Employers entered 2025 facing one of the most dynamic and fast-moving compliance landscapes in recent memory. In the first quarter alone, lawmakers across the country advanced new rules affecting background screening, drug testing, pay equity, and the use of artificial intelligence in hiring.

Organizations that conduct background checks must pay close attention to these changes. The compliance landscape is evolving quickly, and staying ahead will require updates to policies, procedures, and platforms. These early developments already carry significant implications for employers’ hiring and risk management strategies.

Criminal History Reform: Clean Slate Laws and Fair Chance Hiring

Several states implemented or expanded clean slate laws this year, allowing certain criminal records to be sealed or expunged after an individual remains crime-free for a set period. Some laws provide automatic relief, while others require a petition to the court. The goal is to improve access to employment and reduce the stigma associated with a criminal record.

Minnesota’s clean slate law became effective on January 1. It authorizes the automatic expungement of specific non-violent misdemeanors and some felonies after up to eight years. Although the law is now in effect, the state will not begin sealing records until mid-May due to technical delays.

Colorado continues implementing its law, which allows for the automatic sealing of civil infractions after four years, misdemeanors after seven,...

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