Legislative and Regulatory Updates: November 2026

Employers continue to navigate a dynamic regulatory environment amid rapid technological change and shifting enforcement priorities. The last month has brought several noteworthy legal and regulatory developments that may affect hiring, screening, and workforce management practices across jurisdictions.

Global Developments

Global AI & Data Compliance

• Organizations operating across multiple countries may need to account for regulatory requirements that extend beyond U.S. frameworks. A previous post examined the EU AI Act’s extraterritorial reach for U.S. employers and the steps they would need to consider taking to build AI governance. This insight goes further, exploring how employers can harmonize compliance across state-level U.S. and Canadian AI employment laws, alongside the EU and UK regulatory positions. (source: ogletree.com)
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U.S. Federal developments

Candidate Fraud

• Candidate fraud is a person misrepresenting their identity, credentials, or abilities in order to get hired. It ranges from an embellished resume to a candidate being coached by AI through a live interview, and in the most serious cases to someone working under an identity that isn’t their own. The problem isn’t new. What’s new is how little skill it takes, now that AI tools can produce a polished resume in seconds and feed answers to a candidate in real time. In this episode of the Know Your People podcast, Ben Eubanks, chief research officer at Lighthouse Research and Advisory, shares what his research says about how employers are responding. (source: First Advantage)
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Digital Identity in the U.S. – Common Misconceptions

• Many HR professionals believe identity checks are part of a routine background check. One reason may be that several background screening tools and services — Social Security Number (SSN) Trace and Consent-Based Social Security Number Verification (CBSV) — are often thought of as identity checks and interchangeable with a standard background check. Let’s debunk the most common misconceptions about candidate identity solutions, why digital identity is essential, and detail the differences between the types of screening that contribute to these misconceptions. (source: First Advantage)
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Disparate Impact

• On September 29, 2026, the U.S. Small Business Administration (SBA) became the latest federal agency to rescind the disparate impact provisions of its regulations under Title VI of the Civil Rights Act of 1964. The rule change will affect small business concerns that apply for or receive SBA financial assistance but does not change eligibility for SBA contracting programs. (source: ogletree.com)
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Drug Screening

• On September 29, 2026, the U.S. Drug Enforcement Administration’s (DEA) chief administrative law judge (ALJ) paused marijuana rescheduling proceedings to consider a new report on drug scheduling issued by the Government Accountability Office (GAO). (source: ogletree.com)
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Equal Employment Opportunity Commission

• On October 28, 2026, the U.S. Equal Employment Opportunity Commission voted to rescind the Obama-era 2012 enforcement guidance regarding the use of arrest and conviction records in employment decisions. EEOC Chair Andrea Lucas stated that the vote to rescind “reaffirms the agency’s commitment to enforce Title VII consistent with the Constitution and the limits Congress placed on the EEOC’s authority.” (source: ogletree.com)
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• On October 16, 2026, the U.S. Equal Employment Opportunity Commission (EEOC) requested that the Office of Information and Regulatory Affairs (OIRA) review a final rule rescinding the interpretive portions of the EEOC’s version of the Uniform Guidelines on Employee Selection Procedures (UGESP), 29 C.F.R. Part 1607. The EEOC’s regulatory agenda projected final action on the rule to occur in November 2026, with an effective date in January 2027. (source: ogletree.com)
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E-Verify Records Disposal Deadline

• U.S. Citizenship and Immigration Services (USCIS) announced that E-Verify employers have until January 8, 2027, to download records for cases last updated on or before December 31, 2016. USCIS will then permanently dispose of those records. The announcement does not affect employers that enrolled in 2017 or later until next year’s disposal cycle, but pre-2017 employers should act now to avoid gaps during audits or Form I-9 system transitions. (source: Seyfarth Shaw LLP)
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Form I-9 Inspection Update

• ICE has quietly updated its Form I-9 inspection guidance for the second time this year. The August 31, 2026 update to the Form I-9 Inspection Under Immigration and Nationality Act § 274A Fact Sheet does not change the substantive and technical violation framework announced earlier this year, but it offers useful insight into how ICE intends to conduct audits and assess employer compliance. (source: Seyfarth Shaw LLP)
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Week in Weed

• Review The Week in Weed for what’s happening in the world of legalized marijuana for October. (source: seyfarth.com)
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Workforce Risk Trends

• Workforce risk is no longer solely an HR concern. It is an enterprise-wide issue that requires collaboration across HR, IT, security, compliance, legal, and leadership teams. This article highlights key workforce risk signals, shares practical ways organizations can address them, and explains why information sharing across teams is critical for early detection. (source: First Advantage)
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Workplace Privacy

• Workplace privacy becomes significantly more complex when an organization’s workforce spans multiple countries. In this episode, Karla Grossenbacher, who specializes in US workplace privacy, and Yana Komsitsky, who specializes in international workplace privacy, discuss the differences in the legal frameworks between the US and jurisdictions outside the US. They also explore practical approaches for how multinational employers can apply global privacy principles to employee and candidate data, including when, unlike the US, consent may not provide the protection employers expect. (source: Seyfarth Shaw LLP)
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State legislative updates

California

• San Francisco has expanded its Fair Chance Ordinance (FCO), increasing protections for applicants and employees with criminal records and introducing additional compliance obligations for covered employers. The amendments, which took effect on August 10, 2026, build upon the city’s existing “ban-the-box” framework and provide broader coverage than California’s statewide Fair Chance Act-related requirements in certain areas. (source: jdsupra.com)
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Delaware

• New amendments to Delaware’s data privacy law that will take effect on January 1, 2027, may have an impact on how employers use artificial intelligence (AI) tools in employment decisions. The Delaware Personal Data Privacy Act (DPDPA) took effect on January 1, 2025. The law currently regulates people who conduct business in Delaware (or people producing products or services targeted to Delaware residents) that process personal data of at least 35,000 Delaware consumers, or process personal data of at least 10,000 Delaware consumers and derive at least 20 percent of their annual revenue by selling personal data. Beginning on January 1, 2027, those numbers will drop to 10,000 for the first category and 5,000 for the second category. (source: ogletree.com)
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Massachusetts

• Massachusetts has enacted its first statewide licensing and oversight framework for home care agencies. The Act directs the Massachusetts Executive Office of Health and Human Services (EOHHS) to establish licensing and conduct requirements addressing worker screening and training, consumer contracts, insurance, payroll practices, quality, workplace safety, and other operational requirements. (source: jdsupra.com)
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New Jersey

• On October 1, 2026, New Jersey State Senator Brian P. Stack introduced Senate Bill S4685, which, if enacted into law, would prohibit certain groups of employees—specifically, law enforcement officers, first responders, drivers with a commercial driver’s license (CDL), and operators of heavy equipment—from using cannabis recreationally, whether on or off duty. The legislation would therefore eliminate existing employment protections for such employees by allowing employers to take adverse action against them for using cannabis. (source: ogletree.com)
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• On September 21, 2026, the U.S. District Court for the District of New Jersey upheld an arbitrator’s award for an employee who was discharged after a positive marijuana test. The decision provides guidance to employers on the application of the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA). (source: ogletree.com)
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New York

• New York City employers should take a fresh look at how they use and evaluate criminal history in hiring and employment decisions. Updated regulations adopting the 2021 amendments to the New York City Fair Chance Act take effect October 30, 2026. The amended rules provide some new guidance and incorporate statutory changes and Commission guidance in place since 2021. The final rules also clarify employer procedures, identify specific conduct that constitutes per se violations, and eliminate the early resolution process for Commission-initiated complaints. (source: First Advantage)
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Washington

• Washington State’s new Immigrant Worker Protection Act (IWPA) took effect October 1, 2026, adding employee notice and posting requirements tied to federal Form I-9 inspections. The law reflects a broader shift: immigration compliance increasingly requires employers to navigate both federal rules and state employment laws. (source: Seyfarth Shaw LLP)
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Looking ahead

Regulatory activity continues to evolve alongside changes in technology and workforce dynamics. While the impact of these developments will vary by organization, staying informed can help employers better understand emerging considerations that may affect hiring, screening, and workforce management programs. We’ll continue monitoring legislative and regulatory activity and sharing updates that support informed workforce decisions.

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