Workforce Trust & Safety
Real-world incidents and liability cases that illustrate what happens when workforce risk goes unmanaged negligent hiring verdicts, criminal incidents involving employees or contractors, and employer safety failures.
EEOC Sues DHL Supply Chain for Blanket Policy Refusing Disability Accommodations
The EEOC filed suit against Exel Inc., operating as DHL Supply Chain (USA), on March 31, 2026, alleging the company violated the Americans with Disabilities Act by telling a warehouse worker with sickle cell disorder that it does not accommodate medical restrictions and then firing her. The worker had requested either shorter shifts in an extreme-cold cooler or reassignment to other available roles that did not require cold exposure; the company denied both requests and later offered permanent positions to other temporary workers while excluding her. The EEOC is seeking back pay, front pay, compensatory and punitive damages, and injunctive relief, and the case is proceeding in federal court in Atlanta.
Source: U.S. Equal Employment Opportunity Commission | SEE FULL ARTICLE →
Ohio Court Rules Against Employer Liability Following Seven-Worker Shooting
An Ohio court dismissed an employer liability claim brought by workers injured in a workplace shooting, ruling that the standard for holding an employer civilly liable for an employee's violent act was not met based on the evidence presented. The ruling, reported in early April 2026, illustrates how high the bar remains for negligent hiring and retention claims when workplace violence involves a coworker rather than a foreseeable outside threat. Employment law analysts noted the case underscores the distinction between the workers' compensation exclusive-remedy framework and the narrower circumstances under which tort liability can be imposed for coworker-initiated violence.
Source: Human Resources Director / HCAMag | SEE FULL ARTICLE →
COMPLIANCE & EMPLOYMENT LAW
Federal and state employment law changes that affect hiring and workforce management covering EEO guidance, drug testing policy shifts, I-9/E-Verify updates, wage and hour developments, and fair chance legislation.
Patchwork of State AI Hiring Laws Creates Multi-Jurisdiction Compliance Burden
A DarrowEverett analysis published in May 2026 documents the compliance landscape now facing HR leaders operating across multiple states: Illinois's HB 3773, in effect since January 1, 2026, prohibits discriminatory AI use in all employment decisions and creates a private right of action; Texas's Responsible Artificial Intelligence Governance Act, also effective January 1, 2026, prohibits intentional discriminatory AI deployment but contains no private cause of action; and Colorado's AI Act, with a June 30 effective date, requires annual impact assessments, worker notifications, and human review rights for AI-driven employment decisions, though enforcement is currently stayed by a federal court. The analysis notes that New York City Local Law 144 remains fully in effect regardless of developments in other states, and multi-state employers face distinct and non-uniform notice, audit, and anti-discrimination requirements across all jurisdictions simultaneously.
Source: DarrowEverett LLP | SEE FULL ARTICLE →
Illinois IDHR Releases Draft AI Notice Regulations Under HB 3773
The Illinois Department of Human Rights released draft implementing regulations in early 2026 for HB 3773, the state's AI employment discrimination law that took effect January 1, 2026. The draft rules require employers to notify applicants and employees whenever AI is used to influence covered employment decisions, impose a four-year recordkeeping obligation for AI-related notices and disclosures, and confirm that failure to provide required notice is itself an IHRA violation. The rules define covered AI broadly to include resume screening tools, computer-based assessments, video interview analysis, and any machine-based system that influences employment decisions; employers must audit their third-party vendor tools for compliance.
Source: Hinshaw & Culbertson LLP / Epstein Becker Green | SEE FULL ARTICLE →
Hiring & Employment Fraud
Emerging and evolving fraud targeting employers; synthetic identity fraud, deepfake interview candidates, credential misrepresentation, and coordinated fraud schemes — drawn from law enforcement, fraud research, and industry data.
Court Upholds Just-Cause Termination for VP Who Fabricated MBA Credential
In Tudor v. Accurate Screen Ltd. (2026 ABKB 237), an Alberta court dismissed a wrongful dismissal claim by a former Vice President of Business Development who had falsely claimed on his resume to be completing an MBA from McGill University and was terminated after admitting the fabrication seven months into his tenure. Justice Yamauchi ruled that intentional misrepresentation of academic credentials constitutes a fundamental breach of the trust required in an employment relationship, particularly for executive roles, and confirmed that employers have no legal duty to independently verify a candidate's stated educational qualifications before relying on them. The case reinforces both the risk to candidates of credential fraud and the importance of employers conducting verification proactively before extending offers.
Source: HR Covered / Alberta Court of King's Bench | SEE FULL ARTICLE →
Labor Market & Workforce Trends
Macro hiring data and workforce behavior trends, jobs reports, quit rates, labor force participation, and hiring volume by sector that frame the environment organizations are hiring into.
April 2026 Jobs Report: 115,000 Added, Unemployment Holds at 4.3 Percent
The BLS Employment Situation report released May 8, 2026 showed nonfarm payroll employment increased by 115,000 in April, well above the consensus forecast of 65,000. Healthcare led gains with 37,000 jobs added, followed by transportation and warehousing at 30,000; federal government employment continued to decline, shedding 9,000 positions. The unemployment rate held at 4.3 percent for a third consecutive month, and average hourly earnings rose 0.2 percent over the month and 3.6 percent over the year. The report followed an upward revision for March to 185,000, and analysts noted that rate-cut expectations are constrained by inflation running at a 3.3 percent annual rate, with the Fed expected to hold rates as it assesses the effects of elevated energy costs.
Source: U.S. Bureau of Labor Statistics / CBS MoneyWatch | SEE FULL ARTICLE →
JOLTS March 2026: Hires Surge to Highest Since 2024 as Openings Hold Flat
The BLS Job Openings and Labor Turnover Survey released May 5, 2026 showed job openings held flat at 6.9 million in March while hires surged to 5.6 million, the highest level since February 2024 and driven largely by transportation, warehousing, professional and business services, and accommodation and food services. The openings-to-unemployed ratio fell to 0.95, below the pre-pandemic norm, while layoffs climbed to 1.9 million with concentrated increases in professional and business services and the information sector, where job openings are down 33 percent year-over-year. Indeed Hiring Lab noted the data reflects a segregated labor market with technology and white-collar sectors weakening significantly while retail and manufacturing openings trend upward.
Source: U.S. Bureau of Labor Statistics / Indeed Hiring Lab | SEE FULL ARTICLE →
Background Screening & Verification
Legislative and regulatory updates affecting how employers collect, use, and act on background check information including FCRA changes, Ban-the-Box laws, adverse action requirements, and identity fraud in hiring.
Washington State Expands Fair Chance Act for Employers Starting July 2026
Washington State's amended Fair Chance Act (HB 1747), signed in 2025, takes effect July 1, 2026 for employers with 15 or more employees and January 1, 2027 for smaller employers. The law prohibits employers from inquiring about or conducting criminal background checks until after a conditional offer of employment is made, closing a prior loophole that allowed inquiry once a candidate was deemed otherwise qualified. Employers that take adverse action based on criminal history must demonstrate a legitimate business reason, provide the candidate at least two business days to respond, and document specific individualized factors; civil penalties for violations range from $1,500 for a first offense to $15,000 for each subsequent violation.
Source: Seyfarth Shaw LLP / Jackson Lewis | SEE FULL ARTICLE →
Gig & Contingent Workforce
Regulatory and legal developments specific to non-traditional workforce arrangements, independent contractor classification rulings, platform liability, staffing agency regulations, and gig worker rights.
New Jersey Finalizes Worker Classification Rules Tightening ABC Test for Contractors
The New Jersey Department of Labor adopted new regulations on May 5, 2026 that codify how the state's ABC test applies when classifying workers as employees or independent contractors, with an effective date of October 1, 2026. Under the rules, businesses bear the burden of proving all three prongs of the test: that the worker is free from control, performs work outside the usual course or place of business, and maintains an independently established trade or business. State labor officials characterized the regulations as providing transparent enforcement guidance rather than changing the underlying law, while industry groups warned the clarified standard will likely require many companies using ride-hailing, delivery, and other gig workers to reclassify them as employees.
Source: New Jersey Department of Labor / The Jersey Vindicator | SEE FULL ARTICLE →
