Employers are entering one of the most uncertain workplace compliance environments in years as immigration enforcement shifts, federal workplace guidance evolves and states roll out new employment rules. Recent reporting has warned companies may be left “in a bind” after changes to EEOC harassment guidance created new gray areas even as liability standards remain in place, forcing HR teams to make high-stakes decisions without clear direction.

Immigration uncertainty is already complicating hiring and workforce planning, with legal advisers urging employers to review documentation practices and internal policies ahead of potential enforcement changes. At the same time, states are advancing new rules governing artificial intelligence in hiring and workplace conduct standards, increasing pressure on employers to explain and defend employment decisions.

Compliance is no longer a back-office function. It is an operational risk that can affect hiring, retention and legal exposure as employers navigate tighter labor markets and rising costs.

“Regulators are moving faster than clarity, and employers are the ones expected to absorb the risk,” said James Lee, managing director of public policy services at the Ohio Manufacturers’ Association. “When guidance shifts without clear guardrails, manufacturers are left navigating compliance in real time while trying to keep their workforce moving forward.”

HR leaders say proactive policy updates, manager training and stronger documentation practices will be essential as the legal landscape continues to evolve. 2/12/2026