HR & Compliance News — May 2026

Payroll & Tax

New Federal Order Requires Banks to Flag Non-Citizen Tax ID Use in Payroll

A new executive order directs financial institutions to scrutinize banking activities involving Individual Taxpayer Identification Numbers (ITINs) used by non-citizens, with a focus on identifying potential payroll tax evasion and shell company operations. While the order stops short of mandatory citizenship verification, it increases oversight of employer payroll accounts and payment patterns. Banks may begin flagging unusual ITIN-related transactions to federal authorities.

Takeaway: Ensure your payroll processes are fully compliant and that you're properly classifying all workers — increased scrutiny means payroll irregularities are more likely to trigger audits.

Employee Benefits

Federal Proposal Would Require Medicaid Work Requirements, Affecting Employee Benefits Planning

Federal regulators are moving forward with Medicaid work requirements that could result in millions of people losing coverage if they don't meet minimum work hour thresholds. This policy shift may increase the number of employees who need employer-sponsored health coverage or who seek full-time rather than part-time positions to maintain benefits. Employers in industries with variable-hour workers should prepare for potential changes in benefits enrollment.

Takeaway: Review your benefits communication strategy and be prepared for increased enrollment questions, especially from part-time or seasonal workers who may lose alternative coverage.

Employment Law

Florida Appeals Court Grants Broad Liability Protection to Gig Economy Platforms

A Florida appellate court issued a sweeping interpretation of a 2020 state law, granting rideshare companies like Uber and Lyft extensive immunity from liability claims. The ruling clarifies that gig platform companies receive unusually broad legal protections under Florida law. This decision may influence how other states approach liability questions for companies using independent contractor models.

Takeaway: If you operate in Florida or use contractor-based staffing models, consult legal counsel about how this expanded immunity might apply to your business structure and risk exposure.

Workplace Safety

California Considers Ban on Quartz Countertops Over Silicosis Risk to Workers

California lawmakers are evaluating a potential ban on kitchen quartz countertops due to rising cases of silicosis, an incurable lung disease caused by inhaling silica dust during cutting and fabrication. Workers in countertop manufacturing, installation, and stone fabrication face the highest risk from crystalline silica exposure. The proposal reflects growing state-level attention to occupational health hazards in construction and manufacturing trades.

Takeaway: Employers in construction, fabrication, or stone-working industries should review their silica dust safety protocols and ensure proper respiratory protection and ventilation are in place.

Workplace Safety

Understaffing at OSHA Highlights Need for Proactive Workplace Safety Programs

A report revealed that West Virginia has only six OSHA inspectors to cover 60,000 workplaces, following fatal incidents at facilities with previous violation histories. This severe understaffing means many employers may go years between inspections, but also means that when violations do occur, they often involve serious injuries or fatalities that trigger investigations. The gap underscores that employers cannot rely on external enforcement to identify hazards.

Takeaway: Don't wait for an OSHA inspection — conduct regular internal safety audits and address hazards proactively to protect your workers and avoid costly citations after an incident.