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Susan F. Eandi

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The EU Pay Transparency Directive’s transposition deadline—June 7, 2026—has passed. As of the June 7 deadline, only a handful of Member States—notably Slovakia, Italy and Lithuania—have fully or largely implemented the Directive, with most others still working through draft legislation or delayed timelines.

Most member states are behind, resulting in uneven implementation across the bloc and leaving employers to navigate a fragmented and evolving landscape with staggered national rollouts and divergent approaches across jurisdictions. Here’s what US-based multinationals need to know now.

The Practical Outlook for Multinational Employers

For US companies managing EU workforces, the next 12–24 months will look like:

Patchwork Implementation

  • Countries will finalize laws on different timelines
  • Some will gold-plate requirements (e.g., broader scope, stricter remedies)
  • Others may take a more minimalist approach

Rolling Compliance Programs

  • Employers will need to sequence implementation by jurisdiction
  • Internal frameworks must be modular and adaptable, not one-size-fits-all

Heightened Litigation & Enforcement Risk

Even before full implementation, expect:

  • Increased employee claims and works council pressure
  • Greater scrutiny of pay equity and transparency practices
  • Use of existing laws (e.g., equal pay frameworks) alongside emerging rules

Reminder of the Directive’s Core Requirements

The Directive introduces a consistent set of core obligations across the employment lifecycle, centered on greater transparency, more rigorous pay monitoring, and enhanced enforcement risk—though the detail and delivery will vary by country.

Continue Reading EU Pay Transparency Directive: Deadlines Missed, But the Real Work Starts Now

In our recent post, AI Regulation on Hold in Colorado—But Employer Risk Isn’t, we flagged that delay did not mean diminished risk. That continues to hold true. Colorado has now approved a comprehensive rewrite of its AI law, while Illinois regulators are advancing practical disclosure requirements for employers using AI in employment decisions.

The direction is clear: AI oversight in the workplace is moving forward—and becoming more operational.

Colorado: Recalibration, Not Retreat

Colorado’s rewrite reflects an effort to make its AI framework more workable—but not less relevant for employers.

Key points:

  • Employment uses remain in scope: AI tools used in hiring, promotion, and other employment decisions continue to be treated as “high risk.”
  • Governance expectations remain: Employers will still need risk management and oversight frameworks.
  • Transparency still matters: Notice and documentation obligations continue, even as details evolve.
Continue Reading Colorado and Illinois Advance AI Transparency Obligations for Employers

On April 27, 2026, a federal court paused enforcement of Colorado’s Artificial Intelligence Act (SB 24-205), placing one of the country’s most comprehensive state AI laws on hold while lawmakers reconsider its timing and scope. The order prevents the state from initiating enforcement actions during the pendency of the litigation, effectively freezing the law just weeks before its anticipated June 30, 2026 effective date.

This development is neither a repeal nor a permanent delay. Instead, it leaves employers in a familiar position—navigating a period of legal uncertainty while continuing to operate against a rapidly evolving regulatory backdrop. Importantly, even if the Colorado law is ultimately blocked or significantly revised, employers should not view the pause as a signal to deprioritize AI governance. As discussed below, the legal and regulatory risks associated with AI in employment remain very much in force.

Background

With the statute’s effective date approaching, a leading AI developer filed suit in April seeking declaratory and injunctive relief, challenging the constitutionality of several provisions of the Act. Shortly thereafter, the US Department of Justice intervened, arguing that aspects of the law impermissibly compel AI systems to adopt state‑defined viewpoints. The DOJ’s intervention marks the administration’s first litigation effort aimed at limiting state‑level AI regulation.

Continue Reading AI Regulation on Hold in Colorado—But Employer Risk Isn’t

Since our April 6 blog, Why the New DEI Executive Order Matters for Federal Contractors—and Signals Broader Risk for All US Employers, where we highlighted how the latest Executive Order creates new contractual obligations for federal contractors and subcontractors, with potentially far reaching implications, there have been several significant developments that collectively signal a…

Six months ago, our Back‑to‑School Guide on Recent Developments in Workplace DEI examined how the 2025 executive orders—and early guidance from the Equal Employment Opportunity Commission (EEOC) and the Department of Justice (DOJ)—led many US-based employers to recalibrate DEI-related risk, conduct DEI health checks, and fine-tune specific initiatives and practices.

In 2026, the risk is not coming from landmark court rulings declaring DEI unlawful. Instead, it is coming from enforcement tools: investigations, subpoenas, contract terms and leverage applied across multiple fronts—often before any litigation is filed.

That reality came into sharper focus on March 26, with the issuance of a new executive order further targeting “DEI discrimination” by federal contractors.

Workplace DEI remains lawful. But employers should expect heightened scrutiny of how programs are structured, incentivized, documented, and defended—through EEOC inquiries, administrative subpoenas, FCA theories tied to certifications, and discovery-driven litigation.

The New Executive Order Enhances DEI Risk for Federal Contractors

The White House’s new executive order—“Addressing DEI Discrimination by Federal Contractors”—creates new contractual obligations for federal contractors and subcontractors. Potential consequences include termination, debarment, and potential False Claims Act (FCA) exposure. The order (and the accompanying Fact Sheet) is operationally consequential: it ties compliance to federal contracting, expands agency access to contractor information, and more explicitly links compliance with these contractual obligations to FCA theories.

Continue Reading Why the New DEI Executive Order Matters for Federal Contractors—and Signals Broader Risk for All US Employers

The Argentine Senate has given preliminary approval to an ambitious Labor Modernization Bill that would meaningfully recalibrate Argentina’s employment law framework. The proposal introduces sweeping amendments to the Employment Contract Law and related statutes, with a clear policy focus on reducing informality and litigation, improving predictability around employment status, and enabling greater operational flexibility—developments that…

On March 20, the White House published a “National AI Legislative Framework” outlining policy recommendations for Congress to develop a unified federal approach to AI legislation and regulation. While our cross‑disciplinary AI team prepared a more detailed analysis (copied below), here is the employment‑law tl;dr:

  • No immediate legal change. The framework does not impose new obligations on employers, and it does not include draft legislation or an executive order directing federal agencies. Instead, it sets out legislative recommendations for Congress, reflecting the administration’s vision for a comprehensive federal AI statute.
  • Preemption is the through‑line. The recommendations are consistent with the administration’s December 2025 Executive Order and July 2025 AI Action Plan, and they expressly support broad federal preemption of state AI laws that impose undue burdens. At the same time, the framework contemplates carve‑outs to preserve states’ traditional police powers—such as protecting children and preventing fraud.

Takeaway for Employers

Unless and until Congress enacts federal legislation with preemptive effect, state and local AI laws remain fully in force. That matters: a growing number of jurisdictions already regulate how employers use AI in hiring, promotion, performance management, and other employment decisions—including California, Colorado, Illinois, and New York City, among others. For now, compliance remains a decidedly multi‑jurisdictional exercise.

For support developing your AI adoption strategies, including compliance with regulations outside of the US like the EU AI Act, please contact your Baker McKenzie employment lawyer.

White House Outlines AI Legislative Agenda with National AI Legislative Framework

By Brian Hengesbaugh, Justine Phillips, Lothar Determann, Keo McKenzie, Cristina Messerschmidt, Susan Eandi, Caroline Burnett, Joshua Wolkoff, Alysha Preston, Stanislav (Stan) L. Sirot, Brian Zurawski and Avi Toltzis

On March 20, 2026, the White House published a four-page document with “Legislative Recommendations” in its National Policy Framework for Artificial Intelligence (the “AI Framework”). The AI Framework does not include specific draft legislation or an executive order, but instead contains recommendations for Congress, setting out the administration’s vision for a comprehensive federal AI legislative package. The AI Framework is not legally binding either for on Congress or on private sector companies. The AI Framework, building on Executive Order 14365, outlines eight key policy areas for federal AI legislation aimed at preempting restrictive state laws and bolstering AI innovation.

Background

The AI Framework represents the latest significant step in the Trump administration’s technology agenda and is consistent with, and builds on, its past actions regarding the national AI strategy going back to the very first days of President Trump’s second term. Within the first week of returning to the presidency, President Trump revoked the Biden-era Executive Order 14110 on “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence”, which he swiftly replaced with Executive Order 14179 on “Removing Barriers to American Leadership in Artificial Intelligence”. Executive Order 14179 established the national AI policy to “sustain and enhance America’s global AI dominance in order to promote human flourishing, economic competitiveness, and national security,” but provided few specifics.

Continue Reading What the March 20 ‘National AI Legislative Framework’ Means for US Employers Right Now

On December 11, 2025, President Trump signed an Executive Order on “Ensuring A National Policy Framework For Artificial Intelligence” (the “Order”). The Order represents the Administration’s latest and most pointed attempt to stop and reverse the wave of state AI legislation that has emerged over the preceding year, which the Order asserts “creates a patchwork of 50 different regulatory regimes.” The Order raises the political stakes regarding state AI laws and creates uncertainty in the form of anticipated litigation, but does not instantly remove current or impending state AI law obligations for companies developing or deploying AI.

Continue Reading Pre-emption by Executive Order: Trump Order Moves to Block State AI Laws

As California continues to set the pace for employment law regulation, 2026 looks to be another high-speed race filled with sharp turns and new obstacles. From restrictions on repayment agreements and expanded Cal WARN notice requirements to stricter pay equity rules, and much more, California employers are entering a compliance race where every second counts.

Fast Track to 2026: A 75-Minute Must-Attend Webinar for In-House Counsel

The legal landscape impacting California employers is evolving at breakneck speed. As we race toward 2026, employers need to stay agile, informed, and ready to shift gears. This high-impact session will cover the most pressing workplace trends, risks, and regulatory changes ahead for California…