Preparing for 2026: Compliance with leave discrimination and wage and hour laws
One of the most difficult challenges for any employer is trying to keep up with employment law changes. Adequately preparing for such changes, however, is one of the most important ways employers can protect themselves.
As you look ahead to 2026, there are many issues you need to consider to ensure your organization stays compliant. Here, we’ll look at how you can stay compliant with changing leave laws, minimum wage updates, and new antidiscrimination issues.
New year, new leave law challenges
This year, as in most years, January 1 is one of the biggest days for state-level legislation to become effective, specifically for the many and varied state leave laws. Leave laws are some of the fastest-growing areas in employment law. Thirteen states, plus D.C., now offer paid leave funded through payroll taxes, and several states have leave law implementation dates that are approaching. In addition, many states will continue expanding their current leave laws in 2026.
With the New Year quickly approaching, now is an ideal time for employers to review current leave law policies and practices and update employment-related resources to ensure full compliance with leave laws and regulations.
There are many things employers can do to make sure their leave programs are compliant, including making sure their policies and programs are in step with any new or updated leave laws and that supervisors are trained on what to do when employees request and take leave. In addition, as most leave laws have mandatory notice and posting requirements, employers’ failure to meet such obligations could result in penalties and fines. Ensuring employers are compliant with all aspects of applicable leave laws and regulations can minimize the risk of investigations and other costly lawsuits.
Leave law complexity is accelerating, and for employers, the trend of new state and local-level leave legislation popping up throughout the year shows no sign of slowing. Assistance in developing effective leave law policies and mandatory trainings may help ensure employers are compliant with any new 2026 requirements. Employers should look out for any additional rules or guidance published by state labor and development departments over the next year. In addition, employers with questions about which laws are taking effect in the jurisdictions in which they operate in should consult with employment counsel as soon as possible to comply with any 2026 effective dates.
Preparing for new leave laws and regulations takes time, planning, and careful consideration. With the compliance deadline looming, now’s the time to get moving.
Antidiscrimination investigations and litigation
Recent developments at the U.S. Equal Employment Opportunity Commission (EEOC) suggest an uptick in investigations into workplace diversity, equity, and inclusion (DEI) programs focused on race and sex, with a renewed prioritization of religious rights and accommodations in the workplace. Employers should expect increased scrutiny of any workplace programs that appear to feature any race- or sex-based preferences in hiring, promotions, and training. It’s important to ensure all programs and policies don’t rely on preference-based quotas, training programs, or initiatives that relate to any protected classes.
While the EEOC has abandoned its investigation of disparate impact liability claims as the basis for illegal acts of workplace discrimination, it nonetheless remains a viable theory of litigation under Title VII of the Civil Rights Act of 1964. Despite current or future political shifts, employers should keep policies updated to prohibit discrimination based on all protected classes under applicable federal and state law, including gender identity and sexual orientation.
Employers should also assume current Supreme Court and federal court rulings remain in force and keep all internal policies, training, and workplace practices aligned with Title VII obligations, as well as consider maintaining periodic audits of pay, promotion, discipline, and termination outcomes for potential disparate impact concerns.
New considerations for accommodation requirements
In light of new EEOC priorities, religious discrimination claims may challenge how employers choose to balance accommodation requests with business needs, and employers should approach religious or disability accommodation requests with equal care. When engaging in the interactive process, employers should be mindful to provide a clear explanation if a request would create a substantial burden, and these interactions should be thoroughly documented.
Expanded pay transparency requirements
Pay transparency laws that prohibit employers from asking applicants questions related to salary history have been on the rise in recent years, imposing a wide range of obligations that require employers to disclose salary ranges in job listings or promotional opportunities. In 2025, some states expanded the enforcement of pay transparency rules to apply to online job postings, which often include postings for remote work that can be done in a multitude of jurisdictions. The new laws have also expanded to advertisements for temporary or seasonal work. Going into the new year, job postings should state the appropriate salary disclosures according to applicable law, and hiring decisions should be based on objective job-related criteria and supported by ample documentation, regardless of whether your organization is subject to pay transparency laws.
Minimum wages going up
New minimum wage rates will take effect in many states and municipalities on January 1, 2026. The following states will see increases to their minimum wage rates: Alaska ($14.00), Arizona ($15.15), California ($16.90), Colorado ($15.16), Connecticut ($16.94), Hawaii ($16.00), Maine ($15.10), Minnesota ($11.41), Missouri ($15.00), Montana ($10.85), Nebraska ($15.00), New Jersey ($15.92 for most employers), New York ($16.00), Ohio ($11.00), Rhode Island ($16.00), South Dakota ($11.85), Vermont ($14.42), Virginia ($12.77), and Washington ($17.13).
Employers should be mindful of municipalities that have their own minimum wage rates. Certain cities, towns, counties, and municipalities in Arizona, California, Colorado, Illinois, Maine, Maryland, Minnesota, New Mexico, New York, Oregon, and Washington have higher minimum wage rates than the state rate. HR Hero® offers a minimum wage chart that contains additional details regarding the municipality rates, as well as the municipality increases for January 1, 2026.
States with increases taking effect on January 1 that also allow employers to take tip credits will see changes to either the minimum tipped wage and/or the maximum tip credit. Again, we encourage employers to use the minimum wage chart to see state-specific increases regarding tip credits and tipped wages.
Certain states and municipalities also have different rates for different types of jobs and different employer sizes. For example, California and New York have statewide minimum wage rates for fast food workers that are higher than their respective state rates. The city of Long Beach, California, has separate rates for hotel workers and concessionaires. Connecticut has different maximum tip credit amounts for hotel and restaurant employers. Ohio’s minimum wage rate applies to employers with gross receipts of $394,000 or more. The minimum wage chart includes additional information about these different rates, including breakdowns and explanations.
The minimum wage chart is updated multiple times a year with information on future increases and the inclusion of new municipalities that have established their own rates.
Jasmin Mize, JD, is a senior legal editor for BLR’s HR and employment law publications. She’s a former civil rights and criminal defense practitioner and has also taught first-year law school courses in criminal law, civil procedure, and civil trial practice. She’s a former managing attorney for a legal services organization, where she represented plaintiffs in discrimination and class action cases across the United States. Before that position, she spent 8 years as a public defender on the state and federal level.
Jeanna E. Crocker, JD, is a legal editor for BLR’s HR and employment law publications. She focuses on the Family and Medical Leave Act (FMLA), paid/sick leave, maternity and pregnancy, and military service. Before joining BLR®, she worked in corporate operations for a technology services and solutions company and as the director of corporate and legal affairs for a multistate radio and communications company. She also received her BA and MA from the University of Alabama and her law degree from the State University of New York at Buffalo Law School.
Jennifer Brown, JD, is a senior legal content specialist for BLR’s HR and employment law publications, focusing on wage and hour topics. Before joining BLR, she worked as a commercial litigator in private practice and served as an attorney-advisor for the U.S. Consumer Product Safety Commission, where she advised senior management on various HR and employment law issues. She earned her BA in peace, war, and defense at the University of North Carolina at Chapel Hill and her law degree from Elon University. She’s a fan of history and architecture and is currently restoring an old house in historic Fredericksburg, Virginia, with her husband, Ian.
