Navigating the rapidly evolving landscape of HR compliance is more challenging than ever. Business leaders must stay informed about the latest changes at federal, state, and local levels, all of which can significantly impact their organizations. As we look ahead to 2026, this edition of the HR Scoop spotlights the essential HR compliance topics and best practices that deserve your attention.
The year 2025 brought a whirlwind of legal changes, with local governments issuing new legislation more frequently, a surge in Executive Orders, ongoing gridlock in Congress, and mixed signals from federal agencies. These factors have left many HR professionals feeling overwhelmed and fatigued. However, the key takeaway is clear: be prepared for unpredictability, adapt swiftly to shifting legal requirements, and prioritize the core principles of HR compliance.
Key Compliance Areas to Watch
There are three sources of information to monitor – local and state law, Executive Orders, and Federal Agency updates. At this time, it does not seem likely that Congress will be creating new laws that impact employment directly; so federal changes will likely come from Executive Orders or federal agencies.
Local and State Laws and Regulations
The tide continues to shift away from federally-driven laws towards state and local government initiatives. This creates more complexity for multi-state employers.
As a reminder, when there are discrepancies between federal, state and local requirements, the law requires employers to follow the strictest standard that gives the highest protection to the employee.
Below are the most prevalent areas of state and local laws. While not included in this article, don’t forget to monitor laws related to noncompete agreements, direct deposit, drug testing, voting leave, E-Verify, marijuana, and compliance training (such as sexual harassment) requirements that may impact your organizational footprint.
Leave Laws
More than 10 states, the District of Columbia and many municipalities require certain private employers to provide some form of paid sick leave to eligible employees. At the same time, more than 12 states have enacted preemption laws, which prohibit municipalities from adopting regulations that expand either state or federal leave requirements.
Leave laws range from requiring the accumulation of sick leave for employees to use at work to fully-funded state paid leave programs. Each state has nuances for their leave programs that are important to understand and incorporate into your organization’s HR strategy, policies and daily management practices.
Pay Transparency
More states and local governments are passing laws that require employers to share pay ranges for jobs they are hiring for. Usually, these laws require salary ranges to be included in both public and internal job postings. Sometimes employers must also list details about benefits. In some jurisdictions, employers are not required to include the pay range in the job posting, but are required to disclose it if a job applicant asks for it. Some laws also give current employees the right to know the pay range for their own position.
It is expected that the prevalence of pay transparency laws will increase across the country as employees demand more transparency. It may also become a standard practice (even without the requirement) in difficult-to-fill positions, since applicants prefer to apply for jobs where there is a hiring range posted.
Tax Law
Employment taxes are tricky. How much should be pulled from each individual paycheck to meet federal, state and local requirements can leave Payroll feeling exhausted! Utilize your payroll provider to help keep tabs on changes in the landscape and what requirements might be needed.
Minimum Wage and FLSA
The federal minimum wage is currently set at $7.25 and is significantly higher in many states and municipalities. As with leave laws, the most generous law for the employee must be upheld. Some laws are written to increase with the rising cost of living, while others remain stagnant until a formal legal update is made.
Minimum wage increases are typically well communicated in the news and other HR publications and it’s fairly easy to maintain compliance. The FLSA (Fair Labor Standards Act) becomes more complicated when it comes to meal, rest and breastfeeding breaks and other benefits that are tied into specific state requirements. For example, states may vary on meal and rest breaks when it comes to:
- Which employees, if any, are entitled to a meal and/or rest break, and when
- The duration of required breaks and required documentation
- Additional provisions, such as timing and facilities
- Available exemptions on the standard requirements
Executive Orders
As of October 29, 2025, Trump had signed 210 Executive Orders since becoming President in January. On average, the past 10 presidents have signed an average of 269 Executive Orders while in office for their entire term.
This is a heightened use of Executive Orders. While not all of them are applicable to factors of employment, many Executive Orders impact how federal agencies and employers across the country interpret existing laws. An Executive Order on its own is not a law and does not change the law, but it sets precedent on what is expected and provides information on the administration’s priorities moving forward.
Based on the signed Executive Orders, we expect to see modifications in the following areas during the Trump Presidency:
- Redefining unlawful DEI-motivated discrimination
- An emphasis on merit-based opportunities
- Increased protections for individuals who historically were not considered to be part of a protected class
- A focus on religious bias/discrimination
- Fewer transgender protections
- A focus on language and behavior viewed as Anti-American
- A reduction in Visa programs
- Artificial intelligence requirements in the workplace
Federal Agencies
For much of 2025, the Equal Employment Opportunity Commission (EEOC) lacked the necessary quorum of three individuals to vote on guidance, rulemaking and significant litigation. With Brittany Panuccio being sworn in during the last week of October, the EEOC can move forward on its initiatives for the future. With this advancement, HR can expect to see changes that align with the President’s priorities as we move into 2026. This might include rewriting or rescinding past guidance and policy statements on harassment, DEI-related practices, religious accommodation and AI in HR.
Remember the Foundations of HR
All of these factors may leave you feeling like a pinball – getting pushed in different directions and trying to make sense of it all. However, by focusing on the core elements of solid HR and paying attention to legal changes, you will be able to ensure your cooperative is legally compliant – and remains that way.
Below is a checklist for you to consider as you update and prepare your Employee Handbook and organization for 2026 and beyond.
- Keep track of what is law compared with what is “recommended”.
- Review your I-9 Forms to ensure compliance. If you have employees who are not citizens, ensure their required employment paperwork is up to date.
- Examine your efforts on diversity, equity and inclusion to ensure all employees regardless of their protected class have equal access to programs, training and resources.
- Review your recruitment outreach efforts and interview questions to ensure they are not biased towards any group.
- Educate and remind leaders at all levels about:
- Legally required employee protections and changes
- How to spot and respond to discrimination and harassment
- Documenting performance in a timely manner
- Ongoing communication and feedback
- Factors to consider in compensation decisions
- Recruitment and interviewing best practices… including topics to avoid
- Maintaining a respectful workplace where all perspectives are heard and considered
- Subscribe to legal updates from local attorneys or other vendors to stay updated on changes in state and local laws.
Foundations Consulting has tools available on our website to help you navigate employee touchpoints. You can also find a downloadable HR Best Practices Guide to get you started on this journey. If you need additional assistance, email us!
