California Enacts Stronger Pay Transparency Obligations for 2026 and Beyond

Ten years after initial passage of California’s Fair Pay Act, California continues to fine tune existing pay equity and pay transparency laws. As of January 1, 2026, job postings must include the “good faith estimate” of the salary or wage range an employer expects to pay for the advertised position at the time of the candidate’s hiring. 2026 also brings longer statutes of limitation periods for employee wage discrimination claims, requires employers to separate pay data report information from employee personnel records, and mandates substantial court-imposed civil penalties for an employer’s failure to file an annual pay data report.

Narrower Pay Scale Disclosures

Current California law requires employers to provide pay scale information to applicants and current employees, upon request, and requires certain employers to include a pay scale in job postings. As previously reported, those requirements became effective on January 1, 2023.

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EEOC Quorum Restored: Five Critical Enforcement Shifts for Employers

Commissioner Brittany Panuccio’s confirmation on October 7, 2025 restored the EEOC’s quorum, removing the constraints that limited Chair Andrea Lucas during the eight-month period when the Commission operated with just two members. The Commission can now formally adopt new guidance, rescind prior guidance and policies, authorize litigation, approve amicus briefs, and modify its Strategic Enforcement Plan —actions that were not possible without three commissioners.

Based on Chair Lucas’ stated priorities and enforcement actions already underway, employers face 5 critical enforcement shifts.

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Temporary Protected Status (TPS): Where Things Stand at the Close of 2025

At a Glance

  • The Trump administration continues to move forward with terminating Temporary Protected Status (TPS) designations, in line with its stated immigration agenda. Out of 17 countries under active TPS designations at the beginning of this year, 11 have now seen protected status terminated. 
  • The termination of a country’s TPS designation ends its nationals’ protection from removal and the ability to extend work authorization. 
  • While the fate of the other countries that are still under active TPS designation remains uncertain, employers should be prepared for similar terminations in 2026, based on the administration’s agenda to examine and amend humanitarian immigration programs thus far. 

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Hold on Immigration Applications From 19 Countries; Social Media Vetting; and More

At a Glance

  • U.S. Citizenship and Immigration Services will conduct a comprehensive review of approved benefit requests for foreign nationals from 19 African, Asian and Latin American countries who entered the United States on or after January 20, 2021, which may include an interview, even if an interview was previously conducted. 
  • Effective December 15, 2025, the U.S. Department of State will conduct an online-presence review for all H-1B visa applicants and their H-4 dependents. 
  • U.S. Customs and Border Protection has proposed a rule requiring travelers from visa-waiver countries applying via the Electronic System for Travel Authorization to disclose up to five years of social media history, along with other personal data. 

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Executive Order Outlines a Future Federal AI Policy That May Preempt State Laws

At a Glance

  • The executive order outlines a future federal AI policy that may preempt state laws, but no timeline has been set. 
  • Existing state AI regulations remain in effect, so employers using AI for employment-related decisions should stay compliant with current state laws until further notice. Employers using AI for employment-related decisions should carefully monitor for potentially biased output generated by AI solutions. 

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New Jersey Noncompete Ban Clears Major Legislative Hurdle

A New Jersey bill that would ban most worker noncompete restrictive covenants (A5708) cleared the Assembly Labor Committee on December 4, 2025, in a bipartisan 8-2 vote. On the same day, the bill was referred to the Assembly Regulated Professions Committee and may be headed to the Assembly floor before the Legislature adjourns on January 12, 2026. An identical companion bill in the New Jersey Senate (S4385) was introduced on May 19, 2025, but remains in the Senate Labor Committee.

After several years of similar proposed legislation dying in the Legislature, this bill’s momentum signals potential passage for several reasons: (1) Governor Murphy may want to end his term with this marquee employee-friendly legislation; (2) the Federal Trade Commission recently abandoned its federal noncompete ban, leaving states to take the lead on efforts to increase employee mobility; (3) the bill sponsor chairs the Assembly Labor Committee; and (4) the bill passed in committee with bipartisan support.

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