Monthly Employer Briefing: March 2026

March marks the transition from Q1 compliance obligations to Q2 planning. Spring hiring is ramping up across industries, several major federal reporting deadlines are approaching, state legislatures are in full session, and employers should be looking ahead to mid-year priorities. Here is what employers need to know this month.

Spring Hiring Season

For many employers, March through May represents the most active hiring period of the year. Industries including construction, hospitality, landscaping, retail, and education see seasonal surges in staffing needs, while employers across sectors accelerate backfill and growth hiring as budgets are confirmed for the year.

Employers entering spring hiring season in 2026 should prepare by:

• Reviewing job postings for legal compliance. Pay transparency laws now apply in a growing number of states and localities, requiring disclosure of salary ranges in job postings. Employers posting positions that may attract applicants from multiple states — particularly remote roles — should ensure every posting complies with the broadest set of applicable requirements.
• Updating I-9 procedures. The Form I-9 process remains a frequent source of errors and enforcement actions. Employers should ensure hiring managers are trained on current I-9 requirements, using the correct version of the form, and following proper document examination and retention procedures. Employers authorized to use E-Verify should confirm their accounts are active and their designated representatives are current.
• Preparing for background check compliance. Ban-the-box laws, fair chance hiring ordinances, and state-specific background check restrictions vary widely. Employers conducting criminal background checks, credit checks, or other pre-employment screenings must comply with the Fair Credit Reporting Act (FCRA) as well as applicable state and local laws governing timing, disclosure, and adverse action procedures.
• Budgeting for onboarding. Bringing on seasonal or new permanent employees requires investment in onboarding, training, uniforms, equipment, and benefits enrollment. Employers should budget for these costs and ensure onboarding processes are efficient and compliant.

EEO-1 Reporting

The EEOC's EEO-1 Component 1 report — which requires covered employers to submit workforce demographic data by job category, race, ethnicity, and sex — is typically due in the spring. Employers with 100 or more employees, and federal contractors with 50 or more employees and contracts of a specified value, are generally required to file.

Employers should monitor the EEOC's website for the opening of the 2025 EEO-1 data collection portal and the announced filing deadline. In recent years, the collection timeline has shifted, so relying on historical deadlines alone is not sufficient. Employers should begin assembling their workforce data now so they are prepared to file promptly once the portal opens.

Key preparation steps include:

• Pulling a workforce snapshot reflecting a payroll period designated by the EEOC (typically a pay period in the fourth quarter of the reporting year).
• Classifying employees into the correct EEO-1 job categories.
• Reviewing demographic data for completeness, relying on employee self-identification records.
• Designating a responsible individual to manage the filing and retain records.

State Legislative Activity

State legislatures across the country are in active session, and employment-related legislation is a prominent feature on many agendas. Among the most common themes in 2026 state legislative activity:

• Paid leave expansion. Additional states are considering new paid family and medical leave programs or expanding the scope and benefits of existing programs.
• Pay transparency. New bills requiring salary range disclosure in job postings, wage data reporting, and pay equity audits continue to advance in multiple states.
• AI regulation. Several states are considering bills that would regulate the use of artificial intelligence in employment decisions, including requirements for bias audits, impact assessments, and candidate notification.
• Non-compete restrictions. The trend toward limiting or banning non-compete agreements continues, with new bills introduced in states that have not yet acted on this issue.
• Heat illness and outdoor worker protections. States in warmer climates are advancing workplace heat safety standards, including required rest breaks, access to water and shade, and acclimatization protocols.
• Cannabis and employment. As additional states legalize or decriminalize cannabis, employment-related bills addressing drug testing policies, off-duty use protections, and impairment standards continue to evolve.

Employers should track legislative developments in every state where they have employees and prepare to update policies promptly when new laws take effect. AEA publishes legislative tracking updates throughout the session cycle.

Workplace Safety Program Reviews

March is an opportune time for employers to conduct a thorough review of their workplace safety programs before the spring and summer months, when outdoor work, construction activity, and heat exposure risks increase.

A comprehensive safety program review should include:

• Hazard assessments. Walk through work areas to identify new or changed hazards, verify that controls are in place and functioning, and document findings.
• Training records. Confirm that all required safety training is current, including OSHA-required training for specific hazards such as fall protection, hazard communication, lockout/tagout, and confined space entry.
• Emergency action plans. Review and update emergency procedures, evacuation routes, and contact information. Conduct drills if they have not been completed recently.
• PPE inventory. Ensure that personal protective equipment is available, properly sized, in good condition, and that employees have been trained on its use.
• Incident review. Analyze injury and illness trends from 2025 to identify patterns and prioritize prevention efforts for the coming months.

Q2 Planning Priorities

As employers move into Q2, several planning priorities deserve attention:

• Mid-year benefits check-in. Review benefits utilization data, plan performance, and employee feedback. Identify any issues that should be addressed before the next open enrollment cycle.
• Compensation review. With Q1 financial results becoming available, employers should assess whether mid-year compensation adjustments are warranted to remain competitive and address internal equity.
• Policy updates. Any new state or local laws taking effect mid-year should be reflected in employee handbooks and operational policies. Employers should schedule policy reviews and communicate changes to employees in advance of effective dates.
• Performance management. If the organization conducts mid-year performance reviews, managers should be prepared with clear expectations, documented feedback, and development plans.

March is a month of action for employers. Staying on top of reporting deadlines, hiring practices, legislative developments, and safety programs now will pay dividends throughout the remainder of the year.

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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.