AI Upskilling Surges as Walmart Trains 2M Workers, Healthcare Costs Hit 15-Year High, and ICE Tightens I-9 Enforcement

Average healthcare costs for U.S. employers are expected to rise 6.7% this year, the highest increase in 15 years, according to Mercer data reported by HR Dive. GLP-1 weight-loss and diabetes drugs are a significant driver stretching employer budgets. CFOs are feeling acute pressure from the trajectory.

Impact · A 6.7% healthcare cost increase directly compresses compensation budgets and forces harder trade-offs between salary growth, benefits richness, and headcount. For HR leaders negotiating 2027 benefits renewals this fall, this sets a difficult baseline. Recruiting teams should expect candidates to scrutinize healthcare benefits more closely, and total comp modeling needs to account for accelerating benefits inflation.

Action · Begin modeling 2027 benefits scenarios now, including GLP-1 coverage tiers and cost-sharing strategies. Bring your CFO into early conversations about the trade-offs between benefits cost containment and talent competitiveness before renewal season pressure hits.

ICE announced it will now treat a number of I-9 errors that were previously considered minor — and often overlooked during audits — as more significant violations carrying the potential for substantial fines, according to HR Executive. The policy change reshapes employer compliance strategy for workforce documentation.

Impact · Organizations that passed previous I-9 audits with minor findings may now face material financial exposure under the same documentation practices. This is especially critical for employers with large hourly workforces, staffing agencies, and companies in industries with high turnover where I-9 errors compound. The risk extends to HR leaders personally accountable for compliance.

Action · Conduct an immediate internal I-9 audit focused on the error categories ICE has reclassified. Prioritize remediation of systematic issues (e.g., missing signatures, incorrect document codes, late completion dates) and brief hiring managers on updated completion standards before your next audit cycle.

The U.S. Department of Labor proposed a new joint-employer rule that would use multiple factors to determine joint-employer status, attempting to sidestep the legal vulnerabilities that doomed the first Trump administration's rule, according to attorneys who spoke with HR Dive. The proposed rule's ability to survive court challenges remains an open question.

Impact · Companies relying on staffing agencies, contractors, and franchise models face renewed uncertainty about whether they could be classified as joint employers — triggering wage, benefits, and liability obligations for workers they don't directly employ. Even if the rule faces legal challenges, the proposal itself signals DOL's enforcement direction and could influence how auditors and plaintiffs' attorneys approach cases.

Action · Map your contingent and staffing agency workforce relationships against the proposed multi-factor test. Engage employment counsel to assess exposure, particularly for arrangements where you exercise significant control over scheduling, pay rates, or working conditions of non-employees.

New research highlighted by HR Executive finds that mental health-related leaves of absence are becoming more common, driven by 'silent burnout' — employees who disengage gradually before reaching crisis. Separately, insured Americans continue to face significant hurdles accessing mental health services despite parity laws, with AMA President Dr. Bobby Mukkamala calling for equal access (HR Executive). These trends compound as employer healthcare costs hit a 15-year high.

Impact · HR leaders face a double bind: mental health leaves are rising (increasing direct costs and productivity gaps), but employees often can't access the mental health services their insurance ostensibly covers. Proactive investment in preventive mental health support could reduce leave frequency and duration, but the access gap means simply having an EAP or insurance plan isn't enough.

Action · Review your mental health leave data from the past 12 months for trend lines. If leaves are increasing, evaluate whether your current mental health benefits provide actual access — measure appointment wait times, in-network provider availability, and utilization rates — rather than relying on plan design alone.