Legal Series: Top 4 HR Compliance Trends to Watch in 2026

This article is part of an ongoing legal series designed to provide insight and practical guidance on current and emerging workplace compliance issues. These insights shared by lawyers are based on their interpretation of existing regulations and proposed changes, and intended for informational purposes, not to be regarded as legal advice.

Technological change has been steadily reshaping many fields worldwide, including HR compliance. Tools that rely on large language models (LLMs), commonly called AI, are allowing HR managers to organize complex systems more effectively. At the same time, many governments around the world are adopting regulations that affect the economy. 

Even so, technological developments are allowing HR teams to stay on top of trends that would have been nearly impossible for one person to track in the past. As a result, HR departments are shifting focus to strategic compliance, trying to empower their workforces rather than just ensure their companies are following the law.

Outsolve works with businesses to help them comply with HR compliance regulations. In the wave of new AI tools, Outsolve is here to help business owners and HR professionals empower their employees to be the best versions of themselves. This article explores four compliance trends expected in 2026.

1. Regulatory Complexity Is Expanding Across Jurisdictions 

Over the past several years, the Internet has connected us across the globe, making it easier for employers to hire people in multiple locations. The rise of remote work has made HR duties more complex with the need to follow individual state laws based on where their employees reside. 

As workforces diversify and globalize across many industries, U.S. HR compliance requires greater knowledge of and coordination among state and federal laws. New and evolving HR compliance risks have arisen across many legal spheres. 

This increasing regulatory complexity makes coordinated, data-driven compliance strategies more important than ever. Several states have passed laws that take effect this year, and one state has issued a comprehensive compliance report that provides insights into compliance at the city level. New York City also issued a Pay Equity Report exploring how the city is doing on its compliance goals.

Pay Transparency 

As of 2026, many states have adopted or are considering adopting pay transparency laws. Delaware’s pay transparency law goes live in 2027. That law, like many pay transparency laws, requires employers to provide specific information about compensation for positions to prospective and, in some cases, current employees. This includes giving salary ranges and benefits information in every job listing.

If you advertise jobs in multiple states, it is important that you are following each state’s pay transparency requirements. 

Diversity, Equity, and Inclusion (DEI)

With the Trump Administration’s rescission of executive orders requiring diversity, equity, and inclusion (DEI) initiatives at the federal level, many HR departments may revisit policies to tweak language and ensure they are not partaking in illegal DEI. These executive orders will prompt employers to double-check that their diversity-focused policies support existing laws. Employers can reduce their risk of non-compliance in diversity efforts by completing a DEI audit and certifying no illegal DEI is present in their HR practices. 

Automated Decision-Making Technology (ADMT) 

Three states have already started to address the use of automated decision-making technology (ADMT), AI that makes decisions. Those states include:

• California,
• Illinois, and
• Texas.

These laws focus on ensuring employers do not rely entirely on AI to make important employment decisions. Human oversight is critical when using AI to ensure there is no bias, especially in recruiting.

Paid Leave 

Some states have also implemented state-level paid leave laws. Employees who work in those states, like Minnesota, must receive a set amount of paid leave beyond federal requirements. Oftentimes labor law posters are required to be displayed with this law. 

2. Compliance Is Becoming Strategic, Not Just Reactive

As systems begin to catch up with increasing regulatory complexity, HR professionals have more time to focus on strategic compliance, rather than just pure legal compliance. HR compliance trends are empowering HR departments to shift their focus more toward preventing legal and ethical harms while also demonstrating compliance.

AI tools help HR professionals strategize around:

• Risk management. AI tools can track complex, interwoven movements within and between companies, allowing you to anticipate potential risks earlier.
• Institutional resilience. Through AI tools, you can create documentation to establish policies and procedures and update them as needed.
• Ethical culture. AI tools can help you understand what your employees need to be successful in a diverse environment.

New technologies and strategies are enabling HR professionals to stop ethical issues before they arise by providing a balance of oversight and guidance. 

Federal contractors subject to Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA), for example, may benefit from strategic data collection. Despite changes to the executive orders related to the underlying laws, you must still have data showing merit-based hiring. So, you should continue collecting data that demonstrates compliance with the law, despite the government’s mixed messaging.

3. Technology Integration and Governance Will Drive Success

With technological advances, professionals responsible for HR compliance are increasingly integrating AI tools into their day-to-day operations. Ensuring AI HR compliance requires HR professionals to stay informed about what tools are available. 

Many systems can help HR departments run more effectively and efficiently, assisting with, for example:

• Recruitment,
• Automation,
• Onboarding,
• Performance management,
• Monitoring, 
• Analyzing, and
• Planning. 

AI tools rely on common associations in language. HR professionals should understand the potential pitfalls of LLMs before relying on them fully. To ensure you integrate technology effectively and ethically, consider following a step-by-step integration process. Ensure human eyes review any AI framework and understand how it makes decisions before you implement it. Ongoing monitoring of the tools is recommended so you can spot any red flags in bias before they become a large problem.

4. Artificial Intelligence Is Reshaping Compliance Roles and Risk

AI systems are transforming how compliance work gets done, creating both opportunities and risks. As you integrate AI systems, ensure you understand their unique pros and cons. Consider treating AI tools not as artificial intelligence but as interfaces that let you crunch large amounts of data into more manageable forms.

AI HR Compliance Opportunities

AI-based HR tools offer new opportunities, especially in compliance and monitoring. You can use tools to simplify tasks, facilitate remote work, track timing, and keep a better track of your workforce. Different tools may help you ensure your workforce feels supported without feeling smothered.

AI HR Compliance Risks

When the interconnected web of regulations that HR oversees combines with complicated LLM programming, compliance risks can grow. Ensure that you:

• Learn about any potential biases in tools you adopt,
• Thoroughly consider any data privacy questions, and
• Regularly perform audits to identify potential bias.

The employer is responsible for any biased results produced by a LLM, so it’s critical that professionals using AI tools understand the risks.

Creating an HR Compliance Plan for 2026

Technological change is allowing HR compliance to shift its focus from administering and studying complex laws to supporting and empowering employees. Yet, AI tools are not accurate 100% of the time. As you implement new HR compliance policies in 2026, ensure you consult reliable resources outside of AI tech to verify its uses and accuracy.

OutSolve Consultants are here to help you navigate HR compliance requirements with ease. Reach out today for more guidance.