Landmark Laws Take Effect in 2026: From Rideshare Unions to AI Regulation and SNAP Restrictions
As the calendar turns to 2026, a wave of new state laws are reshaping the landscape for workers, families, and consumers across the United States. From groundbreaking labor protections to contentious restrictions on social media and food assistance, these changes reflect a period of significant legislative activity. Here’s a look at some of the most impactful laws taking effect this year.
California Rideshare Drivers Gain Unionization Rights
Starting January 1, California’s approximately 800,000 rideshare drivers now have the right to collectively bargain, a landmark decision brokered by Democratic Governor Gavin Newsom. The new law expands collective bargaining rights in exchange for reduced insurance costs for drivers, following a similar move by Massachusetts voters in 2024. This development marks a significant shift in the gig economy, potentially empowering drivers to negotiate for better wages and working conditions.
Expanded Paid Leave for Colorado Families with NICU Babies
Colorado is bolstering support for families navigating the challenges of having a baby in the neonatal intensive care unit (NICU). Building on its existing paid family leave program, which already provides up to 12 weeks of paid leave for new parents or family care, the state now offers an additional 12 weeks for families whose infants require NICU care. According to one sponsor, Democratic State Senator Jeff Bridges, the expansion acknowledges the “terrifying and consuming” experience of having a newborn in intensive care. While lauded by advocates, the law has faced some opposition due to concerns about potential cost increases for businesses and workers. Illinois also passed a similar NICU law, but unlike Colorado’s, it does not mandate paid leave.
Virginia’s Social Media Restrictions Face Legal Challenge
A new Virginia law aimed at limiting social media use by individuals under 16 to one hour per day – unless parental consent is given – is already embroiled in a legal battle. NetChoice, a group representing social media services, argues the law violates the First Amendment. The law’s author, Democratic State Senator Schuyler VanValkenburg, maintains it’s a “reasonable attempt to balance free speech with the safety and privacy of our children.” Attorneys for NetChoice contend the law is part of a broader pattern of government attempts to restrict constitutionally protected expression. A preliminary injunction hearing is scheduled for mid-January.
SNAP Benefits Restricted in 18 States
With approval from the Trump administration, 18 states will now restrict the use of Supplemental Nutrition Assistance Program (SNAP) funds to purchase items deemed non-nutritious, including candy, sodas, and energy drinks. States like South Carolina, Florida, Hawaii, and Texas received waivers from the U.S. Department of Agriculture in 2025 to implement these restrictions, citing concerns about obesity rates. South Carolina Governor Henry McMaster stated the move aligns with a goal of restoring SNAP to its “true purpose – nutrition.” Texas will prohibit SNAP funds for sweetened drinks and candy, while Virginia plans to bar them for certain “sweetened beverages.” Critics, however, remain skeptical that these bans will significantly improve public health.
Minnesota Launches Comprehensive Paid Family and Medical Leave Program
Minnesota workers are now eligible for up to 20 weeks of paid family and medical leave, beginning this week. The program provides 12 weeks for family leave – to care for a sick loved one or bond with a new baby – and 12 weeks for medical leave, with a combined annual cap of 20 weeks. Workers will receive partial pay and job security during their leave, and employers are prohibited from retaliation. The program is funded through a payroll tax shared by employers and employees. It is expected to extend more paid leave benefits to roughly three-quarters of Minnesota workers, joining 12 other states offering similar programs.
Illinois Regulates AI in Employment, Despite Federal Scrutiny
Illinois is taking a proactive stance on artificial intelligence (AI) in the workplace. A new law prohibits employers from using AI in employment decisions – including hiring, promotion, and discipline – if the technology relies on demographic information like race or ZIP code. Sponsored by Democratic State Senator Javier Cervantes, the law aims to address concerns about bias and fairness in AI-driven hiring practices. This legislation comes amid a broader federal challenge to state AI laws, with President Trump’s administration directing the Department of Justice to challenge laws deemed “cumbersome.” Cervantes anticipates a legal battle with the DOJ, noting that the federal government has already initiated over thirty lawsuits against states on similar grounds.
