2026 Employment Law Changes
Running a business is complex and new employment laws shouldn’t make it harder. We’ve broken down the 2026 updates so you can understand what’s changing and what it means for your company.
2026 Employment Law Changes
Running a business is complex and new employment laws shouldn’t make it harder. We’ve broken down the 2026 updates so you can understand what’s changing and what it means for your company.
What this new legislation means for your business
As we move into the new year, it’s important for employers to understand how this new legislation will shape hiring, compliance, and day-to-day operations. Below, we’ve outlined the key changes and what they mean for your business.
Overtime & Tips
For tax years 2025 – 2028 eligible employees can deduct the portion of their earnings from overtime or reported tips — reducing their taxable income on federal returns.
Social Security Wage Base Increase
The Social Security taxable wage base will rise from $176,100 to $184,500 in 2026. This means that any employee or employer that has wages that reach this level will each be paying an additional $580 in 2026.
Hawaiʻi Minimum Wage Increase
Hawaiʻi’s minimum wage increases to $16.00 per hour. The maximum tip credit remains at $1.25 per hour, if the employee receives more than $20 a month in tips.
Auto-Enrollment for 401(k)
Federal law now requires most employers with over 10 employees to automatically enroll eligible employees at a minimum contribution rate of 3 percent of their pay.
FEATURED ARTICLES
Maintaining compliance and keeping up with ever-changing laws and regulation can be difficult. Here are some resources to help you break it down.
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