Workforce planning should include strategies to reduce litigation risks. Recent developments — including executive orders affecting inclusion and diversity (I&D) initiatives — have made policy updates, merit-based hiring, and targeted training more critical than ever.
According to SHRM, top litigation risks include retaliation claims tied to executive orders, whistleblower reports on artificial intelligence misuse, hybrid work enforcement complaints, and "reverse discrimination" claims.
Updated policies, comprehensive training, and thorough documentation are your best defenses against litigation. SHRM's Belonging Enhanced by Access through Merit (BEAM) Framework for I&D provides step-by-step guidance for designing compliant strategies from the ground up.
Training new employees during onboarding and offering regular refreshers helps prevent claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination in Employment Act. However, outdated training can increase risk.
Joyce Chastain, an HR consultant with the employment law firm The Krizner Group in Tallahassee, Fla., notes a surge in age-related claims, often triggered by supervisors making comments like, "Have you thought about retirement?" rather than addressing performance issues directly.
Micro-learning — brief, practical modules that employees can complete during breaks — is proving effective at preventing such claims.
Luther Wright Jr., an attorney with Ogletree Deakins in Nashville, said that pausing training, even temporarily, creates vulnerabilities that plaintiffs exploit to drive up settlement costs.
Supreme Court’s Tariff Cases Could Result in Tightened Belts
The U.S. Supreme Court's upcoming tariff cases could reshape workplace compensation and staffing decisions. If upheld, tariffs may lead to tighter budgets, reduced pay increases, and potential layoffs as businesses face higher costs and squeezed margins. The tariffs are particularly impacting import-dependent industries and small businesses with limited financial flexibility.
On the other hand, some employers — especially domestic manufacturers competing with imports — might benefit.
FSA Contribution Limit Rises to $3,400 in 2026
The IRS increased the health flexible spending account (FSA) contribution limit to $3,400 for 2026, up from $3,300 in 2025. This inflation-adjusted boost helps employees manage rising health care costs through pretax savings.
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