Human Resources

As artificial intelligence (AI) continues to reshape business operations, many employers are reassessing workforce needs and organizational structure. For many organizations, workforce reductions or redeployments may be unavoidable as roles evolve, processes are automated, and business models change. While some organizations may ultimately pursue involuntary reductions in force (RIFs), others are exploring whether voluntary separation programs (VSPs) can achieve workforce‑reduction goals while mitigating legal, operational, reputational, and employee‑relations risks.

With the 2026 Colorado legislative session now complete, we have a clearer view of which labor and employment bills advanced, or stalled, and which developments deserve employers’ attention. As in recent sessions, workplace legislation remained a major focus, with proposals touching on everything from collective bargaining and worker safety to wage-setting and reporting obligations.

In this update, we revisit the bills previously identified for Colorado employers to watch, along with several additional measures introduced during the session, and explain what matters most for employers.

Smart glasses give users hands-free access to information, photos, video, and audio as well as the ability to record without the inconvenience of holding up a camera. Employees and employers alike may find these benefits helpful in the workplace. Employers, however, should proceed with caution as the use of these devices involves several legal issues to consider.

The 2026 DEI Executive Order recently issued by the White House imposes new obligations on federal contractors and subcontractors, to prevent “artificial” and “unnecessary” DEI program costs from being passed on to the government in federal courts. It limits the definition of racially discriminatory DEI activities to employment decisions, contracting activities such as vendor agreements

With the Colorado legislative session well underway, we have identified several bills of interest that Colorado employers should monitor. If enacted, these bills would expand worker protections and require certain employers to update their policies or procedures. While several of the bills authorize a private right of action, awareness and proactive compliance can help employers avoid costly litigation.

This is not the macabre tale of Macbeth. It is the new legal reality. The EEOC’s sweeping subpoena to Nike signals a dramatic change in EEOC enforcement posture toward Diversity, Equity & Inclusion programs previously regarded as permissible, a shift that demands careful navigation by employers.

Employers nationwide have a new kind of employee in the workplace: the GPT employee. These employees are empowered by the latest and greatest version of free and publicly available generative artificial intelligence (“AI”), which comes fully loaded with buzzwords but often little substance. GPT employees also like to fancy themselves as amateur lawyers lurking in the shadows, although their work product is anything but discrete and often not accurate.