As we look ahead to 2026, businesses must prepare for notable shifts in the employment law landscape.
Evolving regulations, workplace dynamics, and employee expectations are driving transformational change. Understanding these developments will be critical for businesses that aim to remain compliant while fostering thriving workplaces.
Expanded Workplace Rights
States nationwide are expected to enhance labor rights, increasing protections for employees in areas such as pay equity, discrimination, and workplace safety.
Pay transparency laws, already enacted in certain states, are likely to become more widespread, requiring businesses to reevaluate compensation structures and ensure compliance.
Furthermore, regulations concerning workplace harassment, discrimination, and bullying will likely strengthen, necessitating improved training programs and reporting mechanisms. Businesses should proactively adopt robust anti-discrimination policies to avoid costly disputes and ensure employee well-being.
Hybrid Work and Technological Regulation
The widespread adoption of remote and hybrid work models during the pandemic permanently reshaped workplace norms, and these changes will be firmly entrenched in employment law. States may introduce new rules regarding remote work, mandating provisions for employee expenses, data security, and ergonomic standards for home offices.
The use of surveillance technology to monitor remote workers will also face increased scrutiny. Businesses will need to strike a balance between monitoring productivity and respecting employee privacy, especially as data protection laws evolve. Transparent communication about monitoring practices will remain essential to building employee trust.
Increased Focus on Employee Wellness
Mental health and wellness initiatives will continue to gain prominence in employment law. States are likely to require expanded benefits for mental health support and paid leave policies, including paid sick leave, parental leave, and caregiving leave.
Smaller businesses, which may already struggle with the financial burdens of providing benefits, will need creative strategies to comply with these mandates, such as leveraging government subsidies or offering alternative perks like flexible schedules.
Rise of Artificial Intelligence (AI) Regulations
Artificial intelligence is increasingly being employed in recruitment, performance reviews, and other HR processes. Stricter regulations around the use of AI in employment decisions are expected. These rules will likely focus on preventing biases in hiring algorithms and ensuring transparency in how decisions are made.
Businesses embracing AI will need to regularly audit their systems to confirm compliance with anti-discrimination laws. Businesses that fail to manage AI’s legal and ethical dimensions may face significant legal and reputational risks.
Unionization and Collective Bargaining
Union activity has recently surged, and this trend will likely continue. All businesses, even those in nontraditional union settings like retail and tech, may face greater efforts from employees to organize and negotiate for better working conditions.
States might introduce laws aimed at reducing barriers to unionization, such as shorter election timelines or restrictions on employer interference in organizing efforts.
Businesses should focus on fostering open communication, addressing workplace concerns proactively, and creating supportive environments to reduce the likelihood of unionizing efforts.
Compliance Challenges and Support
With employment laws becoming increasingly complex, smaller businesses may struggle to stay compliant, especially without dedicated HR teams. The use of outsourced HR and compliance tools is expected to rise significantly.
Many businesses will turn to affordable HR consultants to navigate evolving laws and manage risk.
Investing in employee training and staying informed about changes at state and national levels will be critical. Partnering with HR experts specializing in employment law compliance can also help businesses mitigate risks of lawsuits and penalties.
Marzano Human Resources Consulting
Marzano HR Consulting serves businesses large and small, helping them understand the ever-changing employment law landscape and assisting them in the development of HR strategies needed to mitigate risk and thrive. Consider reaching out for a no-cost initial consultation.