As 2025 begins, employers face a rapidly evolving landscape in hiring and background screening shaped by legislative developments, technological advancements, and emerging threats. Three key issues are poised to dominate the year: the advancement of clean slate laws, the growing adoption of fraudulent identities by threat actors, and the progression of artificial intelligence (AI) legislation. These trends underscore the importance of adaptability, compliance, and a proactive approach to mitigating risks while promoting equitable hiring practices.
The Expansion of Clean Slate Laws: Reducing Reported Criminal Records
Clean slate laws are reshaping the way employers assess candidates by automatically sealing or expunging certain criminal records after a specified period. These laws aim to reduce the barriers individuals with criminal records face when seeking employment, fostering fairer hiring practices. By 2025, the clean slate movement is expected to accelerate, with more states enacting or expanding laws similar to those in Minnesota, Virginia, Colorado, and Washington, D.C., which were covered in my recent article, “Clean Slate Laws 2025: Key Updates for Employers on Compliance and Hiring.”
The societal implications of these laws cannot be overstated. Millions of individuals with outdated or minor criminal records will gain access to broader employment opportunities, supporting economic growth and reducing recidivism rates. However, for employers, clean slate laws introduce compliance challenges, particularly for background screening. Employers must ensure their candidate-facing teams are prepared to discuss and assess the impact on adjudication during the transitional period between a clean slate law’s effective date and the point when courts fully redact eligible criminal offenses from their indexes, which often leads to confusion for candidates with criminal histories who expect their records to be sealed or expunged.
For example, candidates may mistakenly believe their records are sealed immediately upon the law’s enactment and become frustrated when asked about offenses they expected would no longer appear. Preparing teams to explain the redaction process and offer reassurances can help mitigate misunderstandings and build trust with candidates during this transitional period.
Additionally, these laws may lead to fewer criminal records being reported during background checks, prompting employers to reassess their hiring criteria. Employers should consider prioritizing other indicators of candidate suitability, such as qualifications, work experience, and skills. Employers must also remain vigilant in understanding the interplay between clean slate laws and industries requiring rigorous compliance, such as healthcare, education, and finance.
To supplement these efforts, employers could explore lawful and ethical social media searches, focusing only on publicly available information that complies with applicable privacy laws. This approach offers another dimension to candidate assessment while respecting legal boundaries and maintaining trust.
Threat Actors and the Rise of Fraudulent Identities: The Case for Identity Verification
The rise of remote and hybrid work models has created unprecedented challenges in verifying the identity of candidates. In 2025, threat actors are expected to increasingly adopt fraudulent identities to infiltrate organizations, whether to commit financial fraud, steal intellectual property, or gain unauthorized access to sensitive systems. As I discussed in a recent piece, the emergence of “fake workers” is not a hypothetical risk—it’s a reality that employers can no longer afford to ignore.
Conducting robust identity verifications will be essential for mitigating this growing threat. Employers should leverage advanced identity verification technologies that provide robust and reliable validation. Utilizing digital solutions that incorporate AI-driven Optical Character Recognition ensures that identity documents are authentic and align with the personal information provided by candidates. Anti-spoofing liveness technology can confirm that the individual undergoing verification is physically present, while biometric face matching ensures that the candidate’s facial features match their photo identification. These technologies not only enhance the accuracy of identity verifications but also reduce the risk of fraudulent activity, safeguarding the integrity of the hiring process while maintaining compliance with data protection standards.
While technology plays a vital role in mitigating these threats, it must be complemented by education and awareness initiatives for hiring teams. Employers must integrate identity verification into every stage of the hiring process, from initial application to onboarding. HR professionals should be trained to identify red flags associated with fraudulent identities, such as inconsistencies in application materials or the use of synthetic identifiers. These efforts will help organizations safeguard their workforce and maintain trust in their hiring processes.
The Progression of AI Legislation: Balancing Innovation and Compliance
Artificial intelligence continues to play an increasingly prominent role in hiring, with applications ranging from resume screening to candidate assessments. However, AI-related legislation is advancing rapidly, focusing on critical decisions made by AI. Employers using AI-driven tools must tread carefully to ensure compliance with emerging laws while avoiding discriminatory outcomes.
In 2025, we can expect more states to generally follow Illinois’ HB 3773 and Colorado’s regulations, which require bias audits and transparency in AI decision-making. These laws aim to address concerns that AI could unintentionally perpetuate systemic discrimination if not properly monitored. As I emphasized in my articles on AI in employment, existing anti-discrimination laws, such as Title VII of the Civil Rights Act, remain highly relevant in this context. Employers must ensure that their AI tools are not making decisions based on protected characteristics, even indirectly.
This regulatory trend extends beyond hiring decisions to include AI tools used in ongoing worker monitoring and management. For example, the Consumer Financial Protection Bureau (CFPB) recently issued rules requiring employers to ensure transparency and fairness in AI systems that monitor employee productivity or performance. These rules signal a growing expectation that employers proactively address potential biases and provide clarity on how AI systems evaluate workers throughout their employment lifecycle.
To navigate this evolving landscape, organizations should prioritize using AI tools designed to facilitate processes rather than make autonomous decisions. For instance, automating tasks such as scheduling interviews or generating follow-up emails is less likely to raise compliance concerns than relying on AI to make autonomous hiring or promotion decisions.
Furthermore, employers must develop comprehensive AI compliance frameworks that extend beyond hiring. These frameworks should account for how AI tools are used in employee evaluations, promotions, and disciplinary actions. Employers should partner with trusted vendors who can demonstrate that their AI solutions meet regulatory requirements and adhere to fairness and transparency standards.
Preparing for the Future
As these three trends converge in 2025, the stakes for employers have never been higher. Compliance with clean slate laws will require meticulous attention to detail and an openness to adopting more holistic hiring criteria. Protecting against identity fraud will demand investment in cutting-edge verification technologies and processes. Adapting to AI legislation will necessitate a balance between leveraging innovation and ensuring fairness.
As the legal and technological landscape evolves, employers must remain agile, continuously evaluating their policies and practices to align with emerging regulations and societal expectations. By staying ahead of these trends, employers can turn challenges into opportunities and thrive in the face of change. At the same time, they will contribute to a more inclusive and secure workforce, benefiting both their organizations and society at large.