Publications

On May 28, 2026, the U.S. Department of Labor’s (“DOL”) Wage and Hour Division issued Opinion Letter FLSA2026-7, providing federal guidance on whether the time that employees spend voluntarily leaving an employer’s premises during an unpaid meal period constitutes compensable work time under the Fair Labor Standards Act (“FLSA”). The DOL concluded that such time is generally not compensable work time under the FLSA.

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In the recent case of Paknad v. Superior Court, the California Supreme Court affirmed and expanded on previous rulings that attorney-client communications and the attorney work product privileges may be waived where the employer places the adequacy of an attorney-conducted investigation at issue.

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OVERVIEW

The Los Angeles City Council has taken initial steps to delay implementation of the City’s planned $30/hour minimum wage for hotel and airport workers, originally slated to take effect by 2028 (link).
In a closely divided vote, the Council advanced a proposal to push the timeline to 2030, although additional action is required before any delay becomes final.

The move comes amid significant political and economic pressure tied to a business-backed ballot initiative that could have broader fiscal consequences for the city. A referendum process can pause or force voter approval of wage ordinances, potentially pushing the issue to a citywide vote.

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Employers report a sharp increase in employees requesting mental health leave and accommodations in recent years. This may be in part attributable to a welcome de-stigmatization of mental illness, but has the unfortunate side effect of increasing the burden on employers to accommodate these requests.

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California’s Assembly Bill 692 (AB 692), effective January 1, 2026, prohibits most “stay-or-pay” provisions in employment contracts. AB 692 renders void any clauses requiring employees to repay training, education, or relocation costs upon separation, and limits efforts to penalize workers for leaving. The bill enhances employee mobility and creates private rights of action for violations.

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Labor relations in the United States has entered a fundamentally different era—one defined by heightened employee expectations, aggressive regulatory shifts, and a renewed sense of momentum within organized labor. For employers, this moment is not simply a cyclical uptick in activity. It is a structural change in how workforces think, communicate, and mobilize. And the organizations that recognize this shift early will be the ones best positioned to navigate it.

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On March 24, 2026, Washington Governor signed House Bill 1155 amending various provisions related to non-competition and non-solicitation agreements, amendments which take effect on June 30, 2027.

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On January 28, 2026, NLRB General Counsel Crystal S. Carey issued GC Memo 26 02, setting a markedly different tone from the sweeping policy agendas that have defined recent years. Rather than launching a new wave of precedent revisiting initiatives, Carey’s first major communication focuses on something far more fundamental—and urgently needed across the Agency: operational consistency, timely case resolution, and restoring predictability in regional enforcement.

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The “No Taxes on Tips” regulation has been enacted and will take effect on June 12, 2026. The new regulations, issued by the IRS, declare that a deduction shall be allowed for an amount equal to a taxpayer’s qualified tips, up to a maximum of $25,000. (It can be less for those whose adjusted gross income exceeds $150K ($300K if filing jointly).)

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Organizations rarely become vulnerable to union organizing overnight. Vulnerability builds gradually — through cultural drift, leadership inconsistency, operational pressure, or unresolved employee concerns. The challenge is that most employers don’t recognize the warning signs until a petition is filed or an organizer is already active inside the workforce.

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