As 2025 winds down, HR leaders aren’t getting a clean break. Slower hiring, tougher expectations, and expanding compliance responsibilities are carrying straight into 2026. What’s ahead isn’t disruption for the sake of change. It’s recalibration.

The job market is cooler, but not frozen. Hiring is more selective. Skills matter more than titles. Flexibility still matters, but structure is back in the conversation. And compliance continues to expand into areas that once lived comfortably outside traditional HR oversight.

This is what HR teams should be focused on heading into 2026 — and where attention belongs now.

The labor market in 2025 did not rebound the way many employers anticipated. Instead, it settled into a slower, uneven pattern that forced organizations to rethink how and when they hire.

Hiring slowed across many sectors, not because work disappeared, but because caution set in. Headcount growth gave way to consolidation, open roles stayed open longer, and workforce planning shifted from expansion to sustainability. Employers became more selective about approvals, and every new role faced tougher scrutiny.

As unemployment edged upward and job openings flattened, hiring volume stopped being the primary metric. Precision replaced speed. Fewer roles were posted, but expectations for those roles increased, raising the cost of hiring mistakes and exposing gaps in recruiting discipline.

The result is a hiring environment where restraint is intentional, and risk tolerance is lower than it has been in years.

HR Takeaway

• Plan for slower hiring cycles and higher approval thresholds.

• Align workforce planning with business priorities, not headcount growth goals.
• Treat hiring decisions as risk decisions, not just talent decisions.

Heading into 2026, the market conditions of 2025 are shaping how hiring must be done going forward.

With fewer roles doing more work, employers are moving away from rigid credential requirements and toward skills-based hiring models. Degrees and job titles matter less than demonstrated capability. Transferable skills, digital fluency, adaptability, and problem-solving now drive hiring decisions because roles are evolving faster than static credentials can keep up.

This environment has also exposed operational weaknesses. Long interview cycles, unclear ownership, and inconsistent candidate communication are costing employers strong candidates. Even with more balanced labor conditions, top talent still opts out when processes feel disorganized or slow.

At the same time, HR teams are under pressure to deploy hiring technology responsibly. AI-enabled recruiting tools can improve efficiency, but they also require governance, documentation, and alignment with fairness and compliance expectations.

Hiring success in 2026 will not come from posting more jobs. It will come from tighter systems, clearer decision-making, and better execution.

HR Takeaway

• Rewrite job descriptions to focus on skills and outcomes, not credentials.

• Audit recruiting workflows for delays, handoffs, and unclear decision authority.
• Inventory AI-enabled hiring tools and confirm oversight, documentation, and controls.

Workplace structure remains one of the most persistent friction points heading into 2026. The debate is no longer about whether remote work exists. It does. The real issue is consistency.

Some employers are reinforcing return-to-office expectations. Others are formalizing hybrid models. Still others are allowing flexibility without clearly documenting it. That last approach carries the greatest risk.

From an HR perspective, ambiguity creates problems. Inconsistent practices fuel employee relations issues, complicate wage-and-hour compliance, and increase exposure to claims tied to fairness and accommodation.

Employees continue to value flexibility, but they also want predictability. Clear expectations around where work happens, how performance is measured, and how flexibility decisions are made matter more than the specific model an employer chooses.

Heading into 2026, the question is not whether to allow flexibility. It is whether your return-to-office practices match reality and whether managers are equipped to apply them consistently.

HR Takeaway

• Align written policies with how work actually happens.

• Train managers to consistently apply flexibility decisions.
• Watch wage-and-hour and accommodation risks tied to hybrid work.

Even without sweeping new regulations, enforcement expectations are not easing. Several themes from 2025 are carrying momentum into the new year.

Department of Labor enforcement continues to emphasize wage-and-hour compliance, worker classification, and pay practices.

OSHA enforcement continues to move beyond traditional citations. Employers should expect scrutiny of training programs, reporting practices, and how known risks are addressed, especially in hybrid and nontraditional work environments.

The EEOC remains focused on systemic discrimination, retaliation, and compliance with accommodation requirements. Employers are expected to demonstrate consistency, documentation, and good-faith engagement, not just policy language.

The message for HR teams is simple. Compliance is no longer limited to avoiding violations. It requires demonstrating thoughtful systems and follow-through.

HR Takeaway

• Assume enforcement priorities will continue, even without new rules.

• Document decision-making, training, and corrective actions.
• Treat compliance processes as ongoing, not episodic

The first quarter of the year is when routine compliance work creates the most risk. Deadlines stack quickly, responsibilities cross departments, and small misses turn into outsized problems.

January 2026

January 1, 2026 – Minimum wage increases take effect

New minimum wage rates apply across many state and local jurisdictions and certain industries. Employers should confirm updated rates, salary thresholds tied to minimum wage, and payroll system changes before the first payroll of the year.

HR Takeaway

• Use January to align wage rates, policies, and payroll systems before issues surface later in the quarter.

• Coordinate payroll, HR, and finance well before year-end.
• Expect employee questions and corrections if the data is not clean.

February 2, 2026 – Major year-end reporting deadline

By this date, employers must furnish and file:

• Form W-2 to employees and the Social Security Administration
• Form W-3 with the Social Security Administration
• Form 1099-NEC to nonemployees and the IRS

*Typically, these forms are due on January 31st. However, since January 31st falls on a Saturday, they are due the next business day.

February 10, 2026 – Extended employer payroll tax filing deadlines (if applicable)

If all required deposits were made on time:

• Form 941 (Q4 2025 Quarterly Federal Tax Return) may be filed by February 10
• Form 940 (2025 Federal Unemployment Tax Return) may be filed by February 10

If deposits were not timely, the filing deadline remains January 31 (or February 2, 2026, due to the weekend).

February 17, 2026 – W-4 exemption renewals due

Employees claiming exemption from withholding must submit a new Form W-4 to continue that status.

February 1–April 30, 2026 – OSHA Form 300A posting period

Employers required to maintain OSHA injury and illness records must post Form 300A summarizing the prior year’s incidents in a visible location.

HR Takeaway

• Confirm which extended deadlines apply to your organization.

• Monitor W-4 exemptions closely to avoid withholding errors.
• Do not overlook OSHA posting obligations, even for low-incident workplaces.

March 2, 2026 – ACA employee statements due

Applicable large employers must distribute Form 1095-C to full-time employees. Employers with self-insured plans must also distribute Form 1095-B where applicable.

March 16, 2026 – Business tax returns due

Calendar-year S corporations and partnerships must file 2025 income tax returns.

March 16, 2026 – Retirement plan correction deadline

Deadline to distribute returns of excess contributions to participants to correct failed Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP) nondiscrimination tests for plans using an Eligible Automatic Contribution Arrangement (EACA), to avoid the 10% excise tax.

March 31, 2026 – Electronic ACA filings due

Electronically file Forms 1094-C and 1095-C, along with applicable B-series forms.

HR Takeaway

• Coordinate ACA reporting early, especially with variable-hour employees.

• Loop in benefits counsel or vendors on testing and corrections.
• Avoid last-minute electronic filings, as they increase the risk of rejection.

The throughline across all of these trends is role evolution. HR is no longer viewed as a back-office function focused solely on administration and compliance. It is increasingly expected to drive workforce strategy.

That means using data to anticipate staffing needs, identifying skill gaps early, and advising leadership on the people implications of business decisions. It also means having the credibility to push back when hiring plans, policies, or technology deployments create more risk than value.

The path forward for HR leaders in 2026 is practical, not flashy. Build systems that are compliant, defensible, and aligned with how work really gets done, and let everything else fall away.

HR Takeaway

• Position HR as an advisor, not just a service provider.

• Use data to support and challenge business decisions.
• Focus on systems that scale and withstand scrutiny.

Looking Ahead

2026 will not reward reactive HR practices. The job market may be calmer, but expectations are higher. Skills matter more. Processes matter more. Consistency matters more.

For HR leaders, this is an opportunity. Not to do more, but to do better. To move from managing tasks to shaping outcomes — and to position HR as a strategic partner in a year where people decisions continue to carry real business weight.

—

Jenny Kiesewetter is a practicing ERISA and employee benefits attorney who partners with HR teams on a wide range of workplace compliance matters — from benefit-plan obligations to day-to-day HR policies and regulatory requirements. Her guidance helps employers spot risks early, navigate regulatory change, and make informed decisions that support both employees and the organization.

The information contained in this site is provided for informational purposes only, and should not be construed as legal advice on any subject matter.