 1, 2021. Under this law, employers are prohibited from asking applicants about their salary history information to make hiring decisions.

Employers also cannot consider salary information a candidate has voluntarily disclosed to determine whether to hire or the salary to offer.

Local Ordinances Impacting Background Checks

In addition to state and federal regulations, local jurisdictions in California have enacted ordinances that impose further restrictions on the use of criminal records in hiring.

For instance, effective September 3, 2024, Los Angeles County’s Fair Chance Ordinance prohibits employers in unincorporated areas of the county from inquiring about an applicant’s criminal history before a conditional job offer and mandates specific notification and assessment procedures if adverse action is considered based on criminal history.

Similarly, San Diego County implemented an ordinance on October 10, 2024, aligning with state law but adding specific local requirements for employers conducting criminal background checks in unincorporated areas.

Employers operating in these regions must ensure compliance with both state and local regulations when conducting background checks.

iprospectcheck: Your Partner for Employment Background Checks

Employment background checks help to ensure your employees are qualified for their jobs and that you make safe and smart hiring decisions.

If you conduct employment background checks, you must ensure you comply with all relevant laws. Since laws frequently change, this can be difficult.

At iprospectcheck, we stay up-to-date with employment background check laws and ensure that our background check reports are legally compliant.

Contact iprospectcheck today to learn about our employment background check and clinical services or to obtain a free quote: 888-808-9997

DISCLAIMER: The resources provided here are for educational purposes only and do not constitute legal advice. Consult your counsel if you have legal questions related to your specific practices and compliance with applicable laws.