US Employment Law Year-End Review 2026: Key Developments for Turkish Employers

The US employment law landscape continued to evolve rapidly in 2026, with significant developments at the federal, state, and local levels. Turkish employers with US operations must stay current on these changes to maintain compliance and avoid costly litigation.

The FTC's rule banning most non-compete agreements remained subject to federal court litigation throughout 2026. The rule, which would prohibit employers from entering into or enforcing non-compete agreements with most workers, has been challenged by business groups.

Current status: Turkish employers should maintain non-compete agreements that comply with applicable state law while monitoring federal court decisions. Even if the federal rule is ultimately struck down, state-level non-compete restrictions continue to tighten.

New York non-competes: New York has proposed legislation that would significantly restrict non-compete agreements. Turkish employers with New York employees should review their non-compete practices and consider whether non-solicitation agreements (which are generally more enforceable) can achieve their legitimate business interests.

The Department of Labor's overtime salary threshold — $844/week ($43,888/year) as of July 1, 2024 — remains in effect. Employees earning below this threshold must receive overtime pay for hours over 40 per week, regardless of their job title or duties.

Year-end audit: Turkish employers should audit their exempt employee classifications before year-end to ensure compliance. Common misclassification errors:

• Classifying employees as exempt based on job title alone
• Failing to update salary levels when the threshold increased
• Misapplying the administrative, executive, or professional exemptions

The National Labor Relations Board (NLRB) continued its aggressive enforcement posture in 2026, scrutinizing employer workplace policies for potential violations of employees' Section 7 rights (the right to engage in concerted activity). Policies that may violate the NLRA include:

• Overly broad confidentiality policies
• Social media policies that restrict discussion of wages or working conditions
• Non-disparagement clauses in severance agreements

Turkish employers should have their employee handbooks reviewed by employment counsel.

New York State's pay transparency law requires employers with four or more employees to include the compensation range (salary or hourly rate) in all job postings. The law applies to positions that will be performed in New York or that can be performed remotely from New York.

Compliance requirements:

• Include a good-faith salary range in all job postings
• Include a description of the job's compensation and benefits
• Retain records of job postings

New York City's Freelance Isn't Free Act was expanded in 2024 to cover more independent contractors. Turkish employers that engage freelancers or independent contractors in New York City must:

• Provide a written contract for engagements worth $800 or more
• Pay freelancers on time
• Not retaliate against freelancers who assert their rights

The NYC Human Rights Law is one of the broadest anti-discrimination laws in the US, covering employers with four or more employees. Protected characteristics include race, color, creed, age, national origin, alienage or citizenship status, gender, sexual orientation, disability, marital status, partnership status, caregiver status, and many others.

AI in hiring: New York City's Local Law 144 requires employers that use automated employment decision tools (AEDTs) in hiring or promotion decisions to:

• Conduct a bias audit of the AEDT
• Publish a summary of the bias audit results
• Notify candidates that an AEDT will be used

Turkish employers using AI-powered recruiting tools in New York City must comply with Local Law 144.

• Review and update employee handbook for 2026 legal changes
• Review non-compete and non-solicitation agreements
• Update social media and confidentiality policies
• Review severance agreement templates

• Audit exempt employee classifications
• Verify all employees earning below $844/week receive overtime
• Review independent contractor classifications
• Ensure job postings include required pay ranges (New York)

• Conduct annual I-9 audit
• Re-verify employees with expiring work authorization
• Review H-1B public access files

• Complete annual harassment prevention training (required in New York)
• Train managers on updated policies
• Document training completion

Our employment attorneys advise Turkish employers on US employment law compliance, handbook reviews, classification audits, and employment litigation defense.

This article is for informational purposes only and does not constitute legal advice. Employment law is complex and varies by state and locality; please consult qualified employment counsel for advice specific to your situation.