Compliance Round Up – Federal AI Preemption Moves, Pay Data Reporting, State Law Changes, And More
Jenny Kiesewetter is a practicing ERISA and employee benefits attorney who partners with HR teams on a wide range of workplace compliance matters — from benefit-plan obligations to day-to-day HR policies and regulatory requirements. Her guidance helps employers spot risks early, navigate regulatory change, and make informed decisions that support both employees and the organization.
Federal News
Year-end compliance isn’t slowing down — it’s shifting gears. Here’s what needs attention now, what takes effect January 1, 2026, and what HR needs to tighten up before Q1.
Effective Date: December 11, 2025
What’s Changing: A new executive order signals a push toward reducing or preempting state-by-state artificial intelligence (AI) regulation. Even if courts and agencies end up doing the real work here, this is a clear marker for employers using AI-enabled tools in hiring, performance, scheduling, and monitoring.
What This Means for HR:
- Maintain a current inventory of AI-enabled tools and decision points.
- Re-check vendor contracts for audit rights, bias testing, data use limits, and documentation.
- Plan for overlapping federal and state obligations — a single national standard is not imminent.
Effective Date: December 2, 2025
What’s Changing?
The United States Citizenship and Immigration Services (USCIS) has paused certain benefit requests involving nationals from designated high-risk countries and halted asylum and withholding adjudications, creating predictable delays for work authorization and onboarding.
What This Means for HR:
- Build buffer time into start dates and work authorization planning.
- Escalate impacted cases to immigration counsel early.
- Reinforce I-9 compliance protocols so teams don’t improvise under pressure.
Trending State News
What’s Changing?
California expands the definition of “personnel records” to include certain education and training documents employers maintain. The expanded definition means employers must treat many training, certification, and education records as producible personnel records when responding to employee or former employee requests. This increases both the scope of required disclosures and the risk of penalties if records are incomplete, decentralized, or not produced within statutory timeframes.
What This Means for HR:
- Identify where training and certification records live.
- Ensure production processes can meet statutory timelines.
- Align retention practices with expanded disclosure obligations.
What’s Changing?
Columbus enacted a pay transparency ordinance requiring employers with 15 or more employees to include salary ranges in job postings. The ordinance applies to employers advertising positions that will be performed in Columbus and is enforced through the city’s civil rights framework. Employers should expect increased scrutiny of how ranges are set, documented, and used consistently across postings and interviews.
What This Means for HR:
- Standardize how pay ranges are set and approved.
- Train recruiters to avoid ad hoc or inconsistent disclosures.
Effective Date: December 11, 2025
What’s Changing:
Delaware issued amended regulations clarifying how benefits are measured, tracked, and administered ahead of the January 1, 2026, launch of the Delaware Paid Leave program. The most meaningful changes focus on how leave entitlement is calculated and applied, not whether the program exists.
What This Means for HR:
- Confirm leave tracking aligns with revised definitions and measurement periods.
- Obtain written confirmation from vendors implementing the changes.
Effective Date: January 1, 2026
What’s Changing:
Illinois tightened rules affecting arbitration agreements, confidentiality provisions, severance agreements, and other employment-related contracts. The amendments restrict provisions that limit substantive or procedural rights, including requirements selecting non-Illinois law or venue, shortened statutes of limitation, or waivers that reduce available remedies.
Agreements that do not meet the new requirements may be unenforceable, even if they were standard practice in prior years.
What This Means for HR:
- Audit templates used for Illinois employees and remote roles tied to Illinois.
- Flag provisions that limit remedies, shorten limitation periods, or impose non-Illinois law or venue.
What’s Changing:
A proposed Missouri bill would restrict physician non-competes if enacted. The proposal would prohibit the enforcement of non-compete agreements for licensed physicians but would not ban non-solicitation or confidentiality provisions. If enacted, healthcare employers may need to rethink retention strategies and rely more heavily on contract terms that protect patient relationships without restricting post-employment practice.
What This Means for HR:
- Inventory physician agreements now to understand exposure.
- Evaluate non-solicitation and confidentiality provisions as alternatives.
Effective Date: November 20, 2025; expires (or sunsets) on October 31, 2029
What’s Changing:
Nevada aligned portions of its wage-hour law with Portal-to-Portal concepts following recent court developments. The changes clarify that certain preliminary and postliminary activities may be excluded from compensable time, consistent with federal Portal-to-Portal principles.
Employers should reassess timekeeping and pay practices for pre-shift screenings, travel time, and end-of-shift activities to ensure they align with the updated framework.
What This Means for HR:
- Reassess pay practices tied to pre- and post-shift activities.
- Ensure timekeeping practices match written policies.
What’s Changing:
New Hampshire enacted new unpaid leave rights related to childbirth and pediatric appointments and expanded certain military and veteran protections. Covered employers must allow eligible employees to take unpaid time for childbirth recovery and pediatric medical appointments during the first year after birth or adoption. The law also expands military and veteran-related protections, increasing the need for updated leave tracking and manager training to avoid interference or retaliation claims.
What This Means for HR:
- Update leave policies, forms, and tracking systems.
- Train managers to properly route and document leave requests.
What’s Changing:
New Jersey now restricts mandatory meetings addressing union-related topics. Employers may no longer require employees to attend meetings intended to influence views on union membership or organizing activity. Violations can expose employers to civil claims, making it critical to review manager scripts, meeting invitations, and attendance expectations during organizing campaigns.
What This Means for HR:
- Review meeting practices during organizing activity.
- Coordinate messaging strategy with labor counsel.
Effective Date: Originally passed on October 9, 2025; vetoed by Mayor Eric Adams on November 7, 2025; the NYC Council overrode the mayoral veto, enacting these reporting obligations, effective December 4, 2025
Effective Date (Reporting Obligations): To be determined
What’s Changing:
NYC employers with 200 or more employees will face new pay data reporting requirements following a mayoral veto override. Covered employers will be required to submit annual pay data broken down by race, ethnicity, and sex, similar to the former federal EEO-1 Component 2 framework. The law authorizes the city to analyze submissions for pay equity issues, increasing the importance of data accuracy and internal review before reporting.
What This Means for HR:
- Begin data readiness work now: job groupings, pay elements, demographic data, and ownership.
- Consider a privileged internal pay equity review before reporting begins.
What’s Changing:
Pennsylvania expanded anti-discrimination protections tied to hairstyles and head coverings. The law clarifies that race and religious creed protections include traits historically associated with race, as well as religious head coverings and hairstyles. Employers should review grooming and appearance policies to eliminate subjective standards and ensure any safety-based restrictions are narrowly tailored and consistently applied.
What This Means for HR:
- Review grooming and appearance policies for vague or subjective standards.
- Document and consistently apply any safety-based limitations.
What’s Changing:
Washington’s minimum wage increases to $17.13 per hour, with downstream effects on exempt salary thresholds. The increase affects not only hourly pay rates but also the minimum salary required to maintain exempt status under Washington law. Employers should review classifications and compensation levels now to avoid unintended misclassification or overtime exposure when the new rates take effect.
What This Means for HR:
- Re-evaluate exempt classifications and salary levels before 2026 payrolls run.
- Confirm compliance with local wage ordinances where applicable.
Around the Courts
What’s Changing:
On November 26, 2025, the Oregon Court of Appeals reinforced limits on wrongful discharge claims where an employee cannot tie termination to a protected, job-related right. The court emphasized that wrongful discharge claims require a clear connection to a legally protected public duty or employment-related right, not a general disagreement with workplace policy. The decision reinforces the importance of consistent policy enforcement and contemporaneous documentation supporting termination decisions.
What This Means for HR:
- Consistent enforcement and contemporaneous documentation remain decisive.
- Train managers to clearly document the business basis for employment decisions.
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The information contained in this site is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
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