HR and future of work · Industry brief

October 2026 brings significant workplace compliance changes affecting employers across multiple jurisdictions. More than 10 states and Washington DC are implementing new legislation covering pay transparency (Connecticut), "captive audience" meetings (Maryland), and immigration-related notices (Washington state). Key regulatory updates include a federal appeals court ruling that the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act allows employees to bypass arbitration for all claims in lawsuits, requiring employers nationwide to reassess dispute resolution practices. California enacted the "No Robo Bosses Act" (effective July 2027) prohibiting employers from relying solely on automated decision systems for disciplinary or termination decisions without human review. Additional developments include the Department of Justice's multi-million-dollar settlement with Deloitte over allegedly unlawful DEI practices, new DOL opinion letters on tip pools and meal periods for hospitality employers, and Florida's minimum wage increase to $15 as of September 30. Employers must also address union organizing momentum (71% American approval rating) and comply with Q4 retirement and health plan deadlines.

California has enacted Assembly Bill 1331, effective January 1, 2027, adding Part 5.8 to the California Labor Code to restrict workplace surveillance. The law broadly prohibits surveillance tools—defined as systems collecting employee data, biometrics, location, communications, or behaviors—in private workplace spaces including bathrooms, locker rooms, breakrooms, and lactation areas. It also prohibits tracking personal vehicle or home use except when "strictly necessary," requires disabling surveillance during off-duty hours and breaks, and bars mandatory physical implantation of data-collection devices. Limited exceptions exist for voluntary employee use, safety badges without audio/video recording, one-time bathroom entry/exit checks, and federally or state-mandated surveillance. The law includes anti-retaliation protections for employees exercising rights or filing complaints. Employers must audit existing surveillance technology, update policies, document justifications for any personal-space monitoring, ensure tools deactivate during off-duty periods, and train supervisors and HR staff before the January 1, 2027 effective date. (Source: California Workplace Law Blog; citing Assembly Bill 1331, California Labor Code Section 1560 et seq.)

Governor Newsom signed California employment bills effective January 1, 2027, including significant regulations on automated decision systems, workplace surveillance, and leave policies. SB 947 ("No Robo Bosses Act") prohibits employers from relying solely on automated decision systems for disciplinary or termination decisions without human review, effective July 1, 2027, with civil penalties up to $500 per violation enforced by the Labor Commissioner, prosecutors, and private right of action. SB 951 amends Cal/WARN to require notice of mass layoffs caused by AI or automated technology. Additional employment law changes include AB 1803 mandating anti-hate speech training by 2028, SB 1149 expanding bereavement leave to include designated persons, AB 2495 expanding retaliation protections for immigration-related practices with civil penalties up to $10,000 per employee, and AB 1331 and AB 1883 restricting workplace surveillance tools in bathrooms and prohibiting AI-based emotional state or neural data collection. Wage and hour updates include AB 1697 delaying stay-or-pay contract restrictions to January 1, 2027 with new exceptions for government-funded recruitment programs and advanced paid time off arrangements, AB 2646 setting agricultural worker minimum wage at $19.75 per hour with annual cost-of-living adjustments beginning 2027, and SB 1237 increasing pay data reporting penalties from $200 to $1,000 per employee for subsequent violations. Workplace violence protections expanded under AB 1961 allowing employers to seek temporary restraining orders for groups of employees based on location, and AB 2179 permitting remote appearances at restraining order hearings beginning January 1, 2028. These changes address HR compliance across regulation, discrimination, surveillance, and wage obligations.

Illinois amended its Genetic Information Privacy Act (GIPA) effective January 1, 2027, adding protections for "biomarker testing" through SB2886. The broad statutory definition of biomarkers—"objectively measured and evaluated as an indicator of normal biological processes, pathogenic processes, or pharmacologic responses"—has created ambiguity about whether workplace drug testing might be restricted. While legal analysis strongly suggests the law targets genetic and medical testing rather than toxicology screening, the statute's language is sufficiently expansive that employers face potential litigation uncertainty. Courts would likely reject drug-testing restrictions based on statutory context focusing on genetic information, legislative examples centered on precision medicine and genomic sequencing, and the extreme consequences of eliminating established employment practices—but clarification from Illinois courts or the legislature may be necessary.