Workforce Bulletin

“BIPOC (Black, Indigenous, People of Color),” “Minorities,” “Native,” “Tribal,” “Indigenous,” “Immigrant,” “LGBTQ,” “Homosexual,” and “Gay.” 

These were the search terms utilized by the federal government to eliminate Diversity, Equity, and Inclusion (DEI) in federal funding, all while using Artificial Intelligence (AI) to target those funds. In a stunning rebuke of such discriminatory practices, the District Court for the Southern District of New York found in American Council of Learned Societies v. McDonald (ACLS), that the record established “beyond any dispute, that the Government used protected characteristics as criteria for identifying grants for termination. DOGE swept in race and ethnicity—including grants concerning Black, Asian, Latino, and Indigenous communities—as well as national origin and immigration status; religion and religious identity (including Jewish, Christian, and Muslim subjects); sex; and sexual orientation, as criteria for grant termination.” The federal government terminated grants involving African, Asian, and South American countries—as well as grants relating to Indigenous Americans and Jewish women—while retaining grants involving Western European subjects.

With the 2025-2026 legislative session now over, the New York State Senate and Assembly recently passed a handful of bills that, if enacted, would significantly impact New York State employers. Although approved by both chambers of the Legislature, laws are not enacted until presented to and acted upon by Governor Kathy Hochul. While it’s not a sure thing that the Governor will approve all of these measures, it’s wise to be aware and prepare for these potential changes.

On May 13, 2026, the Allegheny County Board of Health voted unanimously to advance for public comment a proposed amendment to Article XXIV of the Allegheny County Health Department’s (ACHD) Rules and Regulations.

On June 24, 2025, Connecticut enacted Senate Bill 1295 (Public Act No. 25-113), the most significant amendments to the Connecticut Data Privacy Act (“CTDPA” or the “Act”) since the law took effect. The amendments meaningfully expand who must comply with the CTDPA, broaden the categories of regulated data, and impose heightened obligations in connection with profiling, automated decision-making, sensitive data, the personal data of individuals under 18, and privacy disclosures.

What are the proposed rules on fertility benefits?

A cross-agency proposal would amend regulations implementing the Employee Retirement Income Security Act of 1974 (ERISA), the Internal Revenue Code, and the Public Health Service Act to add fertility benefits as a category of “excepted” benefits that are exempt from certain requirements, for the purpose of expanding access to fertility treatments and services.

What employers should know about key developments this week:

• Federal Agencies Propose Fertility Benefit Expansion: The U.S. Departments of Labor, Health and Human Services, and the Treasury have issued a proposed rule to allow employers to provide fertility coverage as a limited excepted benefit, exempt from the Affordable Care Act and the Health Insurance Portability and Accountability Act’s portability requirements.
• DOT Clarifies Medical Marijuana in Drug Tests: The U.S. Department of Transportation (DOT) has confirmed that a positive drug test for marijuana is disqualifying, regardless of whether the employee has a state medical marijuana license.
• Massachusetts Court Upholds Whistleblower Protections: According to the Massachusetts Supreme Judicial Court, whistleblowers in the state are protected, even if they’re complicit in the violation.

On April 13, 2026, Governor Abigail Spanberger signed SB 637 into law. In this bill, the Virginia General Assembly expanded the Virginia Human Rights Act (VHRA) by amending its definition of a covered employer and extending the statute of limitations for discrimination complaints.

What employers should know about key developments this week:

• States Lead on Workplace AI: With federal regulators slowing new rules, individual states are setting their own requirements for employers that use artificial intelligence (AI), creating a patchwork for multistate workforces.
• California’s Executive Order: Governor Gavin Newsom issued an executive order (EO) targeting AI-driven labor market disruption and directing state agencies to recommend updates to California’s Worker Adjustment and Retraining Notification (WARN) Act for AI-related mass layoffs.
• Connecticut’s New AI Law: Beginning October 1, 2027, employers must give written notice to applicants and employees when AI substantially influences a hiring, promotion, discipline, or termination decision.

In this episode of Employment Law This Week®, Epstein Becker Green attorneys Courtney McFate and Elizabeth S. Torkelsen break down two state actions shaping AI in the workplace: California Governor Newsom’s EO on labor protections in the age of AI, and Connecticut’s new transparency and nondiscrimination requirements for employers.

When IP Strategy Feels Like Uncharted Territory, Hemant Gupta Knows the Terrain

For technology and life sciences companies racing to innovate, protecting intellectual property (IP) can feel like an afterthought—until it isn't. Whether it's code generated by artificial intelligence (AI) with murky ownership rights or a prototype built without the proper licenses, the pitfalls are real, and the stakes are high.

Meet Hemant Gupta, an Epstein Becker Green attorney who brings a rare combination of credentials to his IP practice: years as a children's cancer researcher at St. Jude, hands-on experience as a software programmer, and deep knowledge of biotech and medtech. In this one-on-one conversation with fellow Epstein Becker Green attorney George Whipple, Hemant shares how his scientific and technical background gives clients a distinct advantage when navigating the intersection of IP law and emerging technology.

On Friday, May 29, the Office of Management and Budget (OMB) published a sweeping plan to modify the Regulation for Federal Financial Assistance. A proposed rule seeks significantly to revise several parts of the OMB Guidance for Federal Financial Assistance[1] to clarify policies and requirements related to funding programs across the government.

This regulatory action follows last summer’s Executive Order (EO) 14332 Improving Oversight of Federal Grantmaking, issued August 7, 2025. It covers most Executive Branch agencies, including those that directly regulate employers and the health care sector in particular, such as the Department of Labor, the Occupational Safety and Health Administration, and the Department of Health and Human Services. This overhaul of federal grantmaking is potentially impactful on any organization – including universities and other educational institutions, arts organizations, manufacturers, healthcare providers and researchers, and other entities that rely on federal funding for research grants and other monies.