The Year Ahead: Smart HR Compliance Moves for 2026

The new year has brought with it a wave of new legislation for employers to keep up with. With new and updated workplace laws taking effect across many states, 2026 is shaping up to be a year where a little proactive review can go a long way.

The good news? Most compliance risks come from a handful of predictable areas. A focused check-in now can help business owners stay ahead.

Here are four smart places to start.

1. Double-Check Minimum Wage and Exempt Salaries

Many states increased minimum wage rates at the start of 2026, and several also have higher salary thresholds for employees classified as exempt from overtime.

For businesses with employees in more than one state - or remote team members working across state lines - this can get complicated quickly. Now would be a good time to confirm that:

• Non-exempt employees are paid at least the highest applicable minimum wage

• Overtime is being calculated correctly

• Exempt employees still meet both salary and duties tests under federal and state law

Small payroll issues often go unnoticed until they’ve been repeated over many pay periods, which means early review is especially valuable.

2. Refresh Your Leave Policies

Paid sick leave, family leave, and medical leave requirements continue to expand at the state level. Several states are launching or expanding paid family and medical leave programs, while others are broadening paid sick leave rules.

Employers should review how their policies align with:

• Current state and local paid sick leave laws

• New or expanded paid family and medical leave programs

• How company-provided leave works alongside state-mandated benefits

Clear, up-to-date policies help managers respond consistently and reduce the risk of denying leave that should be protected.

3. Take a Closer Look at AI in Hiring

Artificial intelligence tools are increasingly used to screen candidates, rank resumes, or support interview decisions. At the same time, states are beginning to regulate how AI can be used in employment decisions, particularly where there is a risk of discrimination.

Even if your state has not yet enacted specific AI laws, it is wise to:

• Identify where AI is being used in recruiting or hiring

• Talk with vendors about how their tools are designed to reduce bias

• Make sure there is documentation around how hiring decisions are made

Regulation in this area is evolving quickly, and early awareness can help businesses avoid scrambling later.

4. Review Onboarding, Break Policies, and Safety Practices

Beyond pay and leave, states are also paying closer attention to onboarding notices, meal and rest break requirements, and workplace safety obligations.

Employers should take time this year to:

• Review onboarding processes to ensure new hires receive required notices

• Confirm meal and rest break policies meet the laws in each state where employees work

• Revisit workplace safety practices, especially for roles with higher risk or isolated work environments

These day-to-day practices are easy to overlook but are often where compliance issues quietly build.

Want a clearer picture of where your HR practices stand? Our HR MRI Assessment® gives business owners a practical, big-picture review of potential compliance gaps, policy blind spots, and people-related risks - so you can move forward with more confidence and fewer surprises. Reach out to us today to learn more!