On January 22, 2026, the Equal Employment Opportunity Commission (EEOC) voted 2-1 to rescind its Enforcement Guidance on Harassment in the Workplace, previously issued in 2024. This decision by the EEOC comes in the wake of Executive Order 14168 issued in January 2025, and the ruling of Texas, et al. v. EEOC, No. 2:24-CV-173 (N.D. Tex.) on May 15, 2025. While this ruling may impact the EEOC’s interpretation of federal antidiscrimination and harassment laws, this ruling does not change, repeal, or modify existing federal laws pertaining to antidiscrimination or those prohibiting unlawful harassment.

At the time it was issued in April 2024, the intent of the EEOC’s Enforcement Guidance on Harassment in the Workplace was as an instrument to convey the EEOC’s stance on legal issues pertaining to unlawful harassment, and it included various examples of what could be deemed unlawful harassment. The guidance did not only cover harassment based on sex, sexual orientation, gender, and/or gender identity, but also harassment predicated on age, disability, genetic information, national origin, religion, race, and/or color.

Executive Order 14168 defines terms such as “Sex”, “Female”, “Male”, “Gender Ideology”, and “Gender Identity” and further instructed federal agencies to enforce laws pursuant to the narrow definitions of male and female contained in the Order. The Executive Order did not explicitly challenge the EEOC’s 2024 guidance, but it created a pathway for it to be challenged in court. In Texas, et al. v. EEOC, No. 2:24-CV-173 (N.D. Tex.), the Court vacated portions of the 2024 EEOC Guidance that pertained to sex, gender identity, harassment based on sexual orientation, and harassment based on gender identity.

What does this mean for employers?

The EEOC released a press release on January 23, 2026, announcing the vote to rescind the 2024 Harassment Guidance. In it, EEOC Chair Andrea Lucas provided a quote stating:

Rescinding this guidance does not give employers license to engage in unlawful harassment … Federal employment laws against discrimination, harassment, and retaliation, and Supreme Court precedent interpreting those laws, remain firmly in place … The agency will continue to be dedicated to preventing and remedying unlawful harassment.

This press release and comment from Chairperson Lucas show a commitment by the EEOC to investigate claims of discrimination, harassment, and retaliation. Additionally, there are numerous states with state-specific antidiscrimination, harassment, and retaliation laws, along with state agencies to investigate violations of those state laws.

We are here to help. Please reach out to your HR Business Partner if you have any additional questions.

Effective January 21, 2026, the Trump administration has paused the issuance of immigrant visas for nationals of 75 countries. This pause may affect employers sponsoring foreign nationals for lawful permanent residence through consular processing abroad.

The pause affects only immigrant visas processed outside the United States. It does not influence temporary, non-immigrant visa categories such as H-1B, L-1, O-1, or E visas. Visitor visas are also unaffected. Individuals eligible to apply for adjustment of status within the United States are not directly impacted.

The policy does not stop people from applying for immigrant visas or attending interviews. However, U.S. embassies and consulates won’t issue immigrant visas while the pause continues. In some cases, visas that have been approved but not yet printed or released may also be delayed.

Countries Included in the Pause

According to the U.S. Department of State, the pause applies to nationals of the following countries:

Afghanistan, Albania, Algeria, Antigua and Barbuda, Armenia, Azerbaijan, Bahamas, Bangladesh, Barbados, Belarus, Belize, Bhutan, Bosnia and Herzegovina, Brazil, Burma, Cambodia, Cameroon, Cape Verde, Colombia, Cote d’Ivoire, Cuba, Democratic Republic of the Congo, Dominica, Egypt, Eritrea, Ethiopia, Fiji, The Gambia, Georgia, Ghana, Grenada, Guatemala, Guinea, Haiti, Iran, Iraq, Jamaica, Jordan, Kazakhstan, Kosovo, Kuwait, Kyrgyz Republic, Laos, Lebanon, Liberia, Libya, Moldova, Mongolia, Montenegro, Morocco, Nepal, Nicaragua, Nigeria, North Macedonia, Pakistan, Republic of the Congo, Russia, Rwanda, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Senegal, Sierra Leone, Somalia, South Sudan, Sudan, Syria, Tanzania, Thailand, Togo, Tunisia, Uganda, Uruguay, Uzbekistan, and Yemen.

Employers should review the full list carefully to determine whether any current employees or candidates may be affected.

Employer Considerations

Organizations that sponsor employees for permanent residence through consular processing might face delays in onboarding or relocation. Clear communication and proactive workforce planning will be essential while the pause remains in effect.

PrestigePEO will continue to monitor developments that impact your workplace. If you have any questions, please contact your HR Business Partner.

The Worker Adjustment and Retraining Notification Act (WARN Act) was enacted in 1988 and provides protection to hourly and salaried workers and requirements for employers in the event of major layoffs and certain plant closings.

Generally, the WARN Act applies to businesses with one hundred (100) or more full-time employees; employees who have been with a company for less than six (6) months, and those who work part-time hours of twenty (20) or fewer hours per week do not count toward the 100-employee threshold. The Act is nuanced and can be triggered by multiple business scenarios. Most often, triggering events include layoffs of five hundred (500) or more employees at a site of employment; a worksite closure impacting a minimum of fifty (50) people; or planned layoffs of one-third of the employees at a single site of employment, if that 33% impacts a minimum of fifty (50) employees. The WARN Act does not explicitly address remote work, creating ambiguity in assessing WARN Act triggering events.

A single site of employment has been defined extensively within the WARN Act. It outlines the varying possibilities of physical location, which count toward a single site of employment, and includes a subsection for workers who do not continuously work outside of an office to complete their duties:

“For workers whose primary duties require travel from point to point, who are outstationed, or whose primary duties involve work outside any of the employer’s regular employment sites (e.g., railroad workers, bus drivers, salespersons), the single site of employment to which they are assigned as their home base, from which their work is assigned, or to which they report will be the single site in which they are covered for WARN purposes.” 20 CFR §693.3(i)(6).

For many remote employees, the work they are assigned originates from one of their employer’s office locations, and as such, there is the potential for such remote employees to qualify towards employee counts under the WARN Act. It is important for employers to regularly review their headcount to help determine WARN Act applicability.

If it is determined that the WARN Act is triggered, employers must provide employees with specific notice with information based on the best information available to the employer at the time. Notice under the WARN Act must include:

“(1) The name and address of the employment site where the plant closing or mass layoff will occur, and the name and telephone number of a company official to contact for further information;

(2) A statement as to whether the planned action is expected to be permanent or temporary and, if the entire plant is to be closed, a statement to that effect;

(3) The expected date of the first separation and the anticipated schedule for making separations;

(4) The job titles of positions to be affected and the names of the workers currently holding affected jobs.” 20 CFR §639.7(c)

The expected date of the closure or mass layoff must be either a specific date or a fourteen-day period during which the closure or mass layoffs are expected to occur. Employers should note that state WARN Acts may impose additional requirements.

We are here to help. Please reach out to your HR Business Partner if you have any additional questions. Additionally, the US Department of Labor has published guidance and FAQs to assist employers with navigating the requirements of the WARN Act.

New Jersey has enacted significant amendments to the New Jersey Family Leave Act (NJFLA) that take effect on July 17, 2026. The changes expand the number of employers covered, make it easier for employees to qualify for leave, and clarify how family leave interacts with other types of paid benefits. Employers operating in New Jersey should review their policies now to ensure they are ready.

Overview of the NJFLA

The NJFLA provides eligible employees with up to 12 weeks of unpaid, job-protected leave in a 24-month period for qualifying family-related reasons.

Covered purposes generally include:

• Bonding with a newborn or newly placed adopted or foster child within the first year
• Caring for a family member with a serious health condition
• During a public health emergency, to address certain needs such as caring for a quarantined family member or a child whose school is closed

The law is separate from the federal Family and Medical Leave Act (FMLA) and from New Jersey’s paid benefits programs, although these laws may overlap.

Smaller Employers Will Now Be Covered

Beginning July 17, 2026, the NJFLA will apply to employers with 15 or more employees. Previously, the threshold was 30 employees. When determining whether the 15-employee threshold is met, all employees must be counted, including those who work outside of New Jersey. This means an employer with only one employee in New Jersey may still be covered if the total workforce meets the minimum number.

Employees Will Qualify Sooner

The amendments significantly reduce the length-of-service and hours-worked eligibility requirements. Under the new law, employees qualify after three months of employment and 250 hours worked, compared to the previous criteria of 12 months of service and 1,000 hours. Consequently, newer employees may now become eligible for job-protected leave much sooner.

Reinstatement and Temporary Disability Leave

The new law covers employees’ rights to return to work after receiving temporary disability benefits. While additional regulatory guidance may be forthcoming, employers should review their reinstatement practices carefully to ensure they align with the updated law.

Greater Flexibility in Choosing Leave Benefits

When employees qualify for more than one type of paid leave benefit, such as earned sick leave and family temporary disability benefits, they will have the right to choose which benefit to use and in what order. However, employees may not receive multiple paid benefits simultaneously for the same period of absence.

This change makes coordination between payroll, benefits administration, and leave tracking essential to ensure proper sequencing and avoid overlapping payments.

Practical Steps for Employers Before the Effective Date

Now is the time to review workforce size and confirm whether coverage will apply under the new 15-employee threshold. Employers should also update written policies to reflect the revised eligibility standards and expanded protections. Clear procedures for requesting leave and documenting approvals should be in place.

Managers should be trained to recognize leave requests and understand the prohibition against retaliation.  Front-line managers are often the first to receive leave-related requests. Consistency between handbook language and day-to-day practice is essential.

Training should cover:

• Recognizing potential NJFLA-qualifying requests
• Proper documentation
• Prohibition against interference or retaliation
• When to involve HR or legal counsel

Careful documentation of employment decisions involving employees on leave or recently returned from leave will also be important.

Maintain organized records of:

• Leave start and anticipated return dates
• Type of leave designation
• Benefit coordination
• Approval decisions

Organizations operating in New Jersey should treat the coming months as a planning window and act accordingly before the new requirements take effect.

PrestigePEO is here to help you stay compliant and ahead of the curve. Contact your HR partner with any questions.

New York’s Trapped at Work Act, commonly referred to as a prohibition on stay-or-pay agreements, was enacted in December 2025 to restrict employers from requiring workers to repay certain costs (often tied to training or other employer-provided benefits) if they leave employment before a specified period, with some exclusions. Notably, this included agreements requiring reimbursement for training costs.

Employers who violate the act face fines ranging from $1,000 to $5,000 per violation, imposed by the New York State Department of Labor (“NYSDOL”). Workers who successfully challenge a prohibited repayment agreement may recover attorneys’ fees.

The statute’s broad language raised concerns that it could unintentionally capture common practices such as tuition reimbursement, signing bonuses, relocation assistance, and similar arrangements. Both chambers of the New York assembly, at the request of Governor Hochul, passed an amendment, which is awaiting the Governor’s signature.

Changes:

• Delayed the effective date to December 19, 2026
• The law will now apply to employees only, excluding other non-employee workers.
• Employers are now able to recoup tuition reimbursement expenses under certain conditions: (1) The payment relates to a transferable credential (a degree, diploma, license, certificate, course, or other widely recognized qualification in the relevant industry); (2) the agreement is in writing and separate from an employment contract; (3) the credit is not a condition of employment; (4) the repayment amount is specified in advance and does not exceed actual costs; (5) repayment is prorated over the required employment period, with no accelerated repayment if the employee leaves early; repayment is not required if the employee is terminated by the employer, unless it’s for misconduct.

Employers should use the extended timeframe to audit offer letters, employment agreements, and any repayment provisions to ensure they comply with the amended law’s narrowed scope and carve-outs.

On December 19, 2025, Ohio Governor DeWine signed the E-Verify Workforce Integrity Act (House Bill No. 246), requiring all non-residential construction contractors, subcontractors, and labor brokers (viewed broadly as unions) in Ohio to verify new employees’ work eligibility using the federal E-Verify Program. This law becomes effective on March 20, 2026. Contractors must keep verification records for at least three years or the duration of employment, whichever is longer, and must terminate any employee if a notice of final non-confirmation of the worker’s authorization to work in the United States is received from the E-Verify program.

The Attorney General maintains investigative and enforcement authority, and the Director of the Ohio Department of Commerce holds appellate authority.  A finding by the Attorney General that a contractor, subcontractor, or labor broker has committed two or more willful violations may result in being barred from bidding on or taking part in future State contracts for up to two years. According to the law, there is a $250 fine for each instance of not using E-Verify, and a $5,000 fine for each failure to terminate an employee after being notified. Other violations can result in fines of up to $25,000 per occurrence.

PrestigePEO is here to help.  Please reach out to your HRBP for questions or additional guidance on these new regulations.

A patchwork of pay transparency laws continues to expand nationwide, building on trends we highlighted in our 2025 compliance update. Multi-state employers face a complex landscape of pay transparency requirements, which vary by jurisdiction. These laws vary significantly in scope, applicability thresholds, and enforcement mechanisms.

To stay compliant, employers, particularly those operating across multiple jurisdictions, should reassess compensation structures, job posting practices, and internal pay governance policies. Penalties range from modest fines to substantial penalties and, in some cases, private class action lawsuits.

Below is a summary of key developments to help you stay informed and compliant:

• California: Effective January 1, 2026, the definition of pay scale is revised to mean “a good faith estimate of the salary or hourly wage range the employer reasonably expects to pay for the position upon hire.” Additionally, the right to obtain relief is limited to a total of six years.
• Colorado: The state of Colorado continues to be at the forefront of pay transparency enforcement. Fines range from $1,000 to $6,000 per violation, with total penalties exceeding $500,000. The division has also required employers to implement compliance monitoring and reporting for a set time period following a citation.
• Delaware: Effective September 26, 2027, Delaware employers with 26 or more employees will be required to include a pay range and general description of benefits and other compensation in job postings, before an offer, and upon request from a prospective employee.
• Massachusetts: Massachusetts’s Wage Transparency Act became effective on October 29, 2025. Employers with twenty-five or more employees in Massachusetts must disclose pay ranges in job postings, to applicants, and to current employees upon request. Employers have a two-business-day cure period for first-time violations through October 29, 2027.
• Rhode Island: Effective January 1, 2026, all employers are required to provide written pay notice to new employees upon request, at hire, and upon role change.
• Washington: Private employers with 15 or more employees are required to include a salary range or fixed wage, other compensation, and specific benefit disclosures in job postings. Employers have a five-business-day cure period for first-time violations through July 27, 2027.

Prestige PEO is here to help. Please contact your HRBP with any questions.

On January 30^th, the Department of Homeland Security released an alert outlining the details for the H-1B lottery for the 2027 fiscal year. The H-1B cap will open at noon (EST) on March 4^th, 2026, and close at noon on March 19^th. During this period, prospective H-1B cap-subject petitioners and representatives must use a U.S. Citizenship and Immigration Services (USCIS) online account to register each beneficiary electronically for the selection process and pay the associated $215 H-1B registration fee for each registration. Employers whose candidates are selected may submit petitions between April 1^st and June 30^th.

The H-1B Lottery System

As a refresher, the H-1B Cap Lottery is a program for U.S. employers to hire international talent in specialty occupations. To apply for a particular year, employers must submit an electronic registration for each candidate they sponsor. However, the number of H-1B visas issued annually is capped due to high demand. When demand exceeds supply, a lottery system randomly selects petitions for processing. The H-1B visa cap is set at 65,000 per fiscal year, with an additional 20,000 visas for those with advanced U.S. degrees. International employees in specialty occupations typically need to register with USCIS and be selected in the lottery before applying for an H-1B visa. However, certain employers, such as universities and research institutions, are exempt from the cap. If candidates are selected, employers must submit a detailed individual non-immigrant application in order to obtain the visas for those candidates. The visas are valid for up to six years, subject to employer sponsorship and regulatory requirements.

Changes for 2027

There have been two significant changes to the FY 2027 Cap Season following a final rule published by the Department of Homeland Security. The first change is to the cap process, replacing the prior system with a weighted, wage-based system that moves away from a purely random lottery. This new system favors higher wage levels assigned to the offered position. Instead of each registration being treated equally, registrations will receive multiple “entries” into the selection process based on the wage level for the job. Each H-1B registration will still be placed into a single selection pool, but registrations tied to higher wage levels will be entered into that pool more times, increasing their likelihood of being selected. The four wage levels are as follows: Level IV for the highest level of experience and independent judgment, such as leadership roles or high expertise; Level III for senior-level roles with complex duties; Level II for fully qualified, mid-level professionals; and Level I for entry-level positions.

The second change comes from a September 19th, 2025, proclamation from President Trump. While the proclamation does not directly impact the electronic registration process, if a petitioner has their registration selected and is eligible to file an H-1B cap-subject petition, they may need to pay an additional $100,000 fee before filing the H-1B petition as a condition of eligibility. However, this fee is most likely to arise when the beneficiary is outside the United States at the time of filing, or when the beneficiary is in the United States but cannot obtain an approvable change of status unless an exception applies.

Next Steps

Employers who typically hire H-1B employees or those who are preparing to do so for the first time should be aware of the process and the changes for the 2027 Fiscal Year, along with the March 4-19 timeline. Employers should have an understanding of this process and should educate their teams to ensure proper applications and communication to government responses or requests. Consulting an immigration attorney could be an important step in evaluating how changes to the H-1B lottery could affect an employer’s business and employees. Additional conversations with counsel can help stay up to date on registration and applications and ensure compliance with applicable federal rules and USCIS requirements.

As always, Prestige is here for any employment and compliance needs. For questions regarding these new regulations or other matters, please contact your HRBP for assistance.