When the COVID-19 pandemic forced organizations to rethink the traditional office, hybrid work quickly emerged as a practical solution. Employees adapted to remote tools and flexible schedules, while employers experimented with new policies to maintain productivity and engagement.

What began as a temporary response has now evolved into a long-term reality. Some studies have found that 12% of employees now work fully remotely, while 28% work in a hybrid arrangement. In other words, a significant share of workplaces are actively supporting hybrid teams and refining this model for the long haul. This shift raises important questions for employers: How should hybrid work be structured? What does the future look like? How can organizations position themselves to succeed in this evolving landscape?

California’s Minimum Wage Rate to Increase on Jan. 1, 2026 – On Aug. 1, 2025, the California Department of Finance (the Department) announced that the state’s hourly minimum wage will increase to $16.90 per hour on Jan. 1, 2026. The new rate will apply to all employers, regardless of how many individuals they employ.

A workplace environment can be crucial in shaping employee productivity, retention, and overall job satisfaction. While optimism among a workforce can help create a great workplace culture, pessimistic employees can quietly erode even the most well-intentioned work environments. A pessimistic workplace occurs when negativity and expectations for poor outcomes are prevalent. Employees focus on what could go wrong, feel that hard work won’t have positive results, and have a general sense of despair and indifference. This mindset can have devastating impacts on an organization.

As small and medium-sized businesses compete amid ongoing talent challenges, often with fewer resources than larger companies, they may need to get creative in their attraction and hiring efforts. Employee referral programs allow existing employees to recommend candidates for open positions. Employees tend to carefully consider possible referrals because they feel accountable to the organization and the person they refer.

These programs are a popular recruiting strategy due to their low cost but potential for high impact. An effective employee referral program can save time, money, and other resources during hiring.

Question: If an employee is a no-call, no-show for 3 consecutive days, is that considered job abandonment, and can their employment be terminated?

Nationwide data is showing significant increases in 2026 health plan premiums for both group/employer plans and the individual plan marketplace.

• Group/Employer Plans – A recent survey of large employers by the Business Group on Health (BGH) revealed that U.S. employers predict a 9% increase in health care costs for 2026. A separate report from Mercer reveals that 2026 is expected to bring the largest premium increase in 15 years. It’s common for employers to receive increases ranging from 10%-15%. Employers credit this increase in part to the high cost and usage of glucagon-like peptide 1 (GLP-1) agonists, more prevalent high-cost treatments, rising incidences of chronic and complex conditions, and an uptick in mental health conditions.

California Enacts AI Employment Regulations – On June 27, 2025, California enacted regulations that ban covered employers from using artificial intelligence (AI) that results in discrimination based on an employee’s protected class. The regulations take effect Oct. 1, 2025.

The federal Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations, sick leave, or federal or other holidays. These benefits are matters of agreement between an employer and an employee (or the employee’s representative).

However, if employers choose to provide paid vacation or paid time off (PTO) to their employees, states have taken different approaches as to whether such time must be paid out upon an employee’s termination from employment. Some states consider paid vacation or PTO to be wages and require employers to pay out accrued, unused vacation or PTO upon an employee’s termination. Other states may take different approaches (such as leaving the payout decision to employer policy) or may not address the issue at all.