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Quick Hits Despite repeated requests from multiple courts, the administration has yet to articulate what distinguishes lawful DEI programs from those that the federal government believes violate antidiscrimination laws, leaving employers without clear compliance guidance. Federal contractors and money recipients that cannot certify compliance face potential False Claims Act liability, including treble damages, civil investigative demands, and possible criminal exposure—consequences far exceeding traditional antidiscrimination enforcement. The Seventh Circuit panel signaled…

Quick Hits On February 6, 2026, the Fourth Circuit held that the plaintiffs’ facial challenges in National Association of Diversity Officers in Higher Education v. Trump to President Trump’s anti-DEI executive orders (EOs) were unlikely to succeed, but the court did not validate the administration’s enforcement practices, did not endorse its interpretation of anti-discrimination law, and did not define what constitutes “unlawful DEI.” The certification provision in EO 14173 applicable…

Quick Hits Federal contractors must distinguish between contracts entered into before January 30, 2022 (subject to Executive Order (EO) 13658 and DOL’s annual indexed increases), and those entered into on or after that date, which were governed by EO 14026 prior to its revocation. Even though DOL is no longer enforcing EO 14026, contractors remain bound by existing contract clauses unless modified by the contracting officer and must comply with…

Quick Hits The EEOC issued FAQs to assist federal agencies in implementing President Trump’s return-to-office order in compliance with the Rehabilitation Act of 1973, the federal sector analog to the ADA. As private employers implement return-to-office policies, the EEOC’s FAQs provide useful guidance for managing telework accommodation requests under the ADA. Employers may re-evaluate existing telework arrangements for individual employees and modify or rescind them, depending on the availability and…

Quick Hits On February 13, 2026, Cal/OSHA issued a notice of proposed rulemaking to implement the “walkaround rule,” which would allow additional employee and employer representatives during inspections. The proposed regulation introduces a framework for involving employer and employee representatives, including third parties, during inspections, raising concerns about potential contentious and adversarial environments. The draft regulation follows the federal OSHA walkaround rule and includes provisions for additional representatives, inspector authority,…

Quick Hits Governor Abbott has directed Texas public institutions of higher education and state agencies to freeze the initiation or filing of any “new” H-1B petitions for foreign employees until May 31, 2027. Governor Abbott has also directed the impacted state agencies and university institutions to provide H-1B sponsorship data to the Texas Workforce Commission. This directive appears to impact “new” H-1B visas sought by state government agencies and public…

Quick Hits The Third Circuit explained that challenges to diversity efforts must prove both a discriminatory purpose and impact to trigger strict scrutiny and found sufficient evidence that the district’s policy aimed to alter the racial makeup of its selective high schools. The court emphasized that it is unconstitutional for schools to seek specific racial percentages or racial balancing, and that even race-neutral criteria like zip codes can be scrutinized…

Quick Hits A proposed class action alleges that a widely-used AI-powered tool violates the federal FCRA and California’s ICRAA by compiling sensitive, individualized personal information on job applicants without their consent.  The complaint contends that by evaluating applicants based on extensive data sources—such as LinkedIn profiles, publications, and job application history—the tool generates consumer reports subject to the disclosure, authorization, notification, and certification requirements of both statutes. The lawsuit could…

Quick Hits The FTC negotiated a ten-year consent order with an employer to end the employer’s enforcement of blanket noncompete agreements against nearly 1,800 employees. The consent order mandates that the employer notify employees and former employees that the company’s noncompete agreements are no longer effective, cease enforcement of those agreements, and provide ongoing compliance reporting to the FTC for a decade. The consent order comes after the Trump administration…

Quick Hits Nevada’s Senate Bill (SB) 260, effective January 1, 2026, mandates comprehensive requirements for employers to protect outdoor workers from wildfire smoke hazards. Employers must implement written programs to mitigate exposure, monitor air quality, provide employee training, and establish communication systems for reporting air quality and health symptoms. SB 260 includes specific measures for air quality index levels and exemptions for certain employers, with further regulatory measures to be…

Quick Hits Relying heavily on the Supreme Court of the United States’ June 2023 Students for Fair Admissions decision, the attorneys general assert that strict scrutiny applies to all race-based government action and that most DEI programs cannot survive that standard. The Texas opinion identifies specific private-sector DEI practices—including “diverse slate” policies, demographic hiring goals, DEI-linked compensation, and restricted fellowship or other pipeline-type programs—as potential violations of Title VII of…

Quick Hits An employee who cannot perform essential job functions, even with a reasonable accommodation, is not a “qualified individual” under the ADA. The ADA does not require an employer to provide wholly remote work as a reasonable accommodation if a position requires in-person attendance to perform some essential functions. Employers need not extend additional accommodation offers after an employee rejects an initial reasonable accommodation. Background After an accounting assistant…

Quick Hits New York Governor Kathy Hochul has announced a new AI agenda, including the establishment of an Office of Digital Innovation, Governance, Integrity and Trust (DIGIT) to oversee digital safety and technology governance. The governor also announced plans to advance legislation aimed at regulating AI-generated content and enhancing consumer privacy, including proposals to mandate labeling of provenance data and require data broker registration. This initiative builds on a series…

Quick Hits Crypto payments, especially via stablecoins, enable lightning-fast, low-cost cross-border transfers that reduce fees and delays compared to traditional banking. Offering crypto options can signal innovation and help attract tech-savvy talent, particularly in web3 and global remote teams. Key risks include price volatility (unless using stablecoins), complex U.S. tax treatment as property, and the challenge of meeting local minimum wage requirements when compensation fluctuates or is not denominated in…