Compliance and Law in 2026:

What keeps staffing firm owners up at night in 2026?

I’d say the overall theme of 2026 is “uncertainty”. There are certain developments happening where we are not quite sure how they are going to pan out. The easiest example of that is AI. In the past six months, AI has gone from being something that people were starting to think about from a legal perspective to something staffing firms are faced with every day - whether internally, from temporary employees, or from clients. And it’s hard to stay ahead of the curve. I’d say that’s one of the biggest concerns right now, staying on top of how AI is developed and what it means for them.

Is AI a good thing for staffing?

It’s interesting because even outside the staffing world, AI has been a huge boon to businesses, especially small and medium - size businesses. It’s like the favorite guest at the party. People talk about the things they wouldn’t have been able to do before because of resource limitations that they can do now. And yet, it’s so new that there are certainly things we haven’t considered or thought through yet. So it’s fascinating to walk that line between embracing a great thing and making sure we do things right and remember what our concerns are in staffing.

What should we pay attention to when it comes to AI legislation?

On the state level, what they are considering are Automated Employment Decision Tools (AEDTs), or programs that help employers sort through resumes to find qualified applicants. And for most employers, it’s a matter of posting a job and then the AI software is using a formula to see how qualified the candidates are for the roles. And the laws that are being considered are trying to make sure that that’s done in a fair way, and to disclose to people that it is being used.

The business problem that staffing firms face is that they have thousands and thousands of resumes in their database. And the way these bills are written, there is no language that says that it only applies to resumes where people are qualified for the job. So let’s say my resume is in a database of a staffing firm that gets a job rec for an accountant. I’m not going to be considered, because I’m not an accountant. But with how the laws are being written now, there’s the potential that because the software doesn’t pick mine up, I’ve suffered an adverse action. And so one of the things we’re trying to do is get lawm akers to understand that we’ve got to narrow that field somehow and understand there must be a legitimate tie to the potential job to have them count as an applicant. Otherwise, staffing firms could be at risk.

Is it important to educate lawmakers on staffing?

I would say it’s the major focus to get them to understand the business. We have to educate them on what our business model is. The AI resume qualifying issue for a staffing agency’s database of resumes is one exam ple, getting them to understand the obstacle it presents to our members if we don’t specify the language. Another example is pay disparity. Telling someone at the time of a job a reasonable range of pay is fine for most employers, but not for staffing – because they don’t hire for specific positions. They’re hiring for an accountant. And where they place that accountant is going to dictate what the salary range is, and it could be drastically different. Is it a mom-and-pop shop that needs an accountant to keep the books two times a week, or a Fortune 500 company that needs help in the accounting department? So, getting them to think along those lines, or at least try to understand where we’re coming from, is a huge priority.

How can staffing firm owners get involved in advocacy?

They are the best ambassadors of their product and their work, which is finding jobs for people. If they can talk to their State Representative, Congressman, Senator, etc., and explain what they do, that can be a powerful tool for advocacy. Because finding employment for people is a great service to this country, and telling that story in a way that resonates will help educate lawmakers on what needs to be done. And the government relations team at ASA can help with getting them any information or talking points they need. Because at the end of the day, telling their story is what is going to make a difference.

What can staffing firm s do to reduce compliance risk?

Here’s the plug: join ASA! Because realistically, it’s hard to keep up with the changing landscape of law. Just for example, you could have a good-sized staffing firm in 20 states that has no infrastructure to handle 20 different sets of compliance laws and regulations - and nor should they have to! The focus should be on finding jobs for people. So having a place like ASA or the Chamber of Commerce or the National Federation of Independent Businesses (NFIB), the kind of groups that will let you know that a new law just came out in Louisiana. We’re putting the issues on their radar.

I would also encourage owners to treat their clients like partners and proactively bring issues to their attention. Now you’re educating the staffing client, and now you’ve just made an impression on them where they’re going to want to work with you. Getting out and talking to legislators and being a partner and an educator to your client is really going to help, because if the parties are aware of what’s going on and where the potential problems are, hopefully we avoid a lot of them.