New Laws, New Costs, New Risks for Mobility Leaders | January 2026 Insider

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Mobility issues are dynamic and ever-changing. To stay current, check out these recent articles for timely insights on lump sum relocation packages, income tax rates, and building future-ready teams. Dive into some of our newest and most useful content that you might have missed.

Mortgage Rates Ease, But Affordability Remains Out of Reach for Many

The fourth quarter of 2025 saw a small increase in home sales, but this pales in comparison to pre-pandemic sales, when mortgage rates were 4%. TheRealtor.com reports that while there are homes on the market (4.2 months’ supply), the median home price hovers around $409,200, an increase of over 1% from 2024. Sellers are not feeling pressured to lower their prices, which reinforces the affordability gap for potential buyers. Salaries are expected to increase in 2026, but homes are still expensive relative to income. As we begin the new year, mortgage rates are expected to remain consistent, suggesting the housing market may continue its current trend.

The Impact: As home prices continue to trend high, mobility leaders may need to consider flexible housing support, real-time cost of living assessments, and paint an accurate picture of the market for transferees. Salary boosts will help, but programs may need to reevaluate housing allowances, provide temporary living benefits, or destination services as market conditions remain tight.

California’s New “Stay-or-Pay” Restriction: What AB 692 Means for Relocation and Mobility Programs

A new California law restricts the use of post-employment repayment requirements, limiting “stay-or-pay” conditions associated with relocation expenses, sign-on bonuses, and training costs. As reported by WERC, Bill 692 was signed into law on October 13, 2025 and inhibits employers from requiring former employees to repay costs for employment contracts entered into after January 1, 2026. Employers who violate this law will be subject to penalties of at least $5,000 per employee. Some programs narrowly exempt employers from the law, such as some government loan repayment programs, discretionary payments, and specific residential property fees, but it does not broadly exempt relocation or mobility program benefits.

The Impact:This new law directly impacts how employers design relocation and mobility programs, specifically for contracts executed within California. With clawbacks largely limited, employers now bear more financial risk when funding relocation benefits for moves to California-based employees. Understanding how to navigate the law while protecting programs is a key role for mobility professionals. Shifting programs to smaller packages or alternative retention strategies that do not include repayment clauses are important to consider.

Why Schedule Flexibility is the New Workplace Battleground

The return-to-office (RTO) conversation is shifting from where an employee works to when they work, according to Fortune. Workers are seeking more autonomy over their schedules, gravitating towards flexible work models within their hybrid roles. Burnout continues to plague some workers; nearly 40% of office workers feel overwhelmed, and 57% of those are considering resigning, citing burnout as the reason. Some workers are now prioritizing work-life balance over income, and in the process, employers are struggling to regain control over workers’ schedules.

The Impact: A focus on work schedule autonomy could potentially impact on recruitment managers approach filling vacancies for new roles. Recruiters who encounter candidates that show interest in alternative arrangements, hybrid-friendly assignments, or even unconventional work hours may need to reassess the talent pool. Mobility programs that factor in these changes and flexibility preferences may be better positioned to support talent engagement and retention.

French Language Rules Tighten Across France and Quebec

Across France and Canada, French-language requirements are being enforced in different ways, signaling a shift toward stronger language skills and cultural integration. In France, Newland Chase reports that would-be long-term residents are required to adhere to French language standards and pass a new civic exam. The exam tests immigrants’ knowledge of French society and values; an approach designed to ensure those who pass have a deep understanding of culture.

Similarly, CERC shared that Quebec’s updated laws require businesses to operate in French as their primary language. Employers are now required to use French within workplace communications, contracts, and public signage. While not directly tied to immigration, these new laws do require employers and employees alike to acquire some degree of French-language proficiency in order conduct business within the province.
Together, changes across France and Canada show that French language proficiency is becoming increasingly essential as laws become stricter and more stringent.

The Impact: For international relocations, these changes highlight the necessity of language proficiency for assignment success. HR professionals should be prepared to engage transferees early in the process to determine their language preparedness, map out testing timelines, and mitigate any compliance risks. Organizations that are proactive with the provision of language training, compliance support, policy adjustments, and provide clear guidance to transferees can reduce assignment delays, unexpected costs, and successfully retain their employees.

Global Mobility Radar

CapRelo’s Mobility Radar provides valuable insights into trends worth monitoring. This month, we have detected important global mobility updates in Canada, Israel, and the U.S.

Canada is shifting away from developing micro-condos as they begin to lose their appeal. Residents cite high interest rates, rising condo fees, and diminished resale values as reasons they are moving away from these homes. Along with this, many residents are being priced out of this market, which is seeing its weakest condition in a decade.
Increasingly, tech workers in Israel are considering employment opportunities outside the country. The Israel Advanced Technology Industries Association found that 53% of business reported increase requests for relocation from their Israeli employees. Tech is a significant industry, accounting for 20% of Israel’s GDP.
Effective January 1, 2026, the U.S. added new restrictions directly impacting individuals seeking visas and entry. These rules mainly apply to individuals seeking entry from outside the United States. This is an expansion of the proclamation announced in December 2025, which banned some countries from U.S. entry and placed others under partial restriction.