A recent federal court ruling in Segner v. Adecco USA Inc. (2:25-cv-00768), by the Southern District Court of Ohio, provides clarity for staffing firms on the intersection of arbitration agreements and the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (EFAA).

In this case, an associate of Adecco placed at Honda alleged sexual harassment and filed suit in federal court, requesting a jury trial. Although the plaintiff had signed an agreement containing both an arbitration clause and a standalone jury trial waiver, she argued that because the EFAA rendered the arbitration clause unenforceable for her claims, the entire agreement, including the jury waiver, was void.

The U.S. District Court for the Southern District of Ohio disagreed, granting Adecco’s motion to strike the jury demand. The court emphasized that the EFAA specifically targets “pre-dispute arbitration agreements” and does not inherently invalidate other contractual provisions, such as jury waivers. Because the agreement included a severability clause, the court ruled that the unenforceable arbitration provision could be removed while leaving the jury waiver intact.

Read the full story for several key takeaways for staffing firms.

The U.S. Equal Employment Opportunity Commission has proposed ending the annual federal EEO-1 reports on race, sex, and national origin data from private employers with 100 or more employees and certain federal contractors. The proposal, which is under White House review, is part of the administration’s effort to refocus antidiscrimination initiatives.

As of Jan. 1 of this year, employers operating in Illinois are prohibited from using AI in any covered employment decision unless they first provide notice to employees and job applicants. This applies regardless of whether the use of AI in the employment process is considered discriminatory or not. Examples include résumé screening, algorithmic assessments, targeted job advertising, video interview analysis, productivity monitoring, and AI-driven task assignment. The rule specifies when and how notice must be delivered. For current employees, notice must be provided annually and within 30 days of adopting or materially modifying AI systems. For job applicants, notice must be included in job postings. Employers must disseminate notices through multiple channels, including employee handbooks, workplace postings, and online platforms.

Staffing firms operating in Illinois should

• Inventory AI tools used across recruiting, screening, and assignment processes.
• Map AI use to specific employment decisions.
• Review vendor agreements to ensure access to required disclosures.
• Develop AI disclosure templates for job postings and candidate communications.
• Update employee handbooks and onboarding material.
• Establish record retention protocols aligned with the three-year requirement.

The law went into effect on Jan. 1, 2026. The Illinois Department of Human Rights will accept comments on the proposed regulations through June 29, 2026. A hearing takes place on June 10. Interested persons may participate in person or virtually or issue comments by emailing DHR.AI2026.Rules-PublicComment@illinois.gov.