Labor & Employment Law Update

The Fifth Circuit recently issued a decision that could affect how courts evaluate Occupational Safety and Health Administration (OSHA) regulations and enforcement actions moving forward.

On July 21, 2026, in Exxon Mobil Corp. v. Occupational Safety and Health Review Commission, the court addressed OSHA’s rule requiring employers to record certain work-related mental illnesses. It concluded that OSHA exceeded its Congress authority under the Occupational Safety and Health Act and vacated the rule, Exxon’s citation, and the accompanying penalty.

Compliance with pay transparency laws is no longer as simple as adding a salary range to a job posting and moving on. As state pay transparency requirements and compliance obligations continue to expand nationwide, regulators are increasingly focused on whether employers’ disclosures are meaningful, accurate, and supported by actual compensation practices. As lawmakers and regulators continue to refine pay transparency requirements, employers should view compliance as part of a broader compensation strategy rather than a standalone posting obligation.

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.