Human Resources

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.

On December 12, 2025, Illinois Governor Pritzker signed into law SB 2339 (“Amendment” or “SB 2339”), which amends the Right to Privacy in the Workplace Act. The law increases protections for workers’ privacy and restricts employers from taking adverse action against employees solely based on receiving a tentative non-confirmation letter (“mismatch letter”) regarding verification of employment eligibility. The passage of SB 2339, a response to increased federal immigration enforcement, ensures that employers satisfy federal requirements without compromising employee privacy. The Amendment became effective immediately, applies to public and private employers of Illinois employees and prospective employees, and subjects employers to civil actions, including a private right of action and penalties for non-compliance.

On January 22, 2026, the Equal Employment Opportunity Commission (“EEOC”) held an open public meeting pursuant to the Sunshine Act to discuss and vote on the rescission of the 2024 Enforcement Guidance on Harassment in the Workplace adopted by the EEOC during the Biden Administration (EEOC-CVG-2024-1; issued 04-29-2024) (“2024 Guidance”). Under this 2024 Guidance, sexual orientation and gender identity were specifically addressed following the Supreme Court’s decision in Bostock v. Clayton County, 590 U.S. 644 (2020). It contains examples of prohibited conduct such as repeated and intentional use of a name or pronoun an individual no longer used as well as the denial of access to a bathroom consistent with an individual’s gender identity.

A frontline service worker at a Cinnabon was recently terminated after a video circulated showing her hurling a racist epithet at a Somali couple. The footage spread quickly with millions of views on TikTok. The employer acted swiftly. And, in a development emblematic of the current digital moment, the terminated employee has since raised more than $327,000 in online donations as part of “A Public Awareness Initiative.”

Earlier this month, our team published an in-depth article for federal contractors on navigating WARN Act compliance amid government shutdowns and federal contract cancellations. Since then, we’ve been closely monitoring the broader wave of workforce reductions affecting not only government contractors but employers across industries and company sizes.