Resources

The U.S. Department of Labor recently released a report to Congress highlighting continued growth in employee ownership and outlining a new federal initiative aimed at expanding worker ownership opportunities. Business owners, private companies, and boards evaluating succession or liquidity strategies should take note. Federal agencies are not only tracking the expansion of employee ownership structures but are actively promoting policies intended to increase their adoption. As regulatory attention intensifies, companies considering ESOPs or other ownership models should evaluate both the opportunities and compliance expectations that may follow.

Few questions in U.S. employment law have proven as persistent or as disruptive for businesses—as determining whether a worker is an “employee” or an “independent contractor.” Since the Fair Labor Standards Act (FLSA) was enacted in 1938, employers have struggled with a statute that imposes sweeping wage-and-hour obligations on employers for “employees” while offering little statutory guidance on who qualifies as an “independent contractor.”

Artificial intelligence is now embedded in modern hiring, applicant screening, employee promotion, and performance evaluation systems. From resume scanners to video interview analytics and automated promotion recommendations, algorithmic decision tools are becoming increasingly common. But one message from federal enforcement agencies is becoming unmistakably clear: you are responsible for your AI.

On January 27, 2026, the Virginia Court of Appeals issued a pivotal decision interpreting Virginia’s increasingly restrictive approach to employee noncompetition agreements. In Sentry Force Security, LLC v. Barrera, the court resolved a question that had been looming since Virginia first began limiting noncompetes for lower‑paid workers: how far those restrictions extend to customer and employee non-solicitation agreements.

Few workplace events generate as much consternation for employers as receiving notice that an employee or former employee has filed a charge of discrimination with the Equal Employment Opportunity Commission (EEOC). While the arrival of a charge can set off alarm bells, it is important for employers to recognize that the charge is not a finding of wrongdoing. Instead, it is the beginning of an administrative process designed to investigate the charge allegations and determine whether federal anti-discrimination laws may have been violated.

In the span of 48 hours this week, the three largest commercial real estate services firms in the world collectively lost tens of billions of dollars in market capitalization. CBRE Group saw its stock decline more than 20% over two trading sessions. JLL and Cushman & Wakefield each fell by double digits. By Wednesday afternoon, the sell-off had spread to office landlords, with SL Green, BXP, and Kilroy Realty all posting steep losses.

Many employers have historically treated restrictive covenant agreements as standardized documents, developed once, applied to employees nationwide, and updated only periodically. That approach is becoming increasingly obsolete, particularly in the Washington, D.C., Maryland, and Virginia (DMV) region. Recent legislative changes across these neighboring jurisdictions have reshaped how non-compete agreements operate and, in many cases, whether they can be enforced at all.

As we move into February 2026, the Northern Virginia land use landscape is being reshaped by a distinct “top-down” pressure. While local Boards continue to grapple with the political fallout of data center density and affordable housing mandates, the Commonwealth has signaled a forceful move toward administrative streamlining. For developers, the last 30 days have provided a critical window to audit pipelines against new state-level mandates and shifting local conditional use thresholds.

For many nonprofit organizations, the annual Form 990 is treated as a routine accounting exercise. It is prepared by staff or outside advisors, perhaps reviewed briefly (if at all), and hopefully filed to satisfy minimum IRS requirements. In practice, however, Form 990 functions as something far more consequential for nonprofits. It is a public-facing document that shapes how regulators, donors, journalists, and counterparties assess an organization’s governance, credibility, and overall financial health.

We have spent an intense year helping our nonprofit clients through a wide variety of threats and risks. During that time, we have seen and heard many repetitive concerns and worries expressed across a wide variety of organizations. Rather than siloing this information, we wanted to start a conversation around sharing best practices and approaches to what appears to be a completely new universe for clients in the nonprofit space.

Paid sick leave legislation has reemerged in Richmond as a focal point of employment law reforms in Virginia that have been going on since 2020. Current proposed legislation would create paid sick leave obligations for employers that extend well beyond the narrow sector-specific mandate now in place, bringing Virginia closer to the employee paid sick leave benefits adopted in a growing number of other states.

For many businesses, classifying employees as “exempt” under the Fair Labor Standards Act (FLSA) can feel routine—almost administrative. Yet this single decision often carries with it significant legal and financial consequences. When an employee is treated as exempt from overtime but does not actually meet the FLSA’s strict exemption criteria, as discussed below, the misclassification can expose the employer to substantial liability. In recent years, federal and state agencies, as well as plaintiffs’ attorneys, have intensified their scrutiny of wage‑and‑hour practices, making misclassification one of the most common and costly compliance pitfalls for employers of all sizes.

Selecting a contractor is one of the most consequential decisions an owner or developer makes during a construction project. Whether the work involves a residential renovation, a commercial tenant build-out, or a larger development effort, owners reasonably expect that contractors performing the work are properly licensed, insured, and qualified. Unfortunately, and despite the best intent from contractors, these safeguards often fail to exist.

Yes, usually, is the short answer set out in a new DOL opinion letter. An employee is permitted to use leave under the Family and Medical Leave Act (FMLA or Act) for work time spent in medical appointments either related to their serious medical condition or those of a qualifying family member. Such FMLA leave time extends, in many circumstances, to travel time to or from a medical appointment, even in situations where the employee has not provided the employer with a “medical certification” to support the need for travel-related leave. However, not all employee travel circumstances will result in covered leave under the FMLA. Exceptions are explained below.

When employers are sued under the Fair Labor Standards Act (FLSA), the initial reaction is often to fight the claim on principle. Many employers believe they complied with the law, paid employees fairly, and did nothing wrong – and, in many cases, they may have valid legal defenses.

Receiving a notice from the U.S. Department of Labor (DOL) Wage and Hour Division can be unsettling for any employer. While some audits are routine, others can quickly expand into broader investigations and, in some cases, lead to private lawsuits under the Fair Labor Standards Act (FLSA). How you respond in the early stages of a DOL wage and hour audit can significantly affect the ultimate outcome of the investigation.

As federal enforcement priorities continue to evolve, the U.S. Department of Justice (DOJ) made clear that diversity, equity, and inclusion (DEI) programs will be subject to heightened scrutiny where they intersect with federal funding and civil rights compliance. In 2025, the DOJ formally announced the creation of a Civil Rights Fraud Initiative, signaling a renewed focus on the use of the False Claims Act (FCA) as a primary enforcement tool against entities that certify compliance with civil rights laws while engaging in discriminatory practices with DEI under special focus for discriminatory practices. The DOJ also released guidance regarding the use of DEI programs.

Lessons from the Fight Over the TWITTER® Name

If you have followed recent business or technology news, you may have seen headlines suggesting that the Twitter trademark might be “up for grabs.” That claim sounds shocking given the brand’s global recognition, but the dispute raises an important and very practical question for businesses of all sizes:

As we move into 2026, employers face a rapidly evolving legal landscape shaped by federal enforcement priorities and state-level initiatives. Below are six critical trends that HR professionals, business leaders, and risk compliance officers should monitor closely.