Happy New Year! And with a new year comes new challenges. Such challenges in 2026 center on steering through the intricate state and local laws involving Ban the Box, marijuana legality and credit checks. We must also keep an eye on the ever-increasing Artificial Intelligence (AI) fraud risks and managing data privacy demands. We decided to put together a list of the challenges and solutions for what we believe are the biggest trends in 2026. Enjoy!
2026 Challenges
- Regulatory Fragmentation: The patchwork of state and local laws has created complexity for employers hiring across jurisdictions, with new rules on criminal history inquiries (Ban the Box), marijuana use, and credit checks emerging.
- AI and Fraud Risks: While AI speeds up background checks, deepfakes and synthetic identities demand advanced fraud detection, especially as AI use in HR grows.
- Remote and Gig Economy Verification: Verifying employment for remote workers and independent contractors is harder due to documentation gaps and non-traditional work arrangements.
- Clean Slate and Expungement: Automatic sealing/expungement of records (Clean Slate laws) changes what’s available, requiring employers to adapt policies to include individualized assessments.
- Data Privacy: Evolving privacy regulations, influenced by global standards like the EU AI Act, require stricter consent and transparent data handling for HR.
- FCRA Compliance: Strict adherence to the Fair Credit Reporting Act (FCRA) adverse action processes (pre-adverse/adverse notices) remains critical, especially with increased scrutiny.
Solutions and Trends
- Technology: Use AI-powered platforms for speed and consistency, but ensure they support complex rules and human oversight.
- Process Adaptation: Restructure workflows for post-offer criminal checks and individualized assessments, updating job postings and internal guidelines.
- Proactive Compliance: Stay ahead of new laws by understanding shifting rules for marijuana, credit and record access.
- Advanced Verification: Implement enhanced identity and document verification for remote roles and use robust fraud controls for AI-driven processes.
- Strategic Partnerships: Choose screening partners such as GroupOne Background Screening that offer transparency, compliance and support for complex, multi-jurisdictional hiring.
And with that, we hope everyone had a fantastic holiday season!