Compliance Stuff

In July, the DOJ released updated guidance on what might constitute “illegal DEI” by government contractors under an executive order issued in January. As a result, contractors must now move beyond compliance checklists and toward a strategic, principled and legally sound approach to workforce management, says Constangy partner Cara Crotty, who breaks down the latest developments.   In January, President Donald Trump signed Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” This action rescinded Executive Order 11246, signed in 1965 to provide equal opportunity for women and minorities in hiring by government contractors. The practical implications of this significant shift are just beginning to unfold. Contractors must now recalibrate their  compliance  practices, understand their remaining legal obligations and prepare for a new era of federal scrutiny, one that targets DEI programs as potential sources of unlawful discriminati...

  Illinois will soon require fully insured health policies issued in the state to cover parents and stepparents who qualify as dependents, and employers that sponsor these group health plans must take note. This expansion of the Illinois Insurance Code, which applies to policies issued, amended, delivered, or renewed after January 1, 2026, creates new administrative challenges and compliance obligations for group health plans – especially since they typically offer dependent benefits only to children and spouses or domestic partners. We’ll explain what’s changing, how it impacts employers, and what you should do next. A Significant Shift in Dependent Eligibility Gov. JB Pritzker signed a bill ( HB 5258 ) into law last year that will soon require accident and health insurance policies that provide dependent coverage to make that coverage available to any parent and stepparent who: has gross income that is less than the IRS exemption amount ($5,050 for 2025); receives a majority...

Starting on October 1, 2025, California employers must follow new regulations from the Civil Rights Council (CRC) regarding “automated-decision systems”, or “ADS” — that is, tools that use AI, algorithms, or other computer processes to help make employment decisions. What’s Covered? An ADS is any technology that makes or influences decisions about jobs or benefits — like: Resume screening software Online assessments, puzzles, and tests Interview tools that analyze tone, facial expressions, or word choice Recruiting ads targeted to specific groups Data analytics using applicant or employee information Importantly, basic tools (like spreadsheets or calculators) are not considered ADS if they don’t actually make employment decisions. Why the New Rules Matter The CRC’s position is clear: if an ADS results in discrimination based on race, gender, age, disability, religion, or any other protected characteristic, it’s unlawful under the California Fair Employment and Housing Act. Employers — ...