Legislation to Determine AI Impact on the Workforce Introduced

A bill has been introduced in the Senate that would require quarterly reports from major employers and federal agencies on artificial intelligence (AI) related layoffs, new AI created positions, number of retrained or reassigned workers and positions left unfilled due to automation. The Internal Revenue Service (IRS) has released the maximum amounts that employees can contribute next year to different retirement account options. The Equal Employment Opportunity Commission (EEOC) has issued guidance on why discrimination against American workers violates Title VII of the Civil Rights Act of 1964. A subcommittee in the House of Representatives held a hearing on E-Verify.


Bipartisan Bill Requiring Report of AI Related Layoffs – Senator Mark Warner (D-VA) and Senator Josh Hawley (R-MO) introduced the AI-Related Job Impact Clarity Act (S. 3108). The bill would require major companies and federal agencies to report on a quarterly basis on artificial intelligence (AI) related layoffs to the Department of Labor, which would compile the data into a report that would be available to the public. According to Senator Warner, “This bipartisan legislation will finally give us a clear picture of AI’s impact on the workforce – what jobs are being eliminated, which workers are being retrained, and where new opportunities are emerging.”

In addition to AI-related layoffs, the bill would require reporting on the number of new positions created as a result of the implementation of AI, the number of workers retrained or reassigned, and the number of positions that were left unfilled since the work has been automated. The bill has been referred to the Committee on Health, Labor, Education, and Pensions.

IRS Announces 2026 401(k) Contribution Amounts – The Internal Revenue Service (IRS) advised that the maximum amount that individuals can contribute to their 401(k) plans in 2026 has increased by $1,000 to $24,500. In Notice 2025-67, the IRS indicated that the $24,500 contribution limits also apply to 403(b) plans, 457 plans and the federal government’s Thrift Savings Plan. Individual Retirement Account (IRA) contribution limits will increase by $500 to $7,500. 

The IRS noted that the catch-up contribution that allows employees aged at least 50 to contribute additional funds to their 401(k), 403(b), 457, and the federal government’s Thrift Savings Plan will be increased to $8,000 from the current $7,500. Employees aged 50 and over can contribute a total of up to $32,500 starting in 2026. Additionally, according to the IRS, there is a higher catch-up contribution limit for employees between 60 and 63, who can contribute an additional $11,250, the same amount as this year, instead of the $8,000 catch-up contribution limit.

 

EEOC Issues Technical Assistance Document on American Worker Discrimination – The Equal Employment Opportunity Commission (EEOC) released guidance detailing how national origin discrimination violates Title VII of the Civil Rights Act of 1964. The document, “Discrimination Against American Workers is Against the Law” sets forth that Title VII prohibits taking an action that is motivated by the national origin of applicants or employees.  According to EEOC Chair Andrea Lucas, “Unlawful bias against American workers, in violation of Title VII, is a large-scale problem in multiple industries nationwide.”

The document sets forth examples of workplace discrimination against Americans including:

  • Discriminatory job ads that state preference for applicants from a particular country or with a certain visa status.
  • Firing American workers who are between job assignments at a higher rate than employees who are visa guest workers.
  • Subjecting American workers to a more detailed application process than H-1B visa holders.
  • Harassing or retaliating against workers based on national origin or because workers  engaged in protected activity such as opposing national origin discrimination.

EEOC states that hiring foreign workers over American workers cannot be based on customer or client preference; lower labor costs, or beliefs that workers from a national origin group are more productive.

 

E-Verify Hearing Held – The Subcommittee on Workforce Protections of the House Committee on Education and the Workforce held a hearing on “E-Verify: Ensuring Lawful Employment in America.” Representative Ryan MacKenzie (R-PA), chairman of the Workforce Protections Subcommittee stated that “E-Verify helps employers comply with the law while advancing the public policy goals of ensuring a lawful workforce, protecting American workers, and guaranteeing a level playing field for businesses hiring legal workers.” While E-Verify is currently voluntary, he noted that over 1.4 million employers are enrolled with a number of states mandating its use for all or some employers in their states. He advised that he has introduced H.R. 2641, which would require all federal contractors to participate in the E-Verify program. The bill has been referred to the Committees on Education and the Workforce and the Judiciary.

Rosemary Jenks, Cofounder and Policy Director, Immigration Accountability Project testified that

“E-Verify is essential not only to deter illegal aliens from seeking and obtaining employment in the United States, but also to provide good-faith employers with a cheap and effective way to verify that the documents submitted by new hires are valid.” While acknowledging that the E-Verify system is not perfect, she believes that the majority of E-Verify inaccuracies are due to employer errors and employee data mismatches that can occur, for example when new hires fail to update name changes with the Social Security Administration. She called for E-Verify to be made mandatory for all employers and that the system could handle the workload that would result from a national mandate.

By contrast, Jessie Hahn, Senior Counsel, Labor and Employment Policy, National Immigration Law Center (NILC) testified in opposition to any expansion of E-Verify unless accompanied by comprehensive immigration reform and additional protections for workers. She stated that the E-Verify program is “ineffective and harmful to workers and employers alike” She noted that E-Verify errors occur at a higher rate for natural citizens and authorized noncitizens that can result in “barriers to employment and exposing these workers to discrimination and economic harm.” Additionally, when an employee is incorrectly identified  as ineligible for employment, the worker has the burden of attempting to correct the errors and this may involve dealing with multiple government agencies. She recommended that a comprehensive study be undertaken of the E-Verify system before mandating its use nationwide.  


Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. He is an attorney, a frequent writer and speaker on public policy and human resource issues, and an adjunct faculty member at George Mason University. For questions or additional information, contact Reichenberg at neilreichenberg@yahoo.com.

 

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