July 2026 Newsletter

Newsletter Highlights:

The Equal Employment Opportunity Commission replaced its 2024–2028 Strategic Enforcement Plan with a new National Enforcement Plan (FY2025–2029), marking a significant shift in federal enforcement priorities. The EEOC will prioritize intentional discrimination (disparate treatment) claims, including alleged discrimination arising from DEI-related employment practices, while discontinuing pursuit of disparate impact litigation to the maximum extent permitted. The new plan also emphasizes protecting American workers from national origin discrimination, religious liberty, and sex-based workplace rights, signaling a substantial recalibration of the agency’s enforcement strategy.
New York City and Virginia have advanced workplace heat-safety initiatives aimed at strengthening protections for employees exposed to extreme temperatures. New York City issued an executive order directing agencies to develop multilingual heat-illness guidance, implement heat-safety plans for municipal workers and contractors, and review construction-site protections, while Virginia enacted legislation requiring the development of statewide heat illness prevention regulations for indoor and outdoor workers. Together, the measures reflect the continued expansion of heat-related workplace safety requirements at the state and local levels as employers face increasing expectations to prepare for extreme weather conditions.
Colorado enacted legislation requiring certain private employers with 100 or more employees doing business in the state to submit EEO-1 demographic workforce data as part of their periodic filings with the secretary of state, even if the federal EEO-1 reporting requirement is repealed or discontinued. The law reinforces Colorado’s commitment to workforce demographic reporting and signals that states may continue expanding pay equity and workforce transparency requirements independently of federal policy.
Connecticut enacted comprehensive artificial intelligence legislation requiring employers to notify applicants and employees when automated employment decision technologies (AEDT) are used as a substantial factor in employment decisions and to disclose AI-related workforce reductions in certain WARN Act notices. The law also reinforces that employers remain responsible for discriminatory outcomes resulting from AI-assisted employment decisions, reflecting the continued expansion of state regulation of workplace AI.
Minnesota amended the Minnesota Human Rights Act (MHRA) to make an employer’s failure to engage in the interactive process to determine whether a reasonable accommodation exists for a person with a disability a potential unfair discriminatory practice. The amendment aligns state law more closely with existing obligations under the Americans with Disabilities Act (ADA) and reinforces the importance of engaging in the accommodation process.
Virginia enacted a sweeping package of employment law reforms expanding employer obligations across multiple areas. The legislation establishes a phased statewide paid sick leave program and a new paid family and medical leave insurance program, broadens Virginia Human Rights Act coverage to smaller employers, introduces pay transparency and salary history restrictions, expands wage-payment liability for general contractors, protects volunteer emergency responders from workplace retaliation, and extends overtime protections to domestic workers pending reenactment. Together, the measures significantly increase compliance obligations for employers and reflect Virginia’s continued expansion of workplace protections.

EEOC Replaces Strategic Enforcement Plan with National Enforcement Plan Focusing on Intentional Discrimination

The Equal Employment Opportunity Commission (EEOC) has rescinded its Strategic Enforcement Plan for Fiscal Years 2024–2028 and replaced it with a new National Enforcement Plan (NEP) for Fiscal Years 2025–2029, establishing updated priorities for the agency’s investigations and litigation. A central feature of the NEP is its emphasis on intentional discrimination (disparate treatment) claims over disparate impact theories. The EEOC states that, consistent with Executive Order 14281, it will eliminate the use of disparate impact theories in investigations to the maximum extent possible and will no longer pursue disparate impact litigation, reflecting a shift in enforcement priorities rather than a change in Title VII or existing Supreme Court precedent.

The NEP also identifies intentional discrimination arising from certain DEI-related employment policies, systemic harassment, and facially discriminatory practices as key enforcement priorities. In addition, the Commission highlights protecting American workers from national origin discrimination, strengthening religious accommodation protections, and defending sex-based workplace rights as ongoing Chair priorities. Although the EEOC’s enforcement approach has changed, employers remain subject to existing federal anti-discrimination laws as well as any broader protections available under state and local law.

Read more: EEOC National Enforcement Plan (FY 2025–2029)⁠

New York City and Virginia Advance Workplace Heat-Illness Protections

New York City Mayor Zohran Mamdani issued Executive Order No. 17 directing multiple city agencies to strengthen protections for workers exposed to extreme heat. The Order requires the development of multilingual heat-illness prevention guidance for employers and workers, mandates mayoral agencies to implement indoor and outdoor heat-illness prevention plans for city employees and contractors, and directs the Department of Buildings to review whether existing construction-site safety requirements adequately protect workers from heat-related risks. The Order also expands public education efforts, reinforces access to cooling resources and public bathrooms for outdoor workers, and calls for additional review of heat-related workers’ compensation claims and public health reporting to inform future policy.

Virginia enacted Senate Bill 288, directing the Virginia Safety and Health Codes Board to adopt workplace heat illness prevention regulations by May 1, 2027. The forthcoming regulations must require employers with indoor and outdoor workers exposed to heat to implement written heat illness prevention plans addressing measures such as access to water, shade or climate-controlled environments where practicable, acclimatization, employee training, high-heat procedures, and emergency response protocols. The legislation continues the growing trend of state-level regulation of occupational heat exposure and positions Virginia among a growing number of states adopting specific workplace heat-safety standards.

Read more: EXECUTIVE ORDER No. 17 ⁠ | SENATE BILL NO. 288

Colorado Requires State-Level EEO-1 Workforce Data Reporting

Colorado enacted House Bill 1207, requiring certain private employers conducting business in the state with 100 or more employees to include EEO-1 demographic workforce data in their periodic reports filed with the Colorado Secretary of State. The requirement applies to employers that were obligated to file EEO-1 reports with the EEOC as of March 1, 2026, and will take effect beginning July 1, 2027. Notably, the reporting obligation remains in place even if the federal EEO-1 reporting requirement is repealed or discontinued.

The legislation incorporates demographic workforce information based on the EEOC’s Form EEO-1, including employee race, ethnicity, gender, and job category, into Colorado’s existing business reporting framework. By preserving state-level workforce demographic reporting regardless of future federal action, the law reflects a growing trend of states adopting independent employment reporting requirements and may signal similar initiatives in other jurisdictions.

Connecticut Enacts AI Employment Law Regulating Automated Employment Decision Technologies

Connecticut enacted Senate Bill 5, establishing new requirements governing employers’ use of automated employment-related decision technologies (AEDT). Beginning October 1, 2027, employers using AEDT as a substantial factor in employment decisions—including hiring, promotion, discipline, termination, and other employment actions—must provide applicants and employees with specified notices explaining the use and purpose of the technology, the categories and sources of personal data analyzed, and other required disclosures. In addition, effective October 1, 2026, employers subject to the federal WARN Act must disclose to the Connecticut Department of Labor whether a plant closing or mass layoff is related to the use of artificial intelligence or another technological change.

The law also provides that employers may not rely on the use of AEDT as a defense to discrimination claims arising from employment decisions, reinforcing that responsibility for compliance with anti-discrimination laws remains with the employer. Beyond employment, the Act includes whistleblower protections for employees of certain AI developers who report prohibited conduct and requires large frontier AI developers to establish internal reporting processes. Together, these measures further expand state oversight of workplace AI and increase compliance obligations for employers using AI-assisted employment tools.

Read more: Senate Bill No. 5⁠

Minnesota Strengthens Disability Accommodation Requirements Under the Human Rights Act

Minnesota enacted Senate File 3210, amending the Minnesota Human Rights Act (MHRA) to provide that failing to engage in the interactive process to determine whether a reasonable accommodation exists for a person with a disability may constitute an unfair discriminatory practice. The amendment applies broadly across employment and other areas covered by the MHRA and reinforces the obligation to actively evaluate potential accommodations rather than focusing solely on the outcome of the accommodation request.

Although the amendment largely codifies obligations that already exist under the Americans with Disabilities Act (ADA) for covered employers, it expressly incorporates the interactive process into Minnesota law and may increase scrutiny of employers’ accommodation procedures under the MHRA. Employers should ensure they promptly engage in and document good-faith discussions with applicants and employees requesting disability accommodations.

Virginia Legislative Session Summary

Paid Sick Leave (SB 199): Establishes a phased statewide paid sick leave program, beginning with employers of 50 or more employees in 2027 and expanding to all employers by 2029. Employees may accrue up to five paid sick days annually.
Construction Wage Liability (HB 238): Makes general contractors jointly liable for subcontractors’ wage violations and strengthens worker misclassification rules, significantly increasing compliance obligations in the construction industry.
Domestic Worker Overtime (HB 27): Extends overtime protections to domestic workers, subject to reenactment during the 2027 legislative session.
Pay Transparency (SB 215): Prohibits salary history inquiries and requires employers to include a good-faith pay range in public and internal job postings.
Paid Family and Medical Leave (SB 2): Creates a statewide paid family and medical leave insurance program providing up to 12 weeks of paid leave, with payroll contributions beginning in 2028.
Virginia Human Rights Act (SB 637): Expands coverage to employers with five or more employees and extends the deadline for filing discrimination complaints to two years.
Volunteer Emergency Responders (SB 100): Protects volunteer emergency responders from workplace retaliation for qualifying emergency service absences and creates a private right of action for violations.