The first half of 2026 reshaped how employers weigh wage and hour risk.
Federal courts revisited arbitration, collective actions, agency authority, and the reach of the Fair Labor Standards Act.
In the Law360 article "5 Major Wage And Hour Rulings So Far In 2026," the publication reviewed five decisions already influencing employer strategy. Jeffrey H. Ruzal, a Member of the Firm at Epstein Becker Green who focuses on wage and hour matters, offered his perspective on several of them.
Several rulings turned on where and how employees can bring claims. The Supreme Court clarified which transportation workers fall outside federal arbitration, though it stopped short of a bright-line test for purely local deliveries. A federal appeals court also narrowed who may join a collective action. That shift could push plaintiffs toward filing in an employer's home jurisdiction.
Other decisions addressed agency power and settlement practice. Courts weighed the Department of Labor's rulemaking authority after recent limits on agency deference. They also examined whether a severance release can bar later overtime claims.
Jeff noted that the arbitration ruling leaves employers to assess worker roles case by case. He added that a wave of collective filings can raise both cost and risk. On collective actions, he stressed the need for a deliberate defense plan.
"It's very important for employers when facing a collective action to be strategic about how they want to pursue litigation in their defense. While [Bristol-Myers] is available now in the majority of circuits that have reviewed it, it can potentially create these types of risks of multiple actions, which can be more costly to deal with, can result ... in different rulings or a coordinated ruling across various jurisdictions."
Get in Touch
To discuss this perspective, contact Jeff Ruzal at jruzal@ebglaw.com.
