U.S. employers are preparing for changes in workplace policy and regulation, with technology-related risks such as artificial intelligence and data privacy now at the forefront, according to a May 6 report from Littler Mendelson P.C.
The findings matter because they show how businesses are shifting their focus from previous priorities like diversity, equity and inclusion (DEI) and immigration enforcement to new challenges posed by rapidly advancing technology. The survey highlights that after a year shaped by Trump administration initiatives on immigration and DEI scrutiny, companies must now address emerging risks tied to AI use in the workplace.
Littler’s 14th Annual Employer Survey gathered insights from more than 300 C-suite executives, in-house lawyers, and human resources professionals. The report identifies AI as the leading area where employers expect regulatory changes to impact their operations over the next year. Data privacy follows closely behind. “AI is now the leading area where employers expect changes to workplace policy and regulation to impact their businesses over the next year, followed by data privacy,” according to the survey. This marks a shift from last year’s results when DEI and immigration were top concerns.
As AI becomes more integrated into business processes, many organizations are adopting governance measures for its use while reconsidering staffing needs. The survey also points out expected employment litigation risks related to AI liability, workplace accommodations, wage compliance issues, retaliation claims, wrongful terminations or reductions in force (RIFs), and paid leave policies.
Six years after the pandemic began, hybrid work remains common for roles that can be performed remotely. Employers continue to see an increase in requests for leave of absence or accommodation—especially those connected with mental health needs. Other important topics covered include state legislatures’ actions on labor-friendly policies, changing trends in False Claims Act enforcement, and challenges when employees move to competitors.
The full Littler Annual Employer Survey 2026 Report is available online.
