7 Important Compliance Updates from Q2 2026

Based on updates from Legal Expert, Christian Moro

The federal agency that handles workplace discrimination claims just changed its approach

There’s intentional discrimination (treating someone unfairly because of their race, sex, or age on purpose), and there’s disparate impact (a policy that looks neutral but ends up hurting a protected group anyway, even without anyone meaning to). On June 4, the Equal Employment Opportunity Commission, the federal agency that investigates and enforces workplace discrimination claims, said it’s stopped pursuing the second type and is turning its attention to DEI programs instead: quotas, diverse hiring panels, and job ads that call out preferences based on race or sex.

Why it matters to you: Disparate impact is still illegal. The EEOC just won’t be the one suing companies for it; private individuals and state agencies still can. It’s more important than ever to ensure that your job postings or hiring programs comply with the right laws.

Overtime got cheaper for employers, but only federally

The Department Of Labor rolled back the 2024 overtime rule in May. To classify someone as salaried with no overtime owed, you now only need to pay them $684 a week, about $35,568 a year. That’s a lower bar than the rule that was coming.

Why it matters to you: if your workers are in California or New York, this changes nothing. California’s real threshold is $70,304 a year / $1,352 a week, roughly double the new federal number. New York’s is similarly high. Check every exempt employee against the actual number for their location, not the new federal floor.

Joint employer risk shrank, on paper

“Joint employer” is the legal concept that a company that uses a staffing agency can be held responsible for those workers as well, even though the agency technically employs them. As of February, the NLRB said you only count as a joint employer if you’re actually directing the work, setting schedules, handling discipline, not just holding the contractual right to step in.

Why it matters to you: Using staffing partners reduces risk, but only if your managers actually stay hands-off. If your team is still setting hours or handling discipline for contract workers, you’re exposed regardless of what the contract says.

Non-competes have no federal answer anymore

The FTC’s attempt to ban non-competes nationwide is dead. It never took effect, and it’s not coming back.

Why it matters to you: This is now a state-by-state issue, and states are moving fast, sometimes in opposite directions. See Virginia below.

Colorado backed off its AI hiring law before it ever took effect

Colorado had passed the toughest law in the country regulating AI tools used to screen or rank job candidates. In May, the state pushed back the effective date again, from this summer to January 2027, and stripped out the toughest requirements, including the requirement to test the tool for bias before use. What’s left is a much lighter rule that just requires disclosure.

Why it matters to you: If you use AI to screen or rank contract talent, don’t take this as a green light. California and Texas both have their own AI-screening rules already in force, and neither one cares what Colorado just did. Keep documenting that any tool you use is job-related and doesn’t produce biased results, regardless of where you’re hiring.

Virginia just banned salary history questions and some non-competes

As of July 1, Virginia employers can’t ask about salary history and must post pay ranges on every job listing. Non-competes are banned outright for healthcare workers, with no exceptions aside from when tied to a business sale.

Why it matters to you: There is no grace period left, so if you have any Virginia postings or healthcare placements, this needs to be fixed now.

Washington moved background checks to after the job offer

Also effective July 1, Washington employers with 15 or more workers can no longer run criminal history checks before making a conditional offer. Blanket disqualification policies are banned too. Penalties start at $1,500 and climb to $15,000 per violation.

Why it matters to you: We recommend moving background checks to post-offer for any Washington hires and documenting an individual review before turning someone down based on the results.

Minimum wages rise again

As of July 1, California’s healthcare minimum wage rose to $25 an hour for large hospitals and $23 an hour for most other facilities, and more than 20 California cities and counties raised their local minimums on top of that; unincorporated LA County is now at $18.47 an hour. Alaska moved to $14.00. Florida hits $15.00 on September 30.

Why it matters to you: Pay is set by where someone physically works, not where your company is headquartered. If you have workers in any of these places, check that payroll reflects the rate for their actual location, not just a blanket company-wide number.

The Supreme Court just made federal agencies less predictable

On June 29, the Supreme Court ruled that the President can remove independent agency leaders whenever he wants, no cause required, overturning a rule that had protected agency leadership for 90 years. The case concerned the FTC, but the same logic applies to the EEOC and the NLRB.

Why it matters to you: Everything above- the EEOC’s new enforcement plan, the NLRB’s joint employer standard- came from leadership that can now be swapped out at any point, not just when a new administration takes office. Don’t treat any of this as permanent. Check in on agency leadership and guidance every few months instead of once a year.

The TLDR

Washington’s retreat doesn’t shrink your workload, but it relocates where the real decisions get made. This summer, California, Virginia, and Washington all moved in the opposite direction of federal policy, and that widening gap between what Washington allows and what states require is where the risk sits right now.

Questions about how this touches your program specifically? Reach out to us today.