With decades of experience helping organizations drive change through technology, HRTech expert Ling-Yi Tsai is uniquely positioned to dissect the complex web of labor and employment shifts on the horizon for 2026. Her work in HR analytics and technology integration gives her a frontline view of how regulatory changes impact everything from recruitment to talent management. Today, we’re exploring the seismic shifts employers must navigate, from the intricacies of AI bias audits and evolving H-1B visa strategies to the tangible impacts of potential federal labor reforms and a reconstituted National Labor Relations Board. We’ll also unpack the operational challenges presented by soaring state minimum wages and what it all means for the modern workplace.
States are increasingly requiring bias audits and transparency for AI tools used in hiring and promotions. What practical, step-by-step process should an HR department follow to prepare for these new rules, and what are the most critical metrics to track for compliance?
The most critical first step is to conduct a comprehensive inventory of every single AI tool you use in the employment lifecycle, from initial resume screening to promotion eligibility algorithms. You can’t manage what you don’t know you have. From there, you must establish a clear process for conducting regular bias audits, looking for any discriminatory patterns in hiring or promotion decisions. This isn’t just a technical exercise; it’s about ensuring fairness. The key metrics to track are the selection and rejection rates across different demographic groups protected by law. Finally, you need to create a transparent notification system, a clear, understandable way to inform candidates and employees when an automated system is influencing a decision about their career. With federal guidance still murky, this proactive, state-focused approach is absolutely essential to avoid significant legal and reputational risk.
With potential H-1B visa changes prioritizing higher-paid positions and stricter screening for foreign workers, what immediate immigration strategies should employers develop? Please share some examples of how to adjust workforce planning to navigate these hurdles and avoid talent gaps.
Employers absolutely must get ahead of this by building more proactive immigration strategies directly into their workforce planning. The old reactive approach is no longer viable. A key strategy is to re-evaluate your compensation structures for roles that typically rely on H-1B talent; you may need to increase salary offers to ensure your positions are prioritized under the new rules. Simultaneously, you should explore alternative visa pathways and begin the process for green cards earlier for critical employees, as the new rules may offer new avenues to permanent residency. For example, if you anticipate a key project will be delayed by visa backlogs, you need to start cross-training domestic talent now or adjust project timelines. This isn’t just an HR or legal issue; it’s a core business continuity challenge that demands immediate attention to prevent disruptive talent gaps.
A significant federal labor reform package is being debated in the Senate. If passed, what would be the most immediate, tangible impacts on union representation processes, and how can employers proactively begin adapting their collective bargaining frameworks for these potential changes?
If this legislative package passes, the most immediate impact will likely be a fundamental change in how union representation is established. The current processes could be dramatically streamlined or altered, potentially changing the speed and dynamics of organizing campaigns overnight. Employers would feel this on the ground immediately. To prepare, organizations should begin by reviewing their current collective bargaining agreements and labor relations policies with a forward-looking lens. It’s time to scenario-plan: “If the rules for representation change in this specific way, how does it affect our current framework?” This isn’t about union-busting; it’s about being prepared to engage constructively and legally within a potentially brand-new set of rules that could reshape workplace benefit structures and negotiation tactics for decades to come.
After operating without a quorum, the National Labor Relations Board has been reconstituted with new leadership. Which specific Biden-era labor protections do you foresee being narrowed or reversed first, and how will this shift in enforcement concretely affect day-to-day workplace policies?
With the NLRB back to full strength under new leadership, I expect to see an immediate re-examination of recent pro-labor standards. Specifically, I foresee a narrowing of protections related to concerted activities, particularly how they apply to non-union workplaces and social media policies. For years, the scope of protected employee speech has been expanding, and this new Board, with members like Scott Mayer and Chair James D. Murphy, is likely to pull that back. In concrete terms, this could mean that employers regain more authority to regulate what employees can say about working conditions online or in the breakroom. Companies should anticipate updated guidance and may soon have more latitude in drafting their employee handbooks and conduct policies, marking a significant shift from the enforcement priorities of the past few years.
With states like New York, California, and Washington pushing minimum wages to nearly $17 per hour or more, what are the secondary operational challenges businesses face beyond payroll? Can you provide some specific, creative strategies for managing these increased labor costs while maintaining morale?
Beyond the immediate hit to payroll, the biggest secondary challenge is wage compression. When you raise the floor to $17 an hour, as we’re seeing in New York and Washington, your more experienced employees who were making $19 or $20 an hour suddenly feel undervalued. This can be a huge blow to morale. To manage this, businesses have to get creative. One strategy is to heavily invest in non-monetary benefits and professional development, offering clear pathways for advancement that justify pay differentials. Another is to implement performance-based incentives or gain-sharing programs, so when the business does well, everyone benefits. You can also strategically re-engineer workflows and invest in technology to improve efficiency, which helps offset costs without simply cutting hours—a move that would destroy morale and defeat the purpose of the wage increase.
What is your forecast for labor and employment law in the coming years?
My forecast is for a period of increasing complexity and divergence. We will see a widening gap between federal policy and aggressive state-level legislation, especially in areas like AI regulation, paid leave, and minimum wage. For businesses, this means a one-size-fits-all compliance strategy will become completely obsolete. The pressure will be on HR departments to become experts in hyper-local regulations, navigating a patchwork of laws that can change based on city or county lines. Technology will be both a source of risk and the essential tool for managing it, making data privacy and algorithmic fairness central themes. Ultimately, the employers who thrive will be those who embrace agility, invest in compliance technology, and prioritize transparent communication with their workforce through this period of significant change.