United States: Contract of Employment

The U.S. Department of Labor's Wage and Hour Division has issued four new opinion letters addressing critical Fair Labor Standards Act compliance questions that frequently arise in workplace disputes. These official interpretations clarify when exempt employees can perform additional hourly work, how certain bonuses affect overtime calculations, which meal break and pre-shift activities are compensable, and when time-rounding practices create legal risk.

New York State's 2026 legislative session concluded with several employment bills awaiting Governor Kathy Hochul's signature. These proposed laws could significantly reshape employment practices across the state, affecting severance agreements, job postings, personnel records, artificial intelligence usage, and dispute resolution waivers. The changes would impact both employers and employees operating in New York's jurisdiction.

New Jersey has activated its employer separation reporting portal, requiring businesses to report every employee departure within seven days through the state's Division of Unemployment Insurance system. The mandate applies to all separations—layoffs, terminations, resignations, and retirements—regardless of whether the former employee files for unemployment benefits. Employers must now navigate new compliance obligations including portal registration, timely data submission, and internal proces

The National Labor Relations Board now has a Republican majority for the first time in President Trump's second term, setting the stage for a systematic reversal of Biden-era labor precedents. Which landmark decisions are most vulnerable to being overturned, and how quickly can employers expect these changes to take effect? The answer lies in understanding both the Board's procedural constraints and the specific cases already teed up for reconsideration.

Maryland's Family and Medical Leave Insurance program launches in 2027, requiring nearly all employers with Maryland employees to navigate new contribution requirements, eligibility rules, and coordination with existing leave policies. Understanding the distinctions between the State Plan and private plan options, along with proper notice requirements and leave policy integration, will be critical for compliance as payroll deductions begin in January 2027 and benefits become available in 2028.

California's statewide minimum wage is set to rise to $17.40 per hour on January 1, 2027, triggering corresponding increases in exempt employee salary thresholds and highlighting the need for employers to review compliance across multiple wage requirements. The inflation-based adjustment will raise the minimum annual salary for exempt employees to $72,384, while numerous local jurisdictions maintain even higher rates. Employers must navigate a complex landscape of state, local, and industry-specific wage re

Unfortunately, answers to these questions are jurisdiction and fact dependent. Although cannabis remains unlawful under federal law, a growing number of states and local jurisdictions protect at least some forms of lawful off-duty cannabis use.

Philadelphia employers face new compliance requirements under the amended Fair Criminal Record Screening Standards Ordinance, including stricter lookback periods, enhanced notification procedures, and robust antiretaliation protections. The Philadelphia Commission on Human Relations has released updated guidance materials, but questions remain about implementation and enforcement of these expanded protections for job candidates with criminal histories.

The U.S. Supreme Court's landmark decision in Trump v. Slaughter fundamentally reshapes presidential authority over independent federal agencies, while the NLRB navigates significant policy shifts regarding noncompete agreements and union financial reporting. These developments signal a transformative period for labor law enforcement and agency independence that will impact employers, unions, and workers nationwide.