Compliance Round Up – Federal Wage Rules, Pay Data Reporting, State Workplace Laws, and Key Court Decisions

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Jennifer Kiesewetter

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.

Employers are entering 2026 with little runway. New agency guidance, expanding state workplace rules, and recent court decisions are reshaping expectations around remote work, pay practices, and enforcement boundaries.

Below are the developments HR teams should have on their radar now, so policies, training, and systems stay aligned before issues surface mid-year.

Federal News

Effective Date: January 21, 2026

What’s Changing:

The U.S. Department of State expanded its visa bond pilot program to cover additional countries and ports of entry, increasing the number of B-1/B-2 visitor visa applicants subject to bond requirements. Under the expanded program, certain applicants must post a refundable bond, generally reported between $5,000 and $15,000, to help ensure compliance with visa terms and timely departure. The expansion reflects heightened scrutiny of visitor visa overstays and signals a more restrictive approach to short-term business and visitor travel.

What This Means for HR:

  • Expect potential delays for business visitors, candidates, and short-term project workers entering the U.S.
  • Revisit onboarding timelines and start dates for roles tied to international travel.
  • Coordinate early with immigration counsel when travel plans rely on visitor visa classifications.

Effective Date: Applies to benefits paid during calendar year 2026

What’s Changing?

The Internal Revenue Service (IRS) issued Notice 2026-06 extending transition relief related to employment tax withholding and reporting for certain state-paid family and medical leave benefits. The relief applies where benefits are paid through state programs funded by employer contributions, and it delays enforcement of specific federal tax reporting requirements while agencies continue to align guidance. The extension gives employers additional time to coordinate payroll, reporting, and compliance processes for state-administered leave benefits.

What This Means for HR:

  • Confirm payroll and tax reporting treatment for state-paid medical leave benefits.
  • Align benefits, payroll, and finance teams on a consistent reporting approach for 2026.
  • Document your methodology now to support compliance, if questioned later.

Effective Date: January 5, 2026

What’s Changing?

The U.S. Department of Labor issued an opinion letter addressing whether a required pre-shift “roll call” can be excluded from overtime calculations under the Fair Labor Standards Act when a collective bargaining agreement governs pay practices. The letter reinforces that contractual language does not override the Fair Labor Standards Act (FLSA) compensability rules.

What This Means for HR:

  • Audit pre-shift and post-shift practices that supervisors treat as informal or de minimis.
  • Ensure timekeeping practices align with actual work expectations across bargaining units.
  • Review collective bargaining agreements (CBAs) with wage-and-hour counsel to confirm compliance with FLSA regular-rate rules.

Effective Date: January 2026

What’s Changing?

The DOL issued several opinion letters clarifying wage-and-hour compliance, including:

  • Nondiscretionary bonuses under predetermined pay plans generally must be included in the regular rate.
  • Commissioned employee overtime exemptions require careful analysis of minimum wage and compensation structures.
  • Exempt classification decisions must reflect actual job duties, not titles or assumptions.

What This Means for HR:

  • Revisit bonus plan language and payroll calculations tied to overtime.
  • Tighten exemption documentation based on day-to-day duties and supervision.
  • Train managers not to improvise on classification or pay practices.

Trending State News

Effective Date: Pay data reports due May 13, 2026

What’s Changing?

The California Civil Rights Department (CRD) has announced that the pay data reporting portal is now open for the 2024 calendar year, signaling that employers can begin submitting their required pay data reports in accordance with official state guidelines. Further, the CRD has issued pay data reporting templates and Frequently Asked Questions (FAQs) for employers’ review.

What This Means for HR:

  • Begin data mapping across HRIS, payroll, and labor contractor systems early.
  • Validate job categories, pay bands, and demographic data now.
  • Assign clear ownership for pay data governance, not just submission.

Effective Date: February 1, 2026

What’s Changing?

California now requires employers to provide a stand-alone “Workplace Know Your Rights Act” notice to employees, separate from other onboarding or compliance materials. The Labor Commissioner released an official template to satisfy the requirement, along with guidance on delivery and retention expectations. Additional translated versions are expected, reinforcing the obligation to provide the notice in languages commonly used in the workforce.

What This Means for HR:

  • Add the notice to onboarding and annual compliance workflows.
  • Confirm distribution methods and record-retention practices.
  • Track translation updates if your workforce operates in multiple languages.

Effective Date: January 1, 2026

What’s Changing: 

The New York State Department of Labor issued guidance clarifying how recent amendments to the Healthy Terminals Act apply to covered airport workers at JFK and LaGuardia. The guidance addresses updated wage rates, required health benefit contributions, and expanded leave entitlements, while also explaining coverage thresholds based on job duties and time spent performing covered work. It further clarifies employer obligations for compliance, recordkeeping, and coordination with contractors and subcontractors.

What This Means for HR:

  • Identify covered roles based on job duties and time spent supporting airport operations.
  • Review vendor and subcontractor agreements for alignment with updated requirements.
  • Coordinate payroll and benefits administration to avoid compliance gaps.

Effective Date: December 19, 2025 (law effective immediately)

What’s Changing: 

After the Trapped at Work Act took effect, the New York Legislature introduced a chapter amendment to clarify the scope of prohibited “stay-or-pay” and employment repayment agreements. The amendment focuses on refining definitions, exceptions, and enforcement mechanics, while preserving the law’s core restriction on requiring employees to repay costs as a condition of continued employment. Employers remain subject to immediate compliance obligations while the amendment process moves forward.

What This Means for HR:

  • Pause new repayment-based agreements until reviewed for compliance.
  • Inventory existing training repayment and clawback provisions.
  • Coordinate multi-state templates carefully, as other jurisdictions are watching closely.

Effective Date: April 18, 2026

What’s Changing: 

New York expanded its existing limitations on the use of consumer credit history in employment decisions by narrowing permissible exceptions and reinforcing that credit checks are prohibited for most positions. The amended law limits when employers may request, consider, or rely on credit information, even during background screening, unless a specific statutory exemption applies. Enforcement authority and penalties remain with the New York State Department of Labor.

What This Means for HR:

  • Update background check packages and vendor instructions well before April.
  • Narrow credit checks to roles that clearly meet statutory exemptions.
  • Train recruiters and HR teams to stop default credit inquiries.

Effective Date: January 1, 2026

What’s Changing: 

Pittsburgh updated its Paid Sick Days Act guidelines to clarify accrual rates, carryover limits, and permissible uses of paid sick time, particularly for larger employers. The revised guidance also tightens employer notice, recordkeeping, and posting expectations, with an emphasis on consistent tracking and documentation.

In addition, the City clarified how frontloading and PTO equivalency policies must operate to satisfy the ordinance’s minimum requirements.

What This Means for HR:

  • Confirm accrual mechanics, caps, and carryover rules in policies and systems.
  • Train managers on permissible use and anti-retaliation requirements.
  • Ensure that any single PTO policy fully complies with city-specific rules.

Around the Courts

Effective Date: January 2, 2026

What’s Changing:

A New York federal court held that denying an employee’s request to continue remote work, standing alone, did not establish disability discrimination under the facts presented. The decision emphasized the distinction between an adverse action claim and a failure-to-accommodate analysis.

What This Means for HR:

  • Document the interactive process carefully, including job functions and alternatives considered.
  • Avoid blanket statements about remote work eligibility.
  • Apply consistent criteria when evaluating essential job functions.

Effective Date: December 26, 2025

What’s Changing:

A California federal court largely blocked California’s AB 288, which sought to expand state authority to process certain labor disputes typically handled by the National Labor Relations Board during periods when the NLRB lacks a quorum.

What This Means for HR:

  • Anchor labor strategies to current federal jurisdiction rules.
  • Avoid assuming state agencies can step into federal enforcement roles.
  • Review internal response plans for unfair labor practice allegations.

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