Technology

Employers: A Cautionary Tale about Using AI Tools in Decision-making

Twenty-six current and former employees have sued a major technology company in California federal court, alleging it used biased artificial intelligence systems to select workers for a May 2026 layoff affecting roughly 10 percent of its workforce.

The plaintiffs claim the tools measured productivity and…

Maine employers:

You have a new workplace surveillance compliance obligation taking effect on July 14, 2026 under Maine’s Act to Regulate Employer Surveillance to Protect Workers.

The new law requires advance and annual notice of employer surveillance of employees, mandates disclosure during the hiring process, limits certain audiovisual monitoring in private spaces, and gives employees…

Can an employee object to AI use in the workplace on religious grounds?

Recently in North Carolina, a software engineer who is a Unitarian Universalist, successfully obtained a religious-based workplace accommodation after stating that environmental and ethical objections to AI did not align with her religious beliefs. Should employers nationwide expect more requests for accommodation…

Illinois Employers:

On May 15, the Illinois Department of Human Rights (IDHR) issued a Notice of Proposed Amendments which instruct employers when they are required to disclose their reliance on AI in employment decisions. The Proposed Amendments clarify Public Act 103-804, which went into effect January 1, 2026.

The Proposed Amendments provide that employers may…

California Employers:

Governor Newsom signed an executive order on May 21, 2026 directing various California agencies to study AI’s impact on the state’s labor market, including potential disproportionate impacts on certain demographic groups. The order demonstrates the executive branch’s appetite for enacting new AI-related employment regulations.

Key directives include requiring the Labor and Workforce Development…

Colorado Employers: A Highly Anticipated Update for You:

Colorado’s comprehensive AI law (the “CO AI Law”), originally set to take effect June 30, 2026, has been stayed by a federal magistrate judge following a constitutional challenge brought by xAI and supported by the DOJ, and the Colorado Attorney General has agreed not to enforce it.…

Subscription businesses beware: the compliance landscape is shifting quickly, and regulators are paying close attention.

Even with uncertainty around the FTC’s “click to cancel” rule, enforcement isn’t slowing down. Federal and state authorities continue to prioritize automatic renewal practices, with new laws and actions shaping expectations in 2026.

What should your business focus on now?

On February 26, 2026, the United States Department of Labor proposed a new rule requiring use of an “economic reality” test in analyzing employee/independent contractor classification under several federal employment laws. If adopted, the proposed rule would replace the 2024 Biden-era rule, which applied a non-exhaustive six-factor “totality of the circumstances” framework, with a framework…

Companies who permit employees to use AI notetaker tools will want to take note of this one:

On February 10, 2026, Judge Rakoff, a Federal District Court Judge for the Southern District of New York, held that documents prepared by a defendant using a commercial AI tool were not protected by the attorney-client privilege or…