Labor & Employment Law Update

Effective January 1, 2027, Illinois employers with 26 or more employees must pay employees at their regular hourly rate for their existing job-protected jury duty leave. The change, enacted through House Bill 4844 and signed by Governor J.B. Pritzker on July 31, 2026, amends the Illinois Jury Act and Illinois Jury Commission Act. Crucially, there are no caps or limitations on the new paid leave.

While Illinois employers have long been required to provide employees with protected time away from work to fulfill jury duty obligations, the new law fundamentally changes who bears the financial burden of that leave. Illinois has chosen to place responsibility for additional pay above the low jury duty stipend on private employers. As a result, what was previously an operational challenge of covering for an employee's absence will now also become a potentially significant payroll expense.

Many nonunion employers do not expect that they may be one ordinary employee group chat away from a potential National Labor Relations Act (NLRA) issue. The common misconception is that labor law only matters when a union is involved. It doesn’t. As a result, disciplinary decisions that seem routine can quickly become unfair labor practice charges if managers fail to recognize when employees are engaging in protected concerted activity.

A recent decision made by the U.S. Court of Appeals in the Fifth Circuit found that OSHA lacked congressional authorization to regulate mental health in the workplace. While the decision does not change workers' compensation laws or standards for mental injury claims, it raises important questions for employers about how workplace mental health conditions may be evaluated under existing legal frameworks.

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.