Written By: Kimberlynn Wilson

Industry Laws Taking Effect July 1

Legal Disclaimer: Validity Screening Solutions provides this material for educational and informational purposes only, and shall not be construed as legal advice, express or implied. For questions regarding your organization’s practices and compliance with applicable laws, please consult with your legal counsel.

 

Starting July 1, 2026, two laws will come into effect regarding criminal record sealing and use of criminal history information in hiring. These laws contribute to the ongoing trend toward fair chance hiring and employment initiatives.

 

Washington’s Expanded Fair Chance Act

Washington’s Fair Chance Act initially became effective in 2018. In 2025, Washington’s legislature expanded the Fair Chance Act, adding additional obligations for employers. Washington employers with 15 or more employees will be prohibited from conducting criminal background checks until after a conditional job offer has been extended.

Additionally, the law limits the ways in which information obtained from criminal background checks can be used. The law also introduces new obligations related to the pre-adverse and adverse action processes, including the need for a legitimate business reason before taking adverse employment actions, holding the job position open for two business days, and conducting a written assessment.

Employers with fewer than 15 employees will be required to comply with the law beginning July 1, 2027. It is recommended Washington employers review their hiring policies and practices with qualified legal counsel to ensure compliance with the new obligations. Read more about the expanded law here.

 

Virginia’s Clean Slate Law

Virginia’s clean slate law, enacted in 2021, introduces new processes for both automatic and petition-based criminal record sealing. The types of offenses eligible for sealing include certain misdemeanor and felony convictions, traffic infractions, marijuana possession offenses, and certain misdemeanor and felony non-convictions (e.g., dismissals). An expanded list of eligible offenses can be viewed here.

Additionally, the law introduces restrictions for employers that rely on criminal history record information. Under the law, certain employers, educational institutions and state and local government agencies are prohibited from requiring an individual to disclose information regarding any arrest, charge or conviction that has been sealed. However, limited exceptions exist for certain employers.

Additionally, the law (Va. Code § 19.2-392.16), establishes the Business Screening Services Seal Order Notification Program. Under this program, the Virginia State Police will be required to send monthly copies of sealing orders to all registered firms. The registered firms will then be required to promptly delete the sealed records from their systems. Eligible firms for registration may include background screening companies and other data providers. However, the registration requires a substantial annual fee of $30,000.

The Professional Background Screening Association (PBSA) is actively working with lobbyists to address the significant annual registration fee and other concerns raised by background screening companies regarding the program. Currently, the program is scheduled to take effect on July 1. However, PBSA is also advocating for a potential delay of this implementation date.

We will continue to monitor developments and provide updates as available.

It is recommended Virginia employers review their applications and background screening policies with qualified legal counsel to make any necessary updates in compliance with the law. Read more about Virginia’s clean slate law here.