Labor Policy

Rep. James Walkinshaw plans to press for a 4.1% federal employee pay raise, while saying 3% could be a compromise, in negotiations ahead of the continuing resolution’s December 11, 2026, expiration. The proposals are not enacted, but any changes to federal compensation or collective bargaining protections could affect agency workforce stability and contractor coordination—not automatically contractor rates or pay requirements.

Maryland's Paid Family and Medical Leave Insurance program is now open for employer registrations. With payroll contributions starting in January 2027, businesses must adapt promptly to comply with this new state-mandated program, enhancing worker benefits and potential market competitiveness.

California Governor Gavin Newsom has launched a study on AI's impact on the labor market, focusing on job displacement and worker protections. This initiative may create procurement opportunities for contractors in workforce development and labor policy reforms aimed at addressing AI-driven changes.