All posts by Gordon Middleton

Executive summary (for busy CHROs/CIOs/GCs) Statehouses moved faster than Washington in 2025 and 2026, reshaping compliance across AI in hiring, worker data rights, and paid family & medical leave (PFML). As you enter 2026, you’ll need an operating model—spanning HR, Legal, IT/Security, Payroll, and Operations—that treats AI-driven HR tools as regulated, designs worker‑data inventories and DSAR/DSR workflows for California’s CPRA, and coordinates multi‑state PFML implementations as Delaware, Maine, Maryland, and Minnesota go live. This article distills the rules, the risks, and a pragmatic cadence to keep your program audit‑ready. The 2026 context: faster, broader, more connected All 50 states floated AI‑related bills in 2025 and many enacted new measures. Meanwhile, New York City’s Local Law 144 continues to require bias audits and advance notices for automated employment decision tools (AEDTs), with enforcement that began July 5, 2023—a practical bellwether far beyond NYC’s borders. At the same time, California’s CPRA (now fully applicable in the employment context) gives employees, applicants, and contractors rights to access, correction, deletion (with exceptions), while imposing notice‑at‑collection and retention disclosure duties—and a dedicated enforcer, the California Privacy Protection Agency (CPPA), with regulations effective March 29, 2023. Finally, a new wave of PFML programs requires you to integrate policy, payroll, and vendor operations across multiple jurisdictions—Delaware (benefits live Jan 1, 2026), Maine (benefits slated to start May 1, 2026), Maryland (benefits expected July 1, 2026, noting the state’s evolving timeline), and Minnesota (benefits live Jan 1, 2026). Bottom line: Compliance is now a team sport. The winners will operate a shared controls framework, harmonized evidence, and an audit‑ready cadence across AI, data privacy, and leave. AI in hiring & HR: Treat AEDTs as regulated, high‑risk models What the rules say NYC Local Law 144 prohibits use of AEDTs unless you’ve completed a bias audit within one year of use, published a summary of results, and provided advance notices to candidates/employees. DCWP’s FAQs clarify definitions, scope (“used in the city”), and notice timing. Enforcement began July 5, 2023. EEOC guardrails are real: In the iTutorGroup case, the EEOC secured a consent decree and monetary relief after software allegedly auto‑rejected older applicants—illustrating that algorithmic screening is fully subject to civil rights laws. What good looks like Inventory every model/tool across recruiting, scheduling, performance, and separations; tag where outputs “substantially assist or replace” decisions. Maintain owners, data inputs, outputs, and change logs. Run annual bias assessments (or more frequently with material model updates). Publish summaries where required and version all evidence (data cohorts, methodology, exclusions). The NYC rule/FAQs outline audit expectations, including handling unknown demographic data. Embed notices and appeal routes in workflows. Provide 10 business days’ advance notice where applicable; document human‑in‑the‑loop overrides and rationales. Vendor governance: Insert audit rights, model transparency clauses, and change‑control SLAs in your contracts. (Aligned to DCWP enforcement posture and broader case law signaling.) Risk signal: If your ATS, scheduling, or performance ratings use any score, classification, or recommendation that materially influences employment decisions, treat it like a regulated model—even outside NYC—because plaintiffs and regulators will. Employee data privacy: It’s no longer “just IT” California CPRA in the workplace (the new normal) Since Jan 1, 2023, California workers (employees, applicants, contractors) have consumer‑style rights: know/access, delete (with exceptions), correct, limit sensitive data uses, and opt‑out of selling/sharing. Employers owe notice at collection, retention disclosures, and must support DSR workflows. The CPPA’s first rule set became effective Mar 29, 2023. Monitoring & biometrics—state specifics New York (state) electronic monitoring: Since May 7, 2022, private employers must give written notice on hire (with acknowledgment) and conspicuous posting if monitoring email, calls, or internet use. Illinois BIPA: Requires written notice and consent, a public retention/destruction policy, and reasonable security for biometrics (e.g., time‑clock fingerprints). Amendments in 2024 clarified electronic signatures count as written consent and limited damages stacking (still costly if non‑compliant). Action steps Worker‑data inventory & retention schedule. Catalog HRIS, ATS, time/attendance, collaboration, surveillance, and benefits data. Tie each category to a lawful basis and a defined retention timeline. (CPRA requires retention disclosures; BIPA requires a public disposal schedule.) Publish/refresh employee & applicant privacy notices (separate from consumer‑facing) that cover categories, purposes, sharing/selling, sensitive personal information, and retention. Operationalize DSR/DSAR workflows in California. Define intake, identity verification, exemption handling, downstream deletion/correction with vendors, and SLA tracking. Monitoring & biometrics policies. For New York: standardize onboarding acknowledgments and postings. For Illinois: ensure written notice/consent before collection; publish the retention/destruction policy; and validate vendor device settings. Paid Family & Medical Leave (PFML): The 2026 expansion wave By 2026, 13 states plus DC have enacted PFML programs, with new benefits rolling out this year. For multi‑state employers, the challenge is harmonizing eligibility, wage replacement, job protection overlays, and payroll contributions. What’s changing now Delaware: Contributions began Jan 1, 2025; benefits live Jan 1, 2026. The state positions PFML as primary payor and caps weekly benefits at $900 (2026–27). Employers with 10–24 DE employees must cover parental leave; 25+ cover all leave types. Maine: The state has set benefits to begin May 1, 2026 (after 2025 contributions). Rulemaking has been active, with timeline debates in 2025; the official PFML site confirms a May 1 launch. Maryland: Payroll deductions are slated for July 1, 2025; benefits expected July 1, 2026, noting subsequent state communications about potential extensions to 2027–2028. Track the FAMLI site for official timing and thresholds (680 hours in prior 12 months). Minnesota: Benefits live Jan 1, 2026; among the more generous programs with up to 20 weeks combined (12 medical + 12 family, capped at 20) and progressive wage replacement. Tip: Maintain a jurisdiction matrix with: eligibility (hours/tenure), benefit caps, contribution rates, coordination rules (employer STD/top‑ups), and private‑plan options. PFML action steps for 2026 Stand up a leave governance model. Centralize a policy library (with state addenda), define vendor interfaces (state portals, TPAs, private plans), and publish adjudication SLAs. Map payroll codes to state programs. Configure contributions, wage caps, and offsets (e.g., Delaware as primary payor; voluntary top‑offs by agreement). Test quarterly. Coordinate job protection overlays. Align state PFML, FMLA, and employer policies to run concurrently where allowed; codify notice requirements and medical certification standards per state. Private plan strategy. Where permitted (DE, ME, MD, MN), assess private or self‑insured plans for parity and administrative efficiency; track rolling application windows (e.g., DE now accepts on a rolling quarterly basis). Build a cross‑functional operating cadence (what “good” looks like) Quarterly steering group: HR, Payroll, Legal, and IT/Sec review key metrics—error rates, cycle times on DSARs and leave claims, audit findings, and incident trends. Evidence strategy: Keep version‑controlled policies, training records, bias audits, job‑posting artifacts, DSAR logs, and payroll test results in a shared repository with role‑based access. (This aligns with DCWP’s complaint‑based enforcement realities for LL144 and CPRA’s audit posture.) Third‑party governance: Standardize Data Processing Addendums, AI transparency clauses, security questionnaires, and audit rights for HR tech—especially for AEDTs and leave/benefits TPAs. Frequently Asked Questions (FAQ) 1) We don’t hire in NYC. Do we still need a bias audit? LL144 is a NYC law, but it’s become a de facto benchmark. If your tool “substantially assists or replaces” employment decisions, you risk exposure under federal EEO laws (see iTutorGroup) and other state AGs. Many enterprises run LL144‑style audits nationwide for consistency and defensibility. 2) What counts as an AEDT “bias audit”? DCWP rules expect an independent audit analyzing disparate impact across sex and race/ethnicity, with rules on handling unknown demographics and permissible exclusions. Publish the results summary. 3) For CPRA, do we need a separate employee privacy notice? Yes. Employment‑context data is now fully covered. Provide notice at collection detailing categories, purposes, sharing/selling, sensitive PI handling, and retention; then support access/correction/deletion workflows for California workers. 4) What’s the difference between New York’s e‑monitoring law and usual handbook language? NY requires individual notice on hire with acknowledgment and a conspicuous posting—not just a handbook clause. Ensure the statutory language is included. 5) We use biometric time clocks in Illinois. What must we do? Before collection: written notice + written consent (electronic signatures suffice under 2024 amendments); publish a retention/destruction policy; and secure biometric data. Noncompliance has driven high‑value litigation. 6) Which PFML states “go live” in 2026, and what are the big rocks? Delaware: benefits and $900 weekly cap; PFML is primary payor. Maine: benefits May 1, 2026 (after 2025 contributions). Maryland: contributions July 1, 2025, benefits targeted July 1, 2026 (watch official updates). Minnesota: benefits Jan 1, 2026; up to 20 weeks combined—among the most generous. 7) How many PFML jurisdictions should we monitor now? Plan for 13 states + DC by 2026, with additional changes likely; maintain a living compliance matrix.

The employer compliance landscape is evolving rapidly in 2026. From increased immigration enforcement and unemployment tax changes to shifting federal guidance and expanding state regulations, organizations are under growing pressure to stay compliant and proactive. In Experian Employer Services’ Quarterly Regulatory & Legislative Updates for Employers (Q2 2026) webinar, we break down the most critical developments impacting HR, payroll, tax, and legal teams, offering practical guidance on how to navigate this complex environment. Federal Compliance Updates: Ongoing Uncertainty for Employers At the federal level, ongoing uncertainty continues to challenge employers. While Congress has seen limited legislative movement, federal agencies and executive actions are actively shaping compliance requirements. Organizations are increasingly relying on agency guidance, executive orders, and court rulings rather than new legislation. This evolving regulatory environment requires employers to stay agile by monitoring updates regularly, aligning HR, payroll, and legal teams, and building flexible compliance processes that can adapt quickly. Immigration Compliance & I-9 Enforcement Trends Immigration compliance remains a top priority in 2026, with increased scrutiny around I-9 compliance, employment eligibility verification, and documentation practices. Recent enforcement actions have resulted in significant penalties tied to both unauthorized workers and administrative errors, underscoring the need for proactive compliance. Employers should focus on strengthening I-9 audit readiness, ensuring documentation accuracy, and staying informed on Temporary Protected Status (TPS) updates and Employment Authorization Document (EAD) policy changes. Organizations with high-volume hiring or decentralized onboarding processes are particularly at risk and should prioritize consistent verification procedures. Work Opportunity Tax Credit (WOTC) Updates & Uncertainty The future of the Work Opportunity Tax Credit (WOTC) also remains uncertain, as discussions around program renewal and legislative changes continue. For employers who rely on WOTC as part of their hiring and tax strategy, this uncertainty can impact workforce planning, tax credit eligibility, and filing requirements. Maintaining consistent screening and documentation practices will help organizations remain prepared and responsive to any changes. State-Level Employer Compliance: Increasing Complexity At the state level, compliance complexity is increasing as regulations continue to expand. Employers must navigate a growing patchwork of requirements, including unemployment insurance changes, wage transparency laws, paid leave mandates, and workplace communication requirements. Because these obligations vary by jurisdiction, organizations should ensure they have clear visibility into state-specific requirements and regularly review policies to minimize compliance risk. Employer Compliance Best Practices for 2026 To stay ahead of these regulatory changes, employers should adopt a proactive and coordinated approach. This includes conducting regular I-9 audits, strengthening documentation and recordkeeping, monitoring legislative developments, identifying gaps in compliance workflows, and ensuring alignment across HR, payroll, tax, and legal teams. Compliance is no longer a siloed function—it requires cross-functional collaboration and continuous attention. Watch the On-Demand Webinar: Q2 2026 Compliance Updates Staying informed on employer compliance trends is critical in today’s rapidly changing regulatory environment. If you missed the live session, you can still access the full webinar on demand to gain deeper insights into 2026 regulatory updates, immigration enforcement trends, WOTC considerations, and state-level compliance challenges. Watch the On-Demand Webinar: Explore more employer compliance resources and updates from Experian Employer Services to stay ahead of regulatory change.

Executive summary 2026 is an enforcement year. Federal worksite scrutiny is up, with ICE reaffirming three‑day production timelines and penalty exposure during I‑9 inspections. At the same time, wage‑and‑hour recovery trends remain strong, and multi‑state pay transparency obligations continue to expand. Employers that hire remotely, operate across multiple jurisdictions, or still rely on paper I‑9s face outsized risk—and opportunity—to standardize, document, and prove compliance. Paper I‑9 compliance remains a high‑risk area, with studies showing that 76% of paper forms contain at least one error, while DHS’s 2023 final rule has made DHS‑authorized remote examination a permanent option—but only for E‑Verify employers in good standing, and only if they complete a live video review and properly mark the Form I‑9 checkbox. At the same time, wage‑and‑hour enforcement continues to deliver results, with more than $1.5 billion in stolen wages recovered between 2021 and 2023 through federal, state, and class action efforts. Layered onto this enforcement landscape are increasingly complex pay transparency requirements, as New York’s statewide law, Colorado’s 2024 amendments (including mandatory post‑selection notices), Washington’s 2025 “notice and cure” amendments, and California’s SB 1162 now directly shape how multi‑state and remote recruiting must be executed. I‑9: Why audits are back in force Error‑prone paperwork. Paper completion is fragile at scale: analyses have found that 76% of paper I‑9s contain at least one fine‑able error—the kind of technical miss that includes dates, signatures, document numbers compounds across high‑volume or decentralized hiring. Audit volume & penalties. ICE reiterates core mechanics: a Notice of Inspection (NOI) starts the clock; employers generally have three business days to produce forms and records; technical errors get a 10‑day correction window, while substantive violations and uncorrected issues can trigger monetary fines. Paperwork fine schedules have been updated in recent years (e.g., ranges in the hundreds to low thousands per form), and repeat violations escalate. Remote/anywhere hiring reality. Since Aug. 1, 2023, DHS authorizes a remote alternative procedure—only for E‑Verify employers in good standing—requiring: copies of the documents a live video interaction checking the new I-9 box indicating the alternative was used. Use is optional but must be applied consistently at a hiring site. Effective I-9 action plan for 2026 An effective I‑9 action plan for 2026 should focus on proactive auditing, clear process documentation, and rapid inspection readiness. Employers should begin with a counsel‑guided self‑audit of a neutral sample—or all—I‑9s to identify and correct technical errors without backdating, documenting fixes with single‑line strike‑throughs, initials, and dates, while ensuring current employees’ I‑9s are retained for the duration of employment and former employees’ forms are purged three years after hire or one year after termination, whichever is later. Centralizing I‑9 storage, tracking reverifications, and enforcing a routine purge schedule help reduce both compliance and data‑retention risk. For organizations enrolled in E‑Verify and in good standing, it’s also critical to codify the DHS‑authorized alternative procedure in a written SOP that details how document copies are collected, how live video verification is conducted, how the Form I‑9 checkbox is completed, and how supporting records are retained, while clearly defining when in‑person inspection is still required. Finally, employers should establish a clear Notice of Inspection (NOI) response protocol that specifies who receives and triages an NOI, how and when counsel is engaged, what documentation must be assembled within the 72‑hour window, and how communications flow to site leaders, training all stakeholders against ICE’s inspection guidance to ensure a coordinated, audit‑ready response. Wage theft: Expect sustained recovery actions Between 2021 and 2023, more than $1.5B in unpaid wages was returned to workers through federal enforcement, states, and top class action settlements—evidence that investigations and private litigation work and will continue. Recurring risks: off‑the‑clock work, unpaid overtime, misclassification, and weak recordkeeping. What to do In multi‑location and multi‑state environments, employers must also validate that meal and rest break logic aligns with applicable jurisdictional rules, particularly where state requirements diverge. Scheduling systems, timekeeping configurations, and manager prompts should be tested regularly to ensure they reflect local law and operational reality. Enforcement and recovery data consistently show that multijurisdictional inconsistencies are a leading driver of wage‑and‑hour claims, making alignment across locations a critical risk‑reduction step. Pay transparency: A patchwork - with teeth New York (statewide. Employers with 4+ employees must include pay ranges and job descriptions (if they exist) in postings. Coverage includes roles performed outside NY that report to a supervisor/office in NY; FAQs give detailed edge‑case illustrations. Colorado (EPEWA, amended 2024). Postings must include ranges, benefits/other comp, how/when to apply, and employers must issue internal “job opportunity” notices and post‑selection notices (e.g., selected candidate and how to express interest next time). Agencies have published INFO #9A guidance interpreting the rules. Penalties can reach $500–$10,000 per violation. Washington (RCW 49.58.110). Employers with 15+ employees must include range (or fixed wage if only one amount) and benefits in postings. From July 27, 2025 through July 27, 2027, a five‑business‑day notice‑and‑cure period applies before remedies attach—aimed at curbing litigation over technical defects. California (SB 1162). Employers with 15+ must include a pay scale in job ads (including third‑party postings), and employers with 100+must submit annual pay data reports; FAQs clarify that postings that could be filled from CA (including remote) must include the range within the posting—no links/QR codes in lieu of a range. Multi‑state checklist for recruiters & HR operations To manage multi‑state pay transparency compliance effectively, employers should start by standardizing a job‑posting template that consistently includes the pay range (or fixed wage, where permitted), benefits and other compensation, and clear application window and instructions, with a designated field for jurisdiction‑specific addenda such as Colorado’s post‑selection notice requirements. Organizations should also define clear remote‑role routing logic to determine which jurisdiction’s rules apply when a position can be filled from anywhere, incorporating tests like New York’s “reports‑to” standard and California’s remote‑role applicability, and mapping those conditions directly into ATS fields to reduce manual errors. Recruiters should be trained regularly on these requirements, and employers should actively audit third‑party job postings—particularly in light of Washington’s 2025 amendments, which allow a notice‑and‑cure window and acknowledge nonconsensual reposts but still require prompt corrective action—ideally supported by a weekly scraper audit. Finally, maintaining robust “range substantiation” files for each role, including compensation philosophy, market data, leveling frameworks, and approved variances, enables faster responses to agency inquiries and internal questions and supports the good‑faith range expectations emphasized in Colorado guidance. FAQs We still have legacy paper I‑9s. What’s the fastest low‑risk cleanup? Run a counsel‑guided self‑audit. Correct technical errors transparently (no white‑out; don’t backdate), initial/date changes, and attach an explanation if the employee can’t fix Section 1. Then calculate purge dates and schedule destruction for forms past the 3‑years‑from‑hire / 1‑year‑from‑termination (whichever later) rule. Can we use the DHS remote alternative for some employees but not others? Yes—if you’re an E‑Verify employer in good standing. You can offer the alternative procedure at certain hiring sites and still perform physical inspection for on‑site roles, provided you apply the approach consistently and avoid discriminatory selection. Document your decision logic in an SOP. What are our must‑have elements in an I‑9 NOI response? Within three business days, produce I‑9s for current and relevant former employees, plus payroll, active/terminated lists, and corporate documents as requested. If ICE flags technical issues, you typically have 10 business days to correct. Prepare a single source of truth (index + PDF set) before day three. We recruit nationally. Which postings need a pay range? NY: Roles performed in NY or outside NY but reporting to NY require a range and job description. CO: Any job opportunity for CO employees requires a range, benefits/comp, how/when to apply, plus internal post‑selection notices. WA: For 15+ employees, include range and benefits; a five‑day cure window applies 7/27/2025–7/27/2027. CA: For 15+, include a pay scale directly in the posting (no links/QRs), including roles that could be filled from CA (remote). What’s driving the “enforcement‑first” posture on wage theft? Documented recoveries—$1.5B across 2021–2023—demonstrate measurable ROI for enforcement at federal and state levels, and class actions remain a strong parallel channel. Plan on continued investigations and private litigation pressure in 2026.

Virginia has passed a new Paid Family and Medical Leave (PFML) law, signed into effect by Governor Spanberger on April 22, 2026. This law creates a state-run program that will give eligible employees paid time off for major life and health events. New paid leave option for Virginia employees Under the new law, employees can take paid leave for their own serious health condition, to care for a family member, or to bond with a new child after birth, adoption, or foster placement. Some military-related situations are also covered. Employees may receive up to twelve weeks of paid leave in a year, with partial wage replacement. The program will roll out in stages. Starting April 1, 2028, employers and employees must begin making payroll contributions to fund the program. Benefits will become available on December 1, 2028, when employees can begin taking paid leave. Funding the program through payroll deductions Most employees in Virginia will be covered, including part-time workers. The program will be funded through payroll deductions shared by employers and employees, with rates set by the state each year. Some small employers may not have to pay the employer portion, but they still must follow other requirements. Employers will need to handle several new responsibilities. These include collecting and sending payroll contributions to the state, giving required notices to employees, protecting employees’ jobs while they are on leave, and keeping accurate records. Employers must also avoid any retaliation against employees who use the leave. Compliance considerations to understand There are real risks for not complying with the law. Employers may face financial penalties for failing to pay contributions or follow the rules. Employees may also bring claims if they are denied benefits or not returned to their jobs after leave. More details on penalties are expected, but enforcement is likely to be taken seriously. Overall, this law is a major change for Virginia employers. While the deadlines are still a couple of years away, it is important to start preparing now to avoid issues later. Get in touch with one of our experts to learn how your organization can best prepare.

Trust is tested in moments most organizations overlook. In this webinar, Hidden Moments That Build Employee Trust, experts from Experian Employer Services and H3HR Advisors explored how routine HR compliance and operational processes—such as onboarding, payroll accuracy, employment verification, and tax withholding—play a critical but often invisible role in shaping employee trust.  While employees rarely think about HR systems, they deeply feel the impact when these processes fail—especially during major life moments like starting a new job, securing housing, managing benefits, or ensuring timely pay. When organizations invest in reliable infrastructure and reduce friction in these hidden moments, they create stability, predictability, and confidence that carry forward into engagement, retention, and performance.  The key takeaway: Compliance isn't just about checking boxes—it's about showing up for employees when it matters most.   Why trust is built in the moments we don't talk about  Historically, compliance processes have been treated as back-office necessities—tasks that must be completed to avoid audits, fines, or legal exposure. But as the panel emphasized, employees don't experience compliance as a transaction. They experience it as support—or friction—during some of the most stressful moments of their lives.  Employees aren't thinking about systems. They're thinking about questions like:  Will I get paid correctly and on time?  Will my employment be verified so I can rent an apartment or buy a home?  Will my benefits work when my family needs them?  When HR processes are reliable, employees rarely notice. When they break down, trust erodes instantly—not only in HR, but in the organization.  The Hidden Infrastructure of Trust  The webinar highlighted a powerful truth: trust is built through consistency and dependability over time.  Research shared during the session underscores why this matters:  Only 61% of employees say they are very confident their payroll and withholdings are correct, meaning nearly 40% are unsure.  50% of employees would struggle to meet financial obligations if their paychecks were delayed by just one week.  Errors or delays in HR operations aren't just administrative inconveniences. They introduce stress into employees’ lives—and often into their families’ lives—at moments when stability matters most.  Where Trust Is Most at Risk  Trust is especially tested at the intersection of HR processes and real-life moments, when everyday administrative tasks carry real personal stakes for employees. From new‑hire onboarding and I‑9 verification—where first impressions are formed and early delays can undermine confidence—to payroll and tax withholding, where inaccurate or unpredictable pay can quickly erode trust, these processes shape how employees experience their employer.   Employment and income verification directly affect an employee’s ability to secure housing, loans, or transportation, while benefits enrollment tied to life events such as marriage, childbirth, or medical needs increases sensitivity to errors and miscommunications. Even programs like the Work Opportunity Tax Credit (WOTC) extend beyond compliance, opening doors to employment while delivering measurable business value. Many of these issues never escalate to leadership, yet they have a profound impact on individual employees—making their invisibility to executives precisely what makes them so risky.  Friction Is the Enemy of Trust  The panel consistently returned to one theme: reduce friction everywhere you can.  Friction shows up as:  Manual handoffs and workarounds  Delays caused by fragmented systems  Knowledge locked in one or two tenured team members  Rework, errors, and exception handling  Modern HR infrastructure—especially when paired with trusted partners—helps reduce this friction by improving accuracy, speed, and reliability for everyone involved: HR teams, employees, and third parties alike. The goal isn't more process. The goal is fewer steps, fewer errors, and greater confidence.  How to Measure Trust and Not Just Compliance  Traditional compliance metrics matter—but they don't tell the full story.  In addition to tracking accuracy, timeliness, and audit outcomes, organizations can measure trust by asking questions such as:  How confident are you in our HR processes?  Was this experience simple and predictable?  Did issues get resolved quickly and clearly?  Do you feel confident reaching out to HR again?  Short, well-timed feedback—embedded naturally at the end of key HR experiences—can surface powerful insights without overwhelming employees.  Over time, these signals connect directly to engagement, retention, and performance outcomes.  Key Takeaways Compliance is a powerful trust-building opportunity, because routine HR processes quietly shape how employees feel about their employer—often more than headline initiatives ever do. What may feel ordinary to HR teams, such as onboarding, payroll, or employment verification, can be life‑altering for employees and their families, especially during moments of financial or personal transition. When these processes are predictable and accurate, reliability creates calm—reducing stress and reinforcing confidence in the organization.   That reliability depends on strong infrastructure: the right technology and trusted partners allow HR to move from reactive problem‑solving to proactive support. Over time, trust compounds through these small, unseen moments; handled consistently and well, they create lasting credibility and a stronger, more resilient employee experience.  Reframing Compliance as Care The most powerful shift discussed in the webinar was a mindset change: Compliance isn’t just about risk mitigation—it’s about care, predictability, and partnership.  When organizations show employees they've thought ahead, invested in reliability, and designed systems around real life—not just regulations—trust follows naturally.  Download the Webinar On-Demand Want the full conversation, real-world examples, and additional insights from Experian Employer Services and H3HR Advisors?  Download the full webinar recording and slides to explore how modern HR infrastructure turns hidden compliance moments into lasting employee trust. 

HR and payroll leaders are facing a workplace environment that is more complex—and more consequential—than ever. Regulatory change continues to accelerate; workforces are becoming increasingly decentralized, and expectations around employee experience and data privacy are rising. Within this landscape, traditional employer services models are showing signs of strain, requiring organizations to rethink how compliance and workforce operations are designed and delivered. Employers today play a far more significant role than simply administering pay and benefits. They influence critical life moments: an employment verification can determine whether someone secures housing or a loan, onboarding delays can shape an employee’s first‑day impression, and a tax withholding error can undermine trust long after tax season. This evolving relationship requires a shift from a reactive compliance posture to a more proactive, data‑driven, human‑centered operational model that prioritizes enablement, clarity, and support across the entire employee lifecycle. The Compliance Reality Check Several forces are redefining compliance expectations this year. Increased scrutiny around identity verification and work authorization means I‑9 accuracy, timeliness, and audit readiness are more important than ever, especially for decentralized and hybrid hiring. At the same time, unemployment insurance fraud prevention is reemerging as a top priority, prompting organizations to adopt tighter controls, cleaner data flows, and clearer ownership between HR and payroll. Ongoing changes to ACA reporting at both federal and state levels further increase the need for consistent, reliable source‑of‑truth data to avoid penalties, rework, and operational disruption. Compliance mistakes now carry consequences that extend beyond fines. They can erode employee trust, impede hiring, and create operational distraction at moments when precision and agility are essential. Shifting from Reactive to Real‑Time Control Building a resilient HR operating model requires treating compliance as an always‑on discipline rather than a series of corrective tasks. Maintaining a continuous audit‑ready posture, synchronizing identity and payroll data into a unified source of truth, and embedding preventive controls directly into workflows help eliminate after‑the‑fact fixes and reduce manual intervention. Organizations that formalize time‑bound service levels for I‑9 completion, employment verifications, and corrections—and that consistently report on their adherence—gain transparency that fuels accountability and performance. Designing processes with employees and managers in mind also reduces friction, improves accuracy, and shortens cycle times. Technology as a Strategic Enabler Modern technology plays a central role in strengthening oversight, improving decision quality, and reducing administrative workload. Digital I‑9 processes minimize errors, support compliant remote onboarding and preserve clean audit trails. Automated employment and income verifications speed employees toward critical life events while reducing manual effort and risk. Intelligent compliance dashboards bring together data from HRIS, payroll, and supporting systems to surface exceptions, highlight SLA breaches, and expose blind spots that might otherwise go undetected. When policies and regulatory rules are translated into system logic, compliance becomes proactive—preventing errors before they occur rather than correcting them after the fact. Maturity Through Meaningful Metrics Organizations that measure what matters can move from guesswork to governance. Tracking indicators such as I‑9 completion accuracy, E‑Verify timeliness, resolution times for tentative non confirmations, verification turnaround times, employee satisfaction scores,ACA data alignment, fraud resolution rates, audit recurrences and correction times enables leaders to monitor exposure and continuously elevate performance. These metrics not only signal operational maturity but also reinforce a culture of accountability and continuous improvement. Reclaiming Strategic Capacity Automating core compliance activities allows HR and payroll teams to redirect valuable time toward more strategic initiatives. With accurate data and reliable processes, organizations can accelerate workforce planning, streamline onboarding, and improve pay accuracy. When employees and managers encounter fewer steps, clearer guidance, and less rework, the overall experience improves—supporting engagement, trust and productivity. Compliance becomes not just protective but empowering, enabling more strategic HR leadership at every level. Governance That Scales Effective governance is essential for maintaining consistency and reducing risk as processes mature. Clear alignment ensures everyone understands who owns, approves and monitors each control. Regular control reviews tied to regulatory updates and incident trends help organizations stay ahead of change. Playbooks for common exceptions, such as tentative no confirmations or rehire scenarios, improve response consistency while immutable audit trails enhance transparency, traceability and security. A Modernized Approach Pays Off A contemporary, audit‑ready compliance model reduces risk exposure, accelerates time‑to‑hire, minimizes rework and strengthens employee trust. With real‑time visibility and lower operational variance, leaders gain the confidence to make faster, more informed decisions. Put simply, organizations that modernize their compliance posture experience fewer surprises and deliver better outcomes for both the business and its people. Moving Forward Expectations are rising, regulatory oversight is intensifying, and the pace of technological advancement shows no signs of slowing. In this environment, clinging to outdated processes is no longer sustainable. Modernizing workflows, establishing real‑time controls and elevating the employee experience are not only competitive advantages—they are essential components of a resilient, future‑ready HR strategy. Schedule time with an HR compliance expert to learn how you can incorporate technology to modernize your workflows.

As employers enter 2026, many are discovering a hard truth: success is no longer determined by strategy or technology alone, but by the ability to execute consistently in an increasingly complex workforce environment. Our recent webinar with Madeline Laurano, Insights to Action: Resolutions for Employer Success, explores how HR, payroll, and compliance leaders can turn insight into measurable outcomes. Drawing on original research from Aptitude Research and real-world employer experiences, the webinar outlines the key trends shaping employer operations. Watch the webinar for actionable resolutions helping organizations reduce risk, improve compliance, and elevate the employee experience. Below is a recap of what we learned from Madeline. From Insight to Execution: Why 2026 Is a Turning Point for Employers The past several years have fundamentally reshaped employer operations. Organizations now manage workforces that span multiple states, employment types, and regulatory environments—all while facing growing compliance demands and pressure to do more with fewer resources. During the Insights to Action: Resolutions for Employer Success webinar, research revealed that most employers already have clear strategies in place. The real challenge lies elsewhere: execution. Employers struggle to apply those strategies consistently across locations, worker populations, and systems. Disconnected workflows, manual handoffs, and fragmented technology stacks create risk, inefficiency, and poor employee experiences. This webinar reframes the conversation for 2026, shifting the focus from planning and digital transformation to operational excellence. Key Workforce and Employer Trends Defining 2026 One of the central themes of the webinar is that employer success in 2026 will be defined by how well organizations manage complexity. Several key trends emerged: Operational Excellence Over Digital Transformation While technology investment has increased, results have not always followed. The webinar emphasizes moving beyond tool adoption to designing workflows that actually make work happen—consistently and compliantly. Automation With Guardrails Automation and AI continue to accelerate, but trust, transparency, and control are critical. Employers must ensure automation supports accuracy, compliance, and risk reduction—not just efficiency. Data as an Operational Asset Organizations are collecting more workforce data than ever, yet many struggle with data integrity and usability. The webinar highlights the importance of using data proactively to manage risk and improve decision-making, rather than treating it as static reporting. Embedded Services as a Competitive Advantage Research shows that service and domain expertise now outweigh product features in provider selection. Employers need partners who understand regulatory complexity and can actively support execution—not just software delivery. Compliance Moves Upstream Compliance is no longer a downstream, legal-only function. It directly impacts employee trust, brand reputation, and operational resilience. In 2026, compliance must be embedded into everyday workflows. Actionable Resolutions for Employer Success Rather than offering abstract predictions, the webinar delivers five practical resolutions employers can act on immediately: Design workforce operations around execution, not just strategy Simplify processes before automating to avoid scaling inefficiencies Make compliance part of the workflow, not a final checkpoint Treat employee experience as an operational outcome, not a soft metric Hold technology and service investments accountable to impact Together, these resolutions provide a roadmap for employers seeking to reduce risk, improve consistency, and deliver better outcomes for both the business and employees. Why This Webinar Matters Now As regulatory requirements expand and workforce models evolve, employers can no longer rely on reactive compliance or fragmented solutions. The Insights to Action webinar reinforces the importance of trusted partnerships, deep domain expertise, and services that help employers navigate change with confidence. For HR, payroll, and compliance leaders, this session offers more than insight—it offers a practical framework for success in 2026. Watch the Webinar On-Demand The Insights to Action: Resolutions for Employer Success webinar is available on demand through Experian Employer Services with expert insight from Madeline Laurano. Frequently Asked Questions (FAQ) What is the Insights to Action: Resolutions for Employer Success webinar about? The webinar focuses on how employers can move from strategy to execution in 2026 by addressing workforce complexity, compliance challenges, and operational inefficiencies. Who should watch this webinar? HR leaders, payroll professionals, compliance teams, and employer services decision-makers—especially those managing multi-state or complex workforces. What are the key takeaways from the webinar? Key takeaways include the shift to operational excellence, the importance of embedded compliance, automation with guardrails, and actionable resolutions employers can implement immediately. Does the webinar address compliance challenges? Yes. Compliance is a central theme, with guidance on embedding compliance into workflows to reduce risk and improve employee trust. Is the webinar available on demand? Yes. The session is recorded and available for on-demand viewing through Experian Employer Services. Get a head start on success in 2026 by speaking directly with one of our experts:

It's officially a new year, but that doesn't mean 2025 ended without some lingering effects. Employers face an evolving regulatory environment shaped by immigration reform, AI legislation, unemployment tax adjustments, and the uncertain fate of key programs like the Work Opportunity Tax Credit (WOTC). In this blog post, we distill the most important takeaways from Experian Employer Services’ latest quarterly webinar, covering what HR, tax, and compliance teams need to know now to prepare for the rest of 2026. While Congress has been historically inactive in 2025—passing only 36 bills—the federal regulatory machine never stopped. In Experian Employer Services’ November webinar, “Quarterly Regulatory & Legislative Updates for Employers (Q4),” experts Gordon Middleton and Wayne Rottger broke down the compliance shifts that will shape the road ahead. Missed the live event? You can access the on-demand recording of Quarterly Regulatory & Legislative Updates (Q4) to hear directly from our compliance experts. This 60-minute session offers in-depth coverage of urgent topics including IRS withholding changes, state unemployment tax trends, and federal immigration enforcement. Watch now. Congressional Inactivity Doesn’t Mean Employer Invisibility Although Congress passed fewer bills than any time in modern history, executive action and federal agencies filled the gap. The president issued over 210 executive orders in 2025, and federal agencies like USCIS and DHS continued rapid-fire regulatory activity. Among the biggest changes: H-1B Visa Petitions: A controversial $100,000 petition fee for some H-1B applications was introduced in September and clarified in October. This policy is being challenged by the U.S. Chamber of Commerce and others. EAD Auto Extensions: Effective October 30, 2025, DHS eliminated auto extensions for many Employment Authorization Document (EAD) categories—including asylum applicants, TPS holders, and refugees. E-Verify Enforcement: E-Verify operations remained active through the government shutdown, a signal that immigration vetting remains a priority. Employers were reminded to submit cases timely and document any delays. One Big Beautiful Bill Act (OBBBA): Big Withholding Changes Ahead The OBBBA continues to reshape how payroll and HR teams handle tipped employees: Tip Tracking: Employers must now identify “qualified tips” tied to specific occupations using Treasury-issued codes (nearly 70 new codes were released). 2026 W-2 Draft Changes: A new Box 14B will be introduced for these occupation codes, and Box 12 will include new reporting fields. Also expect a 15-line worksheet on the 2026 W-4 draft, which expands deductions. Employer Limitation: Employers can’t force employees to adopt the new W-4, so communication strategies must be prepared in advance. Shutdowns and Backlogs: IRS and SSA Still Expect Timely Compliance Despite mass furloughs at the IRS and other federal agencies, deadlines remain intact. Automated notices are still being sent, payments are due, and limited live support is available. SSA, DHS, and ICE continued operating at high capacity during the shutdown. State-Level Legislation: The Real Compliance Movers States continued to pass meaningful reforms while the federal government stalled. Highlights include: AI Restrictions: Illinois now prohibits AI in hiring if it leads to discriminatory outcomes. Wage Theft Notices: Rhode Island’s new hire notice requirement starts January 1, 2026. Pay Transparency: Massachusetts will require employers with 25+ employees to publish pay ranges starting October 2026. Paid Leave Expansions: Nebraska mandated new minimums for employers with as few as 11 employees. Unemployment Legislation: A Rising Risk for Employers 2025 saw 188 unemployment-related bills, with many focusing on expanding access to benefits—even to striking workers. Washington and Oregon passed laws granting UI benefits during trade disputes, raising red flags about future trust fund stability. Key takeaways: Trust Fund Risk: Most state UI trust funds are underfunded. Large-scale strikes could significantly drain them. FUTA Credit Reduction: California and the U.S. Virgin Islands are likely to face FUTA reductions in 2026. California alone owes $21 billion in federal UI loans. Taxable Wage Base Increases: Half of U.S. states are increasing UI taxable wage bases in 2026, affecting employer payroll budgets. WOTC Renewal: Hopeful, But Not Done Yet The Work Opportunity Tax Credit (WOTC) expired December 31, 2025. Although it has historically been renewed retroactively, no bill has yet been introduced. Industry advocates report promising signs, but employers are advised to continue processing applications to remain retroactively compliant if renewal occurs. Final Key Takeaways Compliance Doesn’t Pause—even during a shutdown. Deadlines remain active. Prepare for OBBA Impact—new W-4 and W-2 formats will require payroll system updates. State Legislation Will Continue—watch for wage theft, pay transparency, and AI usage laws. UI Tax Changes Are Coming—plan for higher taxable wage bases and future trust fund pressures. WOTC Renewal Uncertain—continue screening and tracking candidates until further notice. Use a Trusted Compliance Partner—keeping up with regulatory changes is more than a full-time job. Stay informed year-round with the Experian Employer Services Blog. Subscribe for updates on legislative changes, compliance tools, and insights from our subject matter experts.

As employers close out another year and prepare to adjust for another year of regulatory updates, we are reminded of some items that loom large for this year and next: Changes to this year’s Affordable Care Act (ACA) reporting requirements and a new Form W-2 for next year. Below is a closer look at the changes and what your organization can do to stay ahead of the regulatory curve. Changes to ACA and 1095-C Requirements Late 2024, Congress passed an act designed to allow applicable large employers some flexibility in how they furnish forms 1095-C to their employees. Employers are no longer required to automatically send 1095-C forms to all full-time employees. Employers wishing to take advantage of the new process must instead follow the specific alternative notice methodology enacted under the 2024 laws. Essentially, employers are considered compliant if they have posted a “clear, conspicuous and accessible” notice on their benefits website informing employees that they may request a copy of the form and how they may do so. If such a copy is requested, the employer must provide the copy by either January 31 or within 30 days of the request, whichever is later. The deadline for furnishing the 1095-C or posting the notice as to how to obtain the form is March 2, 2026. Employers opting for the alternative methodology must post the “how-to” notice by that time and leave it posted through October 15, 2026. It is important to note that employers wishing to use the alternative furnishment methodology ensure they adhere to the guidance provided in IRS Notice 2025-15, which states that employers wishing to provide the requested form in electronic format, first obtain electronic consent from the employee, much as they would prior to providing an electronic W-2. New Form W-2 for 2026 In addition to changes to ACA reporting, the IRS recently released a draft Form W-2 for Tax Year 2026. The new form, which has already been edited three times, introduces new codes for Box 12, and a new box 14b to account for items introduced in the One Big Beautiful Act. The new codes are TA, for newly created “Trump Accounts”, TP, for reporting qualified tips, and TT, for reporting qualified overtime.While no changes were made to the W-2 for this tax year, employers can take some solace in the IRS announcement that no penalties will be levied regarding OBBA reporting for the current tax year. Compliance minded employers should review these items and adjust their processes accordingly. At a minimum, preparation should include a) updating employee communications regarding requesting Form 1095-C, b) coordinating with payroll providers/vendors to prepare for 2026 W-2 changes, and c) ensure they are monitoring the IRS website for any changes or updates.

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