As 2026 begins, employers are navigating a complex, fast-moving policy landscape shaped by advances in AI, rising workforce expectations, union activity, and a flurry of state and federal regulations. Staying competitive now requires more than operational efficiency; it means anticipating what's ahead and aligning workforce strategy accordingly.
Here’s what leaders should know and act on as the year unfolds.
1. AI Is Reshaping the Workforce—But Not Just How You Think
Artificial intelligence is no longer a futuristic concept; it's a driving force behind workforce transformation. But while tools and technologies dominate headlines, the real differentiator for employers will be how they redesign workflows and build capability at scale.
Two recent executive orders signal the federal government’s commitment to shaping an AI-ready workforce. One focuses on integrating AI literacy into education by promoting early exposure to the technology across K–12 and higher education. The other directs federal agencies to create 1 million new registered apprenticeships annually, many of which will support high-demand fields such as AI and advanced manufacturing.
Why it matters:
The rapid acceleration of AI calls for strategic workforce planning, not just upskilling knowledge workers but also preparing infrastructure, operations, and front-line roles to adapt. Employers should invest now in AI-aligned training pathways, partnerships with apprenticeship programs, and policy engagement to influence long-term workforce development.
2. The NLRB Isn’t Standing Still
The National Labor Relations Board (NLRB) now has quorum after recent appointments, but that doesn’t mean a full reversal of prior decisions is imminent. For example, the Cemex decision—which enables union recognition based on signed authorization cards and accelerates bargaining obligations—remains in force. Without three aligned votes, key precedents can’t be overturned.
However, employers should expect a wave of clarifying decisions aimed at narrowing the ambiguity left by previous rulings. This may include refining timelines for employer responses, clarifying which unfair labor practices trigger bargaining orders, and reshaping the view of “captive audience” meetings.
What to do now:
Review your labor relations strategy and ensure you're operating in compliance with current board law. Equip your HR and legal teams with updated guidance and monitor for rulemaking or enforcement changes that could affect your union vulnerability or employee engagement approach.
3. New Employer Incentives for Upskilling and Childcare
Several significant changes are making it easier for employers to invest in their people. Through the Workforce Pell initiative, short-term credentialing programs (8–15 weeks in length) now qualify for federal grant funding. This allows workers to access training more quickly and at lower cost, particularly in high-skill, high-wage fields.
Other updates include:
- 529 savings plans now cover K–12 tutoring, test fees, and industry-recognized credentials.
- Section 127 employer-provided education benefits are now indexed to inflation and permanent.
- Childcare tax credits have been expanded, with the employer-provided childcare credit increased to up to 50% of qualified expenses and capped at $500,000 for small businesses.
Why it matters:
These provisions offer powerful tools to address retention, equity, and productivity. Supporting working parents and creating on-ramps to in-demand skills can directly impact turnover and employee morale.
Action steps:
- Evaluate your use of Section 127 benefits and 529 plan communications.
- Consider offering or expanding childcare benefits to take advantage of the new tax credits.
- Partner with local training providers to develop short-form learning pathways eligible for Pell.
4. Critical Labor Regulations Are on the Horizon
The Department of Labor is moving quickly to revise or replace several high-impact rules. Employers should expect updates or new guidance in the following areas:
- Independent Contractor (IC) Classification: A simplified framework is likely, favoring clarity over the seven vague factors from the prior administration’s rule. This could be a major shift for industries with large 1099 populations.
- Joint Employer Definition: A return to clearer standards may limit overreach in determining shared employment relationships across franchises and supply chains.
- Heat Protection Standards: Expect movement toward new indoor/outdoor temperature thresholds that require employer action.
- Walkaround Rule: OSHA may expand the types of third parties (including unions) who can accompany inspectors during site visits, even at non-union facilities.
Prepare by:
- Reviewing contractor classification policies now and preparing to update them when the rule is finalized.
- Tracking how joint employment definitions may affect franchise, staffing, or vendor relationships.
- Updating safety plans and training protocols to account for anticipated heat-related standards.
5. State-Level Labor Laws Are Testing Preemption
While the NLRB holds federal jurisdiction over labor relations, several states, most notably California and New York, have attempted to pass laws enabling state-level labor board activity. Courts have largely blocked these efforts so far, but the message is clear: states are increasingly encroaching on the labor market.
At the same time, 13 states have passed laws banning "captive audience" meetings (mandatory sessions in which employers discuss unionization). Legal challenges are pending, but the patchwork creates complexity for employers operating across jurisdictions.
What to watch:
- State-level legislation targeting union campaigns, workplace surveillance, or wage standards.
- NLRB litigation clarifying the limits of preemption in labor law enforcement.
Recommended action:
Develop a state-by-state compliance matrix to guide field leaders and HR business partners on what’s permissible locally, and what’s not.
6. Sectoral Bargaining Is Gaining Ground
California’s FAST Act creates a state-appointed council that sets wages and working conditions for fast food workers statewide. While technically not a unionization measure, it achieves similar outcomes, centralized bargaining without union elections or dues collection.
The model has gained attention for creating “guaranteed income” for unions through mandated training requirements (paid for by employers). This could signal the beginning of sectoral bargaining via legislation, particularly in industries with high turnover or dispersed workforces.
Implications:
Sectoral bargaining models challenge the traditional employer-employee contract dynamic and can shift power without formal organizing. Employers in retail, hospitality, logistics, and healthcare should closely track this trend.
7. Unlikely Alliances: Unions and Republican Lawmakers
A surprising development heading into 2026 is the growing alignment between some Republican lawmakers and union leaders. This has led to bipartisan proposals, such as the Faster Labor Contracts Act, which would allow the federal government to impose initial contracts through arbitration if negotiations stall.
While the bill has limited chances of becoming law in the near term, it reflects a broader shift: pro-worker legislation is becoming more ideologically fluid. Employers can no longer assume party lines will dictate labor policy stances.
Strategy tip:
Don’t assume gridlock will protect your organization from sweeping labor reforms. Engage early with industry groups, legal counsel, and policy stakeholders to monitor momentum and build scenarios around emerging proposals.
8. Stay Proactive—Not Reactive
The landscape ahead is complex, but not unmanageable. Employers that take a proactive, multi-channel approach to workforce planning, labor relations, and employee benefits will be positioned to lead.
Here are five actions to prioritize:
- Build a cross-functional policy tracking team (HR, legal, compliance).
- Review and stress-test your labor relations playbook.
- Use incentives such as Pell Grants, 529 plans, and childcare tax credits to retain top talent.
- Educate your leaders on AI’s impact on workflow, not just tools.
- Engage your state and national chambers to stay ahead of legislation.
Workforce trends are no longer just HR issues; they’re core business issues. Between shifting regulations, labor activity, and AI transformation, the stakes have never been higher. Employers who understand the policy terrain and take intentional action will gain a meaningful advantage in 2026 and beyond.
