DROPLETS
A new executive order directs immigration and labor agencies to consider an employer's layoffs within the prior year when reviewing H-1B filings, increasing scrutiny at multiple stages of the process.
A September 18 executive order directs the Departments of Homeland Security, Labor, and State to consider whether a sponsoring employer has conducted layoffs in the prior year—or plans future ones—affecting "similarly situated" U.S. workers. This directive significantly heightens scrutiny for companies that sponsor H-1B workers while also conducting reductions in force. Unlike existing nondisplacement rules that are limited to certain employers and a 90-day window, this order appears to apply to all H-1B employers and looks back a full year. The increased review can occur at multiple stages, including Labor Condition Application certification, USCIS petition adjudication, and consular processing. The order also directs the Labor Department to review previously submitted applications for potential new enforcement actions. The practical scope of the order remains uncertain pending forthcoming rules and operational guidance from the agencies. Sponsoring employers with recent or planned layoffs should prepare to provide detailed justifications for their H-1B petitions.
A new law effective November 8 grants New York employees broad rights to inspect, copy, and dispute their personnel records, imposing new notice, retention, and anti-retaliation duties on employers.
On September 9, 2026, New York enacted a law granting employees and former employees new rights to their personnel files, effective November 8, 2026. The law imposes significant compliance burdens on nearly all New York employers, requiring them to notify an employee within 10 days of placing negative information in their file and to provide a complete copy of the record within five business days of a written request. It also establishes a three-year post-termination retention period and contains a robust anti-retaliation provision. The New York attorney general is tasked with enforcement, and noncompliance carries financial penalties.
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Citing Crunchbase data from the first half of 2026, a new report finds that 73% of all U.S. startup funding now comes from rounds of $1 billion or more.
The startup funding landscape has dramatically shifted, with billion-dollar-plus "mega-rounds" moving from rarity to the new standard. According to a report analyzing Crunchbase data from the first half of 2026, these large rounds now account for a staggering 73% of all startup investment in the United States and 60% globally.
This trend fundamentally alters financing and growth strategies for both startups and investors. Founders must now build companies prepared for the intense, sophisticated due diligence and heightened governance expectations that accompany nine- and ten-figure checks much earlier in their lifecycles. For investors, the concentration of capital creates a high-stakes environment focused on identifiable market leaders. This new paradigm affects valuation metrics, preferred deal terms, and exit strategies, requiring sophisticated counsel to guide clients through a more demanding and competitive financing gauntlet. Companies and their advisors should now reassess fundraising roadmaps to align with the expectations of mega-round investors.
A new executive order directs immigration and labor agencies to consider an employer's layoffs within the prior year when reviewing H-1B filings, increasing scrutiny at multiple stages of the process.
A September 18 executive order directs the Departments of Homeland Security, Labor, and State to consider whether a sponsoring employer has conducted layoffs in the prior year—or plans future ones—affecting "similarly situated" U.S. workers. This directive significantly heightens scrutiny for companies that sponsor H-1B workers while also conducting reductions in force. Unlike existing nondisplacement rules that are limited to certain employers and a 90-day window, this order appears to apply to all H-1B employers and looks back a full year. The increased review can occur at multiple stages, including Labor Condition Application certification, USCIS petition adjudication, and consular processing. The order also directs the Labor Department to review previously submitted applications for potential new enforcement actions. The practical scope of the order remains uncertain pending forthcoming rules and operational guidance from the agencies. Sponsoring employers with recent or planned layoffs should prepare to provide detailed justifications for their H-1B petitions.
Citing Crunchbase data from the first half of 2026, a new report finds that 73% of all U.S. startup funding now comes from rounds of $1 billion or more.
The startup funding landscape has dramatically shifted, with billion-dollar-plus "mega-rounds" moving from rarity to the new standard. According to a report analyzing Crunchbase data from the first half of 2026, these large rounds now account for a staggering 73% of all startup investment in the United States and 60% globally.
This trend fundamentally alters financing and growth strategies for both startups and investors. Founders must now build companies prepared for the intense, sophisticated due diligence and heightened governance expectations that accompany nine- and ten-figure checks much earlier in their lifecycles. For investors, the concentration of capital creates a high-stakes environment focused on identifiable market leaders. This new paradigm affects valuation metrics, preferred deal terms, and exit strategies, requiring sophisticated counsel to guide clients through a more demanding and competitive financing gauntlet. Companies and their advisors should now reassess fundraising roadmaps to align with the expectations of mega-round investors.
A new law effective November 8 grants New York employees broad rights to inspect, copy, and dispute their personnel records, imposing new notice, retention, and anti-retaliation duties on employers.
On September 9, 2026, New York enacted a law granting employees and former employees new rights to their personnel files, effective November 8, 2026. The law imposes significant compliance burdens on nearly all New York employers, requiring them to notify an employee within 10 days of placing negative information in their file and to provide a complete copy of the record within five business days of a written request. It also establishes a three-year post-termination retention period and contains a robust anti-retaliation provision. The New York attorney general is tasked with enforcement, and noncompliance carries financial penalties.
…
A new executive order directs immigration and labor agencies to consider an employer's layoffs within the prior year when reviewing H-1B filings, increasing scrutiny at multiple stages of the process.
A September 18 executive order directs the Departments of Homeland Security, Labor, and State to consider whether a sponsoring employer has conducted layoffs in the prior year—or plans future ones—affecting "similarly situated" U.S. workers. This directive significantly heightens scrutiny for companies that sponsor H-1B workers while also conducting reductions in force. Unlike existing nondisplacement rules that are limited to certain employers and a 90-day window, this order appears to apply to all H-1B employers and looks back a full year. The increased review can occur at multiple stages, including Labor Condition Application certification, USCIS petition adjudication, and consular processing. The order also directs the Labor Department to review previously submitted applications for potential new enforcement actions. The practical scope of the order remains uncertain pending forthcoming rules and operational guidance from the agencies. Sponsoring employers with recent or planned layoffs should prepare to provide detailed justifications for their H-1B petitions.
Grade 3 — worth a glance, not the full analysis.
- Proposed IRS rule would tie private school tax-exempt status to nondiscrimination
Treasury proposed rule linking tax-exempt status to schools' discrimination policies on race, ethnicity faces legal challenges.
- NY AG Reaches $8M Settlement with Online Casino Operator
New York's Attorney General secured an $8 million settlement with an online sweepstakes casino operator for offering what the state considers illegal gambling with redeemable virtual coins.
- UK Supreme Court clarifies directors must act in good faith in conduct not just thought
The Supreme Court in Saxon Woods v Costa ruled that section 172 duty extends to actual conduct, not merely subjective belief—rejecting the argument that sincere intent alone excuses disloyal behavior.
- HR should develop prediction market policies to mitigate workplace risks
As prediction markets grow in popularity, employment lawyers advise HR to establish clear policies and training to protect organizations from associated legal and operational risks.
- DHS Proposes Eliminating 60-Day Grace Period for Employment-Based Nonimmigrants
A proposed DHS rule would require H-1B, L-1, O-1, E, and TN workers to depart immediately upon job loss, ending nearly a decade of flexibility for foreign workers and their dependents.