Welcome to the latest ISSA Legislative & Regulatory Update, a biweekly round up of the public policies currently impacting the cleaning and facility solutions industry. This update touches on the U.S. Department of Labor’s joint employer rule and ISSA’s corresponding member survey, staying ready for what’s next in the industry, the Virginia House of Delegates commending ISSA, and more.

Want to stay informed about critical government affairs impacting the entire built environment? Sign up here to have the ISSA Legislative & Regulatory Update emailed directly to you every other week.

ISSA Member Survey: DOL Proposed Joint Employer Rule

What it means: On April 23, 2026, the U.S. Department of Labor (DOL) issued a proposed rule on joint employer liability. When an individual works for two or more companies simultaneously, this proposed rule determines which employer is responsible for complying with federal labor laws for minimum wage and overtime.

Why it matters: DOL is creating a federal standard for joint employer definition because there has been no guidance for employers on this subject since 2021. DOL issued a 2021 final joint employer rule, but it was the subject of litigation and eventual recission in 2021.

This rule will affect small cleaning businesses, including some building service contractors and residential cleaners, that use staffing companies, as well as those in franchisor-franchisee, vendor-supplier, and contractor-subcontractor arrangements.

What ISSA is doing: If you’re a building service contractor or residential cleaner, please take a moment to complete a brief survey related to the proposed rule by June 15 to assist ISSA in preparing comments on behalf of the industry for DOL’s consideration. Complete the survey now

Stay Ready for What’s Next in the Cleaning & Facility Solutions Industry

Don’t get blindsided by policy changes that impact your cleaning business. Receive real-time text alerts from your ISSA Advocacy Team and be the first to know and act on the issues shaping the entire built environment.

Take action: Text “ISSA” to 50457 to stay in the loop or sign up online through ISSA’s Advocacy Action Center under “Sign Up for Alerts.”

Thank you to Virginia House of Delegates member David Reid (D-28) and ISSA State Advocacy Leader Natasha Magrath of You’ve Got Maids of Northern Virginia for spearheading a resolution agreed to by the Virginia House earlier this year commending ISSA for its distinguished service to the cleaning and facility solutions industry!

Additional Updates

Regulatory

Companies Start Receiving Tariff Refunds after Supreme Court Decision

After the U.S. Supreme Court ruled some of President Trump’s tariffs unconstitutional, the first wave of refunds began flowing last week. Customs and Border Protection said in a recent court filing that it anticipated paying refunds of US$35.46 billion on 8.3 million shipments. Learn more (CNBC)

• Takeaways from Trump’s trip to China (CNBC)
• Trump orders federal agencies to prioritize American-made goods (Fox Business)
• Employer checklist for May 2026 (Fisher Phillips)

Judicial

Appeals Court Pauses Order That Declared Trump’s Global 10% Tariffs Unlawful

A federal appeals court temporarily paused a lower court order that declared President Trump’s global 10% tariffs unlawful. In an unsigned decision, the U.S. Court of Appeals for the Federal Circuit issued an administrative stay of the May 7 decision from the Court of International Trade. Learn more (ABC News)

State News

California: Rules for Packaging EPR Program Finalized

After considerable anticipation and delay, California’s Office of Administrative Law finalized the California Department of Resources Recycling and Recovery’s (CalRecycle) permanent regulations for the state’s extended producer responsibility (EPR) program. The regulations were delayed last March over concerns about cost to businesses and consumers.

The new regulations were effective on May 1, 2026. To comply, producers have until June 1 to register with the producer responsibility organization (PRO) or with CalRecyle and apply for either independent producer status or a small producer exemption. CalRecycle also launched the Packaging Extended Producer Responsibility System (PEPRS) to handle producer registration, reporting, document submissions, and compliance tracking. Learn more (The National Law Review)

For more on California’s Plastic Pollution Prevention and Packaging Producer Responsibility Act, see ISSA’s Summary of State EPR Laws.

• Virginia is the first southern state to mandate paid family & medical leave (Virginia Mercury)
• States demand transparency in Trump’s tariff refunds (Stateline)