Takeaways

  • The National Labor Relations Board has reinstated its 2020 joint employer standard, requiring substantial direct and immediate control over essential terms and conditions of employment to establish joint employer status.
  • The U.S. Department of Labor has proposed rescinding its 2024 independent contractor rule and returning to a Trump-era “economic reality” framework.
  • Employers should proactively reassess joint employer relationships and independent contractor classifications in light of these regulatory shifts and the DOL’s anticipated final rule later this spring.

NLRB Returns to 2020 Joint Employer Status Test

On February 26, 2026, the National Labor Relations Board announced a return to the joint employer status test in effect during President Trump’s first administration. The final rule replaces a 2023 Biden-era test that was vacated by an order from the United States District Court for the Eastern District of Texas on March 8, 2024. The Board explained that its final rule replaces the vacated regulatory text with the previous version of its rules that remain in effect after the Texas Order.Continue Reading Flip-Flop: Feds Announce a Final Rule on Joint Employer Status and a Proposed Rule on Independent Contractor Status

Takeaways

  • Employers that include unambiguous contractual language regarding integration and modification in employment agreements must ensure that the agreement contains all relevant terms and conditions of employment.
  • Careless drafting or inconsistent onboarding documents can eliminate otherwise enforceable employer protections.

The Michigan Court of Appeals recently provided employers with an important reminder about the interplay between employment applications and employment agreements in Mayberry v. Acrisure Wallstreet Partners, LLC. In that case, the Plaintiff signed both an employment application and a separate employment agreement at the time he was hired. The application included a shortened limitations period that required her to bring any claim against the Company within six months of the events underlying the claim. The employment agreement, signed later in the day, contained no such shortened limitations period.Continue Reading Michigan Court of Appeals Reminds Employers of the Importance of Carefully Drafting Employment Agreements and Onboarding Documents

On February 18, 2026, the U.S. Equal Employment Opportunity Commission (EEOC) filed a lawsuit against Coca-Cola Beverages Northeast, Inc., alleging sex discrimination under Title VII of the Civil Rights Act of 1964. The suit centers on an employer-sponsored event held in September 2024 that was attended exclusively by female employees and from which male employees were excluded. The EEOC contends that privately inviting female employees and furnishing additional paid time off to attend the event, while excluding male employees, constituted an unlawful employment practice. This litigation underscores the Commission’s evolving enforcement in contexts that may not immediately resemble traditional hiring or promotion disputes.Continue Reading DEI in the Crosshairs: EEOC Enforcement and Texas AG Scrutiny Signal Heightened Risk for Employers

Takeaways

  • Minimum wage increases at the state, Minneapolis, and St. Paul levels will require multi-jurisdictional employers to reassess payroll practices.
  • New rules on meal and rest breaks significantly expand employee protections and reduce employer flexibility.
  • Paid Family and Medical Leave planning must begin now, with critical notice, premium, and plan-selection deadlines approaching in late 2025.

Minnesota saw several changes to labor and employment laws take effect in 2025, with additional changes anticipated for 2026.Continue Reading 2025-2026 Minnesota Labor and Employment Law Update: Key Wage, Leave, Pay Transparency, and Workplace Compliance Changes for Employers

Takeaways

  • Michigan employers face steadily rising minimum wages, the phase-out of the tip credit, and temporary tax relief on tips and overtime through 2028.
  • A Michigan Supreme Court decision reshapes how courts evaluate shortened limitations periods in employment agreements, putting common handbook provisions at risk.
  • Michigan’s Earned Sick Time Act now applies broadly and will soon reach unionized workforces as collective bargaining agreements expire.
  • Proposed legislation could dramatically expand pay transparency, mandate formal job descriptions, and reclassify many independent contractors as employees.
  • Non-competes and right-to-work laws are once again in legislative flux, requiring employers to monitor Lansing closely in 2026.

As we enter 2026, Michigan employers should be aware of several Michigan employment laws that continue to have a major impact on employers, and some possible employment laws.Continue Reading 2026 Michigan Labor and Employment Law Update: Wage Increases, Sick Leave, Contract Limits, and Key Legislative Risks for Employers

Key Takeaways for D.C. Employers

  • Verify compliance with the new $17.95 minimum wage effective July 1, 2025.
  • For government contractors and assistance recipients, ensure workers are paid at least the living wage rate tied to CPI adjustments.
  • Review non-compete agreements to confirm they are limited to qualifying highly compensated employees and comply with statutory notice and duration requirements.
  • Display the updated DOES Minimum Wage Poster once released.

Each year, the District of Columbia (the “District”) updates key labor and employment laws affecting local employers and workers alike. For 2026, important changes include new wage rates under the Living Wage Act of 2006 and the Minimum Wage Act, as well as revised compensation thresholds under the District’s non-compete law.

Employers operating in the District should review these developments to ensure policies, contracts, and pay practices remain compliant going into the new year.Continue Reading 2026 Washington, D.C., Labor & Employment Law Updates: Minimum Wage, Living Wage, and Non-Compete Changes Employers Must Know

Takeaways

  • DEI programs that involve quotas, restrict participation, or employ diversity-based selection criteria face heightened legal risk.
  • Employers may need to revisit DEI training content to avoid claims of discrimination or hostile work environments.
  • Proactive compliance reviews in 2025 can help employers reduce litigation and enforcement exposure heading into 2026.

As 2025 comes to a close, all U.S. employers face several important legislative and regulatory updates that reshape the workplace landscape heading into 2026, related to changes in federal law. A summary of such important updates applicable to all employers is provided below:Continue Reading 2025–2026 Federal Labor & Employment Law Update: EEOC and DOJ Signal Heightened Scrutiny of DEI Programs

Takeaways

  • New amendments significantly restrict how employers draft employment, separation, and settlement agreements.
  • Expanded leave laws require immediate policy and handbook updates.
  • New AI restrictions directly impact recruiting, hiring, and other employment decisions, with notice and anti-discrimination requirements.

As 2025 draws to a close, employers should be aware of new Illinois employment laws going into effect in January 2026.

Below is a summary of the upcoming changes to Illinois law:Continue Reading 2026 Illinois Employment Law Update: New Compliance Obligations on AI, Leave, Pay, and Workplace Agreements

The 2026 statutes enacted by the legislature that impact employment are fewer in number than in prior years. Still, California employers need to be aware that the new 2026 employment laws focus on strengthening existing laws to further expand employee rights and extend job protections. Amendments imposing stricter and more complicated requirements were enacted, and sanctions for employer non-compliance increased. The most notable among them are minimum wage increases, prohibitions on “Stay or Pay” employment contracts, and notice requirements.

This article summarizes the key employment laws to take effect in 2026 and beyond, along with the significant court decisions that will have the most impact on the workplace—but it does not cover everything. Please reach out to any of Dykema’s Labor and Employment attorneys to discuss the impact of the new regulations on your business and to assess the best approach for complying with these new developments.Continue Reading New 2026 California Employment Laws: How Businesses Can Protect Themselves

Takeaways

  • The FTC’s withdrawal of its broad non-compete ban does not signal a retreat from enforcement—in fact, the agency is sharpening its focus.
  • Recent FTC actions show a clear shift toward targeted, case-by-case challenges to non-compete agreements deemed unfair or overbroad.
  • A new FTC complaint highlights the agency’s concern with blanket non-competes applied without regard to job role or responsibility.

It would not be unreasonable to question the future of FTC enforcement against non-compete agreements after the FTC abandoned the prior administration’s rule banning nearly all employee non-compete agreements.[1] But the FTC has signaled its intent to continue enforcement against those non-compete agreements that unreasonably restrain employment options in a more targeted, case-by-case manner under Section 5 of the FTC Act (15 U.S.C. § 45).Continue Reading FTC Signals Continued Scrutiny of Employee Non-Compete Agreements