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Legal Compliance in Hiring: A Guide for Small Businesses

Learn essential legal requirements for each hiring stage. Practical guidance for small businesses using Truffle's platform.

Sean Griffith avatar
Written by Sean Griffith
Updated over a month ago

Disclaimer: This article provides general information about legal considerations in the hiring process, not legal advice. Truffle provides tools to help with your candidate screening process, but compliance with employment laws and regulations is ultimately your responsibility as the employer. Laws vary by location, industry, and company size. Always consult with a qualified legal professional regarding your specific circumstances and requirements.

Introduction

Navigating hiring laws doesn't have to be overwhelming. This guide outlines key legal considerations for small businesses using Truffle's recruiting platform, helping you build a compliant hiring process that finds great candidates while minimizing legal risks.

Key Employment Laws for Hiring

These federal laws impact how you screen and select candidates:

Equal Employment Opportunity (EEO) Laws

  • What they are: Laws prohibiting discrimination based on protected characteristics

  • Protected characteristics include: Race, color, religion, sex (including pregnancy, sexual orientation, and gender identity), national origin, age (40+), disability, and genetic information

  • How they affect hiring: All stages of your hiring process should avoid discriminating based on these characteristics

Americans with Disabilities Act (ADA)

  • What it requires: Reasonable accommodations for qualified individuals with disabilities

  • How it affects hiring: Focus on whether candidates can perform essential job functions with or without reasonable accommodation

Fair Credit Reporting Act (FCRA)

  • What it requires: Specific procedures when using background checks

  • How it affects hiring: You must get consent before running background checks and follow notification requirements if you reject based on findings

State and Local Laws

Many locations have additional requirements regarding:

  • Ban-the-box laws (restrictions on criminal history questions)

  • Salary history prohibitions

  • Pay transparency requirements

  • Social media privacy protections

Note: Check your state and local regulations, as these vary significantly by location.

Compliance Across the Hiring Process

The following areas have specific compliance considerations when using Truffle:

Job Descriptions and Knockout Questions

Job descriptions and initial screening questions must focus on job-related qualifications without discriminatory requirements.

Audio Screening and Candidate Evaluation

When evaluating candidate responses and making selection decisions, consistent criteria and documentation are essential.

Documentation and Record-Keeping

Proper documentation of your hiring process provides protection if your decisions are ever questioned.

General Best Practices

Regardless of which stage of hiring you're in, these practices help maintain compliance:

Focus on Job-Related Criteria

  • Evaluate candidates based on skills and qualifications needed to perform the job

  • Ensure all questions and criteria directly relate to job requirements

  • Document the connection between your requirements and job functions

Apply Consistent Standards

  • Use the same evaluation criteria for all candidates applying for the same position

  • Document your decision-making process

  • Train everyone involved in hiring on proper evaluation techniques

Provide Reasonable Accommodations

  • Be prepared to modify your process for candidates with disabilities

  • Consider accommodation requests promptly and in good faith

  • Focus on whether essential job functions can be performed with accommodation

Maintain Confidentiality

  • Protect candidate information

  • Only share application details with those involved in the hiring decision

  • Securely store hiring records

Using Truffle to Support Compliance

Truffle offers several features that help maintain a compliant hiring process:

Structured Assessment

Truffle's knockout questions and screening process provide a consistent structure for evaluating all candidates.

AI-Assisted Recommendations

Our AI suggests appropriate questions based on job descriptions while focusing on job-relevant requirements.

Documentation Tools

Truffle automatically records candidate interactions and evaluations, helping you maintain consistent records.

Common Questions

"Do I need to worry about these laws if I have fewer than 15 employees?"

While some federal laws only apply to businesses with 15+ employees, many state and local laws apply to smaller businesses. Additionally, following best practices helps build a stronger team regardless of your size.

"How do I know if my knockout questions are compliant?"

Focus on whether each question directly relates to performing the job. Avoid questions that could reveal protected characteristics or disproportionately screen out protected groups.

"What should I do if a candidate volunteers information about a protected characteristic?"

Don't record or consider this information in your decision-making. Focus only on job-relevant qualifications.

Where to Learn More

Related Articles


Remember that building a legally compliant hiring process is not just about avoiding legal problems—it's about creating a fair process that helps you identify the best candidates based on relevant qualifications and abilities.

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