6 Ways the Shifting Legal Landscape Is Impacting the Recruitment Game

Human resource professionals must pay careful attention to adjustments in recruitment laws and processes that impact their hiring procedures, ranging from pay transparency regulations to DEI practices and marijuana testing changes. They must also understand how other organizations implement new recruiting practices to attract top-tier talent.

Here are a few ways that recruitment is changing to be aware of.

The Forthcoming Ban on Non-Compete Clauses

In January 2023, the FTC proposed a rule to ban non-compete clauses from employment contracts. Under the new proposition, companies can’t forbid employees from seeking employment from another organization, even if they’re direct business competitors.

While the law hasn’t yet gone into effect, it will drastically impact many employers, particularly those in highly competitive sectors like technology. Without non-compete clauses, competitors can lure talented workers into their organizations with the promise of better pay and benefits.

Businesses must treat their workers well to retain quality employees and keep them from moving on to better opportunities. That means assessing the pay landscape, providing more growth opportunities, and ensuring they have strong work cultures that people don’t want to leave.

Pay Transparency Laws

Several states, including Colorado, New York, and California, recently passed laws requiring organizations to include pay ranges for their open positions. Hiring in these states means that companies must disclose what they plan to offer their candidates if they seal the job.

While pay transparency can benefit workers, especially when negotiating their salary, it also means that an employer’s pay strategy will be entirely visible to their competitors. Companies that want to attract highly qualified talent must examine what the top-performing organizations offer and meet or exceed that to draw candidates away.

Another problem that companies are grappling with is existing workers who see what the incoming talent is earning. Their pay may be less than what the new employees receive, leading to resentment and the potential for higher employee turnover, especially if companies are unwilling to raise their salaries to meet their peers. 

Of course, to retain their long-term talent, employers can simply raise employees’ pay to meet that of their peers. If they earn just as much (or more) than the incoming team members, they have more incentive to stay with the organization.

Greater Emphasis on Diversity & Inclusion

Over the past few years, many companies drastically changed their hiring policies to pay more attention to diversity and inclusion. While the EEOC enforces several laws that prevent discriminatory hiring based on gender, race, ethnicity, age, and disability status, until now, the intensity of diversity efforts was never so pronounced.

Employers are heeding the message of 2020’s race riots and protests, and they are incorporating diversity and inclusion efforts more than ever before. Many companies implemented new hiring practices emphasizing the importance of diversity, aiming to attract candidates from various backgrounds through multiple means.

The emphasis on diversity and inclusion isn’t strictly limited to hiring. Organizations also include mentorship programs that help people from diverse backgrounds accelerate their careers and provide the guidance they need to succeed.

Providing Accommodations for Those Who Need Them

The ADA puts strict rules on employers by requiring them to provide the assistance people with disabilities need to perform their jobs. For instance, employers must ensure that employees with mobility restrictions can access elevators if the workplace has multiple floors. Similarly, employers must include Braille signage on all their office doors for individuals with visual impairments.

The COVID-19 pandemic opened the door for employees to request additional accommodations, like extended sick leave for contracting the illness or caring for someone with it. Other potential accommodations are on the table, such as remote work for people with pre-existing conditions that make them more susceptible to infection.

Employers are wise to stay abreast of their employees’ health needs and ensure they provide them with the proper assistance so they can perform their work. Hiring managers will likely encounter candidates with special requests regarding COVID-19 vaccinations and caregiving, so identifying with the company’s policy for such requests is crucial in order to respond appropriately.

Consideration of Marijuana Legislation

Many workplaces regularly perform marijuana drug testing during the hiring process, and they’ll reject a candidate who doesn’t pass their screening. However, multiple states have legalized the use of marijuana over the past few years, marking an abrupt turn in legislation from prior decades.

While possession of marijuana remains illegal at the federal government level, some states are now implementing laws that prohibit testing applicants for marijuana usage. These states, including New Jersey and Nevada, implemented regulations barring employers from testing for the substance in the hiring process.

It remains to be seen whether additional states will incorporate similar testing regulations or not. Hiring professionals must assess the laws in their location and determine whether it still makes sense to drug test for marijuana in potential hires, especially if the state allows its recreational use.

Use of Social Media in the Recruiting Process

Many companies are turning to social media platforms to recruit talented candidates for their open roles. While sites like LinkedIn have long been sources of job postings and connecting with recruiters, some employers are using other platforms as well, like TikTok and Instagram.

Recruiters know that younger, qualified Millenials and Generation Z candidates are likely to frequent these platforms and respond to attractive ads that paint an organization in a positive light. 

While advertising open roles on social media platforms can be an easy and effective way to attract new talent, companies must ensure that their ads fully comply with EEOC laws, are non-discriminatory, and are open to everyone. 

Recruitment Is Constantly Evolving, and It’s Critical to Stay on Top of New Changes

Recruiting has changed significantly over the past few years. New legislation, technology advancements, and the COVID-19 pandemic altered the hiring landscape. VirgilHR helps companies stay on top of all these developments to ensure they remain compliant with legislation while attracting the talented team they seek to hire and retain. Reach out to one of our team members today to schedule a demo of our HR compliance software.