Much like the season’s unpredictable snowstorms, recent developments in New York’s state and local employment laws have arrived quickly and with the potential to disrupt even the most carefully charted workplace policies. This year’s regulatory forecast calls for more than just sturdy boots to ensure your organization doesn’t slip on the latest changes. Read on for an overview of everything employers with employees in New York need to know as Q1 comes to a chilly close.
Déjà Vu for Employers: DOL Moves to Reinstate Prior Independent Contractor Test
Posted in Wage & HourThe U.S. Department of Labor (DOL) has once again proposed a significant change to the federal standard for determining whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA), as well as the Family and Medical Leave Act (FMLA) and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). On February 27, 2026, the DOL published a Notice of Proposed Rulemaking that would rescind the 2024 rule and readopt the 2021 rule’s analysis with a few modifications, including clarifications on “economic dependence,” new illustrative examples, and harmonization across the FLSA, FMLA, and MSPA. This move is intended to provide greater clarity and predictability for employers and workers navigating the increasingly complex landscape of worker classification.
Workforce Cost-Cutting: Key Legal Considerations for Employers
Posted in Employee Benefits, Employment Counseling & Workplace Claims Prevention, Employment Discrimination Harassment & Retaliation, Immigration Planning & Compliance, Labor Relations, Wage & HourIn response to economic pressures, many private employers are exploring ways to reduce labor costs. Whether the approach involves reducing hours, implementing furloughs, or conducting layoffs, it is essential for companies, especially those operating in multiple states, to understand the legal environment.
GLP-1 Medications: What Employers Need to Know About Rising Costs, Coverage Choices, and Managing Legal Risks
Posted in Employee BenefitsGLP-1 medications, originally developed for diabetes and now widely used for weight management, are rapidly becoming a major cost concern for employer health plans. Annual costs per user often exceed $10,000, and demand is rising, especially with new forms like daily pills recently approved by the FDA. Employers are now facing tough decisions about how to manage these costs while supporting employee health and staying compliant with the law.
EEOC Rescinds Harassment Guidance on Gender Identity: What Employers Need to Know
Posted in Employee Handbooks & Policies, Employment Counseling & Workplace Claims Prevention, Employment Discrimination Harassment & RetaliationEmployers are facing renewed uncertainty about workplace protections for gender identity after federal agency guidance was recently withdrawn. On January 22, 2026, the Equal Employment Opportunity Commission (EEOC) voted 2-1 to rescind its 2024 Enforcement Guidance on Harassment in the Workplace, including portions addressing gender identity and sexual orientation. The guidance was intended to help employers understand how federal anti-discrimination law applies to modern workplace conduct, but it is no longer available on the EEOC website.
The EEOC emphasized that enforcement of federal anti-discrimination laws will continue notwithstanding the withdrawal of this specific guidance. Understanding what this development means for employers requires separating what the guidance did from what the underlying law is and remains.
The American Franchise Act: Re-Defining Joint Employer Liability
Posted in Employment Counseling & Workplace Claims Prevention, UncategorizedUnderstanding joint employer liability is critical for companies in the franchise sector, as it directly impacts risk management and compliance. If the American Franchise Act (AFA) were enacted, it would provide significant guidance to franchisors and franchisees regarding the circumstances under which either party would be considered a joint employer, and thus potentially liable for employment law violations committed by the other party.
California’s Ban on “Stay-or-Pay” Provisions: What Employers Should Know Now That AB 692 Is in Effect
Posted in Employee Handbooks & Policies, Employment Counseling & Workplace Claims PreventionWith the start of the new year, California Assembly Bill 692 (AB 692) is now in effect, introducing sweeping new restrictions on employment agreements that include so-called “stay-or-pay” provisions — terms requiring employees to repay money or incur financial consequences if they leave employment before a specified period. These provisions have become increasingly common in connection with training programs, relocation benefits, and sign-on or retention incentives, and many employers are now reassessing whether their existing practices comply with the new law.
AB 692 reflects California’s longstanding public policy against contractual restraints that limit employees’ ability to pursue other work opportunities. Much like the state’s sweeping restrictions on non-compete agreements, the Legislature has made clear that imposing financial penalties at the time of termination is disfavored when they effectively discourage workers from changing jobs. Now that AB 692 has taken effect, employers should understand how it impacts offer letters, onboarding documents, and incentive arrangements used in 2026 and beyond.
New Mechanisms for Employers to Expand Employee Access to Fertility Benefits
Posted in Employee BenefitsLate last year, the Departments of Labor, Health and Human Services, and Treasury (collectively, the Departments) provided long-awaited guidance clarifying two new ways — in addition to the already-existing mechanisms — for employers to expand fertility benefit offerings. The Departments jointly published FAQs about Affordable Care Act Implementation Part 72 (FAQs), which implement President Donald Trump’s Executive Order 14216, Expanding Access to In Vitro Fertilization (IVF).
The FAQs address how the new options fit into the current regulatory framework established by the Affordable Care Act, Public Health Service Act (PHS Act), Employee Retirement Income Security Act (ERISA), and Internal Revenue Code (IRC). Below is a practical overview for employers interested in expanding access to IVF and related services through one of the two new options.
New U.S. DOL Opinion Letters Poised to Reshape Employers’ FLSA and FMLA Practices
Posted in Employment Counseling & Workplace Claims Prevention, Medical & Other LeavesThe United States Department of Labor (DOL) just rang in 2026 with six new opinion letters addressing various employer practices under the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA). The letters cover a broad range of scenarios, including employer discretion to reclassify exempt employees, overtime calculations involving non-discretionary bonuses, compensability of pre-shift roll call time, partial overtime exemptions under collective bargaining agreements, the commission sales exemption (including the treatment of tips), and the calculation of FMLA leave during partial-week closures and for travel to medical appointments. These recent opinion letters are part of the DOL’s ongoing efforts to provide practical guidance as an additional compliance tool.
Brewed for Trouble: Starbucks’ $39M NYC Settlement Puts Predictive Scheduling Laws in the Spotlight
Posted in Employment Counseling & Workplace Claims Prevention, Wage & HourIn a landmark agreement, Starbucks Corporation has agreed to pay nearly $39 million to resolve allegations that it violated New York City’s Fair Workweek Law, sending a powerful message to employers nationwide about the risks of ignoring local predictive scheduling requirements. The settlement, announced by the city’s Department of Consumer and Worker Protection (DCWP) on December 1, 2025, is one of the largest of its kind and underscores the growing importance and complexity of compliance with scheduling ordinances.
