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Quick Hits
- Life science employers face a rapidly evolving 2026 legal landscape spanning noncompete enforcement shifts, expanding pay transparency mandates, AI bias audit requirements, immigration overhauls, DEI program legal exposure, NLRB policy reversals, OSHA heat standards, new leave and accommodation obligations, and workforce development imperatives.
- State and federal developments are moving in different and sometimes opposing directions, with the Trump administration pulling back on certain enforcement priorities while states accelerate regulation across areas including salary disclosure, AI in employment, paid leave, and restrictive covenants.
- A proactive, systematic compliance approach can help reduce legal exposure and maintain competitive positioning in the life sciences talent market.
From shifting noncompete rules and pay transparency mandates to AI bias audits and immigration overhauls, the regulatory environment has never been more demanding.
This article organizes the most significant action items across nine compliance areas. Life sciences can use it as a spring cleaning guide to audit agreements, update policies, and prepare their organizations going forward.
1. Dusting Off Noncompete Agreements and Trade Secret Protections
The noncompete landscape has shifted dramatically at both the federal and state levels, and life science employers may want to make their restrictive covenant agreements a top priority this spring.
At the federal level, the Federal Trade Commission (FTC) has abandoned the Biden-era blanket ban but is now pursuing targeted, case-by-case enforcement against noncompetes it deems anticompetitive—with a particular focus on healthcare and life sciences. Warning letters have already been sent to employers in the sector.
State-by-state variation continues to widen. As of July 1, 2026, Virginia prohibits enforcement of noncompete agreements against any employee fired without “cause,” unless the employer provides severance or payment. Wyoming broadly voided most noncompetes entered after July 2025. Florida moved in the opposite direction with its employer-friendly Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act. Several states have also imposed healthcare-specific restrictions, including shortened permissible durations and outright voids of physician noncompetes.
Meanwhile, employee leaks account for an estimated two-thirds or more of trade secret theft incidents in the life sciences sector. Strong trade secret protection protocols—including robust onboarding and offboarding procedures—are essential complements to any restrictive covenant strategy.
2. Auditing Job Postings and Pay Structures for Transparency Compliance
Pay transparency is no longer a fringe requirement—it is now the law in a growing number of jurisdictions where life science employers compete for talent. For example, Illinois, Massachusetts, Minnesota, New Jersey, and Vermont have each enacted salary range disclosure requirements for job postings, with varying thresholds, timing rules, and content mandates. And other jurisdictions have adjusted their requirements over time. California has updated its definition of “pay scale,” broadened the definition of “wages” for equal pay analysis, and extended the statute of limitations on equal pay claims. New York City now requires large private employers to submit annual pay-data reports for use in citywide equity studies. And, regardless of the legal requirements, today’s workforce—and particularly younger workers— expect pay transparency.
For multistate employers—which describes most life science companies—the patchwork of various laws and regulations is a compliance minefield. A single job posting distributed nationally may trigger obligations under multiple state regimes simultaneously. As such, getting it right is critical. Separately, employers may want to review their internal compensation structures for equal pay exposure. Courts and agencies are scrutinizing pay disparities along race, sex, and other protected characteristic lines with renewed intensity.
3. Assessing AI Tools for Bias and Regulatory Compliance
Life science employers increasingly rely on AI tools for recruitment, workforce management, and employment decisions. While such tools may enhance efficiency, their use places them squarely in the crosshairs of a rapidly expanding state-level AI regulatory framework.
California, Colorado, Illinois, Texas, Virginia, and New York City have enacted laws, finalized regulations, or provided other standards targeting AI-related discrimination in employment. California’s Civil Rights Department has implemented regulations expressly prohibiting the use of automated decision-making software that discriminates. Proposed legislation in several additional states would regulate workplace surveillance tools, ban AI-based sole decision-making in discipline and termination, and require notice to applicants before AI tools are used.
Critically, plaintiffs’ attorneys are now using the absence of an AI bias audit as evidence of negligence or discriminatory design. Conducting and documenting such audits is rapidly becoming a minimum standard of care.
4. Refreshing Immigration Compliance Protocols
Life science companies are uniquely dependent on foreign national talent, and 2026 brings major changes to the H-1B program and immigration enforcement that demand proactive attention.
The U.S. Department of Homeland Security (DHS) is replacing the current random H-1B lottery with a wage-weighted selection system that prioritizes higher-salary positions—potentially disadvantaging startups and entry-level specialty roles. A new $100,000 fee applies to certain H-1B petitions filed for beneficiaries located outside the United States. Increased site visits from U.S. Citizenship and Immigration Services’ Fraud Detection and National Security Directorate, more intensive security vetting, and shorter employment authorization document (EAD) validity periods are all very likely.
Beyond H-1B, employers may want to ensure their Form I-9 compliance programs are airtight. Increased enforcement, including worksite investigations and audits, makes this a particularly high-risk area for organizations that have not focused on key I-9 processes.
5. Reviewing DEI Programs in Light of New Legal Standards
Diversity, equity, and inclusion (DEI) programs that were accepted practice just a few years ago now face significant legal exposure. Life science employers—many of which have invested heavily in DEI infrastructure—need to carefully examine those in light of these developments. President Donald Trump’s Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” requires federal contractors and grantees to certify they do not operate any “illegal” DEI programs. That requirement exposes such contractors (many of which are life science employers) to False Claims Act liability, so compliance is critical.
Further, the Supreme Court of the United States’ unanimous decision in Ames v. Ohio Department of Youth Services eliminated a heightened burden for majority-group plaintiffs in Title VII of the Civil Rights Act of 1964 cases, opening the door to discrimination claims from a broader range of employees. The U.S. Equal Employment Opportunity Commission (EEOC) has published guidance associating certain DEI practices with potential Title VII violations and is actively soliciting charges from individuals who believe they have been harmed by DEI programs.
This does not mean DEI programs must be abandoned. But it does mean that employers may want to ensure that these programs are carefully designed to be facially neutral in their application, consistently implemented, and thoroughly documented.
6. Revisiting Labor Relations Policies as the NLRB Resets
The National Labor Relations Board (NLRB) has been reconstituted with new Republican members and a new general counsel, and the reconstituted Board is expected to walk back several significant Biden-era precedents. Life science employers should understand what is changing and update their workplace policies accordingly.
Among the expected reversals or limitations: the Cemex bargaining order doctrine, the expanded Thryv, Inc., remedies framework, and the Stericycle standard for evaluating workplace rules, as well as potentially the McLaren Macomb standards for severance agreements. The Board has already reinstated the more employer-friendly 2020 joint-employer standard. General Counsel Crystal Carey has issued directives calling for less aggressive enforcement.
The practical implication for employers is a window to revisit handbook policies, conduct policies, and arbitration agreements that may have been drafted defensively to comply with more expansive Biden-era standards. The current partisan balance on the Board may slow some changes, so employers should not assume an immediate and full rollback of all Biden-era rules, but President Trump’s recent nominees, if confirmed, may ultimately result in more substantial changes.
7. Preparing for OSHA’s Heat Standard and Laboratory Safety Updates
Workplace safety remains a perennial compliance area for life science employers given the inherent hazards of laboratory, manufacturing, and clinical environments—and 2026 adds new layers.
In April 2026, the federal Occupational Safety and Health Administration (OSHA) renewed its national emphasis program on outdoor and indoor heat-related hazards. And OSHA’s proposed federal heat injury and illness prevention standard, which would create a permanent federal standard for heat injury and illness prevention that would apply across all industry sectors, is progressing through rulemaking. OSHA has signaled it may revise the proposal to be more performance-based, but a final rule is expected—and is likely to face legal challenge.
For life science employers, the heat standard is only one piece of the safety picture. Laboratory chemical exposure, biological hazards, and clinical environment risks all require ongoing attention, regardless of administration priorities. Employers may want to consider conducting a fresh risk assessment for all laboratory, manufacturing, and clinical environments, and reviewing heat illness prevention plans with an eye toward compliance with the anticipated OSHA standards.
8. Updating Leave, Accommodation, and Repayment Agreement Policies
A wide-ranging set of state mandates on leave, workplace accommodation, and training repayment agreements is taking effect or expanding in 2026, and life science employers operating in multiple jurisdictions face a significant administrative burden.
By mid-2026, nearly one-third of all states will enforce some form of mandatory paid family and medical leave. Courts are increasingly recognizing mental health conditions as ADA-protected disabilities, driving a rise in accommodation requests for flexible scheduling, modified supervision, and remote work arrangements. Several states and localities have enacted or proposed legislation requiring accommodations for menopause-related conditions—a new frontier in accommodation law. These new changes suggest life science employers take another look at their paid leave policies for compliance with new state mandates, as well as accommodation processes for mental health issues.
On the training repayment side, “stay-or-pay” provisions—where employees are required to repay training costs if they leave within a specified period—are being sharply curtailed in California and New York, as well as several other states. Life science employers that rely on these agreements to protect investments in employee development may want to review their current provisions for enforceability.
9. Investing in Employee Well-Being and Workforce Development
Beyond specific legal mandates, life science employers may want to use this spring as an opportunity to assess the broader health of their workforce programs. The rapid pace of innovation in the industry—driven by AI, automation, and biotechnology—means that employee skills can become outdated quickly, and a workforce that is not continuously developed is a competitive liability. Moreover, mental health resources, wellness programs, and a culture that supports open conversation about well-being are not merely nice-to-haves. Not only can they help create a happier and more satisfied workforce, but they also reduce absenteeism, improve retention, and increasingly serve as a differentiator in recruiting specialized talent in a competitive market. Accordingly, employers may want to assess their workforce training programs as well as the health and wellness programs to close gaps.
Conclusion: A Cleaner Compliance House
The employment and labor law landscape for life science employers in 2026 is not just complex—it is moving fast in multiple directions at once. Federal enforcement priorities are shifting under the Trump administration, while state-level regulation is accelerating across multiple compliance layers. Waiting for the dust to settle is not a viable strategy.
The good news is that a disciplined spring cleaning approach—prioritizing and working systematically through each of these areas—can meaningfully reduce legal exposure while also strengthening the organization’s operational and cultural foundations. Employers that prioritize proactive auditing, clear documentation, and regular policy review will be far better positioned than those that react only when problems arise.
Ogletree Deakins’ Life Sciences Industry Group will continue to monitor developments and will post updates on the Cybersecurity and Privacy, Diversity, Equity, and Inclusion Compliance, Employee Benefits and Executive Compensation, Employee Engagement, Employment Law, Immigration, Leaves of Absence, Multistate Compliance, Pay Equity, State Developments, Technology, Traditional Labor Relations, Unfair Competition and Trade Secrets, and Workplace Safety and Health blogs as additional information becomes available.
In addition, the Ogletree Deakins Client Portal covers legal developments (federal, state, District of Columbia, and major locality) in Pay Transparency, Heat Illness Prevention and Wildfire Smoke Exposure, Leaves (including Family and Medical), Disability Accommodation, Protected Characteristics, Pregnancy, Childbirth, and Lactation, and E-Verify Requirements. Snapshots and updates are available to all registered client users. Premium and Advanced subscribers have access to detailed law summaries, template forms and policies, and step-by-step guides (e.g., Disability Accommodation Requests Task). For more information on the Client Portal or for a Client Portal Subscription, please reach out to clientportal@ogletree.com.
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