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Six (6) new opinion letters to help promote clarity, consistency, and transparency in the application of federal labor standards:

• FLSA2026-1: Whether an employee’s role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt.
• FLSA2026-2: Whether section 7(e) of the FLSA permits an employer to exclude certain bonus payments from an employee’s regular rate of pay. The letter also addresses how to include these payments in the calculation of employee overtime premiums if the payments must be included in an employee’s regular rate of pay.
• FLSA2026-3: Whether a union and employer can enter into a collective bargaining agreement that mandates a 15-minute “roll call” prior to each scheduled shift but excludes that time when calculating overtime premiums under the FLSA.
• FLSA2026-4: Whether, for purposes of the overtime exemption for certain commissioned employees in section 7(i) of the FLSA, an employer in a jurisdiction in which the state minimum wage exceeds the federal minimum wage must use the federal minimum wage, or alternatively, the higher state minimum wage, to determine whether it has satisfied the minimum pay standard in section 7(i)(1), and whether tips are deemed compensation for purposes of section 7(i)(2)’s requirement that more than half the employee’s compensation consist of commissions.
• FMLA2026-1: How a school closure of less than a full week impacts the amount of leave a school employee uses under the FMLA.
• FMLA2026-2: Whether FMLA leave may be used for time spent traveling to or from medical appointments, including where an employee provided the employer with medical certification from a health care provider that confirms the employee’s need for the appointment, but the certification does not address travel to or from the appointment.

Opinion letters provide official written interpretations from the division, explaining how laws apply to specific factual circumstances presented by individuals or organizations.

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For 2026, 401(k)s have a $24,500 employee deferral limit (plus $8,000 catch-up for age 50+, or $11,250 for ages 60-63) and total limits of $72,000; IRA limits are $7,500 ($8,250 with catch-up for age 50+); SIMPLE IRAs are $17,000 ($21,000 with catch-up); and the overall defined contribution plan limit rises to $72,000, with higher thresholds for certain plans like SEP IRAs. 

Department of Labor: Opinion Letters; 401(k), 403(b), & TSP Limits (Employee Contribution) 2026Jan

Total Rewards

 3 Statistics Every Benefits Consultant and Employer Should Know Heading into 2026
Rising health care costs are pushing employer-sponsored benefits to a turning point in 2026. New industry insights highlight growing affordability concerns, continued cost pressure, and increased interest in alternative health plan strategies.

 New Year, New Rules: What Policy Uncertainty Means for Captive Strategy
Policy and market uncertainty heading into 2026 is reshaping how organizations think about captive strategy. A new analysis highlights how regulatory scrutiny, economic volatility, and evolving legislation are influencing the role of captives in today’s risk environment. 

 Wegovy and Similar Weight-Loss Drugs May Not 'Pay for Themselves'
New research suggests GLP-1 weight-loss drugs like Wegovy may improve health outcomes without delivering near-term cost offsets for employer health plans. The findings add to the growing conversation around the financial impact of these medications as utilization continues to rise. 

Insurers Face Record Fines as States Crack Down on Mental Health Parity Violations
States are ramping up enforcement of mental health parity laws, issuing record fines to insurers over compliance gaps and unequal access to behavioral health care. 

Utilization, Intensity Drove US Health Spending to $5.3T in 2024: CMS
New data from CMS shows U.S. healthcare spending climbed to $5.3 trillion in 2024, reaching 18% of GDP as growth continued to outpace the overall economy. The increase was driven largely by higher utilization and more intensive care, not higher prices, marking the fastest growth in personal healthcare spending seen in decades. 

 House Passes Bill to Extend Health Care Subsidies
The House has passed bipartisan legislation to extend expired Affordable Care Act health care subsidies, sending the bill to the Senate amid ongoing negotiations. If enacted, the measure would temporarily shore up affordability for marketplace enrollees as lawmakers continue to debate longer-term reforms. 

Trump Unveils Healthcare Affordability Plan 
President Trump has unveiled a one-page “Great Healthcare Plan” aimed at improving affordability, with proposals touching on ACA cost-sharing reductions, prescription drug pricing, PBM practices, and expanded price transparency. 

Total Rewards Summaries,  2026Jan

Employee / Labor Relations

The National Labor Relations Board lacked the three-member quorum required to issue decisions for the majority of 2025. Board vacancies, delayed confirmations, and ongoing litigation over Board composition limited the agency’s ability to resolve cases and issue precedential guidance. As a result, many pending unfair labor practice (ULP) and representation cases stalled or proceeded without clear direction from the Board. Employers were left navigating labor relations issues in an environment with fewer definitive rulings and greater reliance on regional office discretion. The quorum issue remained a consistent theme throughout the year. However, on Jan. 7, 2026, James Murphy and Scott Mayer were sworn in as new Board members. The Board has a quorum to resume issuing decisions and address its growing case backlog (two seats remain empty on the five-seat Board). 

Federal appellate courts questioned the constitutionality of the Board’s structure and authority through employer-initiated litigation challenging the Board’s administrative enforcement process. The lawsuits sought to prevent the Board from proceeding with underlying administrative proceedings while constitutional claims were litigated in federal court, rather than through the Board’s adjudicatory process. The litigation raised separation-of-powers concerns under Article II of the U.S. Constitution, with employers arguing that multiple layers of removal protections for Board administrative law judges (ALJs) improperly limit the president’s executive control over agency enforcement. In these cases, employers brought challenges directly in federal court, contesting both the authority of ALJs to preside over enforcement actions and the constitutionality of the Board’s adjudicatory structure.

Significant changes at the Board did not occur to the extent anticipated following the transition to a new presidential administration. Employers anticipated a quick shift in Board composition and immediate decisions returning to more employer-friendly standards, such as those relating to work rules and handbook policies and when employers must recognize a union without an election. However, although interim General Counsel (GC) William Cowen did quickly rescind many Biden-era GC memoranda, including those related to protected concerted activities, settlement agreements, and employment agreement provisions such as “stay-or-pay” provisions, anticipated changes to Board precedent did not occur during 2025, largely due to delayed Board member confirmations. (Significant decisions overturning precedent still may not occur for some time until the Board has three Republican members. Generally, reversals of precedent happen if three members from the president’s party are on the Board.) Instead, the Board experienced a slower progression in enforcement priorities than a dramatic policy shift.

Prior to the U.S. Senate’s confirmation of management-side attorney Crystal Carey to the Board’s GC position, interim GC Cowen rescinded many enforcement priorities established under the Biden Administration. Cowen’s guidance throughout the year emphasized increased procedural efficiency, reconsideration of certain remedies, and changes to case-handling instructions for regional offices. These GC memos signaled a focus on enforcement strategy, particularly in how ULP cases are investigated and resolved. For instance, the shifts are reflected in settlement discussions and litigation strategy, including a greater emphasis on early resolution and Regions taking more measured approaches to remedial demands.

The unprecedented removal of former Board Member Gwynne Wilcox and resulting litigation further affected the Board’s ability to address the growing backlog of cases. The litigation over the removal hinges on whether President Donald Trump can remove a Board member without cause. Applicability of the U.S. Supreme Court’s 1935 decision in Humphrey’s Executor, which restricted a president’s removal power for independent agencies, is expected to be pivotal. Federal courts issued a series of rulings to address the case’s applicability, resulting in decisions initially ordering Wilcox’s reinstatement, granting stays, and advancing the matter to further appellate review. The litigation, which is still pending, directly affected the Board’s composition and contributed to its inability to maintain a quorum. Resolution will likely require the U.S. Supreme Court to ultimately decide the constitutionality of Wilcox’s removal. 

NLRB; Administrative Enforcement; Case Handling; Ruling Updates 2026Jan