Overview
As a year defined by rapid legal and regulatory shifts draws to a close, employers continue to face new and complex challenges. From the surge in pay transparency class actions to the accelerating regulation of artificial intelligence (AI), staying ahead of these developments is essential to mitigate risk, ensure compliance, and prepare for what’s next.
During this webinar, McDermott Will & Schulte’s Employment Group unpacked the most significant legal trends impacting employers in 2025 and practical strategies to prepare your organization for 2026.
Ensure your company is prepared for the year ahead by reviewing our checklists of key takeaways from each segment of the webinar.
Checklists to prepare your company for 2026
To reveal each checklist, click the corresponding heading below.
Wage and hour developments >
- Monitor federal and circuit-level developments on the independent-contractor standard
- Conduct privileged audit exemption and wage and hour audits for roles and practices affecting 25 or more employees
- Apply the new Private Attorneys General Act (PAGA) reforms as your core compliance and defense framework
- If forced to defend a PAGA case, respond to the initial PAGA notice and cure any inadvertent non-compliance within 60 days
- Prepare for increased enforcement by state attorneys general and employee advocates by strengthening documentation and compliance systems
DEI and pay equity >
- Refocus hiring efforts on fair process and inclusion over metrics and accountability for increased representation
- Neutralize mentorship and advancement programs by opening access to all employees
- De-emphasize diversity and emphasize equity and inclusion throughout communication
Religious accommodation >
- Review and revise written policies to clarify that employees’ acknowledgment of and compliance with the policies does not require them to adopt the policies as their own beliefs
- Review and revise training materials to clarify that participation does not require the employee to personally agree with anything stated during the program
- Engage in and document a thorough interactive process before denying any religious accommodation request — similar to the Americans with Disabilities Act
- Review and ensure your religious accommodation policy aligns with Equal Employment Opportunity Commission and state civil rights agencies guidance – e.g., explicitly state the employee’s duties to provide the requisite information and participate in the interactive process
Political speech >
- Ensure policies and training materials explicitly set forth the boundaries of the company policy and clarify that compliance and participation do not require employees to adopt or agree with stated beliefs
- Evaluate an employee’s speech based on its content, context, and the speaker’s role to determine whether it creates a hostile work environment, harms the brand, or is otherwise problematic
- Apply all policies and disciplinary actions consistently and fairly across the organization
- For union employees, confirm that just cause exists before taking disciplinary action or termination
AI in employment >
- Conduct artificial intelligence (AI) impact assessments before use
- Perform rigorous vendor diligence
- Provide notice, opt-out options, and human review
- Train human resources, managers, and employees on proper AI use
- Maintain ongoing bias testing and recordkeeping
Employee mobility >
- Consult with counsel to review current agreements for legality
- Consider whether the current approach make sense. What are the company’s objectives and needs? Are the appropriate creative approaches utilized?
- Draft reasonable restrictions that can be enforced with confidence
- Ensure appropriate consideration and procedural requirements are met in the rollout strategy
- Monitor state-by-state developments and adjust as necessary
Labor >
- Evaluate practical and strategic National Labor Relations Board (NLRB) compliance strategy in light of anticipated changes
- Consider more proactive and transformational approaches to contract negotiations
- Consider dual shop structures to reduce or control union-related risks, especially in connection with transactions
- Evaluate union organizing risks related to the rollout of AI
- Anticipate more aggressive labor actions as unions pivot away from NLRB litigation
If you have questions or need assistance preparing your company for the year ahead, please contact your regular McDermott Will & Schulte lawyer.