United States: Employment and HR

New Jersey Department of Labor regulations clarifying the ABC test for independent contractor classification take effect October 1, fundamentally shifting the burden of proof to employers. With the NJDOL expected to aggressively audit compliance and impose substantial penalties for misclassification, employers have just two weeks to assess their workforce relationships and develop strategies to meet the stricter standards.

New York State has enacted sweeping changes to employee personnel record requirements, mandating that employers provide free access to personnel files, notify employees of negative information within 10 days, and retain records for three years post-employment. These new obligations fundamentally reshape how New York employers must manage and maintain employee documentation.

On September 9, 2026, Governor Kathy Hochul signed Senate Bill S3460 (A.2107), creating for the first time a statewide right for New York employees and former employees to access...

Employers increasingly rely on AI-enabled recruiting tools to streamline hiring, but these technologies introduce new litigation risks under employment discrimination laws and emerging AI regulations. Understanding the legal landscape, discovery implications, and governance strategies is essential for organizations implementing AI-assisted hiring systems.

A California federal court ruled that plaintiffs cannot avoid arbitration simply by labeling their claims as "sexual harassment." The decision requires plaintiffs to plausibly allege conduct that actually constitutes sexual harassment under governing law before the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act applies. This ruling establishes important limits on attempts to circumvent arbitration agreements through strategic claim labeling.

On August 21, 2026, the U.S. Department of Labor’s (DOL) Office of the Federal Contract Compliance Programs (OFCCP) published a Final Rule on Section 503 of the Rehabilitation Act. The Final Rule goes into effect on September 21 and eliminates several established disability-related requirements instrumental to federal contractors and subcontractors’ compliance programs.

The Labor Department faces a regulatory dilemma as it moves to restrict ESG considerations in 401(k) plans while simultaneously seeking to expand access to private-market investments. This tension creates uncertainty for plan sponsors who must navigate conflicting policy objectives, particularly as many private investment strategies inherently incorporate both financial returns and social or environmental goals.

Twenty-two multiemployer pension plans (MEPPs), representing more than 25,000 participants, have filed suit against the Pension Benefit Guaranty Corporation (PBGC) in the United States District Court for the District of Columbia, alleging that the agency improperly denied them access to billions of dollars in emergency retirement funding.

No retroactive refund required. FAQ Part 74 confirms that employers are not required to provide retroactive rewards or remove tobacco surcharges for the period before a participant completes...

California lawmakers have advanced legislation that would prohibit employers from using automated systems as the sole basis for terminating or disciplining workers. The bill, which awaits the governor's signature, represents one of the most comprehensive state-level attempts to regulate AI in workforce management, requiring human oversight of algorithmic decisions and mandating transparency about which digital tools influence employment outcomes.

New York State Legislature has passed a bill that would require employers to provide employees with a minimum 21-day review period and 7-day revocation window for separation agreements involving the release of claims. The proposed "No Severance Ultimatums Act" extends procedural protections similar to those under federal age discrimination law to all covered severance agreements, regardless of employee age, and awaits Governor Hochul's signature.

The widespread adoption of remote work has disrupted longstanding assumptions regarding which state’s employment laws govern a particular worker.