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May Government Affairs Newsletter

Stricter I-9 Audits Raise the Stakes for Employers - All employers in the U.S. are required to verify that employees are authorized to work by completing Form I-9. This form must be filled out correctly by both the employee and the employer, just like any other legal document.  What Has Changed - Previously, small mistakes, such as a missing date or an unchecked box, were typically treated as “technical errors” and could be corrected without penalty if addressed promptly.  That flexibility is shrinking.  Recent guidance from U.S. Immigration and Customs Enforcement (ICE) expands the definition of a “substantive violation,” meaning more errors can now result in fines. Even routine administrative issues, such as missing information, timing errors, or improper document handling, are more likely to have consequences.  Increased Enforcement - At the same time, enforcement is picking up. ICE is increasing workplace audits and inspections, often with less advance notice, and placing greater scrutiny on incomplete or inconsistent records. There is also a stronger focus on patterns of noncompliance across forms.  A single mistake may not raise concern, but repeated errors, even small ones, can quickly add up and significantly increase an employer’s overall liability.  Examples of Substantive Violations -

According to the fact sheet on ice.gov that was recently updated, (https://www.ice.gov/factsheets/i9-inspection) substantive violations include:  Failure to prepare Form I-9 in a timely way.  Utilizing the Spanish-language version of the Form I-9 outside of Puerto Rico.  Failure to meet the standards for electronic completion and retention.  Section 1 - Missing information such as date of birth, signature dates, USCIS/Alien number, signature/title, expiration dates, and incomplete/incorrect information on employee attestation Section 2 – missing employer name/title, incomplete document information in List A, B and C (i.e., expiration dates, issuing authority, or full title of document).  Alternative Procedure is used when not authorized to use the alternative procedure.  This policy shift comes amid heightened enforcement activity, with ICE increasing worksite inspections and showing less tolerance for incomplete or inconsistent documentation. The agency is also placing greater focus on patterns of noncompliance, meaning repeated minor errors across a workforce can significantly increase overall liability.  What Employers Should Do - This shift makes consistency more important than ever. Employers should take a closer look at their I-9 processes and tighten where needed:  Conduct regular internal I-9 audits.  Train HR staff and managers in proper completion.  Use the most current version of Form I-9.  Standardize onboarding processes across locations.  Carefully document all corrections.  Review electronic I-9 systems for compliance Bottom Line - I-9 compliance is becoming less forgiving. What were once minor oversights are now more likely to carry real risk, making a disciplined and consistent approach essential.  Source:  AIM HR Edge, 05/01/2026, by Rachel Zheliabovskii

DOJ Provides Guide for Avoiding Prosecution Via Self-DisclosureIf your company discovers that it may have committed criminal misconduct, you may be able to avoid prosecution entirely — but only if you act quickly and follow a newly streamlined federal roadmap. The US Department of Justice (DOJ) announced its first-ever agency-wide Corporate Enforcement and Voluntary Self-Disclosure Policy last week, allowing employers to reduce or even completely eliminate criminal penalties by self-disclosing the wrongdoing and taking other administrative steps.   What Are the DOJ’s Goals in Rolling Out the New CEP? - The CEP, is in line with the May 2025 update to the DOJ’s Criminal Division Corporate Enforcement and Voluntary Self-Disclosure Policy. DOJ described the CEP rollout as intended to promote “uniformity, predictability, and fairness in how it pursues white-collar cases.” This new policy is intended to supersede previously in-place DOJ component or district-specific corporate enforcement programs.  What Does This Mean for Employers?  The CEP is applicable to potential criminal penalties an employer may face for violating various laws such as safety and health regulations, environmental compliance, immigration, and anti-bribery provisions. Antitrust matters are excepted from the policy. If found guilty of these criminal laws, an employer could face hundreds of millions of dollars in penalties, restitution, and ongoing external compliance monitoring.  But if employers discover misconduct, the new policy means that all hope is not lost. Employers can reduce or even completely eliminate these penalties by self-disclosing and entering into some type of CEP agreement. The agency-wide CEP approach enhances predictability and streamlines corporate decision-making regarding voluntary self-disclosures.  Overview of the New, Comprehensive CEP - Like the former Criminal Division Policy, the CEP includes three paths under which a company may benefit from self-disclosure:  Declination Under the CEP.  “Near Miss” Voluntary Self-Disclosures or Aggravating Factors Warranting Resolutions.”  Resolutions in Other Cases.  However, the hallmark tenants of the new CEP include revisions to the requirements and benefits under the policy.  Path 1: What Makes a Declination?  Mirroring the Criminal Division Policy, if a company voluntarily self-discloses misconduct, DOJ will decline to prosecute so long as the company:  Timely and voluntarily discloses the misconduct to an appropriate DOJ component or agency.  Fully cooperated with DOJ’s investigation.  Timely and appropriately remediated the misconduct where no aggravating circumstances exist.  Importantly, declinations approved under the CEP will be publicly announced. Employers must also meet a number of requirements to qualify for declination of prosecution under the CEP.  Voluntariness of the self-disclosure - To be considered voluntary, the company must report to the appropriate Department with the DOJ prior to an imminent threat of disclosure or government investigation and within a reasonably prompt time after becoming aware of the misconduct.  Factual disclosures of misconduct - Next, full cooperation requires disclosure of all facts and non-privileged information relevant to the misconduct including identification of all individuals (both internal and external to the company) involved in or responsible for the misconduct.  Timeliness of the self-disclosure - Finally, timely and appropriate remediation requires effective root cause analysis of the wrongdoing and prompt remediation of the root causes which allowed the conduct to occur.  Previously, self-disclosure needed to be made within 120 days of the whistleblower’s report.  Now, corporations must self-report “as soon as reasonably practicable but no later than 120 days after receiving the whistleblower’s internal report.” This makes timely disclosure paramount. Companies should also implement an effective compliance program if one did not previously exist.  Path 2: “Near Miss” Voluntary Self-Disclosures of Aggravating Factors Warranting Resolution - The “Near Miss” path applies to companies that do not qualify for routine declination under Part I solely because:  It acted in good faith by self-reporting the misconduct, but that self-report did not qualify as a voluntary disclosure.  It had aggravating factors that warrant a criminal resolution.  Under the “Near Miss” path, companies will receive a non-prosecution agreement with a term of fewer than three years, no independent compliance monitor, and a 50 to 75% reduction off the low end in the fine range due under the U.S. Sentencing Guidelines. The Criminal Division Policy provided for a 75% reduction. This change highlights prosecutorial discretion and the necessity of having a strong advocate when self-disclosing to DOJ.  Path 3: Resolutions in Other Cases - This section remains mostly the same under the new CEP.  If a company is ineligible for the preceding paths, DOJ retains discretion to determine appropriate resolution. This can include reductions in fines and penalties, with only a maximum 50% reduction in the monetary penalty available for companies who are ineligible for Parts 1 or 2.  What the CEP Means for Corporate Self-Disclosure Moving Forward - The CEP’s main benefit to corporations is the uniformity it imposes on the self-disclosure process. Under the CEP, there are no division-specific or jurisdiction-specific requirements to be eligible for declination of prosecution or other benefits associated with self-disclosure. Companies of all sizes will benefit from well-established compliance systems and related internal reporting programs which will support early detection and correction of potential wrongdoing.  Importantly, the CEP applies only to criminal investigations, not civil investigations. Companies should ensure they consider the impact of self-disclosure under the CEP on parallel or subsequent civil investigations or enforcement actions.  Superseded Policies - As previously noted, the new DOJ-wide CEP not only replaces the Criminal Division Policy but also preempts corporate enforcement policies from other United States Attorneys’ Offices. This results in uniformity for corporations and their representation regardless of the jurisdiction or misconduct at issue.  Specific DOJ components and USAOs have the discretion to develop practices that comport with and do not run afoul of the new CEP. However, the release of the new CEP led to component- or district-specific formal policies being preempted as of March 10.  That said, there are still some unanswered questions. One hot-button issue is how the new CEP affects the Southern District of New York’s USAO’s Corporate Enforcement and Voluntary Self-Disclosure Program for Financial Crimes, issued on Feb. 24 of this year.  4 Key Takeaways for Employers - Now is the time for the companies to review and evaluate their compliance policies to ensure they are educating all employees on the company’s compliance expectations and internal reporting systems when noncompliance is suspected. Speed is key. Although the decision to self-disclose is fact-specific and difficult, the CEP incentivizes swift disclosures and punishes delays.  Take this opportunity to educate senior management on the self-disclosure requirements and the benefits for self-reporting potential criminal wrongdoing. These changes reflect the need for effective internal controls and robust compliance programs. This will support efficient decision making should the organization need to make a rapid decision regarding potential self-reporting.  Internal investigations must be thorough and well documented. The relevant facts and individuals involved may need to be disclosed, if the company wishes to obtain credit for self-disclosing to the DOJ.  There is now uniformity, given the new Department-wide CEP applies to all criminal matters (with the exception of antitrust). Companies considering self-disclosure will need to assess where to self-report based on a DOJ component, USAO’s jurisdiction or professional relationships established.  Source:  SHRM HR Daily, 05/05/2026, by Brandon B. Brown, Christopher Merken, Raymond Perez, and Heidi Woll

 

 

April Government Affairs Newsletter

ICE Redefines “Substantive “ I-9 Violations –    ICE has made recent changes to policies related to Form I-9 compliance.  While the recent surge in federal worksite enforcement has captured headlines, a much quieter policy update behind the scenes appears to significantly raise the stakes for employers facing a Form I-9 inspection.  ICE reclassified several common administrative Form I-9 errors as ‘substantive’ violations, significantly raising the stakes for employers facing audits. As a result, mistakes that might have been treated as correctable clerical errors could now be subject to immediate monetary penalties following a Form I-9 inspection.  ICE updated its Form I-9 inspection fact sheet online, where the agency’s apparent departure from established practice was revealed: errors that for many years have been classified as technical or procedural violations as now substantive violations.  Since 1996, the federal government split I-9 paperwork violations into two categories:  Substantive violations that could lead to hiring an unauthorized worker or Technical or procedural violations for administrative or clerical mistakes that could be easily corrected.  Critically, immigration law provides employers with a statutory defense for technical failures.  If ICE identifies a technical error during an audit, they must provide the employer with a minimum of 10 business days to correct the oversight before a fine can be issued. It was established that many minor oversights could be treated as correctable technical errors, provided the employer acted in good faith.  The newly revised ICE fact sheet updates these longstanding definitions, reclassifying several common errors as substantive, including:  Missing date of birth, date of hire, Incorrect use of Spanish-language I-9 outside of Puerto Rico, Preparer and/or translator errors. ICE notes that a failure to ensure that the preparer and/or translator’s complete name, address, signature, and date are provided on the Form I-9 at the time of completion in Supplement A is a substantive violation.  Missing title of the employer or authorized representative, Failure to date sections 1 or 2, Failure to enter rehire date. ICE notes that failure to provide the date of rehire in Supplement B would now be substantive.  Under the new ICE guidance, procedural failures related to the 2023 remote verification procedure are now to be classified as substantive violations, including failing to check the alternative procedure box in Section 2 or Supplement B indicating that remote inspection was used; and failing to be an active E-Verify participant at the time the alternative procedure was used.  Many organizations have transitioned to electronic I-9 software to help streamline the onboarding process, but while using the right software can help reduce mistakes, ICE’s updated guidelines reflect that simply digitizing the form is not enough.  If an electronic I-9 system’s audit trails, electronic signature protocols, or security documentation fall short of specific standards, the procedural failures of the software may be treated as substantive violations for the employer.  The key takeaway for employers is that the margin for administrative error during an I-9 audit has narrowed.  Practices that were previously correctable may now result in immediate fines.  It is recommended employers continue to conduct routine I-9 assessments, review virtual I-9 procedures, evaluate electronic I-9 systems, and enhance I-9 training.  Ensure that HR professionals, managers, or recruiters involved in I-9 completion understand the rules for completing I-9s and the importance of ensuring accurate dates and entries.  Source:  SHRM HR Daily, 04/10/2026, by Roy Maurer

EEOC Reports Record Recoveries, Signals Continue Enforcement  -  The EEOC is touting a strong year for enforcement, reporting $660 million recovered for victims of workplace discrimination in fiscal year 2025. This is its third-highest total to date and a signal to employers that enforcement activity remains robust.  According to the agency’s latest performance report, the bulk of that recovery — $528 million — came through pre-litigation efforts such as mediation, conciliation, and settlements before a formal cause finding. That figure represents the highest pre-litigation recovery in the EEOC’s 60-year history and a 12% increase over fiscal year 2024. Litigation also contributed $27 million for more than 2,500 individuals, while federal sector resolutions accounted for $104.6 million for over 1,800 employees and applicants.  The agency highlighted notable gains in conciliation and systemic enforcement. Conciliation alone delivered $52.5 million for workers, a 24% increase year over year. Meanwhile, systemic investigations generated $55 million in recoveries, alongside a 20% increase in resolutions and a 115% jump in monetary benefits compared to the prior year.  These record-breaking recoveries are the result of an Administration committed to upholding our nation’s civil rights laws through colorblind, merit-based, and evenhanded enforcement. The EEOC is proud to deliver on that commitment and will continue to fight discrimination wherever it occurs.  Operationally, the EEOC reported increased demand for its services alongside modest efficiency gains. The agency handled nearly 270,000 public inquiries in fiscal year 2025, up almost 9% from the previous year. It processed 88,201 new discrimination charges and resolved more than 90,700 charges — a 4% increase — while reducing its private sector charge inventory by 4%.  The federal sector also saw notable improvements. The EEOC reported a 67% increase in appellate resolutions for federal employees, driven by efforts to streamline processes and improve timeliness under current leadership.  What Employers Should Do Now - Employers should be aware that enforcement risk remains high, particularly at the pre-litigation stage. It is therefore important to prioritize early resolution strategies, including effective internal complaint procedures and well-trained managers who can identify and escalate issues before they reach the EEOC.  Organizations should also revisit their conciliation and mediation approaches. With the EEOC securing record recoveries through these channels, employers that engage proactively and in good faith may be better positioned to manage both financial and reputational risk.  The uptick in systemic investigations underscores the importance of auditing workplace policies and practices for patterns that could trigger broader scrutiny. Pay equity reviews, promotion analyses, and consistent documentation practices can help mitigate exposure as the agency continues to emphasize large-scale impact cases.  Source:  SHRM HR Daily, 04/08/2026, by Rachel Zheliabovskii

AI governance really matters amid evolving compliance landscape – There’s a famous saying you’ve probably heard about building the plane while flying it, but for AI governance pros, there’s no hangar in sight. It seems like building AI (rplane) governance systems will continue to occur on the fly.  As AI tools inside the workplace evolve from experimentation and beta testing to a core part of everyday infrastructure, an ongoing challenge faces the pros charged with guiding deployment and use, and managing the technology’s risk. While organizations push forward with AI tools and new processes, the legal and regulatory environment remains laggard, fragmented, and often fluid, making governance a complicated task. “What our clients are dealing with is—in some ways—very similar to what they’ve been dealing with for the past three years, which is uncertainty,” said Proceptual founder and CEO John Rood, who helps companies with AI governance and compliance efforts. “Not only do we not know what government, at what level, will pass what legislation with any reasonable certainty, we also don’t know if legislation is passed, it will actually be put into effect.”  Lagging. AI legislation and regulation lags significantly behind development and deployment, according to Rood.  State-level efforts in places like Illinois and Texas are continuing to evolve. Colorado’s marquee AI governance law has been undergoing changes and revisions since its adoption. The European Union AI Act has also faced delays and revisions ahead of enforcement.  The resulting persistent uncertainty means companies and their compliance and legal teams lack clarity on what rules will exist and how compliance and enforcement will be pursued.  Enforcement. Even where rules do exist, enforcement is far from settled. Rood pointed to a recent Cornell University study indicating abysmally low participation in New York City’s Local Law 144, which requires employers using Automated Employment Decision Tools for hiring or promotions in NYC undergo bias audits, share results publicly, and notify candidates of their use. Only 5% of NYC companies that were hiring listed audit results, and another 4% complied with transparency notice requirements.  Rood suggested that even those results may be skewed towards compliance, noting that there’s been little enforcement momentum on the part of the city.  Vendors. Deployers are asking vendors to carry more weight as uncertainty persists, HR and enterprise customers are increasingly asking their vendors to help them both understand compliance and provide them with stronger governance, transparency and risk controls in order to play fairly.  “There’s an evolving expectation in the vendor and in the vendor-implementer relationship, where the implementers or deployers of AI systems are pushing a little bit harder on vendors than they have in past years,” Rood said.  Lawsuits against vendors like Workday and Eightfold AI have also raised questions about accountability when AI systems potentially (and allegedly) produce biased or discriminatory outcomes.  What’s HR to do? Rood pointed to established frameworks from both the National Institute of Standards and Technology (NIST) and International Organization for Standardization (ISO) as a good place to get a compliance and governance strategy that can mitigate risk.  “What we advise clients on now…is to really think about a broad compliance program companies need to be implementing—either the NIST AI Risk Management Framework or ISO 42001 or both—because ultimately that’s going to capture 95% plus of any foreseeable regulation,” he said.  ISO 42001 is a certifiable international standard focusing on formal management systems governing AI use. The NIST AI RMF is a voluntary US-based framework that offers guidance, but no formal certification. Both are aligned with where Rood suggests the eventual compliance landscape may land.  “The actual mechanisms of both the frameworks are like 90% the same,” he said. “ISO tends to be a little bit more process driven. Whereas NIST is more values driven. But functionally…there’s not a lot of meaningful distinctions that really change the way that an organization would implement their governance frameworks based on those differences.”  Governance aligned with either (or both) the NIST AI RMF and ISO 42001 is a good first step, but Rood also recommended layering good governance standards and controls based on prominent frameworks for specific industries and incorporating company-specific risks and corporate and employer values as well.
Source:  HRBrew.com, 04/07/2026, by Adam DeRose

 

March Government Affairs Newsletter

DOL Proposes Overhaul to Worker Classification Rules – The DOL Wage & Hour Division (WHD) unveiled a proposed rule that would rescind the 2024 independent contractor classification rule under the FLSA and replace it with a framework more closely aligned with earlier economic reality tests and long-standing legal principles used in federal courts across the country.  The move marks a shift in federal policymaking on worker classification that could reshape compliance obligations for employers across industries. The change reflects the 2024 rule which had set forth a structured six-factor plus an additional catchall provision test intended to clarify when a worker is an employee versus an independent contractor was flawed and resulted in uncertainty for both employers and workers.  The DOL would essentially reinstate an economic reality test similar to that used in the 2021 rule while also eliminating the current 2024 framework codified in 29 CFR part 795. The core inquiry in this test focuses on whether a worker is economically dependent on an employer and thus an employee or truly in business for themselves as a contractor.   To aid in that analysis, the rule identifies two primary factors that will carry the most weight: the nature and degree of control over the work and the worker’s opportunity for profit or loss based on initiative or investment. Additional considerations include skill level, permanence of the relationship, and whether the work is integrated into the employer’s business. This proposed reversion to an economic reality framework could have important practical implications. The WHD emphasizes that actual work practices not just contractual language will be central to classification assessments, signaling to employers that compliance hinges on day-to-day labor arrangements rather than formal agreements alone. This mirrors how courts have historically evaluated misclassification under the FLSA, which governs minimum wage, overtime, and recordkeeping requirements but does not apply to true independent contractors.  The proposed rule would apply the same classification analysis to the FMLA and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA) both of which incorporate the FLSA’s definition of employ. By aligning classification criteria across these statutes, the DOL seeks to simplify compliance for employers while promoting consistency in enforcement.  What HR Should Know Now - With regard to litigation, the effect of this proposed rule may be limited.  In the aftermath of Loper Bright, federal courts are to give less deference to ‘guidance’ from federal agencies.  Plus, the ping-ponging of the USDOL on this issue could give courts a second reason to be unimpressed.  That said, employers would be wise to comply with the rule, regardless of how much weight courts give it. An employer will be able to argue that reliance on it is a show of good faith sufficient to defeat a claim that any FLSA violations were willful.  Going forward, HR professionals should take the following steps to ensure compliance:  Strategic Risk Assessments Matter More Than Ever - HR teams should scrutinize the actual working relationship, including decision-making authority, how assignments are managed, the degree of autonomy, and economic dependency. This is especially crucial for businesses that rely heavily on contingent labor, such as IT consultants, gig-economy partners, and freelance professionals. Documentation Still Counts - But Isn’t Everything - While written contracts remain important, they no longer provide a safe harbor if actual practices contradict their terms. HR must coordinate closely with legal counsel to ensure that workforce documentation contracts, invoices, performance reviews, and engagement records reflects how work is performed in practice.  Understand Risks Across Laws - Because the DOL would extend this classification standard to FMLA and MSPA, HR practitioners must consider how worker status affects not just wage/hour protections but also leave entitlements and protections for migrant or seasonal workers. A misstep in classification could expose employers to compliance violations under multiple federal laws.  Comments Period Offers Engagement Opportunity - The DOL is accepting public comments on the proposal through April 28, 2026. HR professionals and employer associations may want to weigh in during the 60-day comment period if they believe aspects of the rule need clarification or adjustment to better reflect workforce realities.  Source:  SHRM HR Daily, 03/02/2026, by Rachel Zheliabovskii

Do Employees Have Constitutional Rights at Work?  - Many employees believe the U.S. Constitution protects their speech and actions at work. However, constitutional rights usually protect people from the government, not from private employers.  This means that, in most private workplaces, employees do not have the same constitutional protections as they do in public spaces. The right to free speech limits what the government can control, but it does not stop a private employer from setting workplace rules about behavior or communication.  When employees believe their “rights” are being violated, it can lead to confusion or conflict. HR should help employees understand that, while they still have legal protections under certain labor and employment laws, constitutional rights generally apply only to government employers.  Clear communication about workplace policies can help prevent misunderstandings and reduce disciplinary issues.  Why Constitutional Rights Don’t Apply the Same Way at Work - The U.S. Constitution is designed to limit government power, not private organizations. Rights such as free speech, freedom of expression, and privacy protect individuals from government action, but they generally do not prevent a private employer from setting rules inside its business.  When employees walk into a private workplace, they enter a contractual relationship in which they agree to follow company policies, codes of conduct, safety rules, and performance standards in exchange for pay and benefits.  What Rights Do Employees Have at Work? - This does not mean employees lose all rights at work. Instead, their rights come from a different legal framework. Employees are protected by federal and state labor laws, workplace safety regulations, anti-discrimination statutes, employment contracts, and collective bargaining agreements, where applicable.  Certain activities, such as discussing wages or working conditions, are protected by law even in non-union workplaces.  Why Employers Need Workplace Rules - Employers rely on rules to operate effectively. They must manage productivity, protect customers and employees, safeguard confidential information, and limit legal and safety risks. Without the authority to set and enforce standards, a business cannot function.  Problems arise, however, when rules are unclear, inconsistently enforced, or communicated in a way that feels arbitrary or disrespectful.  Balancing Authority with Effective Leadership - Strong organizations manage this balance by clearly defining expectations, applying rules consistently, training supervisors to explain not just what the rules are but why they exist, and addressing issues professionally rather than punitively whenever possible. While employers may have broad authority, effective leadership goes beyond simply exercising power.  Helping Employees Navigate Workplace Expectations -

Employees can navigate this reality by understanding that the workplace is not a public forum. Managing personal expression, learning company policies, asking questions when expectations are unclear, and using proper internal channels to raise concerns all help prevent unnecessary conflict.  Creating a Healthier Workplace - The healthiest workplaces recognize the boundary between constitutional freedoms and workplace authority. When employers lead with clarity and fairness, and employees understand the rules of the environment in which they work, both sides are better positioned for mutual respect, accountability, and long-term success.  Source:  AIM HR Edge, 3/3/2026

 

Trump agencies return to business-friendly standards for gig worker, joint-employer statusFederal labor agencies recently overturned two Biden-era policies concerning gig worker and joint employer status.  The decisions could have implications for organizations that employ large shares of independent contractors, or those that work for franchisors or staffing firms.  DOL moves to rescind 2024 independent contractor rule.  The DOL announced a proposed rule for determining whether an employee is an independent contractor under the FLSA.  The rule would rescind a 2024 regulation issued by President Biden’s administration that directed businesses to take into account a number of factors when determining independent contractor status, including the degree and permanence of the work relationship, and investments by the worker and employer. Under this multifactor economic reality model, no one consideration should take precedence over another. Federal courts have long deferred to this model when hearing cases regarding FLSA classification.  Trump’s second administration is seeking to rescind this rule and replace it with a regulation similar to one issued in 2021 that never took effect. The proposed rule would retain the economic reality test, but direct employers to consider two core factors when determining if an employee is an independent contractor: The nature and degree of control over the work, and the worker’s opportunity for profit or loss based on initiative and/or investment. Under this model, employers could take other factors into account, but they would be given less weight than the two main considerations.  The Trump administration’s proposed model is considered more business-friendly, as it’s expected to make it easier for employers to classify workers as independent contractors. These workers typically lack benefits extended to their full-time counterparts, such as a full minimum wage, overtime pay, and workers’ compensation.  The policy was intended to protect workers entrepreneurial spirit and simplify compliance for American job creators navigating a modern workplace.  NLRB withdraws Biden-era joint-employer rule - The NLRB said it’s withdrawing a rule for determining joint-employer status.  The Biden-era rule, would have made it easier for two businesses to qualify as a joint-employer of a group of employees. It was expected to have an impact on businesses that hire workers through staffing firms, potentially putting large firms on the hook for unfair labor practices that occur at the workplaces in their purview.  The final rule issued by the Trump administration officially reinstates a 2020 rule for determining joint-employer status, under the rule that the NLRB reinstated, joint employer status depends on whether a business exercises substantial direct and immediate control” over at least one essential term and condition of another company’s employees.  Source:  HR-Brew.com 03/04/2026, by Courtney Vinopal

 

 

February Government Affairs Newsletter

Snow Days, Closures, and Pay:  What HR Needs to KnowWinter weather can force offices to close or send employees home early. When that happens, pay rules depend on how employees are classified under the Fair Labor Standards Act (FLSA) and, in Massachusetts, state wage laws. Here’s a simple breakdown to help HR stay compliant.  Exempt vs. Nonexempt: The Basics:  Nonexempt employees are usually paid hourly and are paid only for the time they actually work, unless company policy says otherwise.  Exempt employees are usually paid a salary and must generally receive their full weekly pay if they perform any work during the week, with limited exceptions.  (These rules apply as long as employees are properly classified.)  When the Office Is Closed:  Closed all week, no work done: Exempt employees do not have to be paid.  Closed all week, but work is done at home: Exempt employees must be paid for the week.  Closed for a day and nonexempt employees work remotely: They must be paid for the hours worked only. Employers should have a clear time-tracking method in place.  When the Office Is Open:  Exempt employee can’t get in due to weather and does not work: The employer may deduct pay for full days missed.  Exempt employee works part of the day (including from home): Pay cannot be docked.  Nonexempt employee can’t make it in: No pay is required, but employers may allow use of PTO or vacation if their policy allows.  Early Closures and Reporting Pay:  If a nonexempt employee reports to work and is sent home early, Massachusetts law requires the employee to be paid for all hours worked and may require reporting pay so the employee is paid for at least three hours, depending on the schedule.  Essential Employees and Extreme Situations:  If the employees are completely relieved from duty and are able to use the time for their own pursuits (there is food available, relatively comfortable places to sleep, a television or other entertainment, etc.) then you do not need to pay them for the time that they are not actually performing work.  If they are relieved from duty but there is absolutely nothing they can do with their time, not even somewhere to sleep (besides the hard floor), then an argument can be made that you have to pay. Even then, you would only have to pay the minimum wage, not the employee’s regular wage rate, though that is likely to be received very poorly by employees.  Remote work adds another layer to snow-day decisions. Even a small amount of work—like answering emails, can trigger pay obligations, especially for exempt employees. Clear policies and good communication go a long way in avoiding disputes.  Bottom line: Plan, document your policies, and be consistent. Snowstorms may be unpredictable, but your pay practices shouldn’t be.  Source:  AIM HR Edge, 1/6/2026

OFCCP Actively Investigating Complaints Following a temporary period of administrative abeyance in 2025 after the revocation of Executive Order 11246, the Office of Federal Contract Compliance Programs (OFCCP) has resumed processing and investigating complaints involving violations of Section 503 of the Rehabilitation Act of 1973 (Section 503) as of late 2025. Because of this, it may be reasonably assumed that the agency is also investigating complaints stemming from Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA) violations.  New Complaint Forms - In connection with these developments, it is worth noting that OFCCP has implemented revisions to its employment discrimination complaint information collection. Because OFCCP no longer has legal authority to accept or investigate complaints based on race, color, religion, sex, sexual orientation, gender identity, or national origin, the agency updated its complaint forms to remove references to Executive Order 11246 and its protected categories, as well as Title VII of the Civil Rights Act of 1964.  The revised forms include:  Pre-Complaint Inquiry Form (CC-390): Used to determine whether OFCCP has jurisdiction prior to the filing of a formal complaint.  Formal Complaint Form (CC-4): Used to officially file an employment discrimination complaint with the agency.  While OFCCP’s complaint jurisdiction is now limited to disability discrimination under Section 503 and protected veteran status under VEVRAA, overall complaint volume, burden hours, and submission procedures remain largely unchanged. Accordingly, it is critical that federal contractors and subcontractors remain fully compliant with all Section 503 and VEVRAA obligations, including: Soliciting voluntary self-identification of disability and protected veteran status.  Preparing and maintaining annual Affirmative Action Plans (AAPs) for individuals with disabilities and protected veterans.  Listing all job openings with the state and local Employment Service Delivery Systems (ESDS).  Ensuring non-discrimination in all employment practices on the basis of disability and veteran status.  Disability and Veteran Regulations Still in Effect:  Despite the revocation of Executive Order 11246, OFCCP still administers and enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, which prohibit federal contractors and subcontractors from discriminating in employment against qualified individuals with disabilities and protected veterans, respectively. As the agency charged with enforcing these statutes, OFCCP is required to promptly investigate complaints alleging violations of these regulations. Additionally, with new leadership and potentially significant funding on the horizon, federal contractors should expect more activity from the agency in the near future. Source:  SHRM HR Daily, 2/4/2026, by Brittany Dian-Hansell

What HR needs to know about hiring in the wake of a layoff; A reminder of the dos and don’ts when reorganizing your workforce.  - Would news of another layoff announcement make you want to throw in the towel? Bear with us—at least until the end of this article…   Travel company Expedia announced layoffs affecting 162 employees earlier this week while simultaneously boasting about new job openings, the Seattle Times reported. Expedia is not alone in making such an announcement: Financial software company Intuit followed a similar playbook when, after laying off 1,800 employees in 2024, it shared plans to hire for thousands of new AI roles, HR Brew previously reported.  What’s going on? Some companies have been redirecting funds from talent to tech in response to investor demands and competitor pressures to double down on AI, Daniel Zhao, chief economist at Glassdoor, previously told HR Brew.  “They might be incentivized right now to say that [layoffs are] because of AI, because they know that other companies are signaling this, and they know that investors are wondering whether they’re implementing AI at a time when all their competitors are,” Zhao said in November 2025.  How does this strategy impact employees? When companies try to hire beneath the shadow of a mass layoff, it can spook candidates, who may feel uneasy about working for an organization that just made cuts, Joe Mull, an employee commitment expert, previously told HR Brew.  “Companies end up shooting themselves in the foot,” Mull told HR Brew in 2024. “If you have a tarnished reputation, or…if it’s just a perception that, ‘Hey, this organization is quick to lay off people,’ then that organization may end up having to overpay to acquire talent.”  Why fire and then hire? When companies conduct layoffs, only to turn around and hire new talent, some may wonder: Why didn’t they just upskill or reskill their existing employees? Cy Wakeman, author and founder of leadership consulting firm Reality-Based Leadership, previously told HR Brew that upskilling and reskilling usually takes more time than hiring talent with the skills.  “What companies have to look at, in talent, is we can buy it, which is hiring it. We can rent it, which is like gig economy or consultants. Or we can build it,” Wakeman told HR Brew in July 2024. “When you look at the gap between what people were doing and what you need them to do, if the gap [of reskilling takes] over 18 months, we usually don’t decide to build the talent.”  Best practices. While communicating a layoff is never easy, there are best practices HR can follow. “It’s not a mass email. It’s certainly not deactivating people’s badges before they walk in the door,” Michele Bousquet, Strava’s chief people officer, told an audience at LinkedIn’s Talent Connect conference in 2024.  There should also be a coordinated effort, or “tiger team,” between the CEO, HR, legal, and communications when companies are about to announce a layoff, Teal Pennebaker, a founding partner at Shallot Communications, previously told HR Brew.  “[Layoffs] often require an outside person, a comms person, who can come in and be another set of eyes to say, ‘Hey, I hear that you need to get XYZ across, but in order for this to land with employees in a way that feels compassionate, why don’t we consider doing it in ABC way?’” Pennebaker said.  Source:  HR-Brew.com/02/01/2026, by Mikaela Cohen

 

 

 

January Government Affairs Newsletter

EEOC Rescinds Harassment Guidance On January 22, 2026, the EEOC voted to rescind its 2024 Enforcement Guidance on Harassment in the Workplace, withdrawing a sweeping document that had expanded and modernized the agency’s discussion of harassment theories, contemporary examples, and enforcement approaches.  While the Commission did not cite a single cause for the rescission in its short press release, the decision occurred against the backdrop of Executive Order 14168 (called “Defending Women From Gender Ideology Extremism and Restoring Biological Truth to the Federal Government”) which stated that the term “sex” does not include the concept of “gender identity” and went on to direct federal agencies to rescind all guidance inconsistent with that Executive Order.  While EEOC harassment guidance was not mentioned expressly, that guidance had incorporated gender identity examples (among other examples) within its discussion of unlawful harassment.  Therefore, the EEOC action should not come across as a surprise.  The rescission does not automatically invalidate pending EEOC charges or halt ongoing investigations. The legal standards governing hostile work environment claims, employer liability, and retaliation remain intact. However, the recission likely will narrow how those legal standards are applied in the future particularly where the rescinded guidance had gone further than older EEOC materials in describing emerging or contested issues.  It is also important to note that EEOC’s action does not have a bearing on state law per se nor of the regulations and guidance that state agencies have promulgated (as many northeastern states including the New England states and NY have more expansive anti-discrimination provisions beyond Title VII to prohibit the likes of gender identity and sexual orientation discrimination).  Therefore, employers in these states should not roll back policies or training in response to the rescission; if anything, the development underscores the importance of grounding workplace programs in state statutes, agency regulations, and court decisions rather than relying on any single federal guidance document. Executive Order 14168 may have influenced the EEOC’s decision to narrow its interpretive posture, but it does not reduce employers’ real-world exposure or expectations when it comes to maintaining a harassment-free workplace in the future.  Source: The Beacon, 1/30/2026, EANE, by Mark Adams

Massachusetts Delays PFML Tax Withholding and Reporting Changes Following New IRS Guidance - On December 19, 2025, the IRS issued IRS Notice 2026-6, extending the federal transition period for state PFML programs by an additional year. As a result of this new guidance, MA will delay the implementation of certain portions of the tax withholding and reporting requirements previously outlined in IRS Revenue Ruling 2025-4.  What This Means for MA Employers in 2026, according to the DFML website:  For calendar year 2026, employers can expect continuity in how PFML benefits are handled for tax purposes:  The DFML will not treat medical leave benefit payments as 3rd party sick pay.  There will be no new employer withholding or reporting requirements related to PFML benefits.  Employer FICA and FUTA tax responsibilities for PFML benefits will remain unchanged.  Employees may continue to elect federal and state income tax withholding on taxable PFML benefits.  The tax treatment of PFML benefits in 2026 continues to depend on both employer size and the type of leave.  For employers with 25 or more employees, 60% of medical leave benefits are taxable for federal and state income tax purposes, based on employer contribution amounts.  DFML will report on the taxable portion on Form 1099-G, issued directly to employees.  Medical leave benefits paid to employees of employers with fewer than 25 employees are not taxable.  100% of family leave benefits are taxable for federal and state income tax purposes.  DFML will issue Form 1099-G directly to employees reporting the taxable amount.   While the extension provides additional time before new requirements take effect, HR professionals should continue to:  Educate employees on the taxability of PFML benefits.  Monitor IRS and DFML guidance.  Prepare for future changes once the federal transition period ends.  Source:  AIM HR Edge, 1/6/2026

Federal Labor Law May Be Headed for Change Federal labor law shapes how employees choose union representation and how employers and union negotiate collective bargaining agreements. Over the years, National Labor Relations Board (NLRB) decisions have altered many of those rules, often reversing course. Each incoming administration brings new interpretations, leaving HR leaders and employees wondering what the current standard is.  That environment helps explain why Sen. Bill Cassidy, R-La., recently introduced broad labor reform bills. Observers describe the proposals as an effort to make the organizing and bargaining processes more predictable and transparent for employees.  The proposed labor law reforms are a collection of separate bills, sponsored by several individuals, that each address a different aspect of the labor relations system. Several of them address the mechanics of union elections. Others concern how unions use dues and what information union members receive about their rights. Raising the Standard for Union Certification Elections:  Today, the NLRB can certify a union as the representative of a group of employees if it wins a secret ballot election by a simple majority of votes cast. Critics of the current system argue that low-turnout elections can allow a union to be certified even when only a small portion of employees participate.  One of the central bills, the Worker RESULTS Act, proposes to update that threshold. Under the proposal, unions would need higher levels of participation before they could be certified. The bill would require at least two-thirds of employees in the bargaining unit to participate in the election, and a majority of that group would need to vote in favor of representation.  Supporters say this approach ensures that certification reflects a true, broad-based employee choice. Opponents argue that it would make it harder for employees to organize because many workplaces struggle to reach those turnout levels. The bill would also expand the window for employees to file decertification petitions and would limit the use of blocking charges that can delay elections.  Transparency and Control Over Union Dues:  Another major element of the proposals focuses on how unions collect and spend dues.  Under current law, most unionized employees pay dues as a condition of employment unless they work in a right-to-work state. Those dues fund the union’s representational activities, including negotiating contracts and handling grievances. Unions can also use them for other purposes, including political or ideological spending, subject to certain limits.  The proposed Union Members’ Right to Know Act would require unions to give members clearer information about their financial rights. It would also require employees to opt in before unions can use their dues for nonrepresentational purposes.  Business-oriented proponents characterize this as an effort to give individual union members greater choice over how unions use their money.  Employee-focused critics view the same provisions as unnecessary limits on union operations. The Economic Policy Institute argues that these bills shift leverage toward employers and do not meaningfully expand employee rights. 
Making the NLRB More Consistent - Beyond elections and dues, there are proposals aimed at the NLRB.  The NLRB Stability Act would require the agency to follow binding federal court precedent rather than reversing its standards whenever the board’s political makeup changes. For HR professionals, that could mean fewer abrupt changes to rules governing workplace policies, communications, and bargaining obligations.  Other bills, with various sponsors, include:  The Fairness in Filing Act would require more support for unfair labor practice charges at the time of filing, aiming to reduce meritless claims that slow NLRB case processing and delay resolution of legitimate workplace issues.  The Put American Workers First Act would make it an unfair labor practice to organize or employ individuals who are not legally authorized to work in the United States.  The Protection on the Picket Line Act would provide protections against harassment and abuse at work during workplace conflicts by clarifying that the National Labor Relations Act does not nullify federal antidiscrimination law.   The Worker Privacy Act would limit how unions may collect and use personal information for workers during union organizing, restricting its use to organizing-related purposes.  Why Are These Changes Being Discussed Now?  Union activity has increased across several industries in recent years, and employers and unions continue to operate under rules that many say were designed for a different economy. At the same time, the NLRB has issued several high-profile positions on joint-employer status, remedies, and employee communications. Policy oscillation on these topics creates significant uncertainty for workers and businesses. 
Source:  SHRM HR Daily, 1/15/2026, by Michael VanDervort