Labor & Employment Law Update

The U.S. Department of Labor (DOL) recently issued much-needed guidance on compensable travel time, one of the more complex areas of the Fair Labor Standards Act (FLSA).  Laid out in two opinion letters, the guidance is particularly relevant for employers with hybrid workforces and field-based employees. Employers should review their pay practices to ensure they are properly distinguishing between ordinary commuting and compensable work activities.

Colorado employers face new compliance obligations under HB 26-1283, a law that sharply limits when they may demand, keep, or control an employee's or applicant's government-issued ID. With the new law carrying criminal and civil exposure for violations, employers should review onboarding practices now.

On July 31, 2026, Governor Pritzker signed new legislation greatly expanding the already-broad investigatory powers of the Workplace Rights Bureau in the Attorney General’s Office (“OAG”). Effective January 1, 2027, the law authorizes the OAG to investigate supposed violations of Illinois employment law and creates penalties for employers that do not comply. In essence this signals yet another move by Illinois to dispense with the fundamental due process rights of employers.

Missouri employers will soon face expanded military leave and reemployment obligations following Governor Mike Kehoe’s signing of House Bill 2593 on July 9, 2026. The new law goes into effect beginning August 28, 2026, potentially opening up new litigation exposure for noncompliance.

On June 29, 2026, the Supreme Court overruled a 91-year-old precedent and held that the president may remove the heads of independent federal agencies at will. While the decision does not change any labor or employment laws, it could change who controls the agencies that enforce them. For employers, that means greater uncertainty and potentially more dramatic shifts in enforcement.

Illinois’s renewable energy landscape shifted significantly in January 2026 with the enactment of the Illinois Clean and Reliable Grid Affordability Act (CRGA). Among the law’s provisions, a major expansion of project labor agreement (PLA) requirements stands out for developers, EPCs, investors, and contractors. As PLA mandates continue to broaden across Illinois’s renewable energy market, early assessment and strategic planning will be critical to managing project risk and avoiding costly surprises.

The Equal Employment Opportunity Commission (EEOC) formally rescinded the federal guidance employers have relied on for nearly 50 years when designing voluntary affirmative action plans under Title VII. In a June 29 vote, the EEOC voted to rescind the two documents that provide a long-standing roadmap for employers.

Hiring your first out-of-state employee can introduce a complex web of local and state employment laws that may differ dramatically from those you already follow. From paid leave requirements and pay transparency laws to non-compete restrictions and city-specific ordinances, multi-state employment compliance can quickly become a challenge for unprepared employers.

The U.S. House of Representatives passed a bill that would place strict deadlines for employers and newly certified unions to reach a first collective bargaining agreement (CBA). The bill, which garnered some bi-partisan support to pass the GOP-led House, would potentially place the terms of such initial collective bargaining agreements in the hands of federal arbitrators, instead of being negotiated to conclusion by the parties.

Employers with operations in Chicago and Cook County should prepare for local minimum wage increases effective July 1, 2026, along with related notice, posting, and compliance obligations. While the Illinois statewide minimum wage remains unchanged, Chicago and Cook County will implement higher local rates that apply based on employer size and location.