Compliance Stuff

On June 10, 2026, nineteen states and the District of Columbia filed suit in the District of Maryland seeking to halt implementation of Executive Order 14398, which was issued on March 26, 2026. The order requires federal agencies to insert a mandatory contract clause into all contracts, subcontracts, and “contract-like instruments” prohibiting contractors from engaging in “racially discriminatory DEI activities.” Compliance with the new clause is an express condition of eligibility to contract with the federal government, and consequences for noncompliance specifically include contract cancellation, exclusion from future federal contracts, suspension, and False Claims Act (FCA) liability . Filed as Maryland v. Hegseth , the complaint comes just two months after the administration announced its first False Claims Act resolution under the Civil Rights Fraud Initiative, a $17 million settlement with IBM. The IBM Settlement In April, IBM agreed to pay $17,077,043 to resolve allegations t...

The federal government has issued a sweeping proposed rule that could significantly reshape cybersecurity and compliance obligations for federal contractors that handle Controlled Unclassified Information (CUI). If finalized, the new Federal Acquisition Regulation (FAR) provisions would establish a governmentwide framework governing how contractors identify, safeguard, report, and manage CUI across civilian and defense contracts, while imposing substantial new compliance responsibilities that extend far beyond existing requirements such as the Department of Defense’s current cybersecurity rules. For contractors that do business with the federal government, the proposed rule signals an important shift toward more uniform and significantly more demanding CUI compliance obligations. A Governmentwide CUI Framework Is Taking Shape Historically, cybersecurity and information protection requirements related to sensitive government information have varied significantly across agencies. While...

Employer-sponsored group health plans operate at the intersection of multiple federal regulatory frameworks — ERISA, the ACA, COBRA, HIPAA, the Mental Health Parity and Addiction Equity Act (MHPAEA), and more. Each imposes its own documentation requirements, reporting deadlines, and operational obligations. The challenge for most employers is not a lack of intent to comply, but the sheer complexity of keeping pace with layered and frequently updated rules. A proactive, systematic compliance review conducted with legal guidance is one of the most effective tools employers have to reduce legal exposure, strengthen plan governance, and prepare for regulatory inquiries . The following overview identifies the key compliance areas that such a review should cover. Plan Governance and ERISA Documentation ERISA requires every welfare benefit plan to be maintained pursuant to a written plan document that satisfies specific requirements. Compliance reviews routinely reveal documentation gaps that...

  Employers should be thinking about whether to address the following areas of workplace compliance in 2026. These items on the employer to-do list are not all for the month of January, but don’t forget to come back to them throughout the year. Routine Use of Artificial Intelligence.  Does your workplace have a policy on how employees  may use AI in performing their jobs ? D o you have a preferred platform, or do you require certain settings to be used when employees use AI? Does your confidentiality policy address how employees can engage with AI and still protect your data? Or do you pretend that employees don’t use AI at all? Training Managers to Understand Requests for Accommodation Under the Pregnant Worker Fairness Act (PWFA).   This act has been in effect since June 27, 2023, and there have been a number of recent settlements, lawsuits, and charges against employers for failing to accommodate known limitations due to pregnancy. Recent EEOC enforcement exampl...

Doing the same thing generally produces the same result, and as the new year arrives, many business owners are considering new steps to help their companies achieve greater success in the year ahead. Leveling up requires change, and this post reviews three resolutions majority owners can implement to obtain better outcomes during 2026 for their companies and also for themselves. Specifically, these resolutions should incentivize employee productivity, improve the company’s governance structure and help the majority owner become a more effective leader. Resolution 1: Provide Employees With Phantom Equity or Stock Appreciation Rights Providing employees with performance incentives is a common way for companies to boost productivity. Bonus structures are typically geared toward individual performance and may not correlate directly correlate with improved results for the company as a whole. However, other incentive tools are available that more closely align employee rewards with the compa...

  When a federal government shutdown occurs, contractors often face difficult decisions about whether to continue performance on certain contracts. In some cases, contractors may feel pressure — from either operational necessity or the government’s informal requests — to keep working despite funding lapses. However, doing so can expose a contractor to significant financial and legal risks. Below, we outline what it means to perform “at risk” during a shutdown, and key factors government contractors should carefully evaluate before making that decision. What Does Working “At Risk” Mean? A contractor is considered to be working “at risk” when it continues to perform under a government contract without a valid funding obligation in place — meaning there is no appropriated funding legally available to pay for the work being performed. During a government shutdown, this situation often arises because agencies cannot obligate new funds or modify existing contracts. Even if agency person...

Bradley recently published articles discussing  how government contractors should prepare for and deal with a shutdown  and  how contractors can recover costs and seek time extensions as a result of a shutdown . Below are key actions government contractors should consider once the government eventually reopens. 1. Confirm Contract Status and Performance Schedules Contact the contracting officer (CO) to confirm whether performance has resumed and whether there are any revised timelines or priorities. Request written confirmation of any new deadlines, modified delivery schedules, or changed milestones. If a stop-work order was issued, ensure you receive a written notice to proceed before restarting work. 2. Document Costs and Delays Maintain detailed records of costs incurred during the shutdown, including idle labor, demobilization/remobilization, and overhead. Document lost productivity and schedule disruptions. These records may support requests for equitable adjustments...

The Federal Acquisition Regulation (FAR) is often described as the “bible” of federal procurement. For decades, it has governed how agencies acquire goods and services, and how contractors compete for, win, and perform government contracts. While incremental updates are common, the federal procurement community is now bracing for the implementation of an effort describing itself as a “ revolutionary FAR overhaul ” — a top-to-bottom “modernization effort” that could reshape the contracting landscape. Why an Overhaul Now? For some time, certain policymakers, acquisition officials, and industry stakeholders have criticized the FAR for being: Overly complex  – Thousands of pages of regulations can overwhelm even experienced contractors. Outdated  – Some provisions reflect procurement practices from the 1980s, ill-suited to today’s fast-moving tech environment. Inflexible  – Agencies often struggle to adopt innovative solutions due to rigid rules. The current change has its ro...