The U.S. Equal Employment Opportunity Commission (EEOC) may soon propose a significant change to federal workforce reporting requirements. The White House Office of Information and Regulatory Affairs (OIRA) has completed its review of the EEOC's draft proposal to rescind the annual Employer Information Report (EEO-1), clearing the way for the agency to publish the proposal for public comment.

At this time, the proposal has not been finalized and EEO-1 reporting requirements remain in effect. However, the EEOC has not yet opened the EEO-1 filing portal for the 2025 reporting year, creating uncertainty for covered employers that are preparing their annual workforce demographic reports.

Who Is Currently Required to File an EEO-1 Report?

Under existing regulations, EEO-1 reporting generally applies to:

• Private-sector employers with 100 or more employees.

• Federal contractors and first-tier subcontractors with 50 or more employees that hold a federal contract, subcontract, or purchase order of $50,000 or more.

  
  

Covered employers must annually report workforce demographic data by job category, race/ethnicity, and sex.

What Should Employers Do Now?

Although the EEOC may seek to eliminate the EEO-1 reporting requirement, no final action has been taken. Federal contractors should continue monitoring equal employment opportunity compliance obligations as other federal contractor requirements may remain in place regardless of any changes to EEO-1 reporting.

C2 Essentials will continue to monitor developments and provide updates as additional guidance becomes available from the EEOC.

The New York State Legislature has passed legislation (New York State Senate Bill S8877) aimed at addressing so-called "ghost jobs"—job postings for positions that employers do not intend to fill or are not actively recruiting for. The bill passed the New York Senate in April 2026 and was approved by the Assembly in June 2026.

It has been delivered to the Governor for consideration. If signed, the law would take effect immediately and create new disclosure requirements for certain employers and job posting platforms operating in New York. 

What Are “Ghost Jobs”? 

A ghost job is generally a job posting that appears to be an active opening but is not tied to an immediate hiring need. Employers may maintain these postings to build a talent pipeline, gauge market interest, or create the perception of organizational growth. Critics argue that the practice wastes applicants' time and distorts labor market data. 

What the Bill Would Require 

Senate Bill S8877 would add Section 219-b to the New York Labor Law and impose new requirements on employers with 100 or more employees and certain third-party job posting entities. Among other provisions, employers would be required to disclose whether: 

• The position is a current vacancy. 

• The employer intends to fill the position within a specified timeframe. 

• The posting is being used to collect resumes for future opportunities rather than fill an immediate opening. 

The legislation would also require employers to remove job advertisements within a specified period after a position has been filled. 

Potential Penalties 

The bill authorizes the New York Department of Labor to investigate complaints and conduct audits. Violations could result in a civil penalty of $2,500 for each job advertisement and each platform where the posting appears. Penalties may increase if non-compliant postings remain active for extended periods. 

Employer Considerations 

Although the bill has not yet become law, employers with New York employees should begin evaluating their recruiting practices, including: 

• Reviewing all active job postings to confirm they represent legitimate hiring needs. 

• Identifying evergreen or pipeline postings that may require additional disclosures. 

• Establishing procedures to remove filled positions promptly. 

• Coordinating with recruiters, staffing firms, and third-party job boards to ensure compliance. 

For federal contractors and multi-state employers, this proposal is another example of increasing state regulation of recruiting and hiring practices. Organizations should expect continued scrutiny of job advertisements, pay transparency, and the use of recruiting technology.

C2 Essentials will continue monitoring the legislation and provide updates if Governor Hochul signs the bill into law. 

The Internal Revenue Service (IRS) has released the inflation-adjusted Health Savings Account (HSA) and High Deductible Health Plan (HDHP) limits for calendar year 2027 under Revenue Procedure 2026-24.  

The HSA contribution limits will increase for both self-only and family coverage in 2027. The HSA catch-up contribution limit for individuals age 55 and older remains unchanged at $1,000. 

In addition, the minimum deductible required for an HSA-qualified HDHP will increase to $1,750 for self-only coverage and $3,500 for family coverage in 2027. The maximum out-of-pocket limits will increase to $8,700 for self-only coverage and $17,400 for family coverage. 

Most employers will not need to take any immediate action. Benefits brokers and carriers typically incorporate these annual IRS adjustments into their renewal and open enrollment processes. Employers sponsoring HSA-compatible plans will see the updated plan designs reflect in the 2027 enrollment cycle. 

The U.S. Equal Employment Opportunity Commission (EEOC) recently approved a new National Enforcement Plan (NEP) for Fiscal Years 2025–2029, replacing the agency’s prior enforcement framework. While federal anti-discrimination laws remain unchanged, the new plan provides insight into the agency’s enforcement priorities and areas of focus for investigations and litigation over the coming years.

Under the new plan, the EEOC has indicated it will place greater emphasis on claims involving intentional discrimination, religious accommodation, and employment practices that may consider race, sex, or other protected characteristics in hiring, promotion, compensation, training, or other employment decisions. The agency has also signaled increased scrutiny of certain diversity, equity, and inclusion (DEI) initiatives that could be perceived as providing preferences or limitations based on protected characteristics.

In addition, the EEOC has stated that it intends to place less emphasis on “disparate impact” theories of discrimination and focus more heavily on cases involving alleged intentional conduct. Disparate impact is a legal theory of discrimination that applies when an employer's policy or practice appears neutral on its face but disproportionately affects members of a protected group and is not job-related or justified by business necessity. Unlike disparate treatment, which involves intentional discrimination, disparate impact does not require proof that the employer intended to discriminate.

What This Means for Employers

Employers should continue to comply with all applicable federal, state, and local equal employment opportunity laws. Organizations may also wish to review recruiting, hiring, promotion, compensation, training, and accommodation practices to ensure employment decisions are based on legitimate, nondiscriminatory business factors and are consistently applied.

No immediate action is required at this time. However, employers should remain aware of the EEOC’s evolving enforcement priorities and consult with legal counsel regarding any employment practices that consider protected characteristics or involve diversity-related initiatives.

C2 Essentials will continue to monitor developments and provide updates as additional guidance becomes available.

The New Jersey Department of Labor and Workforce Development (NJDOL) has finalized regulations reinforcing the state’s strict “ABC test” for determining whether workers are properly classified as independent contractors or employees. The regulations are scheduled to take effect October 1, 2026.

Although New Jersey has applied the ABC test for years, the new regulations formally codify the state’s interpretation and signal continued aggressive enforcement of worker-classification rules across wage and hour, wage payment, unemployment, and related employment laws. 

Why This Matters 

Under New Jersey law, workers are presumed to be employees unless the hiring entity can satisfy all three parts of the ABC test. Failure to meet any one element may result in the worker being treated as an employee rather than an independent contractor.

Businesses utilizing 1099 contractors in New Jersey — especially in positions tied closely to core business operations — should consider reviewing both contractor agreements and day-to-day working relationships before the regulations become effective. Potential exposure from worker misclassification may include: 

• Unpaid minimum wage and overtime claims 

• Unemployment insurance liability 

• Payroll tax exposure 

• Workers’ compensation issues 

• Statutory penalties and interest 

• Class or representative litigation 

• State enforcement investigations 

  
  

Overview of New Jersey’s ABC Test 

To classify a worker as an independent contractor in New Jersey, the business must establish all three of the following: 

1. Freedom From Control - The worker must be free from the company’s control or direction regarding how the work is performed, both contractually and in actual practice. 

2. Work Outside the Usual Course or Place of Business - The services performed must either be outside the company’s normal business operations or occur outside all places of business of the company. 

3. Independently Established Business - The worker must operate an independently established trade, occupation, profession, or business that exists separately from the relationship with the hiring entity. Importantly, simply issuing a Form-1099 NEC or requiring a contractor agreement does not by itself establish independent contractor status under New Jersey law.  Businesses issue Form-1099 NEC to independent contractors and the IRS to track non-employment earnings of $600 or more per year. 

   
   

Comparison: New Jersey vs. Federal Department of Labor (DOL) Independent Contractor Standards 

Official New Jersey Resources 

Additional information from the New Jersey Department of Labor and Workforce Development is available here: 

• NJDOL Independent Contractors and Misclassification Guidance 

• NJDOL Employer Guidance on Independent Contractors vs. Employees 

Indiana employers should be aware of significant changes to the state's immigration enforcement landscape that may increase scrutiny of hiring and employment verification practices beginning July 1, 2026. Recent statements from Indiana Attorney General Todd Rokita indicate that employer compliance with federal work authorization requirements will be a key enforcement priority.

Under Indiana's newly enacted FAIRNESS Act, employers may face state-level penalties if they knowingly hire or continue to employ individuals who are not authorized to work in the United States. The law grants the Attorney General authority to investigate alleged violations and seek civil penalties and other remedies through the courts.

While federal Form I-9 completion remains mandatory for all employers, Indiana's new law places additional emphasis on demonstrating good-faith efforts to verify employment eligibility.

State officials have identified the federal E-Verify program as one method employers can use to help establish due diligence in their hiring practices. For clients utilizing C2 Essentials' onboarding services, all newly hired employees are processed through E-Verify as part of our standard new-hire compliance procedures. This provides an additional layer of verification and helps support compliance with federal employment eligibility requirements.

We are writing to remind you of the upcoming Patient-Centered Outcomes Research Institute (PCORI) fee filing requirement, which applies to certain group health plans. The PCORI fee is a federally mandated annual fee that helps fund clinical effectiveness research and is reported to the IRS using Form 720. 

For the 2026 filing cycle, the PCORI fee is due by July 31, 2026 and generally applies to plan years ending in 2025.  Responsibility for filing and payment depends on your plan funding type:

• Fully Insured Plans: The insurance carrier is responsible for filing and paying the PCORI fee on your behalf. No action is required from the employer. 

• Self-Funded Plans: The employer/plan sponsor is responsible for calculating, filing, and paying the PCORI fee directly to the IRS. 

• Level-Funded Plans: The employer/plan sponsor is responsible for calculating, filing, and paying the PCORI fee directly to the IRS.

The amount of the PCORI fee is equal to the average number of lives covered during the policy year or plan year multiplied by the applicable dollar amount for the year.  

•  For policy and plan years ending after Sept. 30, 2025, and before Oct. 1, 2026, the applicable dollar amount is $3.84

• For policy and plan years ending after Sept. 30, 2024, and before Oct. 1, 2025, the applicable dollar amount is $3.47

How C2 Essentials Supports You 

C2 Essentials will assist clients with calculating the PCORI fee amount due, including determining the average covered lives using an approved methodology.  If you receive a notice about PCORI, please forward it to your C2 HR Team immediately where it will be reviewed for eligibility.

If you have any questions regarding your specific plan or the PCORI fee, please do not hesitate to contact us at 703-444-0096.  

California has issued a new executive order directing State agencies to assess how artificial intelligence (AI) may be impacting employment trends, including job displacement, workforce transitions, and reskilling needs. While this directive applies primarily to state agencies, it reflects a broader policy focus that may eventually shape future labor regulations affecting private employers with California-based employees. 

At this time, there are no new compliance obligations for private employers. However, the order is an important indicator that California is actively evaluating whether existing labor laws are sufficient to address AI-related workforce disruption, including potential changes to layoff notification and reporting requirements. 

What the Executive Order Directs State Agencies to Do 

The executive order directs California state agencies to begin preparing for potential AI-driven workforce disruption. Key actions include: 

• Tracking AI’s impact on employment through new reporting tools, including a statewide dashboard, labor market analysis, and a report identifying early warning signs of job displacement. Agencies are also asked to evaluate possible updates to California’s WARN Act.  

• Supporting workers in an AI economy by expanding job training, exploring employee ownership and wealth-building models, and helping small businesses adopt new technologies.  

• Strengthening workforce safety nets by reviewing unemployment insurance, severance practices, and retraining programs, and improving access to public benefits and job transition services.  

Overview of the Federal WARN Act 

The federal Worker Adjustment and Retraining Notification (WARN) Act requires covered employers to provide advance notice before certain mass layoffs or plant closures. Under federal WARN: 

• Covered employers generally include those with 100 or more full-time employees  

• Employers must provide 60 days’ written notice in advance of:  

  • Plant closings affecting 50 or more employees at a single site, or  

  • Mass layoffs affecting 500 or more employees, or  

  • Smaller layoffs involving at least 50 employees if they represent 33% of the workforce at a site  

Notice must be provided to affected employees, state dislocated worker units, and local government officials  

California maintains its own version of WARN that is generally broader and more employee-protective than federal requirements. Key differences under Cal-WARN include: 

• Applies to employers with 75 or more employees, including part-time workers  

• Requires 60 days’ notice, similar to federal WARN  

• Covers:  

  • Plant closures  

  • Mass layoffs affecting 50 or more employees (regardless of percentage of workforce)  

  • Relocations of an employer’s operations that affect employee roles within California  

While the executive order does not change existing WARN requirements, it signals that California is increasing its focus on AI-driven workforce disruption and evaluating whether current notices—particularly layoff notice requirements and transition protections are sufficient in an AI-driven economy. 

As summer temperatures increase across California, employers should revisit workplace heat safety procedures and ensure compliance with the state’s heat illness prevention requirements. California continues to maintain some of the nation’s most comprehensive workplace heat regulations covering both outdoor and indoor work environments.

California’s outdoor heat illness prevention standard technically applies to all outdoor workplaces at all times, but certain requirements are triggered at specific temperature thresholds. Key thresholds include:

• 80°F — Employers must have shade present and available when temperatures exceed 80°F. If temperatures are below 80°F, shade still must be available upon request.

• 95°F — Additional “high-heat” procedures apply in certain industries, including construction, agriculture, landscaping, oil and gas extraction, and certain transportation/delivery operations. These procedures may include closer employee observation, enhanced communication, and mandatory monitoring practices.

  
  

Employers must provide employees with access to fresh drinking water, shaded or cool-down recovery areas, emergency response procedures, and employee/supervisor training on recognizing heat illness symptoms.

Employers should also remember that California’s indoor heat illness prevention standard, which became effective in 2024, remains fully enforceable in 2026. The indoor standard generally applies when indoor temperatures reach 82°F and may require additional monitoring and control measures at higher temperature thresholds or in environments involving radiant heat or heat-retaining protective clothing. Compliance areas employers may want to review include:

• Employee and supervisor heat illness training

• Availability of drinking water and cool-down areas

• Temperature monitoring practices

• Emergency response procedures

• Acclimatization procedures for new or returning employees

Additional Resources:

· California Division of Occupational Safety and Health (Cal/OSHA): https://www.dir.ca.gov/dosh/

· Cal/OSHA Heat Illness Prevention Resources: https://www.dir.ca.gov/dosh/heatillnessinfo.html