A workplace environment can be crucial in shaping employee productivity, retention, and overall job satisfaction. While optimism among a workforce can help create a great workplace culture, pessimistic employees can quietly erode even the most well-intentioned work environments. A pessimistic workplace occurs when negativity and expectations for poor outcomes are prevalent. Employees focus on what could go wrong, feel that hard work won’t have positive results, and have a general sense of despair and indifference. This mindset can have devastating impacts on an organization.

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As small and medium-sized businesses compete amid ongoing talent challenges, often with fewer resources than larger companies, they may need to get creative in their attraction and hiring efforts. Employee referral programs allow existing employees to recommend candidates for open positions. Employees tend to carefully consider possible referrals because they feel accountable to the organization and the person they refer.

These programs are a popular recruiting strategy due to their low cost but potential for high impact. An effective employee referral program can save time, money, and other resources during hiring.

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Question: If an employee is a no-call, no-show for 3 consecutive days, is that considered job abandonment, and can their employment be terminated?

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Nationwide data is showing significant increases in 2026 health plan premiums for both group/employer plans and the individual plan marketplace.

• Group/Employer Plans – A recent survey of large employers by the Business Group on Health (BGH) revealed that U.S. employers predict a 9% increase in health care costs for 2026. A separate report from Mercer reveals that 2026 is expected to bring the largest premium increase in 15 years. It’s common for employers to receive increases ranging from 10%-15%. Employers credit this increase in part to the high cost and usage of glucagon-like peptide 1 (GLP-1) agonists, more prevalent high-cost treatments, rising incidences of chronic and complex conditions, and an uptick in mental health conditions.

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California Enacts AI Employment Regulations – On June 27, 2025, California enacted regulations that ban covered employers from using artificial intelligence (AI) that results in discrimination based on an employee’s protected class. The regulations take effect Oct. 1, 2025.

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The federal Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations, sick leave, or federal or other holidays. These benefits are matters of agreement between an employer and an employee (or the employee’s representative).

However, if employers choose to provide paid vacation or paid time off (PTO) to their employees, states have taken different approaches as to whether such time must be paid out upon an employee’s termination from employment. Some states consider paid vacation or PTO to be wages and require employers to pay out accrued, unused vacation or PTO upon an employee’s termination. Other states may take different approaches (such as leaving the payout decision to employer policy) or may not address the issue at all.

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As artificial intelligence (AI) and emerging technologies rapidly transform the workplace, employers face a critical question: Are their teams ready for what’s next? In many industries, the answer is “not yet.” While companies embrace digital transformation, many employees remain underprepared to work alongside advanced technologies like artificial intelligence (AI) that change monthly or even weekly. It presents a strategic challenge for company leaders and a significant opportunity: By closing the AI and tech skills gap from within, organizations can improve performance, retain talent, and future-proof their workforce.

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U.S. employers are forecasting average wage increases of 3.5% in 2026, consistent with 2025 levels. A recent survey, which polled over 1,500 employers in the United States, showed that 53% plan no change to their salary increase budgets, while 31% expect to reduce them. Only 15% anticipate budget increases, signaling a continued shift toward cautious compensation planning even as overall wage growth holds steady.

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Question: Are companies required to have an employee handbook?

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We recently released our 3rd quarter HR Edge newsletter. This edition of the newsletter covers the following topics:

1. 2025 Midyear Attraction and Retention Strategies
2. How AI is Changing the Workplace
3. Improving Mental Health Utilization

Click here to read HR Edge (Q3 2025).

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