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

The podcast episode highlights why HR compliance remains challenging in 2026, focusing on outdated I-9 practices, AI bias risks, and the financial penalties employers face.

Chicago Metrowire Staff
Human Resources
HR Compliance Risks in 2026: Paper I-9s, AI Bias, and Fines Up to $27K

In a recent episode of the podcast 'You Should Know,' hosted by Ryan Leary of the WRKdefined Podcast Network, Jeremy Mancheski, Founder and CEO of OutSolve, discusses the growing complexity of HR compliance. The episode, titled 'The HR Compliance Risks Companies Keep Missing,' was published on August 11, 2026, and examines how overlapping federal, state, and local regulations, aggressive ICE enforcement, and emerging AI hiring tools have made compliance more difficult than ever.

Mancheski, who founded OutSolve in 1998, points out that technology has not eliminated the need for experienced human oversight. He identifies several areas where compliance often breaks down, including the persistence of paper I-9 forms, inconsistent retention practices, and the challenges of managing a remote workforce across different jurisdictions. He also highlights the risks associated with AI hiring decisions, referencing the Workday-related litigation that raises questions about accountability for algorithmic bias.

The financial stakes are significant. Mancheski warns, 'You could have up to $27,000 for a fine for a violation in I-9s, and that's per employee.' He notes that ICE enforcement is currently prevalent, and most employers have deficiencies they are unaware of. The political landscape adds another layer of complexity, as Mancheski explains, '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.'

The conversation draws parallels between the mid-1990s shift from paper applications to applicant tracking systems and today's transition from paper I-9s to electronic verification, including remote verification introduced during COVID. Mancheski urges HR leaders to physically inspect their break room posters, as federal OSHA notices and state-specific requirements often contradict each other, especially between red and blue states. On AI, he compares current hiring tools to first-generation ATS platforms: useful but flawed, with bias issues that plaintiffs' attorneys and regulators are already testing in court.

OutSolve's team of approximately 70 HR compliance consultants brings practical insights from their work with clients every week. The episode underscores that while technology evolves, the fundamentals of compliance—such as proper record-keeping and staying updated on regulations—remain critical. Employers must navigate a patchwork of rules, from pay transparency and reporting requirements to the uncertain future of the EEO-1 report, with blue states developing their own versions.

For more insights, the episode is available on the WRKdefined Podcast Network, reaching over 3.9 million verified listeners monthly. As Mancheski's advice makes clear, ignoring these compliance risks can lead to substantial fines and legal exposure. HR leaders must proactively address these issues to protect their organizations.

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