The Compliance Curve: Preparing for 2026 HR Regulations

As 2026 approaches, HR professionals and business leaders face another year of shifting employment laws, benefits thresholds, and payroll standards. From rising wage floors to new safety and reporting requirements, the regulatory landscape at both state and federal levels is changing fast — and preparation is key.

Staying compliant isn’t just about avoiding penalties. It’s about protecting your people, your brand, and your bottom line. Here’s a look at the biggest changes on the horizon and how to stay ahead of them.

Benefits and Healthcare Plan Thresholds Are Rising

The IRS has announced increases to HSA and high-deductible health plan (HDHP) limits for 2026. Individual contribution limits are expected to reach $4,400, while family plans may rise to $8,750. Minimum deductibles and out-of-pocket maximums under the Affordable Care Act (ACA) will also increase.

What this means for HR:
Now is the time to review benefit designs and contribution strategies. Ensure your plans still qualify as HDHPs, update plan documents, and communicate cost-sharing changes clearly to employees.

Schedule a benefits audit before open enrollment to verify that new thresholds are correctly reflected in your HR and payroll systems.

State and Federal Wage Floors Continue to Climb

While the federal minimum wage remains unchanged for now, multiple states, including Michigan, Delaware, and Hawaii—have scheduled wage increases for 2026.
Meanwhile, a proposed federal bill (H.R. 122) could raise the national minimum wage to $10.59 per hour beginning January 1, 2026.

What this means for HR:
Multi-state employers will need to track local laws closely and ensure payroll systems apply the correct rate for each location. If your workforce includes hourly or tipped employees, build those increases into your 2026 labor budgets now.

Pro tip: Maintain a state-by-state wage matrix and automate rate updates in your payroll platform to reduce manual errors.

New Tax and Reporting Rules Take Effect

Starting in 2026, several tax and payroll changes under federal legislation will impact how employers report payments and manage benefits:

• 1099-MISC / 1099-NEC threshold increases from $600 to $2,000 per year.
• Dependent Care FSA contribution limits rise to $7,500 (from $5,000).
• Employer-provided childcare credit expands to 40%–50%, depending on company size.
• The paid family leave tax credit becomes permanent, rewarding employers that pay at least half of an employee’s wages during leave.

What this means for HR:
Payroll, benefits, and tax teams should coordinate system updates now. Verify your HRIS and accounting software are configured for the new thresholds before the end of 2025.

Pro Tip: Future Systems integrates with Employee Navigator, so clients can sync their benefits data directly to Advanced HR.

OSHA and Workplace Safety Rules Tighten

The Occupational Safety and Health Administration (OSHA) has indicated that 2026 enforcement will emphasize heat illness prevention, indoor air quality, and recordkeeping transparency. Employers may face stricter reporting requirements around environmental conditions and workplace wellness programs.

What this means for HR:
Proactively review your safety programs and training content. Heat-related illness prevention, PPE standards, and exposure documentation will be key audit areas.

Pro tip: Incorporate annual safety training refreshers into your HR calendar and maintain digital records of attendance, testing, and corrective actions.

Worker Classification and Joint Employment Rules Evolve

The Department of Labor (DOL) continues to revisit how it defines independent contractors, joint employers, and exempt employees. Proposed updates could take effect as early as 2026, expanding employee protections in gig, contract, and hybrid work environments.

What this means for HR:
Review contractor agreements, job classifications, and vendor relationships. Misclassification can trigger back pay, tax penalties, and benefits liabilities.

Pro tip: Conduct a classification audit at least once per year and document the rationale behind every contractor or exempt-status decision.

Your 2026 HR Compliance Checklist

Are you ready for the HR compliance updates to take place in 2026? Here are a few proactive strategies to prepare for the changing landscape in the year ahead:

• Conduct a compliance gap audit — Identify which policies, pay structures, and benefits may need updates before 2026 deadlines.
• Plan your budget early — Model how wage increases and benefit changes will affect labor costs.
• Align with your HR tech and vendors — Confirm that payroll, benefits, and reporting systems are updated for 2026 rules. If you’re a Future Systems client, know we’re on top of this!
• Educate your team — Train managers and supervisors on new policies to ensure consistent application.

Stay Proactive with Compliance Support

HR compliance doesn’t have to be overwhelming — as long as you plan ahead. Partnering with the experts at Future Systems can help your business anticipate changes, minimize risk, and stay compliant without missing a beat.