Wage Hikes, Job-Protected Leave, AI Use, and Gig Workers: Key US Labor Law Changes for 2026

The calendar has flipped to 2026, and with the new year comes a slew of new labor laws and amendments in the US. And while the laws cover a wide range of issues, this blog focuses on minimum wage hikes, family and medical leave rules, laws that pertain to employers’ use of AI, and gig / platform worker protections.

Higher minimum wages

At least 19 US states rang in the new year by introducing higher minimum wages. In a handful of these states, the minimum wage is now set at or above $15 USD per hour for the first time. In certain states, such as California and Connecticut, the new wages are close to $17 USD per hour.

States that increased the minimum wage:

Employers should note that minimum wage increases and special new rules — such as different rates for tipped employees or higher wages for workers in certain industries — may also be in effect at the local level.

Paid leave requirements

Several states have rolled out new laws for paid or job-protected leave.

Delaware: The Healthy Delaware Families Act, signed into law by Governor John Carney in 2022, creates a new paid family leave program for eligible employees in the state. As of January 1, 2026, these employees can take up to 12 weeks of job-protected leave for the following reasons:

• To address their own serious health condition
• To care for a spouse, parent, or child with a serious health condition
• To bond with and care for a child during the first year following the birth, adoption, or foster-care placement of the child
• To address the military deployment of a family member

Under the act, employees can receive up to 80% of their average weekly wages, with the payout capped at $900 per week in 2026 and 2027.

Minnesota: As of January 1, 2026, most employees in Minnesota can take advantage of job-protected leave to care for themselves and their families. Referred to as Minnesota Paid Leave, the program provides family leave and medical leave for qualifying events such as:

• The birth, adoption, or foster-care placement of a child.
• A family member’s serious health condition.
• Domestic assault, sexual assault, stalking, etc., experienced by the employee.
• A family member called to active military duty.
• An employee’s medical event that lasts at least seven days.

New Hampshire: As of January 1, 2026, employers in New Hampshire with at least 20 employees are required by HB 2 to provide 25 hours of unpaid leave for medical appointments related to childbirth, postpartum care, and infant pediatric needs. The leave must be provided for one year after childbirth.

Also in effect as of January 1, 2026, New Hampshire’s HB 225 provides employment protections for spouses of military members who are involuntarily mobilized due to war, national emergency, or contingency operations.

Washington: Updated Paid Family and Medical Leave rules went into effect on January 1, 2026, in Washington. Employees now qualify for job-protected leave as long as they have worked for their employer for at least 180 days. (Prior to 2026, employees were only eligible for this leave after at least 12 months of employment and at least 1,250 hours worked.) These rules apply to employers with at least 25 employees in 2026, and this threshold will drop to 15 employees in 2027 and eight employees in 2028.

Washington’s Paid Family and Medical Leave law provides at least 12 weeks of paid family leave for:

• A serious health condition experienced by the employee.
• A pregnancy-related disability experienced by the employee.
• A family member who needs care because of a serious health condition.
• The birth, adoption, or foster placement of a new child.
• A qualifying military exigency.

Also in Washington, SB 5101 expands the paid leave for victims of domestic and sexual violence to include workers who are victims of hate crimes. This provision went into effect on January 1, 2026.

Colorado: Amendments to the Paid Family and Medical Leave Insurance (FAMLI) program went into effect on January 1, 2026. The original legislation, which was introduced in 2024, provides up to 12 weeks of paid leave for employees who need to:

• Bond with a new child.
• Care for a family member with a serious illness.
• Recover from a serious health condition.
• Address immediate safety needs related to domestic violence or sexual assault.
• Make arrangements for a family member’s military deployment.

Under the amendments, a parent is entitled to an additional 12 weeks of paid FAMLI leave if they have a newborn child in a neonatal intensive care unit. The amendments also reduce the program’s premium (employee contribution) from 0.9% of wages per employee to 0.88% of wages per employee.

Also:

• In Connecticut, paid sick leave coverage now extends to employers with at least 11 employees, as required by HB 5005.
• Illinois law SB 212 now mandates paid lactation breaks.

Employer use of AI

Several US states are introducing laws that pertain to the use of AI in hiring and employment decisions.

Illinois: As of January 1, 2026, new rules in Illinois require employers to notify job applicants and workers if they use AI for hiring, discipline, discharge, or other work-related purposes. The law also prohibits employers from using AI in a way that results in discrimination in areas such as recruitment, hiring, promotion, discharge, discipline, or renewal of employment. The rules are contained in amendments to Illinois’ Human Rights Act.

Colorado: The state’s AI Act (SB 24-205) goes into effect in mid-2026. It requires employers to implement risk management policies; conduct annual assessments that examine the impact of AI in hiring, firing, and promotion decisions; and issue public notices to avoid algorithmic bias. Employers with fewer than 50 employees that do not use their own data to train their AI systems are exempt.

Texas: The Responsible Artificial Intelligence Governance Act (HB 149) took effect on January 1, 2026. It applies to developers of AI systems that are offered, sold, leased, or otherwise provided in Texas and to deployers who put AI systems into service or use in the state. The law states that AI systems cannot be developed or used with an intent to infringe, restrict, or impair an individual’s rights or unlawfully discriminate against a protected class in violation of state or federal law.

Gig / platform worker protections

California: In California, AB 578 prohibits food delivery platforms from using payment models that offset the base pay of their delivery drivers with the tips or gratuities they earn on the job. AB 1340 allows rideshare drivers who meet certain criteria to unionize and engage in collective bargaining.

Get more information

These developments — and others not covered in this blog — place new compliance requirements on employers in the US. For information on other regulatory developments around the world, visit our Regulatory Hub. And to learn how Safeguard Global helps organizations with global compliance matters, please get in touch.

Sources: JD Supra, Fisher Phillips, AFSCME Minnesota Council 5, Fisher Phillips, Fisher Phillips, Littler, Fisher Phillips, Ogletree Deakins, DLA Piper