Compliance Stuff

  As federal agencies continue to navigate budget constraints, geopolitical uncertainty, workforce shortages, and rapid technological change, government contractors entering 2026 face an increasingly complex legal and enforcement environment. Recent case law, agency guidance, and enforcement activity reflect a clear trend: Contractors are being held to higher standards of documentation, transparency, and internal controls across the procurement lifecycle. Below are six legal issues government contractors should be actively monitoring — and preparing for — in 2026. 1.  Heightened Scrutiny of Responsibility Determinations and Contractor Integrity Agencies are paying closer attention to contractor “responsibility,” particularly with respect to ethics, compliance systems, financial viability, and past performance. Responsibility determinations — long considered largely discretionary — are increasingly shaped by issues that extend well beyond the instant procurement. Recent litiga...

Takeaways The IRS ended 2025 transition relief so payroll systems, reporting workflows and workforce policies should be fully operational in 2026 for information returns, benefit plan operation, immigration compliance pressure, and workforce policy impacts. Immigration and benefits compliance costs rise in 2026, driven by new OBBBA mandated immigration fees, heightened worksite enforcement expectations and benefit plan updates. OBBBA provisions continue phasing in through 2028; employers should engage counsel and vendors proactively to manage compliance risk and minimize disruption. Related links OBBBA’s Tips & Overtime Tax Break: Reclassification Considerations, Reporting Requirements, Industry Impact + More IRS Guidance on Claiming the New Tax Deduction for Tips and Overtime Pay IRS 2025 Penalty Relief — A Break for Employers Under OBBBA’s Tax Reporting Rules New Tax-Advantaged Savings Accounts for Children: Trump Accounts Expected to Go Live in 2026 Federal OBBBA Roundup: What E...

  A bipartisan bill pending before Congress would make it illegal to retaliate against employees who speak up about AI-related risks. Senators from both sides of the aisle introduced the AI Whistleblower Protection Act (S. 1792) last month, hoping to shield tech workers and others who expose AI security flaws, legal violations, or dangerous practices. House AI leaders quickly introduced a companion bill, intent on closing the growing gap in whistleblower protections related to artificial intelligence. More than 20 public interest organizations just called on Congress to pass the bill in a June 10 letter, citing retaliation, NDAs, and a chilling effect that could silence insiders. What do you need to know about this latest piece of potential AI that would impact the workplace? 💥 The prime sponsor of the House version of the bill, Rep. Jay Obernolte (R-CA), has just agreed to speak at FP’s AI Conference next month.  Register now  to hear first-hand about AI regulation an...