HR and future of work · Industry brief

A federal judge declined to block the president's I&D restrictions on government contractors but clarified that the order does not prohibit lawful inclusion and diversity programs. USCIS has proposed tougher scrutiny of work visa renewals and finalized the end of automatic EAD extensions, creating workforce planning and compliance risks for employers. New legislation signed by President Trump may boost workplace adoption of employee stock ownership plans. [Source: shrm]

California has enacted a comprehensive package of AI workplace laws effective January 1, 2027, with significant compliance implications for employers. SB 947 ("No Robo Bosses") prohibits reliance solely on automated decision systems for discipline or termination without independent human review and corroboration; violations carry $500 per-incident penalties, injunctive relief, and punitive damages, with enforcement by the Labor Commissioner and public prosecutors. SB 951 amends Cal/WARN to require enhanced notice disclosures when mass layoffs or relocations are caused substantially by AI or automation, including details on affected positions, automated job functions, and technology type, with the Employment Development Department publishing quarterly summaries and reporting to the Legislature by January 1, 2028. AB 1331 sharply restricts workplace surveillance by barring monitoring in private and off-duty spaces and requiring surveillance tools to deactivate during off-duty hours and meal breaks; AB 1883 prohibits AI-powered tools that recognize emotional state or collect neural data; and SB 574 requires attorneys using generative AI to verify output, disclose AI use in court filings, and prohibits arbitrators from delegating decisions to AI. SB 1111 clarifies that AI-generated "digital replicas" require prior employee consent. Employers should immediately audit HR technology, build human-review workflows before July 1, 2027, update Cal/WARN templates, disable emotion-recognition and neural-data collection features, and train staff on anti-retaliation protections. [Source: dwt]

The Department of Labor released Field Assistance Bulletin 2026-03 detailing enforcement priorities for the Mental Health Parity and Addiction Equity Act (MHPAEA), signaling where regulators will focus compliance efforts. The DOL will prioritize enforcement on three areas: separate treatment limitations and blanket exclusions applicable only to mental health and substance use disorder benefits; medical necessity standards and review processes including prior authorization and concurrent review; and network adequacy focusing on network admission standards and provider reimbursement disparities. While the FAB continues the DOL's nonenforcement policy on certain portions of the Fall 2024 MHPAEA regulations, the overall non-quantitative treatment limitation comparative analysis requirement remains in effect, and employers as plan sponsors should review their NQTL documentation to ensure compliance with these announced priorities. [Source: m3ins]