A recruitment compliance checklist for US companies

Compliance is a critical function of any modern HR system, especially when handling sensitive candidate information.

The fundamental goal of recruiting is always to find the best person for the job. However, recruitment has become more complex as employers must comply with evolving federal, state, and local laws. Noncompliance can lead to costly penalties or legal action. 

Here is a checklist of key recruiting compliance requirements.

Advertising positions

When advertising a position, use inclusive language and avoid wording that limits applicants based on protected traits. Federal laws (such as the Americans with Disabilities Act and Title VII of the Civil Rights Act) prohibit discrimination based on race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age (40 or older), disability, or genetic information.

Ads must not state or imply any of these restrictions. (For example, avoid phrases like “looking for young and energetic” which can discourage older applicants.) Include an EEO (Equal Employment Opportunity) statement to affirm your commitment to nondiscrimination.

Many state and local laws now also require pay transparency in job ads: include a salary range in your postings if local law requires it. Ensure your job description focuses only on bona fide job requirements and essential functions.

Interviewing and assessment

• Keep it job-related: Interview questions, tests, and assessments must relate only to the candidate’s ability to perform the job. Again, they must avoid any reference to protected traits (race, color, religion, sex, pregnancy, age, disability, etc.).
• Use structured interviews: Employ standardized interview guides or scorecards so each candidate is asked the same questions and evaluated on the same criteria. This reduces bias and provides documentation of your decision process.
• Avoid personal banter: Train interviewers to avoid personal small talk that could touch on protected areas (e.g., asking about family plans, health issues, or beliefs). Such comments at this stage can inadvertently reveal sensitive information.
• Validate assessments: Any skills tests or pre-employment exams must be validated for the position. They should not screen out applicants simply because of age or disability. If an assessment harms a protected group, be prepared to show it is job-related and consistent with business necessity.
• Accommodations: All interviews (in-person or virtual) must be accessible to candidates with disabilities. Ensure the venue or technology (e.g., platform, online assessments) works with assistive devices, and provide any requested accommodations (such as a sign language interpreter, additional break time, or assistive technology) unless doing so would create undue hardship.

Newer laws like the Pregnant Workers Fairness Act require employers to similarly accommodate pregnancy-related needs (for example, extra breaks or seating accommodations) during the hiring process.

Find HRMS that will help with recruitment compliance using this comparison guide

Background checks and drug screening

• Obtain consent (FCRA): Before running any external background check (credit report, criminal history, education, driving record, etc.), obtain the candidate’s written consent as required by the Fair Credit Reporting Act. Provide the pre-adverse-action and adverse-action notices if you intend to take negative action based on the report.
• Follow “Ban-the-Box” laws: 37 states and 100+ localities have "ban-the-box" laws, delaying criminal history questions until after a conditional offer. The federal Fair Chance Act applies similar rules to federal employers. In practice, delay conviction inquiries and background checks, complying with required assessments/notices.
• State restrictions: Check local laws on background checks. Many states limit the use of credit history (especially for positions not involving money handling) and restrict how far back conviction records can be considered. You may need to allow applicants to explain or contest the information.
• Drug testing: Laws on drug screening vary by state. With the legalization of marijuana in many jurisdictions, several states now forbid disqualifying applicants for off-duty cannabis use; California’s AB 2188 (2022) prohibits employers from rejecting applicants based on a positive test for marijuana. 

If you operate in a state where marijuana is legal, consider removing it from pre-employment drug panels (unless the role is safety-sensitive) and focus on impairment rather than mere presence of cannabis metabolites.

Pay equity and salary history

• Equal pay: Title VII and the Equal Pay Act require that employees performing equal work receive equal pay regardless of gender, race, or other protected status. Many states have enhanced pay equity laws. Conduct periodic pay equity reviews to detect and correct any disparities.
• Salary history bans: Do not ask candidates about past salary or use previous wages to set pay, except where legally allowed. Many states (and even the federal government) have banned salary-history questions. In those places, you should confirm only that salary history was not considered in your offer decision. 

Focus on the job’s market rate and the candidate’s qualifications instead.

Employment references

• Be factual and fair: When providing references, share only truthful, job-related information (e.g., titles, dates of employment, job duties, performance facts). Never give false or misleading information.
• Avoid bias: It is unlawful to give a negative reference or withhold a reference for reasons related to a candidate’s protected status (race, color, religion, sex, age, disability, etc).

Conversely, declining to provide any reference as a blanket policy should be applied consistently to all former employees.

Job offers & onboarding

• Offer letters: Use compliant, HR/legal-approved offer letter templates detailing key terms (position, salary, start date) and mandatory statements (e.g., at-will, EEO). After acceptance, complete Form I-9 and eligibility verification (like E-Verify), ensuring no discrimination based on national origin or citizenship. Do not delay I-9 documentation or ask about immigration status beyond what the law requires.
• Rejection notices: Notify non-selected candidates in a timely and respectful manner. You can use a brief, neutral form letter or email. Avoid offering detailed explanations that could open the door to claims of discrimination.

Document why each hire was made over other candidates (for example, how qualifications matched the job) so that you have a record if your decisions are questioned later.

Federal contractor requirements

• Non-discrimination: Federal contractors must follow all Title VII rules plus additional rules under federal contracting laws. By Executive Order 11246 and related regulations, contractors cannot discriminate on the usual bases (race, sex, etc.) or on disability and protected veteran status.
• Affirmative action – disabilities (Section 503): If you hold federal contracts totaling more than $15,000, you must take affirmative steps to recruit, hire, and advance qualified individuals with disabilities. (Once you have 50+ employees and a single contract of $50,000 or more, you must also develop a formal disability Affirmative Action Plan.).
• Affirmative action – veterans (VEVRAA): If your contracts total $150,000 or more, you must similarly recruit and advance protected veterans. If you have 50+ employees and ≥$150,000 in contracts, a veteran Affirmative Action Plan is required.) These dollar thresholds have been adjusted for inflation from the old $10k/$100k level.
• The Office of Federal Contract Compliance Programs (OFCCP) enforces these requirements. Contractors should maintain regular records of outreach efforts, hiring results, and AAP progress in case of an OFCCP compliance review.

Enforcement and penalties

• EEOC oversight: The Equal Employment Opportunity Commission enforces hiring and recruiting compliance in the private sector. It handles claims of discrimination and can file lawsuits. EEOC laws cover most employers (15+ employees). The EEOC often obtains large settlements for discrimination violations – frequently in the tens or hundreds of thousands of dollars.
• OFCCP audits: For contractors, the OFCCP conducts compliance evaluations. It may request your recruitment records, applicant flow data, and affirmative action plans. Keep thorough hiring documentation (job postings, applications, interview notes, test results, etc.) for at least three years (longer if state law requires). Failing to maintain required records or provide them to auditors can itself lead to penalties.
• State and local enforcement: Don’t forget that many states and cities have their own civil rights agencies (and labor departments) that enforce hiring laws. For example, state departments of labor may enforce wage transparency laws, while state human rights commissions handle complaints of discrimination.

In summary

Staying up to date and training your hiring teams are key. Regularly review your hiring process, paperwork, and policies (possibly with outside legal or HR advice) to ensure they align with current laws.

Use the above recruiting compliance checklist to help protect your organization from liability and ensure every candidate is given a fair chance.