Monthly Employer Briefing: February 2026

February is a pivotal compliance month for employers. Several critical deadlines converge, state legislative sessions are gaining momentum, and the regulatory landscape continues to shift in areas that affect nearly every employer. This briefing covers the key developments and obligations employers should have on their radar.

ACA 1095-C Distribution Deadlines

Applicable large employers (ALEs) are in the final stretch of preparing and distributing ACA Form 1095-C to employees for the 2025 tax year. This form reports the health insurance coverage offered to each full-time employee during the prior calendar year.

Employers should confirm whether the IRS has issued any deadline extension for the employee furnishing requirement. In several prior years, the IRS granted automatic extensions pushing the furnishing deadline into March. Regardless of any extension, employers should not delay preparation. Forms should be reviewed for accuracy, printed or prepared for electronic delivery, and distributed as promptly as possible.

Common areas where errors arise include:

• Incorrect coding of coverage offers on Line 14 (offer of coverage) and Line 16 (applicable safe harbor or other relief).
• Failure to account for mid-year changes in employee status, such as transitions between full-time and part-time.
• Inaccurate reporting of employee share of the lowest-cost self-only coverage on Line 15.

Employers filing electronically with the IRS must do so by March 31, 2026. Those filing on paper (permitted only for employers filing fewer than 10 returns under current thresholds) face an earlier deadline. Electronic filing is required for most ALEs and is strongly recommended for accuracy and receipt confirmation.

OSHA 300A Posting Requirements

February 1 marks the date by which employers required to maintain OSHA injury and illness records must post the OSHA Form 300A — the Summary of Work-Related Injuries and Illnesses — in a conspicuous location in the workplace. The form must remain posted through April 30, 2026.

The 300A summarizes the total number of work-related injuries and illnesses recorded on the OSHA 300 Log during the 2025 calendar year. It must be signed and certified by a company executive.

Employers covered by OSHA's recordkeeping requirements — generally those with 11 or more employees in industries not exempt from recordkeeping — must comply. Certain employers in high-hazard industries are also required to electronically submit their 300A data to OSHA through the Injury Tracking Application (ITA). Submission deadlines for electronic reporting typically fall in March. Employers should check OSHA's current guidance on which establishments are covered by the electronic submission requirement.

Failure to post the 300A or submit data electronically can result in citations and penalties. This is one of the most commonly cited OSHA violations, and it is entirely preventable with basic calendar management.

State Paid Leave Program Updates

The state paid leave landscape continues to expand in 2026. Several states that enacted paid family and medical leave programs in recent years are now in active benefit payment phases, while others are in contribution collection or pre-launch periods.

Employers should be particularly attentive to:

• Newly effective programs. States that launched paid leave benefit payments in 2025 or early 2026 may still be refining their administrative processes, claim procedures, and employer reporting requirements. Employers in those states should stay engaged with the administering agencies for updated guidance.
• Contribution rate changes. States with existing programs may have adjusted employer and employee contribution rates for 2026. Employers should verify that payroll deductions and employer contributions reflect the current rates.
• Interaction with employer-provided leave. Many state programs allow employers to apply for private plan exemptions if their employer-provided leave benefits meet or exceed the state program's standards. Employers with robust leave policies should evaluate whether applying for an exemption is advantageous.
• Multi-state complexity. Employers with employees in multiple states must navigate differing eligibility criteria, benefit amounts, leave durations, and contribution structures. There is no federal standard that harmonizes these programs.

AEA will publish a detailed Compliance Alert on state paid leave program expansions later this month.

The Non-Compete Landscape in 2026

The legal environment surrounding non-compete agreements remains in flux. At the federal level, the FTC's efforts to broadly restrict non-compete agreements have been the subject of ongoing litigation and regulatory reconsideration. Employers should monitor the current status of any federal rulemaking or court decisions that may affect the enforceability of existing non-compete agreements.

At the state level, the trend toward restricting non-competes continues to gain ground. A growing number of states have enacted laws that prohibit or limit non-compete agreements for workers below certain income thresholds, impose notice and disclosure requirements, or ban non-competes outright for certain categories of workers.

States with notable non-compete restrictions include California (which has long prohibited non-competes for employees), Minnesota, Colorado, Oregon, Washington, and others. Several additional states considered new restrictions during their 2025 legislative sessions, and more are expected to take up the issue in 2026.

Employers relying on non-compete agreements should:

• Review all existing non-compete agreements for compliance with current state law in the jurisdiction where each employee works.
• Assess whether alternative protective measures — such as non-solicitation agreements, non-disclosure agreements, or garden leave provisions — may be more enforceable and appropriate.
• Consult with counsel before entering into new non-compete agreements, particularly for employees in states with recent legislative changes.
• Monitor federal developments that could impose additional restrictions or requirements.

Looking Ahead to March

March brings the ACA electronic filing deadline, EEO-1 reporting preparation, and the beginning of spring hiring season for many employers. State legislatures will be in full session across the country, and new employment-related bills will be moving through committees. AEA will continue to track these developments and publish timely guidance for employers.

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This briefing is prepared by the AEA Editorial Team based on publicly available regulatory guidance, employment law developments, and employer-reported trends. Individual data from AEA members is never disclosed. All analysis reflects general observations and should not be treated as legal advice. Consult qualified counsel for guidance on specific situations.