Intro to Federal and Multi-State Labor Laws

On January 22, 2026, the Equal Employment Opportunity Commission (EEOC) voted 2-1 to rescind its "2024 Enforcement Guidance on Harassment in the Workplace". The guidance, which was approved in April 2024, had provided explicit agency interpretations regarding conduct that could constitute unlawful harassment, including intentional and repeated misgendering, denial of access to restrooms consistent with an employee’s gender identity, and discriminatory dress codes. It is critical for employers to distinguish between the rescission of guidance and the status of the law. The Supreme Court’s 2020 ruling in Bostock v. Clayton County established that discrimination based on sexual orientation or gender identity is a violation of Title VII’s prohibition on sex discrimination. This ruling continues to prohibit discrimination based on sexual orientation and gender identity. 

Employers should review their anti-harassment policies and practices to ensure they align with both the latest federal standards and any applicable state and local laws.

The new year will bring changes to minimum wage and exempt employee salary requirements in many jurisdictions. Employers are encouraged to review employee compensation to ensure compliance with these annual changes.

The Trump Administration has ended the Federal Trade Commission's (FTC) attempt to ban non-compete agreements nationwide by dismissing an appeal of a court ruling. The rule, which was to be effective on August 20, 2025, was blocked by a Texas court and will not go into effect. Instead of a universal ban, the FTC will now address non-compete agreements through enforcement actions on a case-by-case basis. As a result, employers can continue to operate under existing state laws regarding non-compete practices. Employers should review their non-compete agreements to ensure they comply with current state laws and be prepared for potential case-by-case enforcement actions by the FTC.

Under the SECURE 2.0 Act, employees aged 50+ who earned more than $150,000 (indexed) in FICA wages in the prior calendar year—classified as “Highly Paid Individuals”—will be required to make any catch-up contributions on a Roth (after-tax) basis. This threshold is based on Box 3 wages reported on the Form W-2. This update does not remove catch-up eligibility but instead shifts the tax treatment for high-earning employees who elect to contribute beyond standard annual limits. For employees enrolled in the Justworks 401(k) Plan with Empower, Justworks will automatically classify pre-tax 401(k) contributions as Roth once a Highly Paid Individual's contribution reaches the catch-up amount.

The Department of Homeland Security (DHS) has ended the automatic extension of certain Employment Authorization Documents (EADs) for renewal applicants. This change applies to applications filed on or after October 30, 2025. Prior to this ruling, EAD renewal applicants received an automatic 540-day extension. However, workers who file renewal applications on or after October 30, 2025, will no longer benefit from this automatic extension and may not have a valid document for continued work eligibility. This change has immediate implications for employers regarding work authorization compliance and workforce planning. Employers should identify employees who may be affected by this new rule, initiate early EAD extension filings, and establish plans to manage potential operational disruptions if new EADs are not issued in a timely manner.

A new Presidential Proclamation, effective September 21, 2025, places limitations on certain H-1B employees, including a new $100,000 fee for new H-1B petitions. The proclamation does not affect existing H-1B employees or those with pending petitions filed before this date, nor does it apply to extensions or transfers. Employers should consult with immigration counsel to assess how this proclamation impacts their hiring of H-1B workers and to ensure compliance with the new fee requirements.