Employco Blog

Commercial healthcare costs are projected to rise by the highest level in 17 years. For employers, this will mean higher premiums, rising deductibles, and growing pressure on benefit budgets. Several factors are contributing to these ongoing pressures, including:

• Provider Costs Are Increasing – Healthcare providers continue to face major financial pressure of their own, particularly related to workforce costs. According to the American Hospital Association, labor accounts for approximately 60% of hospital expenses. Persistent staffing shortages, competition for healthcare workers and wage growth have increased the cost of delivering care across the country. When providers negotiate higher reimbursement rates to offset those expenses, those costs ultimately flow through the healthcare system and contribute to higher premiums. Provider consolidation adds another layer of pressure. As hospitals and health systems combine, they often gain greater negotiating leverage with insurers. In many markets, this can lead to higher reimbursement rates, increasing costs for health plans and employers alike.

Learning and development (L&D) programs can help employers attract and retain talent, improve performance, and strengthen workplace culture. They can also prepare employees for new responsibilities as business needs and technology evolve.

However, meaningful employee development does not require large L&D-specific teams or an extensive budget. By using existing knowledge, accessible technology, and focused learning formats, employers can create cost-effective programs that produce tangible results.

The U.S. Equal Employment Opportunity Commission (EEOC) is a federal agency responsible for enforcing federal equal employment opportunity (EEO) laws. Each EEO law covers certain private-sector employers and prohibits harassment.

Failure to properly respond to allegations of harassment can lead to significant financial and reputational harm to employers. Therefore, it is important that employers understand their obligations under these laws and how to respond to claims of harassment. This Compliance Overview summarizes employer requirements under EEO anti-harassment laws and provides best practices for responding to internal harassment claims. Separate obligations apply where an employee has filed a claim with the EEOC or a similar state agency.

According to Spring Health’s 2026 Workplace Mental Health Annual Report, 74% of employees have experienced burnout, while 61% of HR professionals say employee burnout has increased in the past year. Traditional burnout is generally easy to spot with missed deadlines, behavioral issues, absences, and visible disengagement. These warning signs allow employers to address the issue and help employees manage their burnout. However, a quieter, less obvious version is becoming more prevalent.

California’s Minimum Wage Rate to Increase on Jan. 1, 2027 – On July 31, 2026, the California Department of Finance (the Department) announced that the state’s hourly minimum wage will increase to $17.40 per hour on Jan. 1, 2027. The new rate will apply to all employers, regardless of how many individuals they employ.

Since the end of March 2026, state employee leave law requirements have continued to change at the rapid pace employers have come to expect. For instance, in April, Maryland issued guidance and a contribution rate for its upcoming paid family and medical leave program. In April and May, Virginia enacted paid sick leave and paid family and medical leave laws. Also in May, paid family and medical leave benefits began in Maine.

In July, New Jersey issued guidance affirming new job protection entitlements for recipients of state temporary disability and family leave insurance, and expansions to its Family Leave Act took effect. July also saw New York City issue regulations clarifying major changes to its Protected Time Off Law, and Rhode Island and other states raise their paid leave benefit rates.

On July 22, 2026, the Department of Labor (DOL) issued two new opinion letters related to compensating employees in various situations. The links below provide summaries of the DOL guidance:

• DOL Addresses Compensability of Certain Commute Time Activities
• DOL Addresses Compensability of Midday Travel Between an Employee’s Home and Work

As organizations plan for the remainder of 2026 and beyond, several workforce developments deserve employers’ attention. The following resources highlight emerging trends in human resources, employee mental health, and benefits strategy.

• 4 Midyear HR Trends – As 2026 moves into its second half, HR leaders are navigating a workforce that is being reshaped on several fronts at once. Artificial intelligence (AI) is changing hiring patterns, gig work is becoming a mainstream labor arrangement, burnout is reaching a measurable tipping point, and employee confidence in the labor market remains historically weak.
  
• 5 Mental Health Trends – Employees are navigating economic uncertainty, workplace change driven by artificial intelligence, rising healthcare costs, and years of accumulated stress. For employers, the moment calls for rethinking how mental health support fits into the employee experience.
  
• 5 Midyear Benefits Trends – The middle of the year is an ideal time to evaluate benefits strategy and recalibrate plan design, vendor partnerships, and cost-containment efforts to close out the year strong or prepare for the 2027 open enrollment season.