Skip to content
More support Sign in
Contact us
  • There are no suggestions because the search field is empty.

2026 HR Compliance Roundtable

What’s Coming, What to Watch, and How to Stay Ahead

Date: November 12, 2025
Presenters: John Baldino & Joel Riley, Humareso
Duration: ~1 hour

Overview

This comprehensive guide covers the key employment law compliance changes coming in 2026. While this is not an exhaustive list of all compliance updates, it highlights the most significant areas that will likely require software updates, handbook revisions, and policy changes for organizations across the United States.

Important Disclaimer: This information is for educational purposes only and does not constitute legal advice. Consult with qualified employment attorneys for guidance specific to your organization and jurisdiction.

Table of Contents

  1. AI in Hiring and Recruitment
  2. Pay Transparency
  3. Paid Family Leave
  4. Special Medical Leave Additions
  5. Minimum Wage for Agricultural Workers
  6. Joint Employment and Misclassification
  7. National and Federal Updates
  8. Key Takeaways and Action Items

AI in Hiring and Recruitment

Overview

AI regulation in hiring is currently in a similar position to where background checks once were—transparency and fairness are now fundamental compliance essentials. Current legislation focuses heavily on the recruitment and initial hiring process, not internal mobility or promotion decisions.

Key Requirements by Jurisdiction

New York City

  • Annual bias audits of AI tools required
  • Candidate notification that AI is being used
  • Public posting of audit results

California

  • Disclosure requirement that AI is being utilized
  • Audits for automated hiring tools

Illinois

  • Expanding Human Rights Act to prohibit bias in AI screenings

Colorado

  • AI Act of 2026 coming into effect
  • Requirements around disclosures, documentation, and records retention

Federal Considerations

  • EEOC Title VII applies to AI algorithms
  • Must ensure no disparate impact or discrimination
  • Focus on decisions made during the hiring process

What This Means for Employers

AI tools that require compliance:

  • Applicant tracking systems with AI integration
  • Assessment tools using AI for scoring or ranking
  • Rubrics defined or influenced by AI
  • Any tool where AI influences hiring decisions

Key Principle: If AI is making people decisions, it needs human oversight. You cannot turn AI loose to make hiring decisions autonomously.

Action Items

  1. Audit your recruitment process to identify where AI is involved
  2. Review vendor contracts for AI tools to understand compliance requirements
  3. Implement disclosure protocols for candidates
  4. Establish human oversight processes for AI-assisted decisions
  5. Document AI usage and audit results as required by jurisdiction

Pay Transparency

Overview

Pay transparency laws require mandatory salary range disclosures in job postings—not disclosure of all employee salaries internally. Over 15 jurisdictions now require this, with more expected to follow.

Key Requirements by Jurisdiction

California

  • Applies to organizations with 15+ employees
  • All salary ranges must be posted in job postings

New York State

  • Applies to organizations with 4+ employees (lowest threshold)
  • Must include range and location in job postings

Other States

  • New Jersey, Hawaii, Illinois have similar requirements
  • Trend is spreading rapidly across jurisdictions

Record Retention Requirements

  • 5+ years of posting copies and range documentation required (varies by jurisdiction)
  • Similar timeline to employee record retention requirements

Common Misconceptions

❌ "It depends on experience level"

  • Not acceptable under current law
  • You must post the range for the role as defined

❌ "We'll post it later"

  • Must be included in the initial job posting
  • Cannot exclude from certain platforms (e.g., "if you live in Colorado, don't apply")

✅ The Role is Worth What the Role is Worth

  • Courts will enforce this principle
  • Base ranges on the role requirements, not candidate qualifications

Pay Equity Considerations

Pay transparency ≠ Pay equity

  • Regular audits still required to identify gaps and inequities
  • Pay equity regression analytics still required for:
    • Government contractors
    • Publicly traded companies (SEC 10K filings)
    • Organizations with compliance requirements

Enforcement

  • Proactive audits being conducted by Colorado and New York
  • Penalties for non-compliance are significant
  • Cannot exclude certain states from job postings to avoid compliance

Action Items

  1. Review all job postings to ensure salary ranges are included
  2. Establish record retention processes for 5+ years
  3. Conduct pay equity audits if required for your organization type
  4. Update ATS/HRIS systems to require salary ranges
  5. Train recruiters on compliance requirements

Paid Family Leave

Overview

Paid family leave has spread rapidly across the United States, with 12+ states now having changes or additions to paid family medical leave programs. This is one of the fastest-growing compliance areas.

States with Changes or New Programs

  • New York
  • Connecticut
  • Colorado
  • California
  • Minnesota
  • Massachusetts
  • New Jersey
  • Delaware
  • Maine
  • Maryland
  • Oregon
  • Washington State
  • Rhode Island
  • District of Columbia

Critical Considerations

Remote Employees

The situs of work matters. If you have:

  • Home office in Florida (no paid leave requirement)
  • Remote employees in Massachusetts (has paid leave requirement)

Those employees are subject to Massachusetts law, not Florida law. You cannot simply give them a Florida handbook and call it done.

Hybrid Work Arrangements

If an employee works:

  • 2 days/week in Pennsylvania office
  • 3 days/week from home in New Jersey

The situs of work leans toward New Jersey (majority of time), so New Jersey rules apply.

City-Level Requirements

Some cities have their own paid family leave rules:

  • New York City
  • San Francisco
  • Other municipalities

Wage Replacement and Duration

  • Not 100% of salary—typically a portion
  • Some jurisdictions increasing replacement rates in 2026
  • Employees apply directly to state system (similar to unemployment)
  • Employers attest to the leave status

Disability Gap Insurance

Voluntary benefit opportunity:

  • Aflac, Colonial Life, Principal, MetLife offer Disability Gap Insurance
  • Can help employees reach 100% compensation while on leave
  • Combines state paid leave + gap insurance
  • Great time to educate employees about this benefit option

Action Items

  1. Map employee locations to identify applicable jurisdictions
  2. Review hybrid work arrangements to determine situs of work
  3. Update handbooks with jurisdiction-specific leave policies
  4. Educate employees about disability gap insurance options
  5. Coordinate with benefits brokers on gap insurance offerings

Special Medical Leave Additions

Overview

This is a sensitive but important compliance area covering reproductive loss and domestic violence/stalking leave. These laws require empathy, clarity, and consistency in policy application.

Reproductive Loss Leave

Coverage includes:

  • Miscarriage
  • Stillborn
  • Child bereavement

Examples:

  • California: 5 days reproductive loss leave
  • Illinois: Up to 10 days child bereavement leave

Domestic Violence and Stalking Leave

Coverage includes:

  • Physical injury
  • Safety relocation issues
  • Protective orders
  • Trauma and mental health support
  • Children who may have been exposed

Examples:

  • Florida: Up to 3 working days within 12-month period for household members who are victims of domestic or sexual violence
  • Washington State: Domestic violence leave protections

Broader Definition of Family

Legislation is expanding to include:

  • Traditional family (mom, dad, uncle, brother, grandparent)
  • Domestic partners
  • "Chosen family" (may be tested in courts)

Policy Considerations

  1. Flexibility with PTO categories—how can employees use accrued time?
  2. Consistent application—not based on which manager is "nicer"
  3. Concurrent leave—how does this run with FMLA or ADA?
  4. Income utilization—what benefits are available?

Action Items

  1. Review leave policies for reproductive loss and domestic violence coverage
  2. Update handbooks with clear, empathetic language
  3. Train managers on consistent policy application
  4. Consider flexibility in PTO usage for these situations
  5. Document policy decisions for consistency

Minimum Wage for Agricultural Workers

Overview

Agricultural and domestic workers have historically been a "forgotten group" in minimum wage discussions. This is changing rapidly in 2026.

Key Statistics

  • 20+ states will have minimum wage exceeding $15/hour by 2026
  • California: $16/hour statewide, $20/hour for fast food sector
  • New York: Up to $17/hour
  • Washington: Expected to exceed $18/hour by 2026

Expanded Coverage

  • Colorado, New York, California expanding coverage for agricultural and domestic workers
  • Industry-specific minimums vary (e.g., fast food vs. general)

Exemption Considerations

Salary thresholds are also increasing:

  • New York: If under ~$58,000, employee is non-exempt (eligible for overtime)
  • Even if work duties meet management exemption, salary threshold must also be met
  • State thresholds may differ from federal thresholds

Tip Credit Regulations

⚠️ CRITICAL: Tip credit violations can result in complete loss of tip credit eligibility.

Requirements

  • Wage theft forms must be provided to all employees
  • Must follow tip credit rules to the letter
  • Overtime calculations must account for tip credits correctly

Jurisdictions Tightening Tip Credits

  • Washington D.C.
  • Chicago
  • California
  • New York
  • Maine
  • Massachusetts
  • Cities: Denver, Tucson, San Francisco, Seattle, Portland

New Year's Eve Consideration

If minimum wage or tip credit changes on January 1st and you're open on New Year's Eve:

  • You must change rates mid-shift at 12:01 AM
  • Payroll the following week will be complex
  • No exceptions for shifts that started before midnight

Tip Pool Participation

Must verify:

  • Who is TIP-eligible per jurisdiction
  • Table touch percentages (80-20, 70-20-10 rules vary)
  • Employees meet threshold requirements for tip pool participation

Action Items

  1. Verify minimum wage rates by work location and city
  2. Review salary thresholds for exempt employees
  3. Audit tip credit compliance if applicable
  4. Plan for New Year's Eve rate changes if operating
  5. Review tip pool participation eligibility

Joint Employment and Misclassification

Overview

This area is receiving intense federal enforcement with DOL and IRS cooperating on misclassification audits. This is not an area where you want to "swing and miss."

Joint Employment

PEO (Professional Employer Organization) relationships:

  • Shared employees under PEO umbrella
  • Legislation creating tension around joint employer responsibilities
  • More court cases expected in 2026 to clarify rules

Employee Classification

Common Misconceptions

❌ "The employee wants to be a 1099"

  • What the employee wants ≠ what the law requires
  • Accurate classification is the employer's responsibility

❌ "We can avoid benefits this way"

  • Misclassification is not a tactic to avoid benefits
  • Significant penalties for misclassification

Exempt vs. Non-Exempt

Common mistakes:

  • Calling someone a "marketing manager" who doesn't manage anyone
  • Work doesn't rise to technical exemption level
  • Salary doesn't meet threshold

Result: Employee is eligible for overtime despite title

Federal Enforcement

  • DOL and IRS cooperating on enforcement
  • Proactive audits being conducted
  • Significant penalties for violations
  • Not an area to take lightly

Action Items

  1. Review all employee classifications role by role
  2. Audit independent contractor relationships
  3. Verify exempt status meets all requirements (duties + salary)
  4. Document classification decisions
  5. Consult with HR practitioners or employment attorneys

National and Federal Updates

Overview

While 2026 is "the year of the state and city jurisdictions," there are still important federal updates to be aware of.

OSHA Updates

  • Broader whistleblower protection program
  • More anonymous reporting options available

National Labor Relations Board (NLRB)

  • Expanded protected concerted activity
  • Group chats about pay and hours are now protected

Department of Labor (DOL)

  • Revisiting exempt and salary thresholds
  • Telework reimbursement guidance updates

Key Federal Trend

Compliance is moving from reactive to proactive:

  • Proactive audits
  • Proactive documentation requirements
  • Proactive education expectations
  • Anticipation is the key word

Key Takeaways and Action Items

The Big Picture

  1. 2026 is the year of state and city compliance—federal legislation is less likely
  2. Proactive compliance is now the expectation, not reactive responses
  3. Remote work creates multi-jurisdictional compliance challenges
  4. Documentation and education are critical components

Critical Action Items

Immediate (Before January 1, 2026)

  •  Review all job postings for salary range compliance
  •  Verify minimum wage rates by location
  •  Audit tip credit compliance if applicable
  •  Map employee locations for paid leave requirements
  •  Review AI tools used in recruitment

Short-Term (Q1 2026)

  •  Update employee handbooks with jurisdiction-specific policies
  •  Conduct pay equity audits if required
  •  Train managers on new leave policies
  •  Review employee classifications
  •  Establish record retention processes

Ongoing

  •  Monitor state and city legislation for your jurisdictions
  •  Subscribe to compliance updates (e.g., Humareso blog)
  •  Maintain relationship with employment attorney
  •  Document policy decisions for consistency
  •  Educate employees on available benefits

Remote Work Considerations

If you're considering restricting hiring by state:

  • ✅ Allowed: Choosing not to hire in states where you don't want to set up tax requirements
  • ⚠️ Consider: Impact on candidate pool and skill availability
  • ⚠️ Remember: If you hire in a new state, you must comply with that state's laws

Handbook Strategy

Two approaches:

  1. Monolithic Handbook: One handbook covering all jurisdictions (can be very large)

  2. Core + Addendums (Recommended):

    • Core handbook with universal policies
    • State-specific addendums for each jurisdiction
    • Distribute via HRIS based on employee location

HRIS Integration:

  • Set up automatic distribution based on work location
  • Include appropriate handbook + addendum in new hire checklist
  • Use document management systems for tracking

Resources and Next Steps

Stay Informed

  • Visit Humareso.com and subscribe to blogs/emails
  • Connect with employment attorneys for jurisdiction-specific guidance
  • Monitor state and city websites for your employee locations
  • Attend future webinars on compliance updates

Request Materials

To request slides from this presentation, email: hello@humareso.com

SHRM Credit

Activity Code: [Available during live presentation]
PDCs: 1 SHRM PDC available for SHRM-CP and SHRM-SCP certified members

Important Reminders

This is Not Legal Advice

  • This information is educational and general in nature
  • Consult with qualified employment attorneys for specific guidance
  • Laws vary by jurisdiction and may be subject to court interpretation
  • Some legislation is still being finalized

Compliance is Ongoing

  • New laws continue to be passed
  • Court decisions will clarify enforcement
  • Stay connected to updates throughout 2026
  • Proactive compliance is the expectation

Last Updated: November 12, 2025
Next Review: Q1 2026