Employers spent the second quarter of 2025 adapting to a compliance landscape that grew more complex, more technical, and more localized. States continued expanding Clean Slate and Fair Chance protections, while new pay transparency mandates gained momentum across jurisdictions. At the same time, regulators sharpened their focus on cannabis testing policies, biometric privacy, and the responsible use of AI in hiring. Even small shifts, like terminology updates in Form I-9 or new restrictions on housing status inquiries, signaled big changes in how employers are expected to manage risk and support equitable hiring.

Staying ahead this quarter required more than policy updates. It required a full playbook revision, one that integrates legal developments into practical, people-centered hiring practices.

Criminal History Reform: Clean Slate, Fair Chance, and Beyond

States continued to expand Clean Slate laws in Q2, reinforcing a national shift toward automated expungement of criminal records. These laws aim to remove barriers to employment by sealing eligible offenses after a set period, often without requiring individuals to take legal action. Minnesota, Colorado, Washington, D.C., and Virginia advanced their frameworks earlier this year, and implementation timelines vary. (For a detailed review of those laws, see my Q1 2025 article on Forbes.)

This quarter, Hawaii joined the trend. Lawmakers enacted Act 5 of 2025, which builds on the state’s 2024 pilot program for automatic...

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