In 2026, the employee benefits market is being shaped by a variety of trends, including regulatory volatility, shifting compliance priorities, accelerated cost pressures, and ever-evolving workplace demands. Employers should brace for a compliance environment defined by change and uncertainty. Streamlined Affordable Care Act (ACA) reporting requirements should help reduce administrative strain, while potential updates to federal mental health parity regulations remain critical to monitor. The sweeping One Big Beautiful Bill Act (OBBBA) introduced extensive changes to employee benefit plans, most of which take effect in 2026. Added to this are shifting regulatory priorities under the Trump administration, ongoing benefits-related litigation, and changes to federal budgets and staffing.

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Question: Are employers required to include a pay range in job ads?

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In 2026, the labor market continues to evolve in meaningful ways. Employers are navigating a labor market shaped by technological disruption, shifting worker priorities, and economic uncertainty, all while striving to attract and retain top talent. These shifts present an opportunity for organizations to rethink how they approach hiring, development, and retention. The trend topics include gig work, artificial intelligence, burnout, layoffs, and labor market stability.

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2026 State Overtime Salary Levels – Under federal and state laws, employers must compensate their employees with 1.5 times their regular rate of pay for any hours of overtime work. However, under these laws, employees who work in an executive, administrative, or professional (EAP) capacity are exempt from overtime pay if they satisfy, among other things, the salary level requirements for their exemption. Under the federal Fair Labor Standards Act (FLSA), the current salary level requirement for the EAP exemption is $684 per week ($35,568 per year) on a salary or fee basis (with an exception for highly compensated employees). While these salary levels apply in most U.S. jurisdictions, some states have adopted EAP salary levels higher than the ones required by the FLSA. These states are Alaska, California, Colorado, Maine, New York, and Washington.

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The federal Family and Medical Leave Act (FMLA) provides eligible employees up to 12 workweeks of unpaid, job-protected leave a year for certain family and medical reasons, including being unable to work due to the employee’s serious health condition. When an employee’s FMLA leave entitlement expires, the employee may be unable to return to work because of the continuation of their serious health condition.

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Understanding the latest employee benefits trends can help organizations plan ahead and offer a benefits package that meets the evolving needs of workers. Here are five trends shaping benefits in 2026:

1. Rising health care costs — Surveys project that health care costs are likely to increase by 8% to, in many cases, as much as over 15% in 2026. Employers will absorb much of the costs.

2. Continued popularity of glucagon-like peptide-1 (GLP-1) drugs — A RAND report revealed that 12% of Americans have used GLP-1 medications for weight loss, and 14% are interested in using the drugs. Moreover, the number of prescriptions for the drugs has more than tripled since 2020.

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Question: What happens if an employee misses open enrollment?

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Winter presents both attraction and retention challenges as well as unique opportunities for employers. For some industries, recruiting often slows during the winter months—especially after the winter holidays. However, winter is also when many job candidates are making plans for the coming year, which may include searching for new jobs and opportunities. Simultaneously, many employers struggle to keep employees engaged during winter.

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2026 Minimum Wage Rates by State – The minimum wage rate is expected to change in 2026 in about half of the states in the U.S. Our HR Compliance Overview provides a summary of the upcoming changes.

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The U.S. Equal Employment Opportunity Commission (EEOC) is responsible for enforcing federal equal employment opportunity (EEO) laws, including Title VII of the Civil Rights Act (Title VII). Title VII requires employers to provide reasonable accommodations for an employee’s and applicant’s sincerely held religious beliefs. Failure to provide reasonable accommodations can have significant consequences for employers, including costly litigation and claims, and decreased employee morale.

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