New Hiring Risks in 2025: Navigating Background Screening Under Trump

The regulatory landscape for background screening compliance is evolving under the Trump administration, requiring employers to stay vigilant. While federal agencies once provided clear, centralized guidance, states are now taking a larger role in shaping hiring laws and background check regulations. This shift creates new compliance challenges, especially for employers operating in multiple jurisdictions.

At the same time, immigration enforcement is tightening, increasing the need for strong I-9 and E-Verify processes. Meanwhile, fair chance hiring laws continue to develop, with some states expanding protections while others reconsider past policies. These changes highlight the growing complexity of compliance in 2025. 

To navigate this landscape, you need a proactive compliance strategy that accounts for state-specific laws, federal enforcement trends, and evolving best practices. Here’s what you need to monitor to protect your business from risk and promote compliance in the Trump era. (Please note: some policies may have changed since this article was published.)

State Laws Are Taking the Lead 

The Fair Credit Reporting Act (FCRA) once served as the prevailing national standard for background screening, but recent court rulings appear to be deferring more power to states, sometimes resulting in conflicting rules. Colorado and Texas now enforce stricter versions of the FCRA, while California and New York are set to expand privacy laws that require new compliance measures. In the vacuum of any federal congressional efforts to regulate the use of AI-driven hiring tools, state-level mandates around transparency, and the limits on the uses of AI development, indicate widening disparities among states with very little federal appetite to unify these regulations. 

To manage risks related to state-specific background screening laws, you need a structured compliance process with regular audits and ongoing monitoring of state laws. Assign legal teams or compliance officers to track updates and ensure hiring policies stay current. Subscribe to regulatory alerts from agencies like the FTC and EEOC, and work with a trusted background screening provider, like Cisive, to anticipate changes before they take effect. 

Train your HR team on state-specific background check rules so they know when to request criminal history, what records they can consider, and how to notify candidates. In states with stricter fair chance laws, apply individualized assessments instead of blanket hiring policies. By keeping your team informed and adapting screening policies to local laws, you can reduce legal risks and maintain a compliant hiring process. 

I-9 and E-Verify Enforcement Is Growing 

The shift in governance extends to immigration enforcement, where regulatory power is no longer predictable. Congress may soon pass the Higher Wages for American Workers Act of 2023, which mandates E-Verify use nationwide. Meanwhile, ICE has ramped up audits, increasing the risk of compliance violations for companies with incomplete or outdated I-9 records. 

I-9 verification errors carry severe financial penalties. A single mistake can cost thousands of dollars, and a large workforce with recordkeeping errors can face millions in fines. Form I-9 documentation must be current and precise but maintaining standards can be complex and challenging. 

Audit your I-9 procedures now to catch and correct errors before any potential US Immigration Control and Enforcement (ICE) audit efforts puts your company at risk. Verify that all forms are completed correctly, using the latest version, and ensure that storage and retention policies follow federal guidelines. Even small errors—like missing signatures or incorrect dates—can result in costly penalties. Regular internal audits help identify issues early and reduce liability. 

Train your HR team on proper I-9 completion and document verification to prevent compliance missteps. Implementing an electronic I-9 form software can streamline recordkeeping, flag missing information, and ensure timely reverifications. With immigration enforcement ramping up, a proactive approach will protect your business from unnecessary legal exposure. 

Fair Chance Hiring Laws Face New Era 

Fair chance hiring laws, which prohibit employers from automatically excluding candidates with criminal backgrounds, particularly when they have no relevance to the hiring opportunity as a risk factor, remain in flux. Many states are expanding protections, while others seek to push back against some previous laws. President Trump’s election, as well as his administration’s stance on diversity policies (preferring to focus on “merit-based hiring”) may raise new questions about how these laws will evolve.  

This scenario appears more likely to place a higher value on the nature of the potential risk, specifically regarding criminal conviction records. The approach would most certainly demonstrate a shift toward the relevance of any conviction record used in employment screening, over the mere demographic of a candidate. The administration’s embrace of this perspective could usher in an expansion of many Ban the Box/Fair Chance practices, raising the bar of hiring fairness in employment.  

Evaluate criminal records fairly and consistently, applying EEOC’s Green Factors to ensure hiring decisions are based on individual assessments, not blanket disqualifications. Consider the nature of the offense, how much time has passed, and its relevance to the role, before making a decision. Automatic exclusions increase legal risk, especially as states refine fair chance hiring laws to better align current trends.  

Audit your hiring practices now, with state-specific regulations and avoid compliance gaps. Ensure your recruiters and hiring managers are trained on these nuances and have clear guidelines for assessing records lawfully.  

Compliance in 2025 isn’t just about following rules—it’s about adapting to a system in flux. With state laws diverging and enforcement priorities shifting, staying ahead requires constant vigilance and smart strategy.  

Find out how Cisive keeps you informed and prepared so you can hire confidently, stay compliant, and mitigate risk.