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Showing posts with the label WARN Act

The Great American AI Act: What It Means — and Doesn’t Mean — for Companies Using AI

On June 4, 2026, Representatives Jay Obernolte and Lori Trahan released a discussion draft of the Great American Artificial Intelligence Act (GAAIA). The proposal has generated significant attention, but many organizations may be overestimating its practical significance for their day-to-day operations. The bill is directed primarily at developers of “frontier” AI models, so for most companies using AI models in their daily operations, these requirements will not apply. Nonetheless, the bill has sparked conversation—it incorporates multiple bipartisan bills on AI, its drafters wrote an op-ed calling on the U.S. to create a national framework covering AI, and the U.S. House Democratic Commission on AI and the Innovation Economy released a statement that the draft “does not meet the enormity of the moment.” Key Takeaways The bill is primarily aimed at the biggest AI developers with more than $500 million in revenue that are building cutting-edge AI models rather than most typical busine...

California Governor Aims to Soften AI’s Impact on Workers Through New Executive Order: What Employers Need to Know

Governor Gavin Newsom just signed a sweeping executive order right before the holiday weekend directing California state agencies to study potential workforce disruptions caused by AI so they can protect displaced workers through new policy recommendations. The May 21 order tasks the Labor and Workforce Development Agency (LWDA) with reviewing and making recommendations on a range of worker protection policies, from WARN Act revisions to severance standards to collective bargaining practices involving AI. But does any of this affect you right now? The short answer is no for California employers, but the EO still warrants close attention given how it could change things in the future. No New Obligations Today Executive Order N-6-26 ( which you can find here ) does not create any immediate legal obligations for private employers . Instead, it sets in motion a series of government reviews and analysis tasks with various deadlines, all aimed at informing potential future legislation and r...

Employer Checklist for February 2026

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Here are the top 10 workplace compliance items you should tackle in February 2026, based on the latest labor and employment law updates: _____ Learn the realities of the “No Tax on Overtime” rules.  Many misconceptions surround the new federal income tax deduction related to overtime compensation. Ahead of the Feb. 2 Form W-2 deadlines, we  dispelled the biggest “No Tax on Overtime” myths and covered the top employer takeaways . We also created guides specifically for  auto dealerships  and  California employers  due to unique compliance challenges they may face under the new tax rules. _____ Prepare for workforce disruptions if you rely on global talent.  The Trump administration just paused immigrant visa processing for people from 75 countries, beginning Jan. 21. We  answered employers’ top questions and crafted four practical action steps  you can take now to address the situation. H-1B Cap Season Reminder.  While the “processing fre...

Warning! The Warn Act is More Complicated Than You Think: 4 Steps for Employers Facing Layoffs

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With layoffs trending upward in industries like manufacturing, business services, and transportation, it’s important to be aware of the legal requirements surrounding mass business closures or worker terminations. The Worker Adjustment and Retraining Notification (WARN) Act requires employers to provide advance notice to employees of certain plant closings and mass layoffs with limited exceptions. But the law has very specific requirements about the information you need to provide, when to provide it, and which employees you need to notify when engaging in major workforce reductions. Here’s everything that may surprise you when it comes to plant closures and large-scale terminations – and your 4-step plan to comply with the WARN Act. Does WARN Apply to My Business? The WARN Act can be triggered in several ways based on the number of impacted employees and under certain conditions. Generally, the law requires that during any 90-day period, private businesses with more than 100 full-time...

Navigating WARN Act Compliance Amid Government Shutdown and Federal Contract Cancellations: What Federal Contractors Need to Know

The Trump administration’s push to downsize the federal workforce has entered a new phase, marked by rounds of layoffs, the deferred-resignation plan, and other voluntary departure programs. As the federal government shutdown enters its second week, the administration has escalated its response by threatening sweeping program cuts and workforce reductions. As the administration continues its focus on reducing federal spending, many federal contractors are bracing for a wave of contract and grant reviews, reductions, and terminations . These changes, often sudden and sweeping, can force federal contractors and grant recipients into difficult decisions about workforce reductions. For recipients of federal funds, these decisions are not just operational or financial—they also carry significant legal obligations under the federal Worker Adjustment and Retraining Notification (WARN) Act, and in some cases, under state “mini-WARN” laws that can be even more stringent. Navigating the complexi...