WASHINGTON — As employment law continues to evolve, small-business owners, including many dry cleaners, are facing an increasingly complex landscape of federal, state and local labor laws and requirements that can seem overwhelming.
During a recent National Federation of Independent Business (NFIB) webinar, Tony Dalimonte, an employment attorney with Foster Swift Collins & Smith in Michigan, walked small-business owners through the employment law changes and risks they need to understand in 2026.
In Part 1, we explored how handbooks can either help or hurt employers and looked at common wage-and-hour pitfalls. In Part 2, we focused on discrimination claims that may land employers on the bad side of the Equal Employment Opportunity Commission (EEOC).
Today, we’ll finish the EEOC discussion and conclude with practical steps businesses can take immediately to reduce their legal risk.
National Origin Discrimination
The EEOC has identified national origin discrimination as an enforcement priority for 2026, Dalimonte says, with Chair Andrea Lucas issuing a statement vowing to protect American workers from what she termed “anti-American bias.”
The agency has found several forms of potential workplace discrimination it says it will scrutinize. These include discriminatory job advertisements indicating preferences for applicants from particular countries or visa statuses, along with unequal treatment of U.S. citizens.
“This essentially means that if you’re treating non-American citizens more favorably in the workplace than U.S. citizens, or you have policies that you’re only subjecting U.S. citizens to, you could be subject to a discrimination action,” Dalimonte says.
“You can’t make employment decisions based on protected characteristics, and that includes national origin,” he adds. “Focus your decisions on conduct and business-related reasons.”
The Prevention Checklist
Dalimonte urges business owners to focus on prevention rather than reacting when problems arise. He offers the following items for employers to go over:
- Maintain a strong, realistic handbook. Review it at least annually to make sure it reflects current law and actual business practices, Dalimonte says, and don’t copy another company’s handbook or use outdated templates. Also, make sure managers know what the handbook says and that they follow its provisions consistently.
- Audit wage and hour practices regularly. Verify compliance with minimum wage requirements, Dalimonte says, especially after Jan. 1, when many states increase rates. Employers should also review sick leave policies to ensure they reflect current state law. Review exempt classifications to confirm employees meet both the salary threshold and duties tests.
- Treat accommodation requests as a process, not a “yes-or-no” decision. Employers should recognize requests early, Dalimonte says, even when employees don’t use formal language. Gather medical documentation when appropriate, and engage in good-faith discussions about alternatives. Also, be sure to document the interactive process thoroughly.
- Train managers on employment law basics and company policies. Managers make daily decisions that can create legal exposure, Dalimonte says. They need to understand the company handbook, recognize accommodation requests, follow consistent disciplinary procedures and know when to escalate issues.
- Document decisions. Employment disputes often come down to “he said, she said” credibility battles, Dalimonte says. Documentation provides the factual records courts rely upon. “If every conversation was in person and nothing was put in writing, defending a lawsuit becomes much more difficult,” he says.
Starting Strong in 2026
Business owners should stop and find guidance when they are uncertain about any employment decisions, Dalimonte suggests.
“If you’ve heard something today that makes you a little uncomfortable or gives you some concern, that might be a sign it’s an area worth tightening up as we start 2026,” he says.
Dalimonte encourages business owners to choose one area to improve this quarter as part of their new year planning.
“We all have New Year’s resolutions,” he says. “You can do that for your business as well. Pick one thing — updating your handbook, auditing your wage practices, training your managers. That awareness, consistency and documentation will go a long way toward preventing lawsuits.”
For Part 1 of this series, click HERE. For Part 2, click HERE.
Have a question or comment? E-mail our editor Dave Davis at [email protected].
