With 2026 upon us, businesses, employees, and policymakers alike are preparing for the year ahead, and with it come anticipated shifts in the labor and employment landscape. Each year brings its own set of challenges and opportunities, from regulatory changes to evolving workplace trends, and 2026 is no exception. Understanding these expected developments is essential for organizations aiming to stay compliant and competitive and for workers seeking to navigate a rapidly changing work environment. This article highlights the key labor and employment changes we expect to see and what they could mean for the year ahead.
Artificial intelligence
As artificial intelligence (AI) continues to reshape workplaces, 2026 is expected to bring heightened focus and debate around how AI intersects with labor and employment law. With clear federal guidance still in flux, states are increasingly taking the lead, enacting laws that require transparency, bias audits, and notifications when AI tools influence hiring, promotions, or other employment decisions as well as imposing antidiscrimination obligations on employers using AI systems.
At the same time, recent federal actions aimed at limiting state‑level AI regulation have stirred deeper discussion about the proper balance between national and state authority over AI in the workplace. As a result, we expect more dialogue, legislative proposals, and state‑driven action on AI issues, including employment discrimination, automated decision‑making, and worker protections, making AI one of the central labor and employment topics in the new year.
Immigration
Immigration and employment rules are shifting in 2026, particularly around visas. H‑1B registration may prioritize higher‑paid positions, while expanded screening and stricter work authorization rules increase scrutiny for foreign workers. Employers will need to navigate these changes carefully to ensure compliance and maintain access to skilled talent.
At the same time, adjustments to employment authorization documents (EADs) and new pathways to permanent residency may affect workforce planning, while visa backlogs continue to create challenges for both employers and employees. These developments underscore the growing importance of proactive immigration strategies in the year ahead.
Labor Reform
Heading into 2026, Congress will begin debating a substantial labor reform package led by Senate Health, Education, Labor and Pensions (HELP) Committee Chair Bill Cassidy (R‑LA) and other Senate Republicans that could reshape key aspects of federal labor law. This legislative effort includes bills aimed at modernizing outdated labor rules.
We will be watching closely as these proposals make their way through committee hearings and potential floor votes because successful passage could result in significant changes to union representation processes, collective bargaining frameworks, and workplace benefit structures—marking some of the most substantial labor law revisions in decades.
NLRB Regains Quorum
Going nearly a year without a functioning quorum, the National Labor Relations Board (NLRB) was effectively sidelined throughout much of 2025. President Trump’s removed Democratic Board Member Gwynne Wilcox and other senior officials left the NLRB without the minimum three members required to act, prompting legal challenges and leaving hundreds of cases in limbo.
That impasse ended on December 18, 2025, when the Senate confirmed the president’s nominees, restoring a quorum and enabling the Board to resume full operations. Scott Mayer and James D. Murphy will serve as Board members, with Murphy set to serve as the Board’s chair and Crystal S. Carey to serve as the NLRB’s General Counsel.
With the Board now reconstituted, we expect the NLRB to begin advancing policy priorities aligned with the Trump administration’s agenda, potentially reversing or narrowing several Biden-era labor protections and signaling a significant shift in how the Board interprets and enforces federal labor law.
State Changes on the Horizon
Several state-level labor and employment changes took effect at the start of 2026, reflecting a continued push toward higher wages and expanded worker protections. The following states raised their minimum wage rates effective January 1, 2026:
- Arizona: $15.15 per hour
- California: $16.90 per hour
- Colorado: $15.16 per hour
- Connecticut: $16.94 per hour
- Hawaii: $16 per hour
- Maine: $15.10 per hour
- Michigan: $13.73 per hour
- Minnesota: $11.41 per hour
- Missouri: $15 per hour
- Montana: $10.85 per hour
- Nebraska: $15 per hour
- New Jersey: $15.92 per hour
- New York: $17 per hour in New York City, Long Island, and Westchester; $16 per hour elsewhere
- Ohio: $11 per hour
- Rhode Island: $16 per hour
- South Dakota: $11.85 per hour
- Vermont: $14.42 per hour
- Virginia: $12.77 per hour
- Washington: $17.13 per hour statewide and $21.30 in Seattle
Takeaway
As 2026 begins, the labor and employment landscape is poised for significant changes from state-level wage increases and paid leave expansions to evolving visa rules, AI regulations, and potential federal labor reforms. We will continue to monitor these developments closely and provide updates throughout the year to help employers and employees navigate the shifting workplace environment.
Mckenzy Smith is an attorney with Burr & Forman LLP and can be reached at 205-458-5149 or mcsmith@burr.com.
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