Our Hospitality Industry Team thought leaders have pulled together their top predictions for the new year so that employers can get a head start to 2026. If you want more, register for our FP Workplace Law Forecast Webinar here.
Immigration Enforcement Will Continue to Impact Labor Market
In addition to ongoing staffing shortages, we expect that hospitality employers – and restaurants in particular – will feel the impact of increased immigration enforcement and tighter restrictions on employment-based visas. These changes are likely to affect seasonal hiring and certain categories of temporary foreign workers. Employers should closely monitor changes, ensure I-9 compliance, and review workforce planning strategies.
Spotlight on Human Trafficking Issues
Many employers may not realize that you do not have to be a “trafficker” to be held liable for trafficking. Companies across industries, including hospitality, are facing civil lawsuits and criminal investigations related to sex trafficking activities. One of the most striking developments in the anti-trafficking enforcement is the growing use of corporate criminal liability to hold businesses accountable. This highlights the importance of implementing comprehensive policies, training, reporting mechanisms, and risk assessments.
More Clarity on 80/20/30 Tip Credit Rule
In 2024, the 5th Circuit struck the Biden DOL’s 80/20/30 rule, which applied to employers that take the tip credit toward their minimum wage obligation under...
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