THE WORKPLACE

Redefining employers’ obligations

U.S. employers, particularly those with multistate operations, have long had to contend with a complex, and sometimes conflicting, regulatory environment. But the first year of the second Trump administration has introduced several new challenges for both public and private employers.

A few days before the end of 2025, the EEOC submitted a request to the White House Office of Management and Budget to rescind in its entirety harassment guidance the agency issued in April 2024. Some of the arguably more controversial aspects of the guidance — like the use of preferred pronouns and names — were expected to be rescinded by the current administration. However, the guidance also addresses standard anti-harassment advice and other employment law mainstays that many employers have been relying upon for years.

Meanwhile, Congress has, in the past, considered legislation that would mandate that employers be transparent about employee wages. Some see such legislation as a means to better ensure pay equity in the workforce.

For example, the Salary Transparency Act — introduced in the House in 2023 — proposed to amend the Fair Labor Standards Act (FLSA) to require that employers disclose wage or salary ranges for openings in public and internal job postings. The bill was referred to the House Committee on Education and Workforce, but it was not advanced to the full House for debate.

With no federal pay transparency law in effect, states and cities have stepped in to impose their own regulations on employers. Fourteen states and the District of Columbia had pay transparency laws in effect as of Oct. 1, 2025, according to human resources data services company Brightmine. (See Figure 4.)

Delaware has also enacted a pay transparency law, which will take effect in September 2027, and similar laws have been proposed but not enacted in Iowa, Maine, Michigan, and Wisconsin. Several cities — including New York, Cincinnati, and Cleveland — have enacted their own laws, as have New York’s Albany and Westchester counties.

Pay transparency legislation generally requires employers to include salary or wage ranges with each job posting. These laws often impose steep fines and penalties for violations or allow private plaintiffs to pursue damages through litigation.

For example, Washington state’s Equal Pay and Opportunities Act (EPOA) allows both job applicants and current employees to file civil litigation alleging violations of the law. A September 2025 Washington Supreme Court ruling on who qualifies as a job applicant for purposes of filing a pay transparency claim under the EPOA is expected to open the door to private litigation against employers in that state.

Other workplace regulatory risks that should be top of mind for employers include:

Joint employer status.

The National Labor Relations Board (NLRB) enforces the National Labor Relations Act, which requires joint employers to share responsibility for meeting labor standards. The NLRB in 2023 classified its rule on joint employer status as a major rule subject to congressional review.

Wage and hour liability.

The Wage and Hour Division of the Department of Labor (DOL) enforces the FLSA, recovering back wages and damages for workers. Historically, wage and hour filings have outpaced all other workplace class-action litigation, such as pay discrimination claims.

Pay equity.

At the federal level, the Equal Pay Act of 1963 prohibits wage discrimination on the basis of sex. Virtually every U.S. state has a pay equity or wage discrimination law in effect.

Independent contractor status.

The DOL’s interpretation of how to classify workers — as employees or contractors — under the FLSA has shifted back and forth under Democratic and Republican administrations. In September 2025, the DOL announced it would rescind a rule enacted in 2024 that imposed a six-factor test for determining how an employee is classified under the law. More recently, on Feb. 26, 2026, the DOL made clear that its new rule would revert to an "economic reality" test similar to the one used in a rule that was finalized in January 2021, just before the end of President Trump’s first term.

State and local governments have been active on a variety of workplace-related topics. For example, several states have implemented leave laws permitting employees to take paid leave for medical or caretaking purposes. In addition to new legislation on this issue, several states have issued new regulations to clarify these laws. States have also enacted new rules about the use of AI and automated tools in employment decision-making along with new wage and hour rules. At the local level, New York City enacted new rules regarding prenatal personal leave.