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Showing posts with the label 2026-01-23 Digest

Six Issues for Employers to Monitor in 2026

The year 2026 is shaping up to be a critical year for employers. With new regulations, emerging technologies, and shifting cultural expectations, staying up to date with evolving legal issues is more important than ever. Below are six critical issues every employer should have on their radar this year and practical steps to prepare. 1. Diversity, Equity, and Inclusion (DEI) & Equal Employment Opportunity The Equal Employment Opportunity Commission (EEOC) will begin 2026 with a quorum and is poised to look to modify or rescind its  Strategic Enforcement Plan  and  Strategic Plan . Less than a month ago, EEOC Chair Andrea Lucas encouraged white men, specifically, to file claims with the agency if they believe they have been discriminated against due to their race or sex. Employers should expect an increase in litigation filed by this group and others in the traditional majority alleging hostile work environment and failure to accommodate on the basis of religion. The EE...

Philadelphia’s Expanded and Amended ‘Ban-the-Box’ Law Takes Effect

Philadelphia employers should review their criminal background investigation practices and procedures in light of recent amendments to  Philadelphia’s Fair Criminal Record Screening Standards Ordinance  (FCRSS) that took effect on January 6, 2026, after being signed into law on October 8, 2025. Multistate employers also need to keep in mind compliance with varying fair chance or ban-the-box laws in other jurisdictions as well, as many states have enacted some limitations on use of criminal histories in hiring decisions, including California, Colorado, Connecticut, the District of Columbia, Florida, Georgia, Hawaii, Illinois, Iowa, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New Mexico, New York, Oregon, Rhode Island, Texas, Vermont, Washington, and Wisconsin. Who Is Covered? The amended FCRSS applies to most private employers. Notably, the ordinance’s protections are not limited to employees and job applicants. Rather, it covers all in...

Eight Reasons Why Compliance Risk Assessments Are Important

Healthcare organizations  operate in a highly regulated and intensive enforcement environment that makes  conducting compliance risk assessments  a critical part of their compliance program. Conducting risk assessments offer numerous benefits, including demonstrating regulatory compliance commitment, strengthening governance, providing guidance for the use of limited resources, and significantly reducing legal and financial exposure. Key benefits include the following: Meets Regulatory and Enforcement Expectations.  The Office of Inspector General’s (OIG) Compliance Program Guidance and the Department of Justice’s (DOJ) Evaluation of Corporate Compliance Programs call for organizations to regularly assess compliance risks and have results incorporated into compliance work plans, audits, and monitoring activities. Organizations unable to demonstrate a structured risk assessment are at a disadvantage and risk aggravated penalties when subjected to enforcement actions....

Separating Myth From Reality on New “No Tax on Overtime” Law: Key Facts Employers Must Know This Tax Season and Beyond

A new federal law enacted last year provides a tax benefit to employees who receive overtime pay – but calling it a “No Tax on Overtime” law is a bit of misnomer. For starters, OT pay remains taxable and subject to withholding rules. And while a new income tax deduction may be available to some employees who work overtime, only a limited portion of  federally  required overtime compensation is tax deductible. We’ll clear up some of the biggest misconceptions surrounding these new rules and provide some key employer takeaways – which will become especially important this tax season and beyond as more employees learn the realities of these rules and the IRS cracks down on employers’ new filing and information reporting obligations.   Overview of “No Tax on Overtime” The One Big Beautiful Bill Act (OBBBA), which President Trump signed into law last year, includes a new federal income tax deduction related to overtime pay. This new deduction: applies for tax years  2025...

Illinois BIPA Suit Targets AI Note‑Takers: Practical Lessons for Meeting Transcription

Another class action lawsuit— Cruz v. Fireflies.AI Corp .—puts a spotlight on potential legal risks associated with AI meeting assistants. The complaint alleges that the Fireflies tool records, analyzes, transcribes, and stores voices of meeting participants, including voices of those who are not Fireflies users, without the notice, written consent, and retention safeguards required by Illinois’ Biometric Information Privacy Act (“BIPA” ). It points to Fireflies’ “speaker recognition” functionality and contends the product creates and retains voiceprints—covered under BIPA—while lacking a publicly available retention and destruction policy and failing to inform meeting participants about biometric collection. This case is a useful preview of issues regulators and plaintiffs may raise around AI transcription and summarization . We have previously covered other lawsuits involving these issues  here . Why it matters : AI note‑takers can deliver productivity gains, but they also introd...

Emerging Trends in Employment Arbitration in 2026: What Employers Need to Know

Employment arbitration agreements provide employers and employees with a fair and efficient way to resolve disputes outside of court litigation. The legal requirements for and best practices surrounding employment arbitration constantly develop. Heading into 2026, employers who use employment arbitration agreements or are considering adopting such agreements should take note of these emerging issues and trends. Quick Hits The legal landscape of employment arbitration continues to evolve as plaintiffs’ attorneys mount new challenges, particularly in light of laws like the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA). Employers can avoid pitfalls by staying informed on the latest issues and carefully crafting and regularly evaluating their arbitration agreements to maintain effectiveness and enforceability. The Federal Arbitration Act (FAA) promotes the use of arbitration agreements, preempts state anti-arbitration laws, and requires federal and state cou...