RKL’s Workforce Strategies team is here to help you navigate the complexities of today's HR environment with the updates, reminders and insights you need to maximize your most important asset — your people. We value your feedback, so let us know what you think of this newsletter!
Welcome to our 2025 Year-End Workforce Minute
This edition of your favorite HR newsletter is packed full of information to prepare you for the new year, including a new Act signed into law, changes to state minimum wage, IRS updates for 2026 and more.
Contact your Workforce Strategies advisor today to find out how these changes may affect you and your organization. We look forward to helping you navigate what's next in 2026!
Creating a Respectful and Open World for Natural Hair
PA CROWN (Creating a Respectful and Open World for Natural Hair) Act was signed into law on November 25, 2025, prohibiting discrimination based on hair texture, hair type and protective hairstyles in the workplace and in schools. Employers should review and update workplace appearance, grooming and dress code policies. Communicate and train managers to adhere to the new law.
In 2026, upcoming changes to state minimum wage rates will require employers to stay informed and proactive to ensure compliance. Currently, 20 states have increased their minimum wage for 2026, with many other states still waiting to report. Employers should regularly review both federal and state requirements, update payroll systems and communicate changes to affected employees to avoid wage violations and potential penalties.
California has enacted a significant employment law change set to take effect in 2026. Assembly Bill 692, effective January 1, 2026, prohibits “stay-or-pay” clauses in employment contracts that require employees to repay training or other expenses if they leave their jobs, and bans any contractual penalties for quitting—extending the state’s existing restrictions on noncompete agreements, with limited exceptions for government-approved repayment or specific apprenticeship programs. Employers violating this law may incur substantial penalties.This law strengthens worker protections around mobility in California.
New Pathway for Employers to Offer Fertility Support through Federal Agreement
A new federal agreement with pharmaceutical company EMD Serono will provide fertility drugs, like Gonal-F, at lower costs through a federal portal, starting in 2026. This opens a new pathway for employers to offer fertility support.
Employers should examine current health and total rewards offerings for fertility-related exclusions or limitations. Employers looking to offer more extensive fertility benefits can structure a plan as an option, employee-paid or employer-subsidized, similar to dental/vision insurance.
Gallagher's 2025 U.S. Talent Benchmarks Report Findings
Gallagher’s 2025 U.S. Talent Benchmarks Report found that employers are focus on the following to build upon their employee retention strategy for 2026:
Employee confidence in their ability to succeed in their role.
Employer-provided career growth pathways.
Employer appreciation for employees' contributions.
Employee trust and confidence in senior leadership.
An organization's ability to adapt to a changing economic environment.
Key IRS Updates for 2026: What's changed?
The IRS has announced several cost-of-living adjustments (COLAs) for tax year 2026, affecting numerous common benefit and deduction limits. Changes will affect the following:
Transportation benefits
Health Flexible Spending accounts (FSAs)
Standard deduction
Medical savings accounts
Adoption assistance
Qualified small employer HRAs
These changes may affect your tax planning, employee benefits and payroll processes.
Why You Should Review Your Employee Handbook This Year-End
Your employee handbook is your company’s foundation for clear communication, legal compliance and a healthy workplace culture. By conducting a year-end review, you ensure your policies reflect the latest laws, evolving company practices and the feedback of your team. This minimizes legal risks and fosters consistency, fairness and employee engagement, keeping your organization competitive and resilient.
Don’t let your handbook fall behind. Let RKL Virtual's Workforce Strategies experts help you review or rewrite your handbook so you can move into the new year confident that your policies are up-to-date and aligned with your company’s goals.
