As we enter into 2026, a number of state, local, and federal employment law changes are taking effect which impact employer compliance and expand employee rights. These developments create new obligations that employers should be aware of as they review workplace postings, leave policies, hiring practices, scheduling procedures, and anti-discrimination safeguards for the year ahead.
New Jersey
- Updated Family Leave Insurance Posting
Effective September 25, 2025, New Jersey updated its mandatory Family Leave Insurance poster, which can be found here. Employers are required to display the revised notice in a conspicuous location accessible to employees and ensure that older versions are removed.
- Disparate Impact Regulations Codified
Effective December 15, 2025, New Jersey formally codified regulations addressing disparate impact discrimination. Under these rules, a policy or practice may be unlawful if it disproportionately affects members of a protected class, even if the policy is neutral on its face and not adopted with discriminatory intent. The regulations apply broadly to employment practices, including recruitment, advertising, screening, interviewing, and the use of automated employment decision technology.
New York
- New York City earned Safe and Sick Time Expansion
Effective February 22, 2026, New York City will expand its Earned Safe and Sick Time law to allow leave for additional purposes, including caregiving, housing or benefits proceedings, public disasters, and workplace violence. Under this expansion, employers must provide 32 hours of unpaid safe or sick time immediately upon hire and each calendar year. In addition, employees may request up to two temporary schedule changes annually for personal events. While employers are not obligated to approve these requests under the revised law, they must respond to any such request as soon as possible.
- Paid Family Leave Increases
Effective January 1, 2026, New York’s Paid Family Leave program will increase employee contribution rates to 0.432 percent of an employee’s gross wages, with a maximum contribution of $411.91 per pay period. The maximum annual benefit will also increase to $14,742.36, or $1,228.53 per week.
Federal Updates
- FMLA Leave Calculations Clarified
The U.S. Department of Labor issued guidance clarifying that FMLA leave entitlement should be calculated using an employee’s actual, regularly scheduled workweek, including mandatory overtime. Voluntary overtime hours should not be counted.
- Religious Accommodation and Telework
In a September 18, 2025 opinion, the U.S. Department of Justice’s Office of Legal Counsel clarified federal guidance on religious exercise and accommodation in the federal workplace. The opinion confirms that situational telework, meaning occasional and non-routine remote work tied to specific religious needs, may qualify as a reasonable accommodation even in workplaces that otherwise require in-person attendance. Although the opinion is directed to federal agencies, its reasoning may influence how religious accommodation requests are assessed in the private sector.
Planning for 2026
These developments reflect a continued emphasis on regulatory compliance, employee leave rights, scheduling flexibility, and closer scrutiny of workplace policies that may have unintended discriminatory effects. Employers should review their current practices and policies to ensure alignment with these recent changes.
If you have questions about how these developments apply to your organization or would like assistance reviewing your current policies for compliance, please contact us. We would be happy to discuss these updates to ensure your practices are positioned for the year ahead.
Lindabury, McCormick, Estabrook & Cooper, P.C. Firm News & Events


