Talent Acquisition: What It Means for Employers

What it means in practice

Talent acquisition covers the steps an employer takes to fill a job: deciding what the role needs, advertising it, sourcing candidates, screening applications, interviewing and testing, checking backgrounds and making an offer. The Bureau of Labor Statistics describes this work in its profile of human resources specialists, who "recruit, screen, and interview job applicants and place newly hired workers in jobs," and says recruiters may also test applicants, contact references and make job offers. In a small business it is often one part of the broader human resources (HR) function, and many teams run it through an applicant tracking system (ATS). The term is not defined in federal law, but nearly every step is regulated.

Who the federal rules cover. Coverage depends on headcount. The EEOC says that with at least one employee you are covered by the equal pay law; with 15 to 19 employees you are also covered by the laws barring discrimination based on race, color, religion, sex, national origin, disability and genetic information; and with 20 or more employees the age law (protecting people 40 or older) applies as well. Under Title VII an employer is one with fifteen or more employees for each working day in each of twenty or more calendar weeks in the current or preceding calendar year (42 U.S.C. 2000e(b)). Separately, the EEOC notes that the Immigration Reform and Control Act bars national origin discrimination by employers with 4 to 14 employees, and bars citizenship status discrimination by employers with 4 or more. Independent contractors are not covered by the anti-discrimination laws, but the EEOC calls the employee-or-contractor question complicated; see independent contractor. State and local laws may reach smaller employers.

Job advertisements. The EEOC says it is illegal to publish a job advertisement that shows a preference for or discourages someone from applying because of race, color, religion, sex, national origin, age (40 or older), disability or genetic information, and gives the example that an ad seeking "females" or "recent college graduates" may discourage men and people over 40. The Title VII text bars any notice or advertisement indicating a preference based on race, color, religion, sex or national origin, except that religion, sex or national origin may be stated when it is a bona fide occupational qualification (42 U.S.C. 2000e-3(b)); race and color are never on that list. Under the ADEA regulations, terms such as "age 25 to 35," "young," "college student," "recent college graduate," "boy" or "girl" violate the Act unless a statutory exception applies, while an ad asking applicants to state their age is not unlawful in itself but will be closely scrutinized (29 CFR 1625.4).

Recruiting channels. It is also illegal to recruit in a way that discriminates on any of those bases. The EEOC's example is an employer relying on word-of-mouth recruiting by a mostly Hispanic workforce, which may violate the law if almost all new hires end up Hispanic.

Applications and interview questions. The EEOC's general rule is that information requested before hiring should be limited to what is essential to decide whether a person is qualified. Federal law does not clearly forbid every question touching race, sex, national origin, religion or age, but such questions may be used as evidence of intent to discriminate unless a business purpose justifies them. The EEOC says employers should not ask for a photograph (one may be obtained for identification after an offer is made and accepted), should generally avoid questions about clubs or organizations that could reveal a protected trait, and should not ask about marital status or the number and ages of children; those may be asked after an offer is accepted if needed for insurance or another legitimate purpose. Race data needed for affirmative action or applicant-flow tracking can be collected on a "tear-off" sheet kept apart from qualification information. Federal law does not bar questions about financial information, but the EEOC says a financial requirement must be applied equally and must not be used if it does not help identify reliable employees while significantly disadvantaging a protected group.

Disability, medical and genetic questions. Before an offer, a covered employer may not ask whether an applicant has a disability or about its nature or severity, or require a medical examination (29 CFR 1630.13). It may ask about the applicant's ability to perform job-related functions and ask the applicant to describe or demonstrate how they would perform them (29 CFR 1630.14(a)). The EEOC adds that an employer may ask limited accommodation questions when a disability is obvious or voluntarily disclosed. After a conditional offer, an employer may require a medical exam or ask disability-related questions only if all entering employees in the same job category are treated the same, and the results must be kept on separate forms in a confidential medical file (29 CFR 1630.14(b)). An applicant who needs an accommodation to apply, such as a sign language interpreter, must be given one unless it causes significant difficulty or expense. Under GINA, a covered employer may not request, require or purchase genetic information, which includes family medical history, and "request" includes an internet search likely to turn it up (29 CFR 1635.8). See the Americans with Disabilities Act (ADA).

Tests and selection procedures. If applicants must take a test, the EEOC says it must be necessary and related to the job and may not exclude people based on a protected basis; a test that excludes applicants 40 or older must rest on a reasonable factor other than age. The Uniform Guidelines on Employee Selection Procedures ask users of tests and other selection procedures to keep records showing their impact by race, sex and ethnic group (29 CFR 1607.4A). Under the "four-fifths rule," a selection rate for any group below 80 percent of the rate for the group with the highest rate will generally be regarded by federal enforcement agencies as evidence of adverse impact, though small samples and statistical significance can change the conclusion (29 CFR 1607.4D).

Background checks. The EEOC and FTC say that, apart from limits on medical and genetic information, it is not illegal to ask about an applicant's background or require a background check, but the information may not be used to discriminate. When the report comes from a company in the business of compiling background information, the Fair Credit Reporting Act (FCRA) adds steps. Before getting the report, tell the applicant in writing, in a stand-alone document and not in the application, that the information may be used for employment decisions; get written permission; and certify to the reporting company that you complied. Before rejecting the applicant based on the report, give them a copy of it and a copy of "A Summary of Your Rights Under the Fair Credit Reporting Act." After the decision, tell them they were rejected because of the report, give the reporting company's name, address and phone number, state that the company did not make the decision, and explain their right to dispute the report and get a free copy within 60 days. Dispose of reports securely once records rules are met.

Work authorization. The EEOC says most employers should not ask whether an applicant is a U.S. citizen before an offer, and that federal law bars running the Form I-9 or E-Verify process before the person has accepted the offer. An application may state: "In compliance with federal law, all persons hired will be required to verify identity and eligibility to work in the United States and to complete the required employment eligibility verification form upon hire." Once hired, the employee completes Section 1 of Form I-9 at the time of hire and the employer completes Section 2 within three business days of the hire (8 CFR 274a.2(b)(1)(ii)). E-Verify cases must be created no later than the third business day after the employee starts work for pay (E-Verify.gov). Those steps belong to onboarding.

Interns. The Department of Labor says the FLSA requires for-profit employers to pay employees for their work, and uses a flexible "primary beneficiary" test with seven factors, including whether both sides understand there is no expectation of pay and whether the intern's work complements rather than displaces paid employees (Fact Sheet #71). An intern who is an employee is entitled to minimum wage and overtime.

Where states differ. Some states add rules on pay ranges in job postings and on salary-history questions. Two examples from official state pages: Washington's Department of Labor and Industries says employers with 15 or more employees must include a wage scale or salary range, a general description of all benefits and of other compensation in job postings, that a range such as "$60,000-$80,000 per year" is expected rather than "up to $29.00/hour," that employers may not seek an applicant's wage or salary history, and that an employer notified of a noncompliant posting has 5 business days to correct it. New York's Department of Labor says Labor Law Section 194-b requires businesses with four or more employees to list compensation ranges and job descriptions for advertised jobs, promotions and transfers, and to state clearly if a position is commission-based. Other states and some cities have their own rules; the Department of Labor lists state labor offices.

Recordkeeping. Under 29 CFR 1602.14, any personnel or employment record an employer makes or keeps, including application forms and other hiring records and requests for reasonable accommodation, must be kept one year from the date the record was made or the personnel action was taken, whichever is later. If a charge of discrimination is filed, all relevant records, including other candidates' applications and test papers for the same position, must be kept until final disposition. The ADEA rule separately requires keeping job applications, resumes, test papers, job orders to agencies and job advertisements for 1 year from the personnel action (29 CFR 1627.3(b)(1)). Forms I-9 are kept three years after the date of hire or one year after employment ends, whichever is later (8 CFR 274a.2(b)(2)). Employers with 100 or more employees, or federal contractors with at least 50 employees and $50,000 in contracts, file an EEO-1 Report every year (EEOC, 2026); see diversity.

Questions employers ask. Can we ask for salary history? Depending on the state, maybe not; Washington, for example, bars employers from seeking it before an accepted offer. Can we run a credit check? Yes, with FCRA notice and consent and applied equally, though the FTC notes some states restrict employment credit reports. Does at-will hiring change these rules? No. At-will employment is subject to discrimination and retaliation limits, and the EEOC says it is illegal to retaliate against an applicant who complains about discrimination. Confirm specifics with the EEOC, your state or a qualified professional.

Why it matters and common mistakes

How Remindax helps

Related terms

See all terms in Recruiting & Talent Acquisition or browse the full HR Glossary.