The first quarter of 2026 was busy with a distinct uptick in federal and state labor and employment legislation and regulation. For the first time since the second Trump administration took office, the National Labor Relations Board (NLRB) and the Equal Employment Opportunity Commission (EEOC) have quorums and are taking action to restore the policies that were initiated during the first Trump administration. The Department of Labor (DOL) is also increasing its rulemaking, and the states were particularly busy, with the new laws and regulations passed earlier taking effect on January 1, 2026.
White House Presidential Executive Order
On March 26, 2026, President Trump issued another Executive Order (EO) addressing Diversity Equity and Inclusion (DEI). The EO calls DEI unethical and often illegal and requires that all federal agencies must, within 30 days, include in their contracts and contract-like instruments that federal contractors and subcontractors:
- Not engage in racially discriminatory DEI activities.
- Provide full access to books, records, accounts, and other information required by the contracting agency “for purposes of ascertaining compliance with this clause.”
- Acknowledge that noncompliance may result in cancellation, termination, or suspension of a contract, or result in a contractor being “declared ineligible for further Government contracts.”
- Report “known or reasonably known” subcontractor violations and take remedial actions as directed by the contracting agency.
- Notify the agency if a subcontractor files a lawsuit that “puts at issue, in any way, the validity of the clause.”
- Recognize that compliance is material to government payment decisions, with direct implications under the False Claims Act (FCA).
The EO raises questions about how far the EO authority extends and its enforceability. Such as, whether the EO impacts U.S. Small Business Administration set aside programs or small business subcontracts for companies that are governed by state laws that require participation in supplier diversity programs.
NLRB Reinstates Former Joint-Employer Standard
The NLRB has withdrawn the existing Joint-Employer Rule. The NLRB has reinstated the Joint Employer Rule that was in effect in 2020. The newly reinstated rule went into effect February 27, 2026, and was implemented without a comment period due to a procedural loophole.
To really confuse people, the Department of Labor’s (DOL), Wage and Hour Division (WHD) has also submitted a proposed Joint Employment Rule to the White House Office of Information and Regulatory Affairs on March 16, 2026. The details of that proposed rule have not been released, but it is likely that it aligns with the NLRB standard. By establishing the standard with formal rulemaking, it will be more challenging and time-consuming for future administrations to change the rule.
The NLRB reinstated standard states that for an employee of another company to ALSO be an employee of the company at issue, a business must possess and exercise substantial direct and immediate control over at least one of the worker’s essential terms and conditions of employment.
Substantial direct control is defined in the rule as a regular or continuous consequential effect on a core aspect of the worker’s job. The eight essential terms and conditions of employment are:
- Wages
- Benefits
- Hours of Work
- Hiring
- Discharge
- Discipline
- Supervision
- Direction
An example that might be found in the printing industry would be when a company uses temporary employees from a staffing agency over a long term. The staffing agency is the employer, but the printing company may be found to be a joint employer if it controls the wages paid to the worker, rather than the fee paid to the staffing firm.
While the hours of work will of course be the shift schedule for the company, the other terms of the worker’s schedule should be set by the staffing company. Supervision in the facility will be the responsibility of the printing company, but supervision on all other aspects of the worker’s employment, such as time off, compensation, and scheduling workdays should be the responsibility of the staffing firm. Behavioral and performance issues should be reported to the staffing company who should be the primary decision-maker about any subsequent disciplinary issues.
By maintaining a distance from the nuts and bolts of the terms of employment for the worker, a company can avoid being found as a joint employer.
NLRB Slows Enforcement on Workplace Violations
The NLRB General Counsel (GC) helps guide the organization’s policy and the current GC, Crystal Carey, recently guided policy by issue a memorandum that informed regional directors to scale back enforcement on workplace rules. This action was to roll back the effect of a controversial 2023 NLRB decision in the Stericycle, Inc. case that scrutinized employer rules and employee handbook policies that might reasonably tend to discourage employees from exercising their rights. While the Stericycle decision is still on the books, the decision to largely not enforce it will give employers a chance to re-evaluate and possibly revise their handbook policies and workplace rules to conform with established labor law without the fear of an NLRB enforcement action.
EEOC Withdraws Harassment Guidance and Transgender & Non-Binary Protection
The EEOC rescinded its anti-harassment guidance that was issued in April 2024. That guidance, based on a 2020 Supreme Court decision in Bostock v. Clayton County, which held that Title VII of the Civil Rights Act of 1964 prohibits discrimination based on sexual orientation or gender identity.
The recission of this guidance aligns with the Trump administration’s Executive Order issued on inauguration day that rejected non-binary and transgender identification and to limit the application of the Bostock case in federal activities. Accordingly, a February 26, 2026, EEOC decision held that Title VII permits federal agencies to designate single-sex bathrooms and intimate spaces, which prohibits transgender and non-binary identifying people to use the space aligning with their gender designation at birth.
These EOs are a clear policy statement that will affect the executive branch enforcement priorities for alleged Title VII violations.
EEOC Takes Aggressive Stand Against Diversity, Equity, & Inclusion Programs
On February 26, 2026, EEOC Chairperson Andrea Lucas published a letter that was sent to the 500 largest United States companies. In the letter, Ms. Lucas reminded the corporations that anti-discrimination laws protect all people, and that diversity, equity and inclusion (DEI) programs may result in discrimination. Ms. Lucas stated that civil rights laws have been “twisted” to promote discrimination against certain races or groups.
The letter followed a video of Ms. Lucas that was posted on social media in December 2025, in which she directly solicited discrimination complaints from white men who believe that they have experienced discrimination at their work because they are white and/or male. Accordingly, the February letter has been interpreted as a warning to companies to protect white men from discrimination based on DEI programs. In addition to the video and letter, the EEOC has created several resources for people who believe that they are experiencing discrimination related to DEI programs and linked them in the letter.
DOL Wage and Hour Division Proposes Rule for an Independent Contractor Status
The United States DOL WHD announced an Independent Contractor proposed rule to help companies and workers to determine when a person is an employee of the company, or when they are their own boss. This determines the rights and responsibilities of workers and employers under the Fair Labor Standards Act (FLSA).
The Independent Contractor Test is a political football that changes each time a different political party takes over the executive branch of the federal government. The current administration is seeking to reinstate the rule that was put in place in 2021 during the first Trump administration. That rule was rescinded and replaced by the Biden administration in 2024, which put forth a different test, that will be rescinded if this new proposed rule is implemented.
The reinstated Independent Contractor test focuses on whether the worker is economically dependent on an employer for work. This is called the Economic Reality Test. This test is based on identifying and explaining two core factors to determine economic dependence.
1. The nature and degree of control the employer has over the work; and
2. The worker’s opportunity for making a profit or taking a loss based on their own initiative and/or investment.
Other, less crucial factors to consider in the Independent Contractor Test are:
3. The amount of skill required for the job,
4. The permanence of the working relationship,
5. Whether the work is part of an integrated production unit,
6. If the actual practice of the worker and the employer is more relevant than what might be contractually or theoretically possible.
The final step is to provide the WHD with eight fact-specific examples that apply the test factors to the actual circumstances of the worker and employer being analyzed.
The Independent Contractor Test will also be applied to the analysis to determine whether a worker is an employee for purposes of the federal Family and Medical Leave Act (FMLA) benefits. In addition, the test will also be applied to determining rights and responsibilities under the Migrant and Seasonal Agricultural Worker Protection Act.
Aid in Creating Caregiving Flexible Spending Accounts for Small Business Employees.
A bipartisan effort to help small businesses with flexible spending accounts has been proposed. The new bill, HR 7922, introduced in the House of Representatives, would create a tax credit for small businesses to assist with the startup and administrative costs of establishing dependent care flexible spending accounts. These accounts may not be widely available to employees in smaller businesses because of the work needed to establish them, and this tax credit would create an incentive to take on that work to benefit employees who are also caregivers.
In this article Adriane Harrison, VP of Human Relations Consulting, PRINTING United Alliance, provides an update on the changes to labor and employment law in the first quarter of 2026. Adriane also provides information about labor and employment laws and regulations at the Center for Human Resources Supportor reach out to Adriane directly if you have additional questions specific to HR issues that may affect your business at: aharrison@printing.org
To become a member of the Alliance and learn more about how our subject matter experts can assist your company with services and resources such as those mentioned in this article, please contact the Alliance membership team: 888-385-3588 / membership@printing.org.