HR and future of work · Industry brief

Q2 2026 antitrust developments show the Trump administration's FTC and DOJ are more receptive to negotiated remedies in M&A transactions, particularly structural relief proposed early in the process. The FTC's May 2026 workshop emphasized timing is critical—late remedy proposals face skepticism. Recent settlements like 365 Retail Markets/Cantaloupe (horizontal divestiture plus behavioral commitments) and DOJ's Taiheiyo/CalPortland/Vulcan (ready-mix concrete plant divestitures) illustrate parties should build remedy records early with credible buyer plans. However, federal clearance no longer eliminates regulatory risk, as demonstrated by Nexstar/TEGNA where state attorneys general and DIRECTV obtained a preliminary injunction blocking integration despite DOJ and FCC approval, and Paramount/Warner Brothers where multiple states challenged the deal after federal and foreign regulators cleared it, resulting in a temporary restraining order. The Biden-era 2025 HSR form requiring expanded information disclosures has been vacated; agencies reverted to the legacy form but plan to solicit comments and publish proposed rulemaking by year-end, creating potential uncertainty for deals signed in late 2026 if new requirements emerge.

The Fifth Circuit vacated an OSHA rule requiring employers to record work-related mental illnesses, concluding OSHA exceeded its congressional authority under the Occupational Safety and Health Act. State pay transparency laws are expanding with regulators increasingly scrutinizing whether employers' salary disclosures are meaningful and supported by actual compensation practices, moving compliance beyond simple posting obligations. The DOL issued guidance on compensable travel time under the Fair Labor Standards Act, particularly relevant for hybrid and field-based workforces. Colorado enacted HB 26-1283 limiting employer control over government-issued IDs with criminal and civil penalties for violations. Illinois expanded the Workplace Rights Bureau's investigatory powers effective January 1, 2027, allowing the Attorney General to investigate employment law violations with employer compliance penalties. Missouri expanded military leave and reemployment obligations under House Bill 2593, effective August 28, 2026. The Supreme Court held presidents may remove heads of independent federal agencies at will, potentially affecting labor enforcement agencies. Illinois's Clean and Reliable Grid Affordability Act significantly expanded project labor agreement requirements for renewable energy developers. The EEOC rescinded 50-year-old federal guidance on voluntary affirmative action plans under Title VII.

The U.S. Department of Labor's Office of Federal Contract Compliance Programs issued a final rule substantially revising Section 503 of the Rehabilitation Act, eliminating mandatory disability self-identification requirements, the 7% utilization goal, and related quantitative data collection for federal contractors. The rule, scheduled for Federal Register publication August 21, 2026, becomes effective 30 days after publication (120 days for removal of 41 C.F.R. Part 60-30), and represents a reversal of 2013 regulations that OFCCP now concludes conflict with the Americans with Disabilities Act. Contractors retain obligations for affirmative action, nondiscrimination, reasonable accommodations, outreach, and AAP maintenance, though OFCCP clarifies these can be measured through non-quantitative methods such as accessibility audits rather than disability-status data, and the Section 503 coverage threshold updates to $20,000 to reflect inflation adjustments effective October 1, 2025. Federal contractors should review their compliance infrastructure, applicant tracking systems, self-identification processes, and AAP procedures before the effective date.

The U.S. Small Business Administration published two proposed rules on August 20, 2026, that would substantially restructure small business size standards for the first time in decades. The rules would consolidate nearly 1,000 industry-specific standards into 338, raise thresholds significantly across industries, and shift many standards from revenue-based to employee-based metrics. The changes would newly classify approximately 114,541 businesses as small, including 37,002 firms holding $71 billion in FY 2025 federal contracts. The proposals carry major M&A implications for government contractors and private equity sponsors. Higher thresholds would expand opportunities for small-to-small acquisitions, joint ventures between small businesses, and roll-up strategies that were previously constrained by affiliation rules. The shift to employee-based standards eliminates the "benefit cliff" where revenue growth from contracts triggered loss of small business status. However, incumbent small businesses face intensified competition from newly eligible, often larger and more sophisticated firms entering set-aside markets. Comments are due September 21, 2026 (Federal Register 91 Fed. Reg. 54096, 53741; SBA Docket Nos. SBA-2026-0265, SBA-2026-0199).