Supreme Court Clarifies Scope of the Federal Arbitration Act's Transportation Worker Exemption for "Last-Mile" Drivers
On May 28, 2026, the Supreme Court of the United States ruled in Flower Foods, Inc. v. Brock that "last-mile" drivers may qualify for the Federal Arbitration Act (FAA) transportation worker exemption. The Court unanimously ruled that the transportation worker exemption can extend to cover transportation workers who deliver goods originating out of state, or "last-mile" drivers—even if those workers do not themselves cross state lines—if their work directly contributes to the interstate movement of goods.
Colorado's New AI Law: What Employers Need to Know About Automated Decision-Making
After a protracted legal battle over Colorado's first legislation on the use of AI in decision making, the dust has finally cleared, and businesses have some guidance on what to expect. Governor Polis recently signed SB26-189 into law, which creates sweeping new requirements for businesses that develop or deploy automated decision-making technology (ADMT).
Charlie's Law: New Legal Obligations for Virginia Independent Schools in Responding to Student Bullying
As independent schools in Virginia review their student/family and employee handbooks over the summer break, they will want to ensure they are aware of a new law impacting their handbook policies.
Tip of the Month
Todd Horn: Employers are increasingly using artificial intelligence tools to conduct quick, preliminary research on workplace compliance questions. This is understandable—AI is fast and convenient and does not require coffee, vacation, or a year-end bonus. Used appropriately, it can be a helpful starting point for identifying issues, summarizing general concepts, and organizing the questions that may need to be asked.
But employers should be careful before treating an AI-generated answer as the final word on labor and employment compliance. AI tools can provide responses that sound very confident, even when they are incomplete, outdated, or just plain wrong. This is a particular concern in employment law, where the answer often depends on several highly inconvenient details, such as the state involved, the city involved, the number of employees, the employee's classification, the employer's policies, whether a collective bargaining agreement applies, and approximately 47 other things that lawyers tend to ask about before saying anything definitive.
AI also may miss important nuance. A general answer about paid leave, wage and hour requirements, reasonable accommodations, restrictive covenants, employee discipline, or reductions in force may not account for recent legal developments, agency guidance, local ordinances, or the employer's own past practices. In other words, AI may be very good at giving an answer, but is not always as good at knowing whether it is the right answer for the specific situation.
Employers also should be mindful about what they put into AI tools. Confidential employee information, proprietary business information, and privileged communications should not be entered into public AI platforms unless the employer understands how that information may be used, stored, or disclosed.
The practical takeaway is not that employers should avoid AI altogether. AI can be a useful tool in the compliance toolbox. But it should be treated as a first step, not the last step. Employers can use AI to spot issues and frame questions, but before taking action, they should confirm the answer through trusted legal resources and, when appropriate, HR, in-house counsel, or outside employment counsel. As with many workplace issues, a little extra review on the front end can help avoid a much less amusing problem later.
In Case You Missed It
The EEOC's New Enforcement Plan Puts Employers on Notice: An Overview of the Agency's Key Enforcement Priorities for 2025–2029
On June 4, 2026, the U.S. Equal Employment Opportunity Commission (EEOC or the Agency) published a new National Enforcement Plan (NEP) for Fiscal Years 2025-2029. Although the NEP does not create new legal obligations for employers, it provides a roadmap for how the EEOC will prioritize investigations, enforcement actions, and litigation over the next several years and offers important insight into the Agency's enforcement agenda under the current Administration.
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About the Labor and Employment Group
The national, 40-person Labor and Employment team at Venable provides guidance and support across the full spectrum of workplace dynamics – helping employers control costs, avoid disputes, and defend themselves when litigation arises. Allison Gotfried, editor of this newsletter, invites you to share the content with your colleagues and reach out with any questions.
