While not California specific, a first-of-its-kind ruling in federal court establishes that a client’s use of AI-generated chat content is not protected by an attorney-client privilege or work product doctrine. You can find a summary of the case, United States v. Heppner, a criminal securities fraud case, here. This is important because HR professionals,
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Group of U.S. Senators Sound Alarm About State of Federal Tax Enforcement
In the midst of Congressional consideration of the administration’s FY2026 budget request for the Internal Revenue Service (which was ultimately approved on February 3, 2026), a group of U.S. Senators is raising questions about fairness in tax enforcement. Ten Senators, nine Democrats and one Independent, are questioning whether recent workforce reductions and funding decreases are…
What to Know About the Department of Defense’s Review of 8(a) and Small Business Awards
The Department of Defense (DoD) issued a memorandum on January 16, 2026 to announce a two‑stage review of small business set‑aside and 8(a) contract awards over $20 million for possible terminations for convenience. This review is occurring quickly, and contractors should be prepared to understand what DoD is investigating and respond quickly to agency requests.…
WEBINAR EVENT: Navigating Key Labor and Employment Shifts in 2026
Set your workplace on a path to success in the coming year with our Labor & Employment attorneys as your guides. You’ll learn how to maneuver through a challenging and ever-changing legal landscape and prepare for what’s coming down the road.
Join us for this webinar on January 28, 2026 from 9 am – 2…
New Chatbot Toy Moratorium Bill Raises Questions on Chatbot Regulations
In the wake of a number of lawsuits against AI companies regarding the possible involvement of their platforms in encouraging suicide and other criminal behavior, including homicide, California Senator Steve Padilla, introduced SB 867 which would prohibit in California, until 1/1/31 the sale, exchange, possession with intent to sell or exchange to a retailer a…
FTC Dismissal of Settlement with AI Company Signals Shift in Enforcement Focus
The Federal Trade Commission issued an order to reopen and set aside a 2024 final consent order involving Rytr LLC, citing a failure to satisfy the legal requirements of the FTC Act and an undue burden on artificial intelligence (AI) innovation in violation of the Trump Administration’s Artificial Intelligence Executive Order and America’s AI Action…
The New Year’s Resolution Divorce – 2026 Edition
Australian Government AI Transparency Guide Helpful for US Companies too

Australian Government’s National AI Centre publishes guide “Being Clear about AI Generated Content” setting out when and how to consider disclosing use of AI in processing.
The guide suggests considering the level of AI Involvement together with its potential impact: The higher the…
New OMB Memo Imposes Detailed New Disclosure Requirement on Government Contractors Utilizing LLMs
If you are a government contractor offering government agencies products utilizing Large Language Models (LLM), your disclosure requirements just increased.
Per a new memo from the Office of the Management of the Budget (OMB), when procuring LLM’s, government agencies must require vendors to provide sufficient information for the agencies to be able to determine that…
40 State AGs Warn against Delusional LLM Outputs
Attorneys General from 40 US States sent letter to leading LLM companies earlier this week warning that sycophantic and delusional outputs produced by LLMs constitute “dark patterns” and may open LLM companies to liability under existing State laws.
“Sycophantic outputs” is a term that refers to when an artificial intelligence model single-mindedly pursues human approval…
