Monthly Industry Pulse

5 Federal Labor Changes and What They Mean for Employers in 2026

The first few months of 2026 have brought a wave of federal labor and employment policy changes.
In This Post:

The first few months of 2026 have brought a wave of federal labor and employment policy changes. The NLRB, EEOC, and DOL have all changed enforcement priorities at the same time, and a new national AI framework just added another layer for employers to track. 

For HR professionals and business leaders, here’s what each one means in practice.

1) The NLRB's New Direction on Unfair Labor Practice Cases

In December 2025, then-acting General Counsel William Cowen issued Memorandum GC 26-01, which restructured how unfair labor practice (ULP) charges get processed. 

Under the updated protocol, charges are no longer immediately assigned to a Board agent. Instead, they land on an unassigned list, and the filing party has two weeks to submit a chronological outline of events, supporting documents, and a witness list with contact details.

If the charging party fails to provide that evidence in time, the charge may be dismissed. The NLRB later issued a clarification emphasizing that the protocol does not create new categories of requirements. 

Ultimately, the key takeaway is that filing a ULP charge now demands upfront preparation.

GC Carey’s Case Handling Memo

Crystal Carey became the NLRB’s General Counsel in January 2026, replacing Jennifer Abruzzo, who was removed by President Trump on Inauguration Day 2025. On February 27, Carey issued GC Memo 26-03, which introduces several employer-friendly procedural changes.

Regional offices are now instructed to favor settlement over litigation, avoid demanding remedies like public apology letters, and only request evidence from employers after the charging party has first shown that a violation may have occurred.

Employer Action Steps:

  • Reassess employee handbook policies on confidentiality and conduct 
  • Train managers to avoid reacting improperly to employee complaints
  • Proactively evaluate ongoing ULP matters for early settlement opportunities under the more employer-favorable approach

2) EEOC Rescinds 2024 Harassment Guidance in Full

On January 22, 2026, the EEOC voted 2-1 to rescind its 2024 Enforcement Guidance on Harassment in the Workplace in its entirety. 

A Texas federal court had already vacated the gender identity and sexual orientation provisions back in May 2025. The Commission went further, pulling the entire document, including sections on race, religion, disability, age, and national origin.

Where This Leaves Employer Policies

The rescission does not change federal anti-harassment law. Title VII, the ADA, and the ADEA still prohibit workplace harassment, and Bostock v. Clayton County still stands. What employers have lost is the centralized interpretive document that many used to shape anti-harassment policies, training programs, and investigation procedures.

Additionally, many state and local laws explicitly protect sexual orientation and gender identity as separate classes, and those protections remain fully in effect.

Employer Action Steps:

  • Review and update your anti-harassment policies to ensure they comply with applicable federal, state, and local laws
  • Continue training managers and supervisors on identifying, reporting, and addressing harassment, regardless of the federal guidance gap
  • Monitor state-level developments closely. Proposed legislation, such as the federal BE HEARD Act of 2026, could reshape the landscape again

3) DOL Shifts Enforcement Focus Toward Non-Union Workplaces

In late February 2026, DOL Solicitor of Labor Jonathan Berry issued an internal memorandum directing DOL attorneys to prioritize enforcement in non-unionized workplaces. 

As reported by Bloomberg Law, Berry reasoned that unions already have mechanisms to address violations through grievance procedures and collective bargaining agreements, so federal resources should flow where workers lack those protections. 

Berry noted this approach should be applied flexibly, particularly where a union is failing its duty of fair representation or where contractual remedies fall short.

Moving forward, non-union employers should expect increased DOL attention, specifically wage-and-hour audits, FLSA compliance reviews, and OSHA inspections, which may become more common.

Despite these changes, all employers should keep in mind that state labor agencies operate independently and will continue enforcing their own standards. In other words, the DOL’s enforcement pivot does not change any state-level exposure.

4) EEOC Escalates Enforcement Against DEI-Related Discrimination

The EEOC has moved past memos and into action on corporate diversity programs.

On February 26, 2026, EEOC Chair Andrea Lucas sent a letter to every Fortune 500 CEO, general counsel, and board of directors, reminding them that employment decisions based on race or sex violate Title VII, regardless of whether those decisions are framed as “DEI”. 

Lucas stated that the EEOC is prepared to use systemic investigations and large-scale litigation to address what it characterizes as unlawful DEI-related discrimination.

The EEOC has already taken enforcement actions:

The Risk Spectrum for Employers

Not all diversity-related programs carry equal legal risk. 

The March 2025 joint EEOC-DOJ technical assistance documents identified specific practices the agencies consider unlawful, including demographic quotas, race- or sex-based restrictions on mentorship programs, and separating employees by protected traits during training. 

But inclusive programming that is open to all employees and does not use protected characteristics as a factor in employment decisions remains permissible.

Employer Action Steps:

  • Audit hiring and promotion practices for any demographic preferences or quota-like goals
  • Ensure employee resource groups and mentorship programs are open to all employees
  • Review public-facing DEI language on your website – the EEOC has indicated it may review archived web content

5) White House Releases National AI Legislative Framework

On March 20, 2026, the White House released a national AI policy framework calling on Congress to establish a unified federal approach to artificial intelligence regulation. The four-page document covers six broad pillars: child safety, community impact, creator rights, anti-censorship protections, workforce development, and national security.

However, the most consequential proposal for employers is the federal preemption of state AI laws. 

The framework explicitly urges Congress to override state AI laws that “impose undue burdens,” arguing for a single national standard instead of what the White House calls a “50-state patchwork” of conflicting rules.

The framework also recommends against creating any new federal rulemaking body, instead relying on existing sector-specific regulators. That means the EEOC, DOL, and FTC will likely continue to be the agencies interpreting how AI intersects with employment law.

If employers are currently using AI in hiring, performance reviews, or customer-facing operations, existing state laws, such as those in Colorado and Illinois, still apply. Employers should continue complying with current state requirements while tracking whether federal preemption materializes.

Key Takeaways for Employers

These changes share a common direction – less federal intervention, more reliance on private mechanisms, and a redefined view of workplace fairness.

Ultimately, the employers best positioned for 2026 are treating compliance as a continuous process:

  • Update harassment policies to account for the federal guidance gap
  • Prepare non-union workplaces for increased DOL attention on wage-and-hour and safety compliance
  • Audit DEI programs for legal exposure against the EEOC’s current enforcement posture
  • Monitor AI regulations at both the state and federal level
Written by Ivana Radevska

Senior Content Writer at Shortlister

Sources

Employee Handbook Services

Browse our curated list of vendors to find the best solution for your needs.

View Companies

Stay Informed

Subscribe to our newsletter for the latest trends, expert tips, and workplace insights!

Related Posts