Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
Workplace policy is in the middle of its fastest reset in decades. From artificial intelligence rules to benefits mandates, talent shortages, and caregiving pressures, employers are navigating overlapping changes that affect how people are hired, paid, supported, and managed. The result is a more complex operating environment where compliance, workforce strategy, and employee experience are increasingly intertwined.
Across industries, human resources leaders are being pushed to respond not just to new technologies or labor trends, but to an expanding mix of state and federal regulations that often move faster than organizational policy can keep up, according to a new SHRM report.Â
Here are SHRM’s top five workplace policy issues for 2026.Â
1.AI Adoption Is Outpacing the Rules That Govern It
Artificial intelligence is becoming embedded across recruiting, performance management, scheduling, and workforce analytics. But regulation has not kept pace. States are rolling out their own rules around algorithmic bias, transparency, and surveillance, while federal policymakers debate broader oversight that could override or unify state approaches.
This regulatory fragmentation is creating uncertainty for employers using AI-enabled tools. Beyond compliance risk, AI is reshaping job design itself. Automation is changing skill requirements, blurring traditional job classifications, and raising new questions about accountability for AI-assisted decisions.
At the same time, many employment laws were written for a very different definition of work. Surveys show most employers believe the concept of the workday has fundamentally changed, while a large majority say federal wage and hour laws no longer reflect how work actually happens.
2.Benefits Are Becoming More Expensive and Harder to Manage
Rising healthcare costs, expanded paid leave laws, and new reporting requirements are making benefits both costlier and more complex. Employers are trying to balance affordability with competitiveness as employees expect broader coverage for mental health, fertility care, and digital health services.
Compliance adds another layer of difficulty. States continue to pass benefits and leave mandates using different standards and timelines, creating challenges for organizations operating in multiple jurisdictions. Changes to tax credits and retirement rules are also affecting long-term benefits planning.
Clear communication has become critical. As benefits packages grow more complex, employees often struggle to understand what is available to them, increasing frustration even when offerings expand.
3.Talent Shortages Are Colliding With Skills Gaps
Hiring challenges remain widespread. Nearly seven in ten organizations report difficulty filling full-time roles, driven by demographic changes, an aging workforce, and persistent skills mismatches. In many cases, employers are not filling new roles but redefining existing ones with expanded technical or digital skill requirements.
AI is accelerating this trend by raising expectations for adaptability and continuous learning. At the same time, immigration restrictions and visa delays are narrowing access to global talent, while domestic education and training pipelines are not producing workers fast enough to meet demand.
To close gaps, employers are increasingly looking beyond traditional talent pools. Older workers, people with disabilities, veterans, individuals with criminal histories, and early-career workers are being reevaluated as critical sources of skills and stability, especially when paired with reskilling and apprenticeship programs.
4.Inclusion Efforts Face Growing Legal Scrutiny
Inclusion and diversity initiatives remain priorities for many organizations, but the legal environment around them is changing. Recent court rulings, executive actions, and evolving enforcement priorities are forcing employers to reassess policies that were once considered low-risk.
Regulatory agencies are signaling more aggressive enforcement of anti-discrimination laws, along with closer review of hiring, promotion, and accommodation practices. This has increased pressure on employers to ensure inclusion efforts align clearly with legal standards.
Policy audits, clearer documentation, and careful monitoring of federal and state developments are becoming essential to managing both compliance and reputational risk.
5.Caregiving Is Now a Core Workforce Issue
Caregiving responsibilities are emerging as one of the most significant, and least resolved, workforce pressures. Employees supporting children, aging parents, or family members with disabilities report impacts across finances, health, and career progression.
With limited public care infrastructure and fragmented leave laws, employers are often left to fill the gaps. The consequences are measurable: higher absenteeism, increased turnover, and early exits from the workforce.
Organizations are responding by expanding flexibility, enhancing caregiver benefits, and placing greater emphasis on mental health support. Equally important is culture. Workplaces that normalize caregiving responsibilities and clearly communicate available resources tend to see stronger retention and engagement.
Executive Actions Will Reshape Workforce Policy Next
Beyond those top challenges, companies also need to be aware of executive orders and regulatory changes coming from government agencies. Looking ahead, proposed changes to overtime rules, worker classification standards, joint employer definitions, and immigration policy are expected to significantly affect employer obligations.Â
These changes carry direct implications for payroll systems, benefits eligibility, and workforce planning.
Because state and federal actions are often misaligned, compliance complexity is likely to increase before it stabilizes. Employers are being urged to monitor developments closely, assess risk scenarios early, and prepare for rapid adjustments as new rules take effect.
What’s clear is that workforce policy is now a central strategic issue, shaping competitiveness, resilience, and how work itself is defined in the years ahead.
