US Labour Law for Expats 2026-
With the calendar flipping to 2026, US employers face a new set of labor laws and amendments that will impact workforce compliance and employee rights. Some of the notable changes include minimum wage hikes, pay transparency rules, and gig / platform worker protections.Employers will also be required to adhere to new notice and documentation requirements pertaining to work authorization issues. This change could affect a wide range of industries.
Salary Leave & Termination Rules
In the US, federal wage and hour laws (set by the Fair Labor Standards Act) govern minimum wages, overtime requirements, and certain leave policies. Employers must ensure that their workers are properly classified, as misclassification can have serious monetary consequences. In addition, federal law requires employers to display specific labour law posters in the workplace. Employers can avoid fines by subscribing to a labor law poster subscription service that provides up-to-date postings.State-level employment laws are often more complex, and may include mandatory paid leave and other work-related benefits. For example, New York’s Trapped at Work Act prohibits “stay-or-pay” agreements and requires employer-provided leave for employees with newborn children who are hospitalized in the neonatal intensive care unit. The act also allows employees who successfully defend against an enforcement of a void “stay-or-pay” agreement to recover attorneys’ fees.The National Labor Relations Act gives workers the right to join a union and bargain collectively with their employer over working conditions. However, some types of workers are not covered by this act, including government workers, independent contractors, management or supervisory-level employees, and agricultural employees. State and local law also sets a range of minimum wage rates, and may impose rules on tipped wages or higher wages for specific industries. Some states require that employers provide certain retraining services for laid-off workers.
Notice of Termination
With more than half of HR leaders reporting that their companies operate in two or more countries, it’s important for global employers to understand local termination payments and processes. Many countries have laws requiring significant notice periods and severance pay for employees fired for cause. Failure to follow the relevant law can result in legal issues and financial penalties.Unlike in the United States, where employment is generally considered at-will, most countries have worker-protective laws. These laws typically prohibit discrimination based on race, gender, sexual orientation and other factors, and require that companies provide specific reasons for termination, such as gross misconduct, theft of company property or breach of confidentiality. Often, employment contracts for executives and other highly skilled individuals contain a “just cause termination” clause specifying the permissible grounds for dismissal.In addition, most countries have laws that require companies to consult with workers before making a mass layoff. These laws are often called “mini-WARN” or “collective termination notification” acts. For example, in the U.K., an employer that makes 100 or more people redundant must provide a 90-day consultation period with workers’ representatives to discuss the impact on the organization and what alternatives might be available. In general, the longer the notice period required by a country’s laws is, the more difficult it may be to fire an employee without just cause.
Dismissal
In 2025, US employers navigated a steady stream of statutory changes, regulatory shifts and enforcement recalibrations at the state and federal levels. The year ended with the launch of new programs and increased enforcement priorities across a number of employment law areas—including paid leave and wage compliance, workplace privacy obligations, immigration and employee mobility, and restrictive covenants.For 2026, HR professionals should expect an uptick in state-level enforcement activity (particularly in Democrat-led states) on issues such as discrimination, sexual harassment, retaliation and maternity leave. In the Senate, watch for the introduction of a broad labor reform package led by Committee Chair Bill Cassidy that could reshape many aspects of federal labor laws.At the federal level, we anticipate a continued push by the Trump administration for new policy initiatives, including expanding prevailing wage rules for H-1B visa holders and tightening PERM labor certification requirements for employer-sponsored foreign workers. The reconstituted NLRB should continue its policy agenda as well, reversing or narrowing several Biden-era protections and signaling a significant change in how the Board interprets and enforces federal labor laws.Finally, we can also expect the Wage and Hour Division to accelerate its rulemaking agenda, especially now that Andrew Rogers is installed as director. Look for the agency to issue a proposal that would clarify the rules on employee rest and meal breaks and revise the retaliation exemption for employees who engage in protected activities.
Employment Contracts
In the United States, employees are generally employed at will, meaning that either party may end the employment relationship at any time and for any reason (except unlawful reasons such as discrimination). However, some states have specific laws governing the terms of employment and/or how terminations should be handled. These vary from state to state, and some even have different rules for tipped employees or workers in certain industries.The federal National Labor Relations Act (NLRA) gives employees the right to organize or join labor unions and to engage in concerted activities relating to their working conditions. The NLRA protects employees who exercise these rights and ensures that employers do not interfere with them.Many states and cities have passed laws requiring employers to provide certain types of leave or pay for particular reasons. For example, California’s Employee Blood and Organ Donation Leave Act requires employers to grant a minimum of one day of paid leave to an employee who donates blood or organs.New Hampshire’s HB 2 requires employers to provide 25 hours of unpaid leave for an employee to attend medical appointments related to childbirth and postpartum care. Other states have passed laws requiring paid sick leave, limiting use of noncompete agreements, and banning coercion based on immigration status.