Are you busy wrapping up projects (or presents) this time of the year? Looking forward to some much-needed time off? You can and should do all of that, but you’ll also want to keep an eye on the various federal, state, and local regulations going into effect in January 2026. We’re here to get you ready without jamming up your holiday plans!
Top 7 Human Resource Topics
To make things as easy as possible for you, KPA has identified the top 7 human resource topics that will have the most significant impact on businesses across all industries in 2026. Read State Specifics…
1. Leave Laws
States have been expanding time off allowances beyond the federal Family and Medical Leave Act (FMLA). Eighteen states and Washington, D.C. have laws that require employers to provide paid sick leave to employees.
The expanded coverage may also include new leave types, updated family definitions, extended leave options, and leaves for victims of violence , among others. All of these laws are leading to greater employee benefit obligations.
2. Wage & Hour
At least 19 states and 49 counties/cities will be increasing minimum wages on January 1, 2026. Read More…
3. Data Security & Consumer Privacy Laws
Prominent data breaches have been increasing in frequency and impact. According to the Harvard Business Review, 83% of U.S. organizations had one or more data breaches in the last year.
As a result, lawmakers have responded with legislation to force companies and data controllers and processors to better protect consumer data and sensitive information, such as someone’s racial or ethnic origin, religious beliefs, mental or physical health diagnosis, sexual orientation, citizenship, or immigration status.
4. Artificial Intelligence (AI)
AI investment in the U.S. is at an all-time high. According to Stanford University, corporate AI investment reached $252.3 billion in 2024, with private investment increasing 44.5% and mergers and acquisitions up 12.1% from the previous year. There are also economic indications that it’s the main driver of positive stock index values this year.
However, this technology has created uncertainty and bias when it comes to AI in hiring and employment processes, and lawmakers are working to fill in the gaps.
5. Confidentiality
As a result of recent federal and state court cases, the rules governing employee non-compete, inventions, and non-solicitation agreements have been evolving and limit how they can be used in an employment context.
6. Pay Equity & Transparency
Pay equity is the concept that equal work deserves equal pay no matter the person, their race, gender, identity, age, or other protected characteristics. Almost all states already have a version of this on the books. However, in 2025 and beyond, states are strengthening their pay laws.
States have also implemented pay transparency laws, which require employers to disclose compensation information, including salary ranges, pay scales, and the process by which pay decisions are made. These details may need to be shared internally, externally, or both, depending on the circumstances.
7. Pregnancy
In addition to the Federal Pregnancy Workers Fairness Act (PWFA) and Pregnancy Discrimination (PDA), states are implementing their own laws regarding pregnancy accommodations and anti-discrimination protections, which may provide greater protections than federal law. States have either been codifying pregnancy and abortion rights or enacting restrictions. Employers may need to review their accommodation and leave policies to ensure compliance, as well as their recordkeeping practices and training refreshes.
Is Your State on the List?
Get the full details for all the states that have laws on one or more of these 7 critical topics going into effect in 2026. Read More…
Complete Compliance
KPA not only keeps track of all these important regulatory changes but also helps you know what to do about them! The goal is to make compliance as easy as possible.
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