Cannabis on path to legalization: The Trump administration moved to reclassify cannabis from a Schedule 1 drug to a Schedule III drug, a major federal shift recognizing its medicinal use.

U.S. Secretary of Labor stepping down: Secretary of Labor Lori Chavez-DeRemer, a former one-term member of U.S. Congress from Oregon who became labor secretary in March 2025, stepped down on Monday amid fallout from an internal investigation by the U.S. Department of Labor watchdog that apparently probed a relationship she allegedly had with a subordinate, and other issues.

EEOC scores on illegal DEI: The EEOC announced that Planned Parenthood of Illinois has agreed to pay $500,000 to end the agency’s investigation into allegations that the nonprofit allegedly “segregated employees by race, subjected white employees to harassment, and engaged in disparate treatment against white employees regarding terms, conditions, and privileges of employment.”  

Is it time for HR professionals to look for a new job? Anthropic has announced several new plug-ins for Claude, its hugely popular AI model.

Michigan unemployment contribution rates: Contribution rates for employers with three or more years of experience will range from 0.06% to 12.2% in 2026. The maximum rate of 12.2% includes an 8.2% maximum chargeable benefit component, a 3.0% maximum account building component, and a 1.0% maximum nonchargeable benefits component. Note that if the employer has submitted no quarterly tax reports, that employer's maximum tax rate will be 12.2%, and the employer also will be assessed a...

Paid family leave pays off: A new survey of more than 250 human resources decision-makers reveals that 88% of companies offer standalone employer-sponsored paid family leave (PFL) and/or paid parental leave (PPL), including 46% that offer both. Almost 21% offer one or both to all part-timers, and 62% provide immediate coverage eligibility upon hire.

Expanding leave programs in the next few years: Nearly three-quarters of U.S. companies plan to expand their leave programs in the next two years, according to research released by WTW, a global advisory, broking and solutions company. These investments are driven by a focus on improving employee experience (67%) and upping attraction and retention (60%), WTW found. 

False Claims Act recoveries growing concern for HR: According to the Department of Justice’s (DOJ) January 16, 2026, press release, the DOJ reported a record $6.8 billion in settlements and judgments under the False Claims Act (FCA) for the fiscal year ending September 30, 2025 – the largest annual total in the statute’s history, more than doubling last year’s $2.9 billion. 

Daylight Savings starts March 8th: Set your clocks forward one hour Sunday, March 8^th. Daylight Saving Time was first proposed by George Vernon Hudson in 1895, and its use in the U.S. was first mandated during World War I.

USERRA leave to be treated like any other leave: An $18.5 million settlement in Huntsman v. Southwest Airlines Co. represents the largest USERRA class action recovery reported to date and signals a significant shift in how employers approach paid short-term military leave when other comparable short leaves (e.g., jury duty, bereavement) are paid.

UIA announces new MiUI launch date: The Michigan Unemployment Insurance Agency (UIA) announced the new date for the launch of MiUI, the new UI tax and benefits system that will replace the Michigan Web Account Manager (MiWAM).    After postponing the initial launch of the system to ensure its functionality, the new launch date for MiUI will be Monday, February 23, 2026. Make sure your company is ready to use the new system for UI tax payments and registrations by that date.

HIPAA Notices of Privacy Practices required to be issued by February 16th: Group health plan sponsors should take note of the February 16, 2026, deadline to update HIPAA Notices of Privacy Practices (“NPPs”) to reflect recent privacy updates for Part 2 records.  HIPAA requires that covered entities, such as group health plans, provide notices to covered individuals describing how the covered entity uses and discloses protected health information (“PHI”).

EEOC rescinds harassment guidance: The U.S. Equal Employment Opportunity Commission voted 2–1 to rescind its Biden-era workplace harassment guidance, which had faced nearly two years of legal and political scrutiny, particularly around provisions protecting transgender employees and those seeking abortions.

Not every state adopted the tax deductions for overtime and tips: Although Michigan has, not all states adopted the tax deduction, such as Illinois and California.  Employers are not required to break out tips or qualified overtime on W-2s for 2025. They may include qualifying overtime on the W-2 if they choose, but it’s optional for 2026 (it would be a manual process). However, employers must still provide employees with a statement showing the amount of overtime and tips that...

The labor marketplace is changing: Belt-tightening is overused corporate jargon, but it is particularly apt at the moment. The midsection of America’s workforce is getting squeezed.  Not accomplished enough for senior leadership roles but too experienced (and expensive) for the front-line positions artificial intelligence hasn’t replaced, many mid-career professionals suddenly find themselves in no-man’s-land.

IRS new mileage rate $.725 per mile: On December 29, the IRS announced that the standard mileage rate for business travel is increasing to 72.5 cents per mile on January 1, 2026, up from 70 cents in 2025. The IRS also announced the following 2026 rates for other purposes: 20.5 cents per mile driven for medical or moving purposes for qualified active-duty members of the armed forces; and 14 cents per mile driven in the service of charitable organizations.  These rates apply to electric...

Michigan UIA going live next year with their new system: The new system is going to be implemented in two phases. This phased approach is industry best practice. Phases allow for more manageable rollouts, focused testing, and reduce the risk of disruption for employers and claimants.

How much for the 12 Days of Christmas? The cost of celebrating Christmas is climbing again. Now in its 42nd year, the PNC Christmas Price Index® (PNC CPI) reveals that the cost of the gifts from the classic holiday carol "The Twelve Days of Christmas" has risen 4.5% compared to last year, outpacing the Bureau of Labor Statistics' Consumer Price Index (BLS CPI) October year-over-year reading of 3.0%.

Unexpected medical expenses scare employees: Four in five Americans worry that an unexpected medical expense could derail their financial goals, while more than a quarter of this group say that a bill of less than $1,000 would cause financial hardship. Younger generations are especially anxious, with nearly 90% of Gen Z and millennials saying an unplanned medical cost would disrupt their financial plans, compared to just 56% of baby boomers.

Do you have a “bad apple” employee?  To distinguish if someone is a “bad apple,” you have to observe their behaviors and how that impacts the team. You’ll probably have a hunch if there’s a bad apple in your batch.

Social Security wages will rise to $184,500 in 2026: The social security tax on employers and employees will stay the same at 6.2% and for Medicare at 1.45%.  Unlike Social Security, Medicare has no cap on wages.  Medicare surtax of 0.9% hits wages and self-employment joint filers at $250,000 and $200,000 for others.  Kiplinger 11/6/25

FMLA includes time for mandatory overtime: On September 30, 2025, the Department of Labor’s Wage and Hour Division (WHD) issued an opinion letter on calculating the amount of Family and Medical Leave Act (FMLA) leave available to employees who work schedules that include mandatory overtime.

Update on minimum wage changes for 2026: See chart for the new 2026 changes. This is also located in the ASE Member Community under My ASE Toolkits and Guides.

Daylight Savings Time ends November 2: When clocks are turned back an hour in the early morning on November 2nd workers on the midnight shift at that time will actually work an extra hour. Assuming that these workers are nonexempt employees, meaning that they are governed by the Fair Labor Standards Act (FLSA), they must be paid for all hours worked.

EEOC sued to enforce EEO laws for LGBTQ complaints:  A legal services nonprofit cannot challenge the U.S. Equal Employment Opportunity’s handling of gender identity discrimination allegations because the agency’s enforcement of federal laws is a core executive function generally insulated from judicial review, EEOC claimed in an Oct. 15 court filing.