HIPAA Notices of Privacy Practices required to be issued by February 16th: Group health plan sponsors should take note of the February 16, 2026, deadline to update HIPAA Notices of Privacy Practices (“NPPs”) to reflect recent privacy updates for Part 2 records. HIPAA requires that covered entities, such as group health plans, provide notices to covered individuals describing how the covered entity uses and discloses protected health information (“PHI”). While insurance companies typically manage the NPP requirement for those sponsoring fully insured plans, that is often not the case for self-insured plans. At a high level, health plans must update their NPPs by February 16 to address the following points that impact use and disclosure of Part 2 records: describe any use or disclosure that is prohibited or materially limited by Part 2; describe the limitations on use and disclosure of Part 2 records in legal proceedings without the individual’s written consent or a court order; provide a clear and conspicuous opportunity to opt out of fundraising communications before the covered entity uses Part 2 records for fundraising purposes. The notice must be written in plain language and describe permitted uses and disclosures of Part 2 records, including a description of the individuals’ rights and the covered entity’s obligations. Source: Proskauer Rose 1/13/26
Merit pay for in-demand jobs or across the board? U.S. organizations expect to maintain steady pay strategies in 2026 despite economic concerns, according to the results of an October survey published by Mercer. The firm’s data showed expected average merit base salary increases of 3.2% for the new year and an average overall increase of 3.5%. Most respondents planned to spread those increases equally rather than directing more funds to employees with high-demand skills or to solve market gaps. Mercer said its findings suggest a “disconnect” with employers’ broader priorities such as talent development and market competitiveness. Organizations have an opportunity to shift their budgets to focus on in-demand skills to more effectively achieve such goals, Lauren Mason, U.S. workforce solutions leader at Mercer, said in a press release. Source: HR Dive 12/10/25
Can’t fire employee who discusses or lies about wages: Motorola Solutions could not fire a worker for lying about discussing a coworker's pay with colleagues because she lied in response to questions about conversations federal labor law protects, a National Labor Relations Board judge said Thursday in an order calling for her rehire. "Because [Motorola] unlawfully questioned Sheley about her protected conduct, she was under no obligation to respond truthfully, or at all, to the questioning," the judge said. "Finally, an employer may not discharge an employee for lying in response to a question probing their protected conduct." Motorola fired Sheley from her job providing assistance to security system technicians in November 2023 after she lied about discussing teammate Robert Rivera's pay with coworkers. Source: Law360 12/18/25
Illinois expands Transparency Act requirements: Beginning January 1, 2026, Illinois employers will face expanded obligations as a result of amendments to the Illinois Workplace Transparency Act (“IWTA” or “Act”) following the enactment of House Bill 3638 that significantly broadens protections for employees and imposes new requirements and restrictions on settlement and termination agreements. These amendments apply to any employment contract entered into, modified, or extended on or after January 1, 2026, with the exception of collective bargaining agreements covered by federal or Illinois public labor statutes. The law expands an “unlawful employment practice” to mean and include any unlawful practice actionable under federal or state employment law, including those enforced by the Illinois Department of Labor, the Illinois Labor Relations Board, the U.S. Department of Labor, the Occupational Safety and Health Administration, or National Labor Relations Board from previously just discrimination, harassment, or retaliation. Employers may not prohibit, prevent, or other otherwise restrict an employee’s right to engage in concerted activity to address work-related issues through employment agreements or contracts, which may include employer held meetings during union organizing campaigns. Confidentiality clauses in settlements may be a thing in the past. Source: Sheppard Mullin Richter & Hampton LLP 12/30/25
Electronic monitoring in Ontario: Ontario is the only province in Canada that statutorily requires employers to have a written policy in place on the electronic monitoring of employees. As of October 2022, employers with 25 or more employees in Ontario must have a policy disclosing whether they electronically monitor their employees. If so, the policy must include a description of how and in what circumstances the employer electronically monitors its employees, the purposes for which the information obtained through electronic monitoring may be used, the date the policy was prepared and the date any changes were made to the policy. Electronic monitoring goes beyond simply tracking which websites the employee visits or the messages they send coworkers on Microsoft Teams. It also includes, as applicable, tracking employee badge data and connections to workplace Wi-Fi. Employers who have mandated a return to the office in Ontario should ensure such monitoring practices, often relied upon to ensure work-from-office policy compliance, are accurately described in the company’s electronic monitoring policy. It is important to note that this requirement does not create new privacy rights – only that the employer states in the policy what their electronic monitoring practices are. Source: Baker McKenzie 12/15/25