As 2026 begins, organizations must align with new US employment laws and policies. These include salary transparency requirements, state pay-data reporting and retraining obligations during plant closings and mass layoffs.The National Labor Relations Act (“NLRA”) affords employees the right to engage in concerted activities related to their working conditions. This includes the ability to form or join unions.
What are the Salary Leave & Termination Rules?
If you’re going to work abroad, you must understand that the rules and regulations governing employment in a host country can vary greatly from those of your home country. For example, paid leave policies can differ widely from country to country. Some offer generous policies, while others only allow the legal minimums.Termination rules also differ. Some countries, such as Spain, offer nine weeks of severance pay for each year of service, while Japan’s lifetime employment system prevents employers from firing employees unless they can prove that the dismissal was due to serious misconduct. Other countries, such as Germany and the US state of New Hampshire, have laws requiring that companies exhaust other options before firing an employee, such as transferring them to another open position or demoting them into a lesser role.The laws of a host country can protect workers by limiting the circumstances under which an employer may fire them. For example, a worker in a host country who is dismissed without cause can pursue legal action to recover lost wages and compensation. Likewise, the Trapped at Work Act allows workers who successfully defend themselves against an attempt to enforce a void “stay-or-pay” provision in an employment contract to recover attorneys’ fees. This year, we’re already seeing significant developments in labour and employment law at the federal and state levels. Major changes are expected to impact labor representation processes, collective bargaining frameworks and workplace benefit structures—with more to come.
What are the Benefits of Salary Leave?
A number of states are introducing paid leave laws to help employees manage the demands of work and caregiving. These programs are associated with higher productivity and morale, better job satisfaction, and lower employee turnover (Goodman et al., 2019). Paid leave benefits can also boost a company’s bottom line at relatively low cost. (Seidman, 2020).In addition to paid sick leave, more states are instituting or expanding paid family and medical leave (PFML) policies that provide partial wage replacement for longer-term leaves. These policies vary in scope, accrual rates and eligibility rules. Employers should familiarize themselves with the relevant state and local laws before implementing any new leave policies.Moreover, most states now require employers to contribute to workers’ PFML benefit funds. Typically, these contributions are shared between the employer and employee with the employer contributing 50 percent of the premium. In a few states, the employer may exclude the contribution from payroll taxes, while others require the employer to seek 50 percent of the premium from its employees.For a single American expat, US taxes on salary and self-employment income are usually eliminated or reduced by the Foreign Earned Income Exclusion (FEIE). Depending on residency and physical-presence requirements, most Americans abroad can exclude up to $149,000 in 2026 of their worldwide income. Our Tax Services team can discuss FEIE and the other available deductions with you.
What are the Discrimination & Harassment Rules?
Generally speaking, the US prohibits employers from discriminating or harassing employees. Discrimination based on a protected characteristic (including age, race, religion, creed, sex (including pregnancy, sexual orientation, and gender identity), national origin, and disability status) is illegal. Additionally, the federal Fair Labor Standards Act and related state laws prohibit harassment and hostile working environments.Further, the EEOC has recently issued updated resources and technical guidance on national origin discrimination, noting that it can also impact Americans, as well as people from other countries who have come to work in the United States. Expect heightened scrutiny of hiring, promotion and workplace practices that may run afoul of these new rules.For instance, it’s now illegal to select for a position those with whom an employer has a preexisting business relationship rather than qualified candidates from outside the company. Further, an employer cannot impose undue hardship on its business by refusing to allow an employee to take leave if the reason for the leave is related to immigration proceedings.At the federal level, Congress is considering a major set of labor reform proposals led by Senate Health, Education, Labor and Pensions Committee Chairman Bill Cassidy that could significantly change union representation processes, collective bargaining frameworks, and workforce benefit structures. If passed, these changes would mark the most significant revisions in decades.
What are the Immigration Rules?
As 2026 begins, US employment laws are rapidly evolving in new ways. From pay transparency mandates to stricter immigration rules, the landscape is shifting and employers must proactively align with changing regulations. Failure to do so exposes businesses to significant fines and reputational damage.On the immigration front, the Trump 2.0 administration reshaped visa registration and work authorization rules to increase scrutiny and control the flow of foreign talent into the country. As a result, HR teams will face more unannounced visits from federal agencies and increased uncertainty around visa processing times.For example, the Department of Homeland Security will implement a new H-1B selection process that prioritizes higher-paid positions. This will significantly impact industries like healthcare, technology, and engineering that are highly dependent on skilled international workers.Other immigration rules are changing, too. The IRS updated the high-cost locality housing caps for the Foreign Earned Income Exclusion (FEIE) and the Social Security wage base for the taxable amount of self-employment earnings and FICA contributions. These changes affect many American expats living abroad.It’s also important to communicate consistently with employees impacted by immigration policy shifts. Employees are stressed about the uncertainty of their status and need clear, consistent updates to reduce anxiety and attrition. This can be done by creating a communications plan that includes timelines, risks and contingency plans.