Welcome to the latest edition of AlphaStaffHCM’s Monthly Compliance Updates!

We are pleased to provide you with this Part 2 Winter 2026 edition of the AlphaAdvisor featuring federal and state legal updates relating to DEI, religious accommodations, and compliance during inclement weather closures, among other information. We also included highlighted resources from trusted legal partners of AlphaStaffHCM to guide and help keep you in compliance.

 

Note: The information contained in this Compliance Update should not be relied upon as legal advice.

 

Federal Law Updates 

 

EEOC is Still Investigating DEI-Related Charges of Discrimination

Despite Presidential executive orders terminating most federal contractor DEI-related compliance requirements and encouragement for the private sector to eliminate illegal DEI programs, the EEOC is still actively investigating DEI charges of discrimination.  For instance, the EEOC has engaged in discovery efforts in a U.S. District Court for the Eastern District of Wisconsin discrimination case due to DEI policies, meaning the employee felt they were excluded due to enforcement of DEI. Employers should know that employees in majority groups no longer have a heightened standard to prove discrimination. Now, any employee can raise a discrimination claim no matter what “groups” to which they belong. Employers should be aware of the potential for discrimination claims in hiring, promotions, reductions in force, or other employment decisions and should consider reviewing DEI practices with counsel. Read more, here.

 

Federal Government Institutes Social Media Vetting Requirement for H-IB Workers & Families

Starting December 15, 2025, there is a new requirement for all H-1B visa applicants and their H-4 visa spouses and children to make their social media profiles public so officers can review their activity and work history data as part of expanded background security screening efforts. Employers should notify affected workers and be prepared for longer lead times for travel plans and longer document processing times. Read more, here .

 

FMLA Leave When Employer is Closed for Inclement Weather

In a January 5, 2026 Opinion Letter, the Department of Labor (DOL) clarified the rules regarding deductions from Family and Medical Leave Act (FMLA) when an employer is closed for inclement weather. If an employee is scheduled to take FMLA leave for less than a full workweek and the employer closes the business for at least one day during that week due to weather, and the employee was not otherwise expected to work during the closure, then the employees leave should not be reduced by the number of days closed. For example, if an employee was scheduled to take FMLA for physical therapy on Tuesday afternoon, but the school was closed on Tuesday due to inclement weather, the employee’s FMLA leave entitlement will not be reduced for the period of time the school was closed. However, if an employee was scheduled to take FMLA leave for a full workweek and the employer closed for at least one day during that week due to weather, then the employee’s leave would be reduced for the entire workweek. It does not matter whether the closure was planned or unplanned or whether the employer requires an employee to work on a “makeup” day or later date. Read more, here.

 

FMLA Leave Can Be Used for Travel Time

In a January 5, 2026 Opinion Letter, the DOL confirmed that an employee’s FMLA leave can be used for time spent traveling to and from appointments for their serious health condition or a family member’s serious health condition, injury, or illness when “medically necessary”. The DOL also confirmed that there is no need for the health care provider to provide an estimation of the travel time required. However, the travel time does not include travel time or stops for activities unrelated to the health condition. Read more about employer compliance, here.

 

Pay Practices Due to Inclement Weather Closure

Under federal law, employers are not required to pay non-exempt hourly employees for time not worked, including closures due to inclement weather. However, Fisher Phillips cautions employers to carefully review applicable state and local wage laws, as payment obligations may differ. For instance, California has reporting-time and on-call pay requirements that may apply during closures.

 

Exempt employees, by contrast, generally must receive their full salary for any workweek in which they perform any work. As a result, if a business closes for only part of the week, or if exempt employees work remotely for any portion of the week, their full salary must still be paid. Employers may require exempt employees to use accrued paid time off (PTO) in certain situations, such as full-day business closures. However, if an exempt employee has no available PTO, the employer must still pay the full weekly salary if any work is performed during that week.

 

Only a complete business shutdown for an entire workweek, during which no work is performed, may be unpaid for exempt employees. State and local wage and hour laws continue to apply and should always be reviewed for compliance. Employers can learn more about compliance obligations, including OSHA guidelines and safety considerations during hazardous weather conditions, through additional resources.

 

State Updates

 

New York

 

Employer Promissory Notes Requiring Repayment Upon Employment Termination

The “Trapped at Work Act” became effective on December 19, 2025.  It prohibits employers from requiring employees to sign “employment promissory notes,” which are documents requiring a worker to pay back the employer money, including monies identified as reimbursement for training, if that employee leaves the job before a certain time. Exceptions are agreements a) requiring repayment of monies advanced to the employee (except for training); b) requiring the employee to pay for any property sold or leased to them; c) requiring educational employees to comply with sabbatical leaves; d) regarding collective bargained programs. Sign-on bonuses and retention bonuses still appear to be allowed.

 

New York State Human Rights Law – Disparate Impact Discrimination

Also on December 19, 2025, an amendment to the New York State Human Rights Law addresses the disparate impact theory of discrimination for all alleged employment discrimination claims happening on or after that date.  This means that if an employer’s practice has a discriminatory effect even absent discriminatory motivation or intent, it is unlawful.

 

Prohibition on Use of Credit Reports

On April 18, 2026, a Senate Bill becomes effective which prohibits, subject to narrow limitations, the use of consumer credit history reports in hiring, employment and licensing determinations for applicants. New York City has had this prohibition since 2015 for employers with 4 or more employees.

 

New York City Earned Safe and Sick Time Act (ESSTA)

The New York City Earned Safe and Sick Time Act (ESSTA) and Temporary Schedule Change Act (TSCA) amendments will become effective February 22, 2026. Employers should be aware of the following changes:

• Employers will now need to provide 32 hours of unpaid safe and sick time (in addition to the paid sick and safe time already required by the statute) to covered employees immediately upon hire and at the start of each year with no waiting period for use. Employers may impose a minimum usage increment of up to four hours per day and must separately track and report both paid and unpaid time balances to comply with ESSTA’s notice and recordkeeping requirements. If an employee needs time off for a reason under safe and sick time, employers must use paid sick leave first unless stated otherwise.
• Employees can now use safe and sick time for caregiving, to seek legal or social services assistance, if the employee or the employee’s family has been a victim of workplace violence, or in the event of school closures by order of a public official due to a public disaster, among other reasons.
• The amendments also codified into law the prenatal leave NYC employers must offer employees. Employers must provide 20 hours of paid prenatal leave during a 52-week period to eligible employees. Employee policies and procedures should be updated to provide this information.
• The 32-hour unpaid safe/sick time benefit aligns with the City’s updated Temporary Schedule Change Act (TSCA). The amended law eliminates the two guaranteed TSCA days per benefit year but preserves employees’ right to request temporary schedule changes for personal events. Employers must respond promptly to requests but are not required to approve them. Any alternative schedule change proposed by the employer does not have to be accepted by the employee. Read here for more information.
• Note that an eligible employee is broadly defined as any person employed for hire within New York City who performs work on a full-time or part-time basis, including domestic workers and those in transitional jobs programs, with specific exclusions for government employees.

 

Pennsylvania

 

Pittsburgh Paid Sick Days

On January 1, 2026, amendments to the Pittsburgh Paid Sick Days Act (PDSA) took effect.  It now requires all employers, regardless of employee count, to have employees accrue one hour of sick paid leave per every 30 hours worked. Employers with 15 or more employees must now provide at least up to 72 hours of paid sick leave per year (increased from 40) and employers with 15 or fewer employees must provide up to 48 hours of paid sick leave per year (increased from 24). Violations are subject to fines, civil penalties and risk of paying lost wages. Read more here and here.

 

Pennsylvania CROWN Act

Effective January 24, 2026, Pennsylvania has passed a new law, the “Creating a Respectful and Open World for Natural Hair (CROWN) Act” that that prohibits employers with 4 or more employees from discriminating based on hair types, styles and textures and some hair coverings. The CROWN Act relates to the Pennsylvania Human Relations Act (PHRA) and broadens the definition of “race” to include hair textures and protective hairstyles like locs, braids, twists, coils, Bantu knots, afros, and extensions. The definition of “religious creed” was amended to include head coverings and hairstyles that have been associated with religious practices. However, employers can enforce hairstyle or head covering restrictions if they can show either a) a valid workplace health & safety concern or b) a bona fide occupational qualification. To establish that an exception applies, employers must meet all four of the following elements: a health or safety risk would exist without the rule, the rule is adopted for nondiscriminatory reasons, the rule is specifically tailored to the position or activity, the rule is applied equally to all individuals in similarly situated roles. Employers with 4 or more employees should review their grooming and dress code policies to evaluate any restrictions relating to hairstyles or head coverings, employers can read more here.