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    Home»Business»These laws will change how you work in 2026
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    These laws will change how you work in 2026

    Team_Benjamin Franklin InstituteBy Team_Benjamin Franklin InstituteJanuary 5, 2026No Comments5 Mins Read
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    With President Trump back in the White House, this year has brought a barrage of executive orders and edicts that target workers. Trump reduced the minimum wage for federal contractors, made major cuts to the Occupational Safety and Health Administration—whose express mission is to keep people safe in the workplace—and attempted to undermine collective bargaining rights for federal workers. He has also, of course, set his sights on dismantling diversity, equity, and inclusion (DEI) programs across both the federal workforce and corporate America.

    Still, there’s a glimmer of hope for workers: Many states have taken it upon themselves to enshrine policies like paid leave and pay transparency, with some of them now turning their attention to how the misuse of artificial intelligence in hiring could harm workers. Here are some of the laws and policies that will take effect in 2026—many of which continue to push forward on important issues for workers despite what the federal government has in store. 

    Anti-DEI measures

    Trump has made anti-DEI policies a focal point of his time in office, kicking off this year with a number of executive orders that forced federal agencies to terminate all DEI-related policies and programs and stripped away a requirement for federal contractors that had been a crucial element of diversifying the workforce. That means, going into 2026, all federal DEI programs have been eliminated—but there are a number of state-level bills that seek to curtail how DEI is utilized in hiring and across public education.

    In Ohio, for example, legislation that passed this year prohibits any consideration of DEI in hiring decisions at public colleges and universities. Similar laws in Kansas, Idaho, and Wyoming will curtail DEI programs for hiring across higher education. 

    Meanwhile, the Equal Employment Opportunity Commission—the agency tasked with enforcing antidiscrimination laws in employment—has made clear that corporate DEI programs will be under greater scrutiny going into 2026. 

    The use of AI in hiring

    As companies have embedded AI into their hiring process, many HR teams have started relying on automated résumé screeners and other AI tools. In 2026, three laws will take effect at the state level to create some guardrails around how AI is being used for employment decisions, following in the footsteps of New York City and California, which have already adopted AI in hiring laws.

    Colorado and Texas are introducing broader AI governance laws that also explicitly call for more oversight of how the technology is used in the hiring process to ensure it is not discriminatory. In Illinois, the law is an amendment of the state’s Human Rights Act and regulates how workers are impacted by the use of AI in all employment decisions. At the federal level, a bipartisan bill introduced in Congress last month would—if passed—force employers to disclose when layoffs are caused by AI. 

    Minimum wage 

    The minimum wage continues to rise, year after year, as states have raised the wage floor in response to worker advocacy. As 2026 rolls around, 20 states will have enacted and started phasing in a $15 minimum wage, with hourly wages actually crossing $15 in a total of 11 states by the end of next year. Since 2012, a total of 15 states have adopted a $15 minimum wage, according to the National Employment Law Project, in no small part because of the Fight for $15 movement that originated among fast-food workers. 

    By the end of 2026, many workers will see even greater pay increases as the minimum wage is boosted to $17 across 53 cities and localities. A handful of states have also approved changes to the subminimum wage, which typically pays tipped workers a lower hourly rate. (There have been several proposals at the federal level to eliminate the subminimum wage altogether, but nothing has successfully passed.) 

    Paid leave

    While the efforts to pass federal paid family leave have more or less come to a standstill, a handful of states have kept pushing to secure those benefits for their workers. In Delaware, Maine, and Minnesota, a paid leave program will take effect in 2026, joining 10 other states that have already introduced the benefit. 

    Meanwhile, states like Connecticut are making significant expansions to their paid sick leave program, now requiring companies with as few as 11 employees to provide leave. (By 2027, even employers with one worker will have to do the same.) In total, about 20 states now offer paid sick leave in some capacity, as these laws have picked up steam in recent years. A number of cities and localities also provide paid leave, even in states like Pennsylvania that don’t have broader coverage. 

    Pay transparency

    Pay transparency laws have grown in popularity over the last four years, in an effort to arm workers with more information as they go into salary negotiations—or before they apply for a job at all. These laws often require employers to disclose a salary range in all job postings, though some states have only mandated that employers verbally share salary information. 

    This year, Massachusetts and New Jersey adopted laws that require pay ranges in job listings, bringing the total number of states with these laws on the books to 14. At the local level, some cities in Ohio have started requiring salary disclosures, as is also the case in Washington, D.C. Salary transparency laws also often prohibit employers from asking about a candidate’s salary history during the interview process and using that to determine their compensation.



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