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.

1. Federal Enforcement Realignment: Budget Cuts and Shifting Responsibilities

The Department of Labor (DOL) enters 2026 with a dramatically reduced budget (down nearly 35%) and significant staff cuts. Key programs like the Office of Federal Contract Compliance Programs (OFCCP) have been eliminated, with enforcement duties shifting to the EEOC and the Veterans’ Employment and Training Service. These changes will likely slow complaint investigations and audits but increase their complexity, as responsibilities migrate across agencies. Employers can anticipate expected delays in enforcement and heightened scrutiny of affirmative action compliance under new frameworks.

2. EEOC Resurgence Under a New Majority

After operating without a quorum for much of 2025, the EEOC begins 2026 with a Republican-led majority and a renewed focus on its Strategic Enforcement Plan. Expect aggressive action on:

• Religious and national origin accommodations claims
• DEI-related discrimination, and
• Pregnancy accommodations claims

Employers should review all employee policies for compliance with Title VII and anticipate new technical guidance and litigation initiatives targeting workplace discrimination.

3. NLRB Enforcement Amid Resource Constraints

The NLRB faces budget reductions and staff downsizing, yet its enforcement priorities remain strong. Recent decisions, such as the Cemex standard for union recognition and the Stericycle test for handbook policies, signal continued scrutiny of employer practices, even for non-union workplaces. To wit: the NLRB recently found that Amazon.com Services LLC had violated the federal labor laws because its employees could reasonably conclude that the company’s confidentiality and noncompetition agreements prevented them from engaging in activity protected under the NLRA. Employers should:

• Audit employee handbooks for compliance with Section 7 rights
• Train managers on avoiding unfair labor practices during union organizing efforts

Virginia employers, even without unions, must stay alert to these federal standards.

4. Artificial Intelligence Regulation in Employment Decisions

AI-driven hiring and performance tools are under the regulatory microscope at both the federal and state levels. Congress has recently moved forward with proposed legislation that would regulate the use of artificial intelligence, in the AI-Related Job Impacts Clarity Act, and President Trump just signed an executive order that blocks state-level initiatives that aim to mandate transparency and fairness in automated decision-making. Employers should anticipate and prepare for continued uncertainty over the enforceability of state level AI regulations, including:

• Disclosure requirements
• Bias audits
• Recordkeeping obligations
• The flurry of legislative and executive activity signals a growing concern over issues such as algorithmic discrimination, which will likely be reflected in the EEOC’s enforcement priorities.

5. Pay Transparency and Wage Equity Expansion

Pay transparency laws continue to spread across states, including Virginia, which already prohibits retaliation for wage discussions. Employers should expect:

• Broader requirements to include salary ranges in job postings
• Enhanced enforcement of equal pay statutes

Multi-state employers must harmonize state law compliance strategies to avoid costly penalties.

6. Virginia-Specific Updates: Minimum Wage and Non-Compete Restrictions

Virginia’s minimum wage rises to $12.41 per hour through January 1, 2026, with further increases anticipated. The Commonwealth also expanded its ban on non-compete agreements for low-wage workers to include all employees classified as non-exempt under the FLSA, regardless of wage level, and continues to enforce robust anti-retaliation protections for wage claims and misclassification complaints. Employers should:

• Update payroll systems for new wage rates
• Review restrictive covenants for compliance
• Ensure policies align with Virginia’s evolving labor standards

Conclusion

There is little question that 2026 will be a year of regulatory complexity, shifting policy priorities, and heightened compliance risks. Federal agencies are recalibrating enforcement strategies amid resource constraints, while states like Virginia continue to expand worker protections. Preparing in advance can help you weather potential workplace regulatory changes. These steps are critical to helping your company maintain an engaged and effective workforce through what is a very unpredictable regulatory period.

If you have questions about regulations impacting the construction industry, please feel free to reach out Timothy Hughes at Bean, Kinney & Korman, P.C. at (703) 526-5582, thughes@beankinney.com. Please reach to Doug Taylor on employment and immigration regulations and issues, (703) 526-5586, rdtaylor@beankinney.com. Our firm practices in Virginia, Maryland, and the District of Columbia in addition to various other jurisdictions.

This article is for informational purposes only and does not contain or convey legal advice. Consult a lawyer. Any views or opinions expressed herein are those of the authors and are not necessarily the views of any client.