Federal and State Governments Push Labor and Employment Laws and Regulations Before Mid-Term Elections

Labor and employment continues to be an active part of government agendas. The federal government, state governments, and the courts have served up an array of proposed new law and regulations, and interpretations of the existing ones.

Here is a summary of these actions, and how they may impact the printing industry.

FEDERAL UPDATES

• Cases involving automation in human resources decisions are working their way into the courts. Two closely watched lawsuits against the HR services provider, Workday, which was sued in separate cases that alleged the company’s Artificial Intelligence screening discriminated against disabled candidates in violation of the Americans with Disabilities Act (ADA) and the Age Discrimination in Employment Act (ADEA).

• Note that the companies that use AI screening services are also subject to liability for decisions made by the AI programs. Employers must remain vigilant in reviewing algorithms and making sure that AI tools are not making decisions that have a disparate discriminatory impact.

• On June 25, 2026, the United States Supreme Court ruled in Wolford v. Lopez, that individuals who have concealed carry permits for firearms cannot be banned by state or local authority from bringing those firearms to places that are open to the public. Consequently, companies must act independently to ban weapons in their public or private areas. For printing companies, this means that if firearms are banned from the property, the company must place a prominent notice stating this prohibition.

• Trump Accounts are savings accounts for United States citizens under the age of 18 with a valid social security number. As of July 4, 2026, employers may contribute up to $2500 / year per employee or their qualified dependents pursuant to IRS Section 128. These contributions are tax free for the recipients. Parents and guardians may create a Trump account by filing an IRS Form 4547. Once an account is established through the Internal Revenue Service (IRS), it can receive employer contributions.

• If employers want to make Trump Account contributions as a benefits option, they will need to establish a Trump Account Contribution Plan through the IRS.
• The IRS has not promogulated regulations for including the Trump Accounts in cafeteria plans, so contributions may only be made through the Trump Account Contribution Plan process.

• The Department of Labor (DOL) has addressed the issue of travel pay for remote workers. In the DOL Opinion Letter, released on July 22, 2026, the DOL gave two non-binding opinions:

• When a remote worker travels during the workday from their remote location to the in-person office, the time spent going between the two is considered an ordinary commute and is not compensable as hours worked under the Portal-to-Portal Act.
• However, when an employee takes work calls to schedule appointments with clients and other co-workers while in the car, that time is considered compensable when it is integral and indispensable to the employee’s principal activities. Essentially, when communication with clients or coworkers to schedule appointments is necessary to perform the services requested of the employee, and the employer has created a situation where that scheduling happens during a drive, then the time is compensable.

• The House of Representatives has passed the “Faster Labor Contract Act” that is designed to shorten the time allowed to reach a contract with labor unions under the National labor Relations Act. If passed, the law would effectively end a common employer strategy of prolonging negotiations for a collective bargaining agreement (CBA) with the union. Although the bill has bipartisan support, it is generally disfavored by Senate Republicans, and it is unclear whether it will pass in that chamber.

• Faster Labor Contracts Act would require:
  • Bargaining to start within 10 days of request for a CBA.
  • Provides 90 days to reach a CBA. If one is not reached, a federal mediator will become involved to assist negotiations.
  • The parties will have 30 days with the mediator. If no CBA is reached after 30 days, the parties will begin binding arbitration and the CBA decided by the arbitrator will be effective for two years.
• The Equal Employment Opportunity Commission (EEOC) has rescinded its guidelines about voluntary Affirmative Action Plans (AAP). The guidelines provided a safe harbor, established in 1979, for companies that sought to comply with Title VII of the 1964 Civil Rights Act. The Commission determined that the guidance was inconsistent with Title VII as interpreted by recent federal court rulings, and that employers can no longer rely on the good-faith-reliance on a voluntary AAP.

• The White House has also revoked Executive order 1121465, which imposed affirmative action requirements for federal contractors and subcontractors.
• Printing companies that have voluntary affirmative action plans should discontinue these programs or at a minimum, re-evaluate them considering the new EEOC approach and interpretation of Title VII discrimination.

• The EEOC has also voted to end the EEO-1 required reporting of gender and race information. While the process to rescind the requirement progresses, the EEOC has not opened the EEO-1 reporting portal for inputting the 2025 data and is not expected to open it in the future.

• The EEO-1 data has been gathered for 60 years to assess discrimination in the workplace. In the absence of federal data-gathering, some states have stepped in to resume collecting the data.
•  Colorado has passed a new law requiring reporting of this same data directly to the state starting July 1, 2027. California, Illinois, Massachusetts, Minnesota, and New Jersey also require reporting of demographic and pay information. Other states may also create reporting requirements to capture the information that was previously available through the EEO-1.

• The DOL Wage & Hour Division (WHD) has proposed a new framework for determining Joint Employer Status (JES), which is now pending the final rule. The proposed JES rule has narrowed the focus to a four-factor test to determine whether a company jointly employs a worker.  The four-factor test will make it easier to demarcate who is an employee and who is a worker that is not employed directly by the company.

o For the printing industry, the JES is most commonly associated with determining if temporary workers who fill gaps in our workforce are also considered employees. The goal is to NOT be considered a Joint Employer, which eliminates the need to pay benefits, taxes, and may protect the company from other responsibilities and liabilities.

o The four-factor test assesses whether a company:

• Has hiring and firing decision-making authority
• Supervises and controls work schedule or conditions of employment to a substantial degree
• Determines pay rate and methods
• Maintains employment records

o In the situation where temporary workers that come to the company through an agency, it is important to use the temporary agency for the four factors. While the company can tell the agency that they no longer want a particular worker at the company, the company will not hire or fire that worker, who may find other assignments through the temporary agency. Also, the company can dictate to the agency what shifts need to be filled, but scheduling the workers should be done by the agency. Similarly, the pay rates are negotiated with the agency.

• The WHD is also expected to release an NPRM related to the working hours allowed for 14- & 15-year-old workers. This proposed rule is anticipated to be released in September.

• The final Independent Contractor Rule is expected to be finalized in October 2026. This rule will determine whether 1099 contractors are considered employees. In the printing industry, this is not a big issue because 1099 contractors are typically used in ways that would not qualify them as employees. The Alliance will report on the final rule when it is issued.

• The EEOC will be revising the rules and regulations related to the Pregnant Workers Fairness Act to limit protections related to abortion medical care. This Notice of Proposed Rule Making is expected in November.

• Many immigrants are affected by the Department of Homeland Security decisions to withdraw Temporary Protective Status (TPS) for nationals from many countries.

• Following a Supreme Court decision in Mullins vs. Doe released in late June that upheld the DHS authority to terminate TPS, several recissions were announced for the following countries:
  • Yemen
  • Syria
  • South Sudan
  • Somalia
  • Ethiopia
  • Haiti
  • Burma
• Employees who were hired under TPS authorization from these countries are no longer allowed to work in the United States unless they have authorization under an alternative provision, for instance, having achieved Green Card status as a permanent lawful resident, or some other authorization.

• The Immigration and Customs Enforcement (ICE) has increased the penalties for mistakes on Form I-9. Historically, instances where mistakes were considered small, financial penalties would not be assessed but when mistakes were considered “substantive”, financial penalties would be assessed. ICE has now expanded the category of what is considered “substantive”. Companies should do an audit of their I-9 forms to check for any errors. This is an exacting and time consuming process, so if there is not bandwidth within the company to perform the audit, law firms and other third parties should be hired for the audit. The following errors are now subject to financial penalties:

• Date of Birth
• USCIS number
• The date next to the employee’s signature
• Failure to include an expiration date for the Employment Authorization Document
• Using Spanish anywhere other than Puerto Rico
• Failing to include the missing name and title of the employer rep filling out the form
• Making a mistake in the data from the ABC list
• Failing to include the first day of employment
• Failing to give the full information of preparer and/or translator in Supp. A
• When using remote verification, the box has to be checked about using an alternative procedure (Sec. 2 of Supp. B)
• When the electronic system “falls short of specific DHS standards”.

• The DOL proposed a new regulation to expand the types of investments that can be made for 401(k) and 403(b) retirement plans. The new regulation would reduce liability for plan fiduciaries and would allow investments in products previously considered too risky for retirement plans.  Comments were received, and the proposed rule is pending. The new regulation may have the effect of increased employee participation in retirement plans. It may also result in greater plan volatility due to the nature of the investments that will be allowed. However, companies will likely be insulated from fiduciary liability under the new regulation.

• Printing companies should take extra precautions to provide retirement investment options that incorporate the new products, but also those that are less volatile.

• The Workforce Innovation and Opportunity Act (WIOA) reauthorization was to have happened as a part of the “A Stronger Workforce For America Act Of 2026”. However, the new legislation will likely not pass during this Congress. If reintroduced in the next Congress and passed, it will permanently codify the transfer of adult education programs from the Department of Education to the DOL.

• The WIOA provides for Individual Training Accounts that can be used for state Eligible Training Provider (ETP) programs. Money on behalf of the student is paid directly to the ETP on behalf of the student. These training programs may have application to the printing industry.

• Interim DOL Secretary Keith Sonderling was nominated to serve as the Secretary of Labor. Sonderling has been serving at the Department of Labor (DOL) as the Acting Secretary since the former Secretary of Labor resigned in April. Sonderling has significant labor and employment experience, having previously served as the Deputy Secretary of Labor, a commissioner for the Equal Employment Opportunity Commission (EEOC), and as the acting administrator for the WHD. Sonderling has completed his confirmation hearing, and a vote on his appointment is imminent.

• The National Labor Relations Board (NLRB) is pending addition of another member and the reappointment of an existing member. James Macy awaits Senate approval for his new nomination, and David Prouty, who was originally appointed by President Biden, and whose term expires on August 27, 2026, has been renominated by President Trump. Macy, a Republican, will give Republicans a three-member majority and the expectation is that the NLRB will then begin to overturn labor-friendly decisions and policy made during the Biden administration.

STATE UPDATES

• States continue to increase their minimum wages. While nearly all positions in the printing industry are paid wages more than the required minimum, it is important to look at both state and local laws to ensure compliance.

• The absence of a federal framework related to AI use in decision related to human resources and talent acquisition means that states continue to consider regulation in this area.

• Washington state created an AI task force that spent two years creating three reports about the use of AI in society, including its use in the workplace. The final report was released on July 1, 2026. Decisions about regulation will be based on findings in the report and the input of a future permanent advisory body on AI and emerging technologies.
• States that already have AI laws we have reported on involve the following:
  • California – Automated decisions, anti-bias/discrimination
  • Colorado – Anti-bias in hiring and high-risk employment
  • Illinois – New amendment to the Human Rights Act
  • Maryland – Facial recognition consent
  • New Jersey –Guidance stating that AI tools used in employment and other decisions is illegal under the existing New Jersey discrimination law.
  • New York City  – Bias audits in hiring
  • Texas –Anti-bias/discrimination
  • Utah – General AI governance with employment implications

• Connecticut enacted a 124-page omnibus bill called “an Act Concerning Workforce Development and Working Conditions in the State. The bills provisions are effective on October 1, 2026 and cover the following areas:

• Pay transparency: All employers must include a wage or salary range for job postings, plus a general description of the employee benefits for someone hired in the role.
• Restrictions on employee repayment of money owed to employers requiring the money to be paid if the employee leaves the company before a specified period of time.
• Employers with 100 or more employees must create a plain-language guide to explain the pay codes for overtime and commonly used pay differentials. This means that printing companies that pay a shift-differential, as well as overtime, holiday, and weekend pay, must explain the paycheck codes reflecting these differentials.
• Employers will need to provide written notice of the right to reasonable accommodation under the ADA by January 29, 2027, and from that point forward must provide the information to new hires. If an employee gives notice of a disability to the employer, they must also be provided the notice within 10 days of the disclosure.
• Existing lactation laws were expanded to include reasonable break times in addition to meal or break periods in order to breastfeed or express milk.

• Illinois has amended its 2025 pay transparency rules.

• Benefits and Pay Scale were defined to clarify what must be included in job postings when these are required:
  • Wage or salary, OR wage or salary range
  • General description of the benefits and any other compensation (ie: profit sharing, bonuses, etc.) Benefits includes health care, retirement, pto, and any other benefits reported on federal taxes. Expressly excludes minor benefits.
  • Clarification that general “we’re hiring” statements or posters or ads are not considered job postings - only notices that address a specific job opportunity or position must comply with these requirements.
  • Preserve records documenting the pay scale for at least five years.

• New Hampshire now requires employers with 20+ employees to provide 25 hours of unpaid leave for medical appointments related to childbirth and postpartum care.

• Virginia has passed a raft of employment laws that became effective on July 1, 2026. The new laws pertinent to the printing industry are:

• Pay transparency: All job postings and hiring advertisements in Virginia must include a wage or salary range fo the position.
• Salary history: Employers are prohibited from asking for wage and salary history from job applicants, or from their former employers or third parties.
• Non-Compete agreements may not be enforced against any employee who is laid off without severance benefits.
• Non-compete agreements may not be entered into with employees who earn less than the state average weekly wage, which is currently $1507.01 per week.
• A uniform framework was created to enforce Virginia laws against wage theft, including minimum wage, overtime wages, anti-misclassification of prevailing wages and other wage payment laws.

Summary

Activity in labor and employment laws and regulations will slow as legislatures are having summer recess periods and because the federal mid-term elections are approaching in November. Activity will resume before the end of the year, but the next big wave of legislation and regulation will likely occur again in the first half of 2027.

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 second quarter of 2026. Adriane also provides information about labor and employment laws and regulations at the Center for Human Resources Support or 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.