New Hiring Laws Are Changing How You Recruit Tech Talent

2025 is proving to be a defining year for compliance in the US tech sector. As new regulations take hold, the pressure on hiring leaders continues to grow. Businesses are being held to higher standards not only in how they operate, but in how they recruit, compensate, and onboard their teams. For organisations used to fast-paced growth and lean hiring practices, these changes demand a complete rethink.

From mandatory pay transparency laws to evolving DEI disclosure expectations and stricter contractor classification rules, the recruitment rulebook is being rewritten. These changes will impact job specs, offer structures, and how competitive your organisation appears to leading tech talent.

This article explores the three key areas of regulatory change affecting US tech hiring in 2025. We’ll look at what’s changing, why it matters, how it affects specific roles and processes, and what steps you can take to stay compliant without losing pace. Whether you're hiring for AI, cloud, data, or compliance functions, understanding the risks and getting ahead of them is now a recruitment priority.

What’s Changing in 2025?

US tech employers are facing a hiring market that looks very different in 2025. New and evolving compliance regulations are directly affecting how businesses attract, assess, and appoint talent, and with them being enforced at state and federal levels, there are real consequences for those who don’t adapt.

As a result, there are three regulatory themes that should be top of mind for hiring teams this year:

1. Pay Transparency Laws

States like California, Colorado, and New York have implemented legislation requiring employers to publish salary bands in job ads, and in some cases, disclose pay ranges to candidates at multiple points during the hiring process. These rules are tightening, and similar laws are emerging in other states. Companies can no longer afford to treat salary as a behind-closed-doors discussion. For tech firms recruiting in competitive markets, this means rethinking how job specs are written and how compensation is communicated.

2. DEI and ESG Hiring Disclosure

While not always mandated, DEI-related disclosures are becoming a de facto requirement for firms seeking investment or public trust. In the tech sector, this often means reporting on the diversity of new hires, publishing workforce data, or aligning hiring practices with ESG frameworks. These expectations are particularly pronounced in finance-adjacent tech roles and publicly traded companies. Recruitment must now be more than inclusive in principle, it needs to be demonstrably inclusive in practice.

3. Contractor Classification and Remote Work Compliance

Hiring remote workers across state lines brings added scrutiny around contractor classification. The IRS and individual states (like California with its ABC test) are cracking down on the misuse of independent contractors. Misclassification can result in fines, back taxes, and reputational damage. Tech firms leveraging flexible, contract-heavy workforces must now consider how job structure, oversight, and location affect legal risk.

The common thread? Compliance is now a core part of the hiring conversation. Understanding these changes isn’t just HR's job, it’s essential for any tech leader looking to grow a team in 2025.

Business Risks and Hiring Pressures

For US tech companies, the risks of getting it wrong are both regulatory and reputational. New compliance requirements are moving the hiring burden onto HR, legal, and business leaders alike. And with candidate expectations rising in parallel, the cost of falling behind is growing.

The biggest regulatory risks in tech hiring right now include:

• Pay transparency breaches: Vague job adverts and inconsistent salary banding can lead to candidate drop-off, compliance penalties, and internal equity issues that harm retention.

• Weak or absent DEI reporting: Failing to demonstrate diversity and equity in hiring can affect brand trust, especially for public or investment-sensitive companies. Candidates notice when promises don’t match performance. 

• Contractor misclassification: Hiring remote talent in unfamiliar states without understanding local laws can lead to audits, back taxes, and legal challenges.

How These Rules Impact Specific Hiring Practices

Regulatory updates are having a direct impact on the day-to-day actions of recruitment teams. In 2025, US tech employers need to adjust how they write job specs, structure offers, and engage with remote contractors.

Job Specifications and Salary Banding

Pay transparency laws mean generic or non-committal job specs are no longer acceptable. Salary ranges must be published up front and consistently applied across roles. This has prompted many HR teams to audit existing job libraries, align compensation across locations, and provide clear rationale behind bandings. Job ads now carry more legal weight, so accuracy matters.

Interviewing and Offer Processes

Increased focus on equity and transparency means interview questions and scoring must be standardised, and candidate experiences consistently documented. Offers need to reflect advertised salary ranges and may need justification for any variation. This added scrutiny has led many businesses to rethink how offers are reviewed and approved internally.

Contractor Engagement Models

Remote tech hiring often relies on flexible contractor models. But compliance with IRS rules and state-level classification laws like California’s ABC test means those models are under pressure. Businesses now need to assess whether a contractor should be reclassified as an employee, particularly when they control work patterns, hours, or delivery methods.

Remote Work Compliance and Tax Implications

Hiring remote candidates across state lines creates tax exposure and compliance complexity. Recruitment teams are working with legal and finance partners to understand where workers are based and whether that triggers registration or reporting duties in new jurisdictions. In many cases, firms are choosing to partner with specialist agencies that can manage these obligations.

Each of these touchpoints is now a potential compliance risk. The most forward-thinking companies are formalising these practices and treating compliance as a shared responsibility.

Five Practical Steps to Stay Competitive and Compliant

Meeting new compliance standards doesn’t have to slow hiring down. In fact, done right, it can reduce legal risk and make your organisation more appealing to high-demand tech talent.

Here are five practical ways to align recruitment with 2025 regulations:

1. Review and Refresh Job Specs

Ensure every job description includes salary ranges aligned with local laws. Check for outdated or non-compliant language and create a standardised format that supports pay transparency and inclusive hiring.

2. Standardise Pay Banding Across Locations

If you’re hiring across multiple states, align your compensation structures to meet the most stringent requirements. This avoids compliance gaps and helps explain differences transparently to candidates.

3. Build DEI Metrics into Recruitment Processes

Track diversity data at key hiring stages and share anonymised results with leadership. Use this to refine sourcing and interviewing strategies and ensure that DEI ambitions are backed by measurable action.

4. Reassess Contractor Use and Classification

Audit current contractor relationships to ensure correct classification under IRS and state-specific rules. Where roles involve high levels of control, explore moving to employment contracts or using approved umbrella models.

5. Partner with Regulation-Aware Recruitment Experts

Working with agencies that understand compliance means faster onboarding, fewer legal risks, and better alignment with best practices. Choose partners who offer contractor support, DEI insights, and remote hiring expertise.

By embedding these steps into your hiring strategy, you send a clear signal to candidates that your organisation is both transparent, and serious about getting hiring right.

Building AI and Cloud Teams Under 2025 Regulations

For tech leaders building teams in AI, cloud, data, or compliance, the regulatory shifts of 2025 bring added complexity, but also an opportunity to lead.

The most successful hiring teams this year are those treating compliance not as a legal hurdle, but as a design principle. When job specs, offer structures, and contractor agreements are built with clarity and accountability in mind, recruitment becomes faster, fairer, and more resilient.

This is particularly relevant in contract-heavy environments, where speed-to-hire often competes with classification risk. Here, internal legal support or specialist recruitment partners can make a measurable difference, not just in managing risk, but in creating a smoother experience for both hiring managers and candidates.

Hiring in a regulated environment isn’t about being perfect. It is about being prepared. Embedding compliance early helps organisations scale with confidence.

How to Build a Regulation-Ready Hiring Strategy in 2025

The compliance updates impacting US tech recruitment in 2025 aren’t optional extras. They affect how you advertise roles, how you interview, how you structure offers, and how you engage remote and contract talent. More importantly, they influence how candidates perceive your business.

Companies that embed transparency, fairness, and legal clarity into their hiring processes will not only avoid risk, they’ll attract stronger and more engaged candidates

If you’re unsure whether your current hiring strategy is compliant or competitive, McGregor Boyall can help. Our teams specialise in compliance, governance and legal, cloud, DevOps and infrastructure and change and transformation recruitment, helping US employers manage regulation-aware hiring across contract and permanent tech roles.

Contact us to learn how we can support your hiring in 2025 and beyond.

How to Stay Compliant When Hiring in 2025

How can I stay compliant when hiring AI or tech contractors?

If your AI, data, or cloud hires are remote or project-based, classification risk is real. The IRS and individual states are paying attention to how contractors are engaged, not just what their contract says. If you're setting hours, providing tools, or managing output closely, you may need to reclassify. An internal audit can help you avoid fines and delays.

Do I need to include salaries in every job advert?

In many states, yes. California, New York and Colorado require employers to include salary bands in job postings. More states are following. Even where it’s not yet mandatory, salary transparency is now expected by candidates. It also influences application rates and trust in your brand.

Is DEI reporting mandatory for tech employers in 2025?

Yes, in some cases. Employers with 100 or more employees, or federal contractors with 50 or more, must file annual EEO-1 reports outlining workforce demographics. Public DEI reporting is not legally required for every business, but it is fast becoming the norm in publicly traded and investment-backed companies. If you’re unsure where to start, download our 2025 DEI hiring guide for practical steps on inclusive and compliant recruitment.

What are the biggest hiring compliance risks this year?

The most common problems include vague or inconsistent salary bands, outdated job specs, undocumented interview processes and contractor misclassification. Each of these can lead to legal or reputational issues, especially when hiring across multiple states. Compliance is not a blocker. It is a way to protect speed and trust.

Where can I get expert help with hiring compliance?

If you are building or scaling a tech team in the US, especially across AI, cloud or compliance, McGregor Boyall can help. We work with employers to make sure their recruitment processes meet both legal standards and candidate expectations. From pay banding and job specs to contractor support and DEI reporting, we help you hire with confidence.