Across the country, cities and states continue to make changes to hiring laws and regulations. From pay transparency to fair chance hiring and federal drug testing, these updates may affect how you screen and hire employees. In this month’s roundup, we’ll break down the latest compliance updates and what they mean for your business.
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Delaware: State Passes Pay Transparency Law
Delaware recently became the latest state to enact a pay transparency law, which will require employers to list compensation ranges in job postings.
House Bill 105, signed by Gov. Matt Meyer in September, applies to businesses with 26 or more employees. Under the law, those employers must disclose certain information in job postings, including:
- The hourly or salary compensation range
- A general description of benefits and other compensation, such as bonuses
These details must be in all postings for jobs located in Delaware and for remote positions offered by a Delaware-based employer. There’s an exception for temporary, interim, or acting job opportunities that need to be filled immediately.
The new law will go into effect in September 2027.
What Delaware Employers Need to Know
Employers who violate the pay transparency law will be subject to civil penalties up to $10,000. To avoid liability, Delaware employers should take a few steps over the next two years:
- Review job postings: Before the law takes effect, review your current job posting policy and decide how you will meet the new pay transparency requirements.
- Train HR staff: Provide training on the new requirements to HR staff and hiring managers. If you work with external recruiters, make sure they’re aware of the new policy as well.
- Analyze current pay ranges: The new law requires companies to make compensation ranges public in job postings. Take some time to analyze current pay ranges to determine whether they’re in line with industry averages.
California: Pay Law Changes Take Effect in January
California recently passed a bill amending the state’s Equal Pay Act. The changes will take effect on Jan. 1, 2026.
The changes to the law include:
- Pay scale definition: The law now defines pay scale as a good faith estimate of the salary or hourly wage an employer reasonably expects to pay upon hire. The inclusion of “good faith estimate” and “upon hire” may narrow the range that employers include in job postings.
- Statute of limitations: The changes extend the statute of limitations for claims to recover wages from two years to three years. An employee can seek relief for the entire period a violation occurs, up to six years.
- Wages clarification: Under the law, wages now include all forms of compensation, including salary, bonuses, stock options, holiday and vacation pay, and more.
What California Employers Need to Know
Before the end of the year, California businesses should review their job posting policies to ensure compliance.
- Audit job posting language: Review external and internal postings to include a good faith estimate of the wage range you expect to offer upon hire.
- Review compensation structures: Take some time to review pay-scale calculations to reflect what you reasonably expect to pay, rather than a broad range.
- Train HR staff: Hold training sessions for HR staff and hiring managers to make sure they’re aware of the expanded wage definition and the longer statute of limitations for claims.
U.S. DOT Proposes Adding Fentanyl to Drug Screening
The U.S. Department of Transportation (DOT) has proposed adding fentanyl and norfentanyl to its federal drug screening panels for safety-sensitive transportation employees.
Currently, DOT drug testing covers five classes:
- Amphetamines
- Cocaine
- Marijuana
- Opioids
- Phencyclidine (PCP)
Under the proposal, fentanyl would be added to both urine and oral fluid testing panels, while norfentanyl — a fentanyl metabolite — would be added to the urine panel only.
This change is designed to align DOT’s testing requirements with the U.S. Department of Health and Human Services (HHS) Mandatory Guidelines for Federal Workplace Drug Testing Programs.
DOT noted that fentanyl has become a significant public safety concern, citing data showing a 279% increase in overdose deaths involving fentanyl between 2016 and 2021.
What Employers Need to Know
The proposed rule is still under review, but once finalized, DOT-regulated employers will be required to include fentanyl in their drug testing programs.
To prepare, employers should monitor federal updates for the rule’s finalization. It’s also a good idea to review your drug testing policies now to proactively prepare for the changes.
Philadelphia: City Council Updates Fair Chance Hiring Law
The city of Philadelphia has once again expanded its Fair Chance Hiring law to include new protections for employees and applicants with criminal records.
The Philadelphia City Council approved the changes in late September, which include:
- Shortened lookback period: Moving forward, employers cannot consider misdemeanor convictions over four years old, compared with seven years previously.
- Adverse action requirements: If an employer decides to take an adverse action against someone with a criminal record, they must provide a notice with a summary of the individual’s rights; a statement affirming they will consider evidence of rehabilitation; and directions on how to submit this evidence directly to the business.
- Assessment clarification: Employers who notify applicants about background checks must state they will conduct an individualized assessment based on the candidate’s specific record and the responsibilities of the specific job.
The changes take effect on Jan. 6, 2026.
What Philadelphia Employers Need to Know
Philadelphia businesses should update their hiring and screening practices to reflect the new changes before they go into effect. These steps may include:
- Review screening policy: Before January, review your screening policy and make sure you’re including the required information when notifying applicants about background checks.
- Adjust adverse action notices: Review and update your adverse action notices to include the newly required language about rehabilitation and how applicants can submit this evidence.
- Train HR staff: Provide training on how to assess criminal records based on an applicant’s specific history and the duties of the specific role.
Stay Ahead of Compliance Changes with InCheck
New laws around pay transparency, fair chance hiring, and drug screening may affect how you post jobs and screen applicants. With a proactive approach, you can protect your business while maintaining a fair, transparent hiring process.
Partnering with a trusted background check provider like InCheck can help you stay ahead of ever-changing regulations. We offer expert guidance and personalized service to help you keep your screening policy compliant with local, state, and federal requirements.
Contact us today for more information about how we can help you build a compliant screening policy for your organization.