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HR Compliance in 2026: Paper I-9s, AI Bias, and $27K Fines

By Advos
A new podcast episode highlights the growing complexity of HR compliance, from paper I-9s and AI hiring bias to hefty fines and state-level regulations.
HR Compliance in 2026: Paper I-9s, AI Bias, and $27K Fines

In the latest episode of the WRKdefined Podcast Network's "You Should Know," host Ryan Leary sits down with Jeremy Mancheski, founder and CEO of OutSolve, to dissect the mounting challenges of HR compliance. The episode, titled "The HR Compliance Risks Companies Keep Missing," published on August 11, 2026, offers a stark look at how overlapping federal, state, city, and county regulations, aggressive ICE enforcement, and the rise of AI hiring tools are creating a minefield for employers.

Mancheski, who founded OutSolve in 1998, does not mince words about the financial stakes. "You could have up to $27,000 for a fine for a violation in I-9s, and that's per employee," he warns, noting that ICE enforcement is currently prevalent and that most employers have deficiencies they do not know about. This is a critical reminder that paper I-9 forms and inconsistent retention practices remain a significant liability, even in an era of electronic verification.

The conversation also tackles remote workforce risks, where differing state, city, and county posting, pay transparency, and reporting rules create a compliance labyrinth. Mancheski points out that what is old is new again: the mid-1990s shift from paper applications to applicant tracking systems mirrors today's move from paper I-9s to electronic verification, including the remote I-9 verification that emerged during COVID. However, he cautions that technology has not eliminated the need for experienced human oversight.

AI hiring decisions come under scrutiny as well. Mancheski compares current hiring tools to those first-generation ATS platforms: useful but flawed, with bias issues that plaintiffs' attorneys and regulators are already testing in court. The recent Workday-related litigation raises accountability questions that companies cannot afford to ignore. As AI becomes more embedded in HR processes, the potential for bias and legal exposure grows.

On the regulatory front, Mancheski highlights the uncertain future of the EEO-1 report and the rise of state-level versions in blue states. He also urges HR leaders to physically read their break room posters, which often reveal contradictions between red-state and blue-state obligations. Federal OSHA notices and state-specific requirements can conflict, leaving employers exposed if they rely on generic compliance measures.

The political whiplash reshaping HR adds another layer of complexity. "You've had harder swings in one direction, then the next administration swings them in the other, and it's muddied those lanes a bit," Mancheski explains. This volatility makes it difficult for companies to stay ahead of compliance requirements, especially when rules change with each administration.

The episode is grounded in the real-world experience of OutSolve's roughly 70 HR compliance consultants, who see these issues inside client accounts every week. For more insights, listeners can explore the show at WRKdefined Podcast Network. The episode is available now wherever podcasts are heard.

As the landscape grows more complex, the message is clear: HR compliance is not just a box-ticking exercise. It requires vigilance, expertise, and a proactive approach to avoid costly fines and legal battles. Employers must adapt to the new realities of AI, remote work, and shifting regulations, or risk being left behind.

Advos

Advos

@advos