What employers should know about key developments this week:

• State-Led Artificial Intelligence (AI) Legislation: Illinois recently codified the disparate impact theory of liability (which focuses on effect, not intent), and California has long recognized the theory. Both states' AI frameworks should be interpreted accordingly. Texas's Responsible AI Governance Act takes a different approach, requiring evidence of discriminatory intent.
• Discipline and Termination Oversight: California's Senate Bill 947, the No Robo Bosses Act, would bar employers from relying solely on automated systems for discipline or termination decisions and would require human review with independent corroboration.
• Federal Pushback and State Retreat: Colorado twice delayed its original AI Act, then paused enforcement amid a lawsuit joined by the federal government. The state ultimately repealed the original law and replaced it with a narrower version focused on notice and disclosure.

In this episode of Employment Law This Week®, Epstein Becker Green attorneys Eleanor T. Chung and Nathaniel M. Glasser examine how states are regulating AI in the workplace and what employers need to know.

Check out our State AI Law Tracker: https://www.ebglaw.com/aimap

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What employers should know about key developments this week:

• DOL Opinion Letter FLSA2026-9: The U.S. Department of Labor's (DOL's) Wage and Hour Division (WHD) evaluated several real-world scenarios—such as an employee working from home in the morning to avoid traffic before commuting in later—and concluded that voluntary midday travel between home and the office qualifies as "normal" or "ordinary" commuting, and need not be compensated, even where the employee performs work at both locations.
• DOL Opinion Letter FLSA2026-10: In a second letter, the WHD distinguished between commute-related tasks that are merely incidental to travel and those that are integral to job duties. Specifically, the WHD found that time spent by the employee in question receiving pages or assignments was not compensable, while time spent calling clients or scheduling appointments was compensable.
• Why These Letters Matter: Work increasingly happens in noncontinuous blocks across different locations, raising new questions about when travel time is compensable. While WHD opinion letters aren't binding on courts, they provide guidance for employers; the agency has issued 12 so far in 2026, with more expected.

In this episode of Employment Law This Week®, Epstein Becker Green attorneys Paul DeCamp and Eduardo J. Quiroga discuss the two opinion letters and their implications for compensable travel time.

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Epstein Becker Green is a national law firm focused on health care and life sciences; employment, labor, and workforce management; and litigation and business disputes. This video is for informational purposes only and does not constitute legal advice. Viewing this video does not create an attorney-client relationship.

EMPLOYMENT LAW THIS WEEK® and #WorkforceWednesday® are registered trademarks of Epstein Becker & Green, P.C.

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What employers should know about key developments this week:

• U.S. Equal Employment Opportunity Commission (EEOC) Regulatory Agenda: The EEOC is pursuing sweeping changes aligned with the current administration's deregulatory priorities, including rescission of decades-old guidance on discrimination.
• EEO-1 Reporting Changes: A proposed rule to eliminate EEO-1 and companion reporting requirements is in the public comment stage (comments are due August 24), but employers should maintain current data collection practices pending final action.
• Revisions to Pregnant Workers Fairness Act (PWFA) Regulations: The EEOC's regulatory agenda includes plans to revise the PWFA regulations, although it offers little detail beyond reinterpreting the words "pregnancy, childbirth, or related medical conditions." The EEOC expects to issue its proposed revisions in November.

In this episode of Employment Law This Week®, Epstein Becker Green attorney Ann Knuckles Mahoney breaks down the EEOC's stated regulatory priorities and what employers should do while changes move through the regulatory pipeline.

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Epstein Becker Green is a national law firm focused on health care and life sciences; employment, labor, and workforce management; and litigation and business disputes. This video is for informational purposes only and does not constitute legal advice. Viewing this video does not create an attorney-client relationship.

EMPLOYMENT LAW THIS WEEK® and #WorkforceWednesday® are registered trademarks of Epstein Becker & Green, P.C.

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What employers should know about key developments this week:

• Severance Agreement Overhaul: The No Severance Ultimatums Act, awaiting Governor Kathy Hochul's signature, would extend a 21-day review period plus a seven-day revocation period to all employees and require severance agreements to explicitly state that the employee has the right to consult counsel. The legislation would take effect immediately upon signature.
• Trapped at Work Act Amendments: On December 19, 2026, New York's ban on "stay or pay" promissory notes takes effect. The Trapped at Work Act carves out financial bonuses and wage advances and adds new conditions for tuition repayment agreements. New York joins California and Connecticut in banning certain promissory notes.
• Earned Safe and Sick Time Act Update: Amended Earned Safe and Sick Time Act rules, now in effect for New York City employers, require 32 hours of unpaid protected time off immediately upon hire and set new obligations for employers that use electronic systems to track sick leave balances for departing employees.

In this episode of Employment Law This Week®, Epstein Becker Green attorney Drew C. Ambrose discusses the No Severance Ultimatums Act and what employers should be doing now to prepare their severance agreements ahead of the governor's signature.

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Epstein Becker Green is a national law firm focused on health care and life sciences; employment, labor, and workforce management; and litigation and business disputes. This video is for informational purposes only and does not constitute legal advice. Viewing this video does not create an attorney-client relationship.

EMPLOYMENT LAW THIS WEEK® and #WorkforceWednesday® are registered trademarks of Epstein Becker & Green, P.C.

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What employers should know about key developments this week:

• EEOC's New Direction: The Equal Employment Opportunity Commission (EEOC) has scrapped its two-year-old enforcement priorities and rescinded 40-year-old affirmative action guidance in favor of a federal strategy that deprioritizes disparate impact liability and focuses enforcement on disparate treatment claims.
• State-Level Backlash: Multiple states—including California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, New Jersey, and New York—have expanded or maintained disparate impact liability in their civil rights laws, creating direct conflict with federal EEOC priorities.
• AI and Automated Hiring at Risk: The divergence between federal and state regulators leaves employers uncertain about compliance when using facially neutral employment technologies, including artificial intelligence (AI)-driven hiring tools and standardized testing validation.

In this episode of Employment Law This Week®, Epstein Becker Green attorney Deborah DeHart Cannavino discusses the EEOC's shift in focus from disparate impact to disparate treatment enforcement and what it means for multistate employers navigating a regulatory patchwork.

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Epstein Becker Green is a national law firm focused on health care and life sciences; employment, labor, and workforce management; and litigation and business disputes. This video is for informational purposes only and does not constitute legal advice. Viewing this video does not create an attorney-client relationship.

EMPLOYMENT LAW THIS WEEK® and #WorkforceWednesday® are registered trademarks of Epstein Becker & Green, P.C.

© Epstein Becker & Green, P.C. All Rights Reserved. Attorney Advertising.

What employers should know about key developments this week:

• Agencies Lose Their Independence: In Trump v. Slaughter, the U.S. Supreme Court held that federal agencies such as the National Labor Relations Board (NLRB) are not "independent." The NLRB's Board members and General Counsel serve at the President's pleasure and can be removed at any time, for any reason—or for no reason.
• The Ripple Effect on the NLRB: Although the Slaughter ruling doesn't affect other positions at the NLRB, it has the potential to have a significant trickle-down effect on those who report to the NLRB's Board members or General Counsel. This will likely be compounded by the administration's efforts to remove civil service protections for many positions at the NLRB as well as other agencies.
• A New Circuit Split on the Standard for Section 10(j) Injunctions: Applying the traditional four-part test for the first time since the Supreme Court's decision in Starbucks v. McKinney, the U.S. Court of Appeals for the Sixth Circuit declined to accept an NLRB Regional Director's contention that irreparable harm would result from an employer's refusal to bargain, splitting with the Ninth and Fourth Circuits over the standard for granting injunctive relief under Section 10(j) of the National Labor Relations Act.

In this episode of Employment Law This Week®, Epstein Becker Green attorneys Steven M. Swirsky and William P. Lewis break down how the Supreme Court's latest term is reshaping the NLRB and the standards courts use when reviewing its actions.

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Epstein Becker Green is a national law firm focused on health care and life sciences; employment, labor, and workforce management; and litigation and business disputes. This video is for informational purposes only and does not constitute legal advice. Viewing this video does not create an attorney-client relationship.

EMPLOYMENT LAW THIS WEEK® and #WorkforceWednesday® are registered trademarks of Epstein Becker & Green, P.C.

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What employers should know about key developments this week:

• Federal Agencies Propose Fertility Benefit Expansion: The U.S. Departments of Labor, Health and Human Services, and the Treasury have issued a proposed rule to allow employers to provide fertility coverage as a limited excepted benefit, exempt from the Affordable Care Act and the Health Insurance Portability and Accountability Act's portability requirements.
• DOT Clarifies Medical Marijuana in Drug Tests: The U.S. Department of Transportation (DOT) has confirmed that a positive drug test for marijuana is disqualifying, regardless of whether the employee has a state medical marijuana license.
• Massachusetts Court Upholds Whistleblower Protections: According to the Massachusetts Supreme Judicial Court, whistleblowers in the state are protected, even if they're complicit in the violation.

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Epstein Becker Green is a national law firm focused on health care and life sciences; employment, labor, and workforce management; and litigation and business disputes. This video is for informational purposes only and does not constitute legal advice. Viewing this video does not create an attorney-client relationship.

EMPLOYMENT LAW THIS WEEK® and #WorkforceWednesday® are registered trademarks of Epstein Becker & Green, P.C.

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What employers should know about key developments this week:

• States Lead on Workplace AI: With federal regulators slowing new rules, individual states are setting their own requirements for employers that use artificial intelligence (AI), creating a patchwork for multistate workforces.
• California's Executive Order: Governor Gavin Newsom issued an executive order (EO) targeting AI-driven labor market disruption and directing state agencies to recommend updates to California's Worker Adjustment and Retraining Notification (WARN) Act for AI-related mass layoffs.
• Connecticut's New AI Law: Beginning October 1, 2027, employers must give written notice to applicants and employees when AI substantially influences a hiring, promotion, discipline, or termination decision.

In this episode of Employment Law This Week®, Epstein Becker Green attorneys Courtney McFate and Elizabeth S. Torkelsen break down two state actions shaping AI in the workplace: California Governor Newsom's EO on labor protections in the age of AI, and Connecticut's new transparency and nondiscrimination requirements for employers.

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Epstein Becker Green is a national law firm focused on health care and life sciences; employment, labor, and workforce management; and litigation and business disputes. This video is for informational purposes only and does not constitute legal advice. Viewing this video does not create an attorney-client relationship.

EMPLOYMENT LAW THIS WEEK® and #WorkforceWednesday® are registered trademarks of Epstein Becker & Green, P.C.

© Epstein Becker & Green, P.C. All Rights Reserved. Attorney Advertising.

What employers should know about key developments this week:

• Two Federal Agencies Target DEI: The U.S. Department of Labor (DOL) is urging its employees to file whistleblower complaints and report diversity, equity, and inclusion (DEI) activities that violate the administration's ban. Additionally, the Equal Employment Opportunity Commission released a 2025-2029 National Enforcement Plan that prioritizes enforcement against DEI-related discrimination.
• DOL Opinion Letters: The DOL's Wage and Hour Division published four opinion letters addressing overtime exemptions, bonuses, meal breaks, and compensable work. While these letters do not signal dramatic shifts in the DOL's position, they provide greater clarity, consistency, and transparency.
• PAGA Standing: A California appeals court held that an employee who loses in individual arbitration may also lose standing to bring a representative claim under the Private Attorneys General Act (PAGA).

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Epstein Becker Green is a national law firm focused on health care and life sciences; employment, labor, and workforce management; and litigation and business disputes. This video is for informational purposes only and does not constitute legal advice. Viewing this video does not create an attorney-client relationship.

EMPLOYMENT LAW THIS WEEK® and #WorkforceWednesday® are registered trademarks of Epstein Becker & Green, P.C.

© Epstein Becker & Green, P.C. All Rights Reserved. Attorney Advertising.

What employers should know about key developments this week:

• EEOC Proposes Eliminating EEO-1 Reports: The Equal Employment Opportunity Commission (EEOC) is proposing the complete elimination of EEO-1 reports (which include employee demographic data, such as race and gender), along with the rescission of EEO-2, EEO-3, EEO-4, and EEO-5 reports.
• Fifth Circuit Rules on Remote Work Accommodations: The U.S. Court of Appeals for the Fifth Circuit found that in-person attendance is an essential job function and that COVID-era accommodations do not define that standard today—a ruling that could prove informative as more employers implement return-to-office policies.
• New Non-Compete Restrictions in Tennessee: Beginning July 1, 2026, non-compete agreements will be unenforceable in Tennessee for employees who earn less than $70,000 a year (inclusive of wages, salary, commissions, nondiscretionary bonuses, and other forms of remuneration).

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Epstein Becker Green is a national law firm focused on health care and life sciences; employment, labor, and workforce management; and litigation and business disputes. This video is for informational purposes only and does not constitute legal advice. Viewing this video does not create an attorney-client relationship.

EMPLOYMENT LAW THIS WEEK® and #WorkforceWednesday® are registered trademarks of Epstein Becker & Green, P.C.

© Epstein Becker & Green, P.C. All Rights Reserved. Attorney Advertising.