Compliance Stuff

If U.S. employment laws feel impossible to keep up with, you’re not imagining things. Between federal, state, and local laws and shifting agency guidance, even well-intentioned employers can find themselves in violation of labor and employment laws without realizing it. You probably can’t fix the system, but you  can  protect your business from unnecessary risk and expense. T he key is investing in prevention, empowering the right people, and acting decisively before small issues escalate. Why U.S. Employment Law Is So Complicated for Employers Now, if you’ll indulge me, let’s acknowledge the frustration. A very intelligent person once said: “The only thing worse than severe over-regulation is over-regulation that not only constantly proliferates but also changes every four years.” (Hint: It was me, just now.) The U.S. has become an over-regulated mess of employment laws at the federal, state and local levels thanks to politicians, lobbyists, and lawyers.  Lurking around ...

  Beginning January 1, 2026, age 50+ catch‑up contributions for “high‑paid participants” of 401(k), 403(b), and governmental 457(b) retirement plans must be made on a Roth basis. As a result, employers must identify who is a “high-paid participant” and ensure that corresponding catch-up contributions are characterized as Roth — even if a participant’s standing catch-up deferral election is pre‑tax.   The Internal Revenue Service (IRS) recently released final regulations   implementing the mandatory Roth catch-up, which will create pressure points for payroll systems, retirement plan recordkeepers, and plan sponsors. This update summarizes the new mandatory Roth catch-up requirement, highlights selected issues for payroll and human resources to consider, and recommends solutions to reduce compliance risk.  The New Mandatory Roth Catch‑Up Rule Under final IRS regulations, a catch‑up eligible participant with FICA wages paid by applicable employer(s) above a wage thresh...

As organizations transition from casual experimentation to the daily use of generative artificial intelligence (AI) tools, particularly in human resources, the need for a thorough AI audit becomes increasingly evident. Just as companies regularly evaluate pay equity, wage and hour compliance, and data security, compliance teams may want to devote similar attention to promoting responsible and compliant AI usage across the enterprise . A well-planned AI audit can help i dentify potential legal, operational, and reputational risks before they escalate and can inform the preparation of relevant AI policies as well as the development of appropriate internal AI training. Quick Hits As organizations increasingly integrate generative AI tools into daily operations, particularly in HR, AI audits are increasingly important for mitigating legal, operational, and reputational risks. Forming a cross-functional audit team and mapping out AI tools in use are key initial steps in conducting comprehen...