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Quick Hits Employers may want to prepare for 2026 by mapping exempt roles in Alaska, California, Maine, New York, and Washington to new salary thresholds and implementing adjustments aligned with effective dates. To avoid salary compression, employers may want to reconcile pay bands in the thirty-one states with higher minimum wages than federal law and ensure that any threshold multipliers are captured in exempt pay. Employers may also want to…

Quick Hits New guidance from the Treasury Department and IRS provides penalty relief to employers for tax year 2025 for failing to satisfy the new requirements for reporting cash tips and overtime compensation under 2025’s comprehensive budget bill. The guidance gives employers relief with respect to the transition period of the 2025 tax year to gather the correct information without penalty. The grace period does not extend beyond the 2025…

Quick Hits Beginning on January 1, 2026, employers and labor contractors will be required to separately collect and store any demographic information for California pay reporting so that the information is separate from employees’ personnel records. As of January 1, 2026, when requested by California’s Civil Rights Department, courts will be required to impose civil penalties of $100 per employee for the first failure and $200 per employee for a…

Quick Hits The ECJ issued two decisions finding dismissals are invalid if prior mass dismissal notification requirements under EU Directive 98/59/EC and national law are not met. In the two German cases involving collective redundancies, the ECJ found that insufficient or incomplete mass dismissal notifications to the competent public authority led to the invalidity of dismissals. The ECJ ruled that proper mass dismissal notifications and compliance with the consultation requirements…

Quick Hits On October 22, 2025, the Massachusetts Supreme Judicial Court concluded that a retention bonus is not a “wage” for purposes of the Massachusetts Wage Act, and that such bonuses are instead a form of additional, contingent compensation outside the ambit of the Wage Act. The court reasoned that the purpose of a retention agreement is to benefit the employer by securing the services of an employee through a…

Quick Hits The U.S. District Court for the Western District of Washington rejected federal agency positions that treat DEI-oriented, race-neutral, and transgender facility access as presumptively unlawful, noting that those interpretations conflicted with established precedent. The court criticized EO 14173’s “materiality” clause, which declared global compliance with all anti-discrimination laws per se material to False Claims Act payment, as boilerplate adopted without reasoned analysis, tailoring, or consideration of reliance interests.…

Quick Hits The legislative goal in Poland mirrors the European Union’s Pay Transparency Directive’s core objectives: reducing gender‑based pay discrimination by making pay systems more transparent and comparable. Further measures covering employee information rights and gender pay gap reporting are expected by 7 June 2026 in line with the Directive’s implementation deadline. While legislation is still to be finalised, it is likely that noncompliance will result in administrative fines. New…

Quick Hits The EU AI Act took effect on August 1, 2024, and carries extraterritorial reach. U.S. employers can be covered even without a physical EU presence if AI outputs are intended to be used in the EU—e.g., recruiting EU candidates, evaluating EU-based workers or contractors, or deploying global HR tools used by EU teams. Several obligations have begun to take effect, with more phasing in through 2026–27. The European…

Quick Hits The Federal Labor Court of Germany ruled on October 23, 2025, that gender-based discrimination is presumed if a woman earns less than a comparable male colleague, even if he is a top earner. The court clarified that the presumption of gender-based discrimination does not require a “preponderant probability” and that the size of the male comparator group and median pay levels are irrelevant; the employer must rebut the…

Quick Hits The partial government shutdown in 2025 has curtailed OSHA’s routine operations, but this is unlikely to cause a dramatic near-term deterioration in worker safety. During the shutdown, OSHA’s contingency plan focuses on preserving essential functions that protect human life and property, such as responding to reports of imminent danger, investigating fatalities, and maintaining a minimal supervisory structure. This ensures that the most severe hazards are still addressed, even…