Happy New Year from Reliable Background Screening. As we begin 2026, we want to share some important updates and best practices to help organizations reduce risk, remain compliant, and strengthen their background screening and hiring processes in the year ahead.

Below are key trends, reminders, and regulatory considerations to keep top of mind:

Disclosure & Authorization Forms
Before conducting any background check, candidates must sign a compliant disclosure and authorization form that includes all required federal and state-specific language. Several states—including California, New York, Minnesota, and others—have additional disclosure and consent requirements beyond the federal Fair Credit Reporting Act (FCRA).

Because disclosure requirements can change, we strongly recommend:

  • Using the most up-to-date federal and state-specific forms provided by your background screening partner, and

  • Consulting with legal counsel regarding any state or local law updates impacting consumer reporting.

Please note: Reliable provides sample disclosure and authorization forms for its clients through our secure digital process and also makes most of the state sample forms available within our Online Help Center tab. These forms are designed to address both federal and applicable state requirements. As a best practice, we always recommend consulting with your legal counsel to confirm that the forms meet your organization’s specific policies, requirements, and risk tolerance.

Understanding Adverse Action Requirements
Anytime a consumer report is used to potentially not move forward with a candidate, the individual must be given the opportunity to review and dispute the information. This is a federal requirement under the federal (FCRA) law.

Adverse action requirements apply broadly, including:

  • Employee and Volunteer Screening

  • Franchisee Screening

  • Contractor Screening

  • Member Screening

  • Resident and Tenant Screening

State and local laws may impose additional steps or timing requirements, so it is important to work with your legal counsel to ensure your process remains compliant and defensible. You can find more information on the FTC’s website and in our blog: Adverse Action Notices Become More Complex with Employee Screening.

AI, Resume Fraud & Deepfakes
Artificial intelligence continues to reshape hiring and background screening, but regulations have not fully caught up. Governments at both the federal and state levels are actively working to establish guardrails for responsible AI use, as both sides fight as to who is responsible for overseeing guidelines and requirements.

Candidate-side risk:
AI has contributed to increased concerns around “resume inflation” and misrepresentation. In 2025, ResumeLab reported that 70% of candidates admit to misrepresenting information on resumes. This makes it increasingly difficult for organizations to separate fact from fiction.

Remote interviewing and hiring are particularly susceptible to AI “Deepfakes.” In addition to fraudulent individuals, state actors such as North Korea and others have well-developed and ongoing programs that have and continue to gain access to companies and their systems.

Best practices include:

  • Training hiring teams to identify inconsistencies

  • Verifying employment and education through primary source verifications

  • Working with legal counsel to establish clear policies around accuracy and misrepresentation

  • Implement safeguards when interviewing and hiring remotely

Employer-side risk:
Currently, 43% of organizations use AI in HR tasks, and projections show usage rising to nearly 69% in 2026. States such as California, Colorado, Illinois, and municipalities like New York City are implementing laws that regulate how AI can be used in hiring, often requiring:

  • Human review before adverse (potential non-hiring) decisions

  • Bias testing and validation

  • Disclosure to candidates when AI tools are used

Regulatory agencies including the EEOC, FTC/CFPB, and ADA are expected to focus heavily on AI compliance in 2026.

Identity Fraud & Application Integrity
Recent reports highlighted that Amazon blocked nearly 2,000 fraudulent job applications tied to suspected foreign actors attempting to exploit hiring systems. These cases underscore the importance of identifying potential red flags such as:

  • Resume inconsistencies

  • Reused contact information

  • Education or employment details that do not align

Advanced ID verification and biometric technologies are now available to help reduce candidate fraud and strengthen identity validation during the hiring process. It is always great to interview in person. If it is online or a remote hire, it is important to take precautions in making sure you have an authentic candidate.

Ban the Box, Fair Chance & Clean Slate Laws
Over the past decade, Ban the Box and Fair Chance laws have expanded significantly. These laws delay criminal history inquiries to a candidate until later in the hiring process to ensure candidates are first evaluated based on “fair” qualifications.

Today, these laws exist in:

  • 37 U.S. states and the District of Columbia

  • 150+ cities and municipalities

Unless required by a regulated industry, employers should avoid asking about criminal history—verbally or in writing—early in the hiring process. Generally, these questions should only be asked once there is a definitive job offer (which can be contingent on the completion of a successful background check).

In addition, “Clean Slate” and expungement laws continue to expand, removing certain older or non-violent records from public access. Importantly, online searches by any non-consumer reporting organization or “Google checks” may surface outdated or inaccurate information, increasing risk. This reinforces the importance of working with a reliable, compliant background screening provider rather than informal searches.

Drug Testing & Marijuana Laws
Marijuana and THC testing laws continue to evolve rapidly:

  • 40 states and DC have legalized marijuana for medical use, recreational use, or both

  • 25 states, DC, and U.S. territories now allow cannabis conviction expungement or record sealing

If testing for marijuana, organizations should:

  • Work closely with legal counsel

  • Maintain a clear, standardized company policy

  • Ensure compliance with laws in the state where the candidate lives, works, and is hired—even for remote roles

Looking Ahead
While these are some of the most impactful trends entering 2026, regulatory change remains constant. Reliable Background Screening will continue to share updates, insights, and best practices throughout the year to help you stay informed and reduce risk.

We appreciate the opportunity to support your background screening and compliance efforts and wish you a successful start to the new year.

Posted by: Rudy Troisi, L.P.I., Founder, CEO, Reliable Background Screening and Dr. Alan Lasky, SVP Client Success & Partnerships.

This content is for informational purposes only and not legal advice or binding case law. Consult qualified legal counsel for assistance.

Copyright © 2026, Reliable Background Screening, a Division of Marcett, Inc. All rights reserved