Labor & Employment Law Update

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 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.

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.

With the May 13, 2026, deadline for filing 2025 data approaching, it is critical for management to maintain an accurate and up-to-the-minute understanding of these obligations. A proactive approach is now essential to avoid costly compliance failures.

This week, consumer advocate lawyers filed a nationwide class action lawsuit against a California-based tech company, Eightfold AI, in California state court. 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 has potentially far reaching impact on any employer that uses AIto screen and rank applicants—not just Eightfold.

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.

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 it creates.

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). The latest batch addresses employee classification, overtime calculations, collective bargaining agreements, commission exemptions, and FMLA leave usage. Below, we summarize the most significant 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.

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.

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 devices. Navigating conflicting policies and avoiding liability under VESSA will require employers to exercise extreme caution.