2026 Updates

This year promises to have much in store for changing—and further complicating—a complex field of law for companies to navigate. As a result, we have compiled a selection of the most pressing updates for companies to know about in the new year, as well as some important tips on how to stay up to date with new laws and legal standards.

Employee Handbooks are a critical resource for both employers and employees and help create a better informed and trained workforce. Still, there are rapidly changing, complex state and federal laws which require caution on behalf of employers and diligence in updating these handbooks to reflect such changes.

On January 9, 2024, the U.S. Department of Labor (“DOL”) announced a six-factor test to distinguish between employees and independent contractors under the Fair Labor Standards Act (“FLSA”). This rule took effect March 11, 2024. It replaces the 2021 proposed rule, which was put on hold and is under legal dispute in the 5th Circuit.

Workplace investigations are difficult but necessary. They mitigate risk and help maintain an enjoyable workplace. It is best practice to conduct prompt investigations when issues arise.

All companies, including companies formed domestically and companies formed under foreign laws but registered to operate in any state, territory or Indian tribe in the United States, like corporations, limited liability companies, limited partnerships, and other similar entities must report their beneficial ownership to FinCEN.

The Supreme Court’s decision in Glacier could significantly impact labor law by limiting the scope of the NLRB’s authority to adjudicate certain labor-related disputes. Employers are more likely to pursue damage claims against unions in state court for property damage caused by conduct during strikes if the union fails to take reasonable precautions to mitigate the risk of property damage during the strike.

Employers need to review their DEI initiatives to ensure they are in accordance with the law. Although companies will likely continue to promote diversity in their workplace, the court has made clear that discrimination of any kind is not tolerated. Therefore, diversity initiatives should be designed to expand opportunity for underrepresented groups as opposed to programs that consider race, ethnicity, or gender during the selection process.

In addition to hourly wage and salary, the spectrum of employee compensation includes a wide range of remunerative elements, including bonuses, sick leave, paid time off, vacation, and insurance benefits. It is important for employers to understand their obligations and options regarding employee compensation in order to limit potential liability exposure and be a competitive player in the market.