2026 Employment Law Update: What Employers Need to Know Now

Last Week, our OmniaHR team attended the Idaho Employment Law Update and Prediction event here in Coeur d’Alene. If there's one phrase defining HR in 2026, it's this: HR is harder than ever.  

Employers are navigating a perfect storm of regulatory change, from the Supreme Court's Muldrow decision potentially lowering the bar for discrimination claims to dramatically shift in EEOC Diversity, Equity, and Inclusion (DEI) programs. Add to this ICE enforcement with increased inspections, AI regulations requiring employers to prevent algorithmic discrimination, expanded state leave laws, and wage-and-hour risks not covered by insurance. The compliance landscape has never been more complex.  

Idaho employers are feeling this increase, with Idaho Human Rights Commission (IHRC) charges climbing to approximately 750 cases and proposed paid sick leave legislation signaling more change ahead. Washington employers face their own challenges with minimum wage increases to $17.13, new PFML premium rates, and expanded job protections taking effect January 1^st. 

The risks are real and require immediate attention.  

• Muldrow Decision Expansion 

  • Adverse employment actions such as transfers, Performance Improvement Plans (PIPs), schedule changes, and the loss of perks can now support discrimination claims. Employers no longer need to change an employee's pay or title to face possible liability. 

• Ames Decision Impact 

  • The elimination of heightened proof standards for majority-group plaintiffs means discrimination claims can now be brought by employees of any demographic background. 

• EEOC Priority Shift 

  • The agency is now investigating DEI programs, national origin discrimination against "American workers," and religious discrimination; a marked departure from previous enforcement focus. 

• Heightened ICE Enforcement 

  • Immigration audits have surged by more than 30%, with "knock and talk" visits, formal Notices of Inspection, and workplace raids affecting employers across all sectors. 

    
    

• Wage and Hour Vulnerabilities 

  • Off-the-clock non-exempt employee work, employee misclassification, and payroll errors remain the highest-risk compliance issues because class action lawsuits typically aren't covered by insurance and directly impact profitability. 

The good news? Proactive employers can effectively manage these risks. Check your C-O-M-P-L-I-A-N-C-E with the Essential Compliance Actions: 

C - Complaints: Investigate Thoroughly 

• Complete comprehensive investigations when complaints arise. Proper documentation and findings will be your strongest defense in litigation. 

O - Organize Employment Records 

• Thoroughly document every employment action and ask: Do our employees know how to access the employment policies? Have you followed your own policies? Is this decision a surprise to the employee, or have expectations been clearly set? 

M - Match Treatment Across Employees 

• Always look for similarly situated employees and document how they've been treated in comparable situations to demonstrate consistency. 

P - Payroll Systems Audit 

• Audit payroll processes for calculation errors that could trigger costly wage and hour class actions. 

L - Labor Classifications: Review Exemptions 

• Audit employee classifications against current salary thresholds to ensure compliance with FLSA exemption requirements. 

I – Immigration Forms: Conduct I-9 Audits 

• Review and correct I-9 documentation to minimize exposure during immigration enforcement actions. 

A - Assess DEI Programs 

• Evaluate your diversity, equity, and inclusion initiatives for potential legal exposure under the EEOC's new enforcement priorities. 

N - Navigate State Requirements 

• Idaho: Utilize free IHRC training on harassment prevention, reasonable accommodation, and anti-discrimination law. 

• Washington: Ensure PFML deductions are up to date and review job postings for compliance with the new requirements. 

C - Consult Professionals

• After reviewing these items, consult HR or Legal for any clarification or confirmation of understanding.

E – Everything HR 

• When all else fails, contact OmniaHR, your trusted HR, compliance, and leadership development partner, to stay updated on compliance and trending topics. 

Don't wait for a complaint, audit, or lawsuit to take action. Schedule a compliance review with OmniaHR this quarter to assess your policies, practices, and documentation against 2026 requirements.  

The employers who thrive in this environment will be those who prioritize consistency, documentation, and fair treatment of all employees, regardless of demographic characteristics. Contact us today to schedule your compliance audit and consultation to ensure your organization is prepared for the challenges ahead. 

This information is provided for educational purposes and does not constitute legal advice. Employers should consult with qualified legal counsel regarding specific situations.