Labor & Employment Law Update

Latest from Labor & Employment Law Update - Page 3

Limited IRS guidance is here, but should your organization jump in or wait?

JPMorgan Chase, BlackRock, and Charles Schwab have already announced they will match the federal government’s $1,000 seed contribution to Trump accounts for their employees’ children. But for most employers, the question is whether the regulatory landscape is clear enough to make an informed decision.

In December, the IRS released Notice 2025-68, providing the first substantive guidance on Trump accounts, the new tax-advantaged savings vehicles for minors


Continue Reading Trump Accounts: A New Player in the Employee Benefits Lineup

In Wisconsin, negligent supervision claims are only available when there is an employer-employee relationship.

Independent contractor (“IC”) or agency relationships do not suffice and, crucially, the individual must be an IC in practice, not just on paper.

This is one of many reasons it is important to actively review and manage your independent contractor relationships to ensure they don’t unwittingly morph into employees.
Wisconsin Appellate Court Clarifies Limits on Negligent Supervision Claims
In 2021, a customer was tragically shot


Continue Reading Independent Contractors in Wisconsin Can Create Additional Liability for Employers in the Form of Negligent Supervision Claims 

Effective January 1, 2026, Senate Bill 464 (SB 464) has fundamentally transformed California’s annual pay data reporting framework for employers. The Civil Rights Department (CRD), California’s enforcement agency, now has the authority to levy mandatory fines without judicial discretion.

Penalties have increased significantly—starting at $100 per employee for a first violation and $200 per employee for subsequent failures—which can easily exceed $50,000 in the aggregate for mid-sized organizations.

The law also introduces new technical requirements, including the immediate separation
Continue Reading SB 464 Guide: California’s New Mandatory Pay Data Penalties for 2026

The U.S. Department of Homeland Security finalized a new rule implementing a weighted selection process for H-1B petitions. Effective February 27, 2026, the rule introduces a weighted selection process that prioritizes H-1B registrations based on the offered wage. This new framework will apply for the upcoming H-1B cap season and may impact your business’s immigration strategy.
How the Previous H-1B Selection Process Worked
Previously, a company was given one chance for selection per potential employee submitted. The lottery was
Continue Reading DHS Finalizes New Weighted Selection Rule for H-1B Petitions: WhatEmployers Need to Know for the March 2027 Lottery

This week, consumer advocate lawyers filed a nationwide class action lawsuit against a California-based tech company, Eightfold AI, in California state court.

In a new approach to going after the use of AI in employment decisions, the two named plaintiffs and the proposed class allege Eightfold violated the Fair Credit Reporting Act (“FCRA”) by not giving job applicants notice of the use of AI in the application process nor giving them a chance to dispute any errors.

This lawsuit
Continue Reading Can AI Applicant Screening Trigger FCRA Obligations? Lessons for Employers from the Eightfold AI Lawsuit

On January 1, 2026, Minnesota officially launched its state-administered Paid Family and Medical Leave (PFML) program, triggering an immediate surge of over 25,000 benefit applications in the first two weeks alone. As many Minnesotan employers are quickly discovering, the post-PFML workplace poses significant operational challenges. As the legal landscape continues to evolve in Minnesota (and those benefit applications keep rolling in), employers must become intimately familiar not only with administering the program but also with the variety of pitfalls
Continue Reading Thousands Apply for Minnesota PFML: What Employers Should Do Now

The U.S. Department of Labor (DOL) recently released a new set of opinion letters addressing recurring questions under the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA).

While opinion letters are based on specific fact patterns, they provide valuable insight into how the DOL analyzes common compliance questions and foreshadow DOL enforcement priorities, and they are often relied upon by courts and investigators.

The latest batch addresses employee classification, overtime calculations, collective bargaining agreements,


Continue Reading U.S. Department of Labor Issues New FLSA and FMLA Opinion Letters: Key Compliance Takeaways for Employers

State-level employment regulation continues to evolve in California independently of broader federal enforcement priorities. On October 12, 2025, California enacted the Workplace Know Your Rights Act (S.B. 294) intended to “equip workers with knowledge of their rights that they can also use to protect their families, neighbors, and communities at a time of potential disruption, dislocation, and fear for many Californians.” The Act contains five primary requirements.
Continue Reading California Employers Face February 1 Deadline Under Workplace Know Your
Rights Act

Ohio has adopted a new workforce verification law that will directly affect many construction companies operating in the state. Beginning March 19, 2026, certain construction employers will be required to use the federal E-Verify system for new hires. Because the law carries meaningful penalties and applies broadly across the construction supply chain, contractors should begin preparing now.
Continue Reading Ohio’s New E-Verify Requirement: What Nonresidential Construction
Contractors Need to Know

Effective January 1, 2026, the Illinois Victims’ Economic Security and Safety Act (VESSA), as recently amended, now prohibits employers from disciplining employees for using company-issued technology such as phones, laptops, or tablets to record evidence of domestic, sexual, or gender-based violence, whether inside or outside of the workplace.

This change in the law immediately puts many employers at odds with their own “no-recording” and “acceptable use” policies, which often prohibit any form of recording on company property or
Continue Reading VESSA’s Expanded Recording Protections: What Illinois Employers Must Do Now

In the Spring of 2025, the Illinois Department of Labor filed a lawsuit against a union contractor alleging violations of the Illinois Prevailing Wage Act. The Department’s lawsuit alleged that work performed by the contractor on the Projects fell within the prevailing wage classification of Electrician, as opposed to the classification of Carpenter.
On December 18, 2025, the Department determined and agreed that the work the contractor performed on the Projects could properly be classified under the Carpenter classification.
Continue Reading Installation of Solar Panels is NOT Exclusively Electrician Work under the
Illinois Prevailing Wage Act – So Capitulates the Illinois Department of
Labor

Illinois recently enacted amendments to the Illinois Right to Privacy in the Workplace Act (“IRPWA”).  The amendments became effective on December 12, 2025, immediately upon the governor’s signature.
Continue Reading Amendments to Illinois Right to Privacy in the Workplace Act: Immediate
Obligations for Employers Receiving “No-Match” Letters

On December 18, 2025, the U.S. Senate approved President Trump’s nominees, James Murphy and Scott Mayer, to serve as members on the National Labor Relations Board (Board). With the additions of Murphy and Mayer, the Board regains a quorum and can now officially act and adjudicate unfair labor practice charges and representational cases under the National Labor Relations Act (NLRA). 
Continue Reading NLRB Regains a Quorum and New General Counsel takes the Reins

As OSHA inspections continue to take place throughout the U.S., employers across industries need to be prepared to respond. An inspector’s arrival onsite can be disruptive and stressful, particularly if supervisors and frontline staff are unsure of what to do or say in the moment.

Having a clear, actionable plan in place helps employers maintain control of the process, assert their rights when necessary, and avoid unnecessary missteps that could increase risk or exposure.

The steps outlined below are
Continue Reading OSHA Inspection Checklist: A Step-by-Step Guide for Employers When an Inspector Arrives

The Family and Medical Leave Act (FMLA), Americans with Disabilities Act (ADA), and workers’ compensation come with complex obligations for employers and HR professionals. Join Heather Bailey for an informative webcast on understanding the requirements and interactions of FMLA, ADA, and workers’ compensation in the U.S. workplace.
Continue Reading Breakfast Briefing Series: Staying Afloat in the 'Bermuda Triangle':
Insights on FMLA, ADA, and Workers' Compensation

W-2s and 1099s will not have new fields this year, but the IRS has now provided guidance on how employees can still claim tax deductions for tips and overtime pay.

This is our fourth update on the evolving tips and overtime tax deductions under the One Big Beautiful Bill Act (OBBBA). We’ve previously covered the overall impact on your compensation strategy, the proposed rules on qualified tips, and the initial transition relief on reporting requirements.

As


Continue Reading IRS Announces 2025 Documentation Workarounds for Tips and OvertimeDeductions (Notice 2025-69)