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As 2025 draws to a close, several states are introducing new workplace laws that will shape how employers manage pay, leave, and compliance in the coming year. From California’s minimum wage increases and AI regulations to expanded family leave and pay transparency requirements across other states, these updates reflect a growing emphasis on fairness and accountability in the workplace.

Staying ahead of these changes ensures your business remains compliant and your teams stay protected.

Explore the highlights below to see what’s changing in your state — and reach out to our HR team if you’d like guidance tailoring these updates to your workplace.

State and Local Updates

CALIFORNIA

Los Angeles Hotel Worker Minimum Wage Increase Takes Effect
The City of Los Angeles has officially implemented its minimum wage increase for hotel workers after a referendum attempt to block the measure failed. The City Clerk determined the petition insufficient on September 8, 2025, which immediately triggered the ordinance’s effect.

Under the ordinance –

– Hotels with 60 or more rooms must pay hotel employees $22.50 per hour starting July 1, 2025.
– The rate will rise to $25.00 on July 1, 2026, $27.50 on July 1, 2027, and $30.00 on July 1, 2028.
– Employers must also provide health benefits or a wage supplement in lieu of coverage beginning July 1, 2026.

This increase positions Los Angeles among the highest-paying cities for hotel and hospitality workers in the United States. Across California, other cities are also taking action – San Diego recently approved a measure raising minimum wages for large hotel and event venue employees to $25 per hour, reflecting the growing push for stronger worker protections in the hospitality industry.

What Employers Should Do

– Review and update payroll systems to meet the new wage schedule.
– Verify compliance with health-benefit payment or supplement requirements.
– Maintain proper documentation, notices, and pay transparency to meet the city’s enforcement standards.

For more information and compliance resources, visit the Los Angeles Office of Wage Standards at wagesla.lacity.gov.

Workforce Reductions in California: Do You Have to Give Employees Advance Notice Under Cal-WARN?

California employers across industries have been forced to make difficult decisions concerning staffing levels and the need for workforce reductions in recent months. Layoffs, facility closures, and employee relocations can potentially trigger an employer’s duty to give employees advance notice of a layoff or certain other workplace events. A failure to give notice may expose employers to liability – and recent legal developments make it essential for California employers to understand their obligations. What should you do to determine whether your company is covered by Cal-WARN and how can you comply? READ MORE HERE.

California Breaks New Ground With Record $1.35M Fine for Job Applicant Mistakes: 6-Step Action Plan for Employers

The California Privacy Protection Agency, the state’s main data privacy regulator, just announced its largest fine yet – a record-setting $1.35 million – against an employer that it found to have violated job applicant and consumer privacy rights. Today’s announcement marks the first-ever enforcement action involving job applicants, kicking off a new chapter when it comes to the way employers need to think about the California Consumer Privacy Act (CCPA). If you collect information from California job applicants, employees, or consumers, you will want to review our summary of this groundbreaking news and follow our six-step action plan. READ MORE HERE.

California AI Rules – Employers Now Liable for AI-Driven Discrimination

As of October 1, 2025, California employers face expanded liability for discrimination resulting from artificial intelligence–assisted employment decisions. The new amendments make it clear that if AI contributes to a biased employment action, employers are legally responsible — regardless of company size.

Employer Accountability – The regulation removes ambiguity by directly linking employer liability to AI use. While federal law hasn’t been amended in the same way, the Equal Employment Opportunity Commission (EEOC) has warned employers to avoid AI practices that cause disparate or adverse impact. California’s rules apply to all covered employers — from startups using AI for resume screening to large corporations automating evaluations.

Human Oversight Still Required – The main compliance risk lies in assuming AI tools are infallible. Employers remain fully accountable for decisions made by AI. This includes new record-keeping duties: all data used in or resulting from AI employment decisions must be retained for four years. For HR teams, this means added administrative and privacy management demands.

Compliance Strategy – Employers should monitor all AI-assisted actions with the same care as human decisions. Systems must be audited regularly for bias, with documentation proving fair and consistent outcomes. HR, legal, and IT teams need to collaborate closely to track how AI influences hiring, promotions, and performance evaluations.

Context – California’s move aligns with broader efforts to regulate automation’s workforce impact. Similar measures — such as restrictions on self-checkout in Long Beach — highlight growing concern over AI’s role in job displacement and fairness.

Next Steps for HR
HR teams should begin immediate audits of AI systems, review vendor transparency, and create oversight protocols for algorithmic decision-making. As AI becomes more integrated into HR functions, California’s regulations set a clear message: accountability extends to both human and machine decisions, and employers must adapt their compliance strategies accordingly.

Employer Guide to California’s New Workplace Laws Coming in 2026 (and Beyond)

California lawmakers were busy this year, and Gov. Gavin Newsom just signed many bills into law that will impact the workplace starting in 2026. Here is a snapshot guide of some of the top new workplace laws taking effect January 1 (except as otherwise noted), plus links to our deeper dive insights, which include practical compliance tips for employers. We’ll also cover a few key vetoes that will give you a sigh of relief. READ MORE HERE.

New California Law Will Require Immigration-Related Rights Notification and Emergency Contacts: Employers’ Action Plan for Compliance

Governor Newsom just signed into effect a new law yesterday that will soon require California employers to provide written notice to each employee advising of specific constitutional rights when interacting with law enforcement at work. Enacted in response to the current federal immigration enforcement posture, SB 294, also known as the “Workplace Know Your Rights Act,” will also require employers to notify the employee’s “designated person” if the employee is arrested or detained at work. Below are the specific requirements of the new law to ensure you are prepared before the February 1, 2026, deadline – and a list of action steps you should consider taking. READ MORE HERE.

COLORADO

Colorado Supreme Court Just Halved the Timeframe to Bring Minimum Wage Act Claims: What Employers Need to Know About This Major Win

The Colorado Supreme Court just gave employers significant relief from minimum wage lawsuits. Last week, in By the Rockies v. Perez, the court ruled that the applicable limitations period for a Minimum Wage Act (MWA) violation is two years (or three years for willful violations) – rather than the six-year timeframe sought by the plaintiff in the case. We’ll explain what happened and how this decision impacts Colorado employers. READ MORE HERE.

CONNECTICUT

New Leave Rights for Connecticut School Employees

Effective October 1, 2025, Connecticut House Bill 7288 expands CT Paid Leave and CT Family and Medical Leave Act (CT FMLA) to include both public and private elementary and secondary school employees.

Previously, only workers covered under collective bargaining agreements were eligible. Starting October 1, noncertified school employees—those not requiring a teaching or administrative license—will now qualify for these leave benefits.

Key Points:

Eligibility: Employees who have worked at least 3 months within the past 12 months may take up to 12 weeks of job-protected leave for family or medical reasons, with an additional 2 weeks available for pregnancy-related health conditions.

CT Paid Leave Benefits: Provides wage replacement for eligible employees taking leave under CT FMLA or due to family violence or sexual assault.

Employer Requirements: Register with the Connecticut Paid Leave Authority, provide required notices to employees, and implement payroll withholdings of 0.5% of covered wages for contributions.

Action Step:

School employers should review and update leave policies to ensure compliance and proper payroll setup before the October deadline.

ILLINOIS

Illinois NICU Leave Law – New Unpaid Leave Protections for Parents

Effective June 1, 2026, Illinois’s Neonatal Intensive Care Leave Act (NICLA) introduces unpaid leave for parents with a child in a neonatal intensive care unit (NICU). The law applies to employers with 16 or more employees and expands family-related protections beyond the Family and Medical Leave Act (FMLA).

Coverage and Duration – Employers with 16 to 50 employees must provide up to 10 days of unpaid leave, while those with more than 50 employees must offer up to 20 days. Employers with 15 or fewer employees are not covered. NICLA applies to all workers — full-time, part-time, or newly hired — and leave can be taken intermittently or continuously. Employers may set a minimum increment for taking leave, not exceeding two hours.

Definition of Child – NICLA covers a biological, adopted, or foster child, a stepchild, a legal ward, or a child for whom the employee stands in loco parentis.

Interaction with FMLA – NICLA leave is separate from and in addition to FMLA leave. Employees who exhaust their FMLA entitlement may still take NICLA leave if their child remains in the NICU. Employers cannot require employees to use accrued paid time off before taking NICLA leave, though employees may choose to do so voluntarily. Upon return, employees must be reinstated to their original or equivalent position with no loss of benefits or coverage.

Verification and Privacy – Employers may request reasonable verification of a child’s NICU stay, but they cannot demand information that violates privacy laws such as HIPAA. Acceptable documentation would typically include a statement from a medical provider confirming the stay’s duration.

Retaliation and Penalties – Employers are prohibited from retaliating against employees who take NICLA leave or assist others in doing so. Employees have 60 days from the alleged violation to file a complaint with the Illinois Department of Labor (IDOL) or pursue a civil action. Violations may lead to civil penalties of up to $5,000 per incident, plus unpaid wages and other damages.

Next Steps for Employers
With the law taking effect in mid-2026, Illinois employers should begin updating handbooks, training HR and management teams, and preparing to include NICLA information alongside FMLA notices. Early preparation will help ensure compliance and demonstrate support for employees during critical family medical situations.
 

MASSACHUSETTS

Massachusetts Pay Transparency Law Effective October 2025

Starting October 29, 2025, Massachusetts employers must comply with the new “Act Relative to Salary Range Transparency,” requiring wage range disclosures and pay data reporting.

– Applies to private and public employers with 25 or more employees whose primary place of work is in Massachusetts.

– Covers job postings, promotions, and transfers where the work is or can be performed in the state, including remote roles.

– Employers must disclose pay ranges in postings, upon applicant request, and to current employees seeking pay range information or promotions.

Definition of Pay Range

Refers to the lowest to highest hourly or salary rate the employer reasonably expects to offer. If pay includes commission or piece rates, the expected range must also be provided.

Pay Data Reporting Schedule

Only employers required to file EEO reports with the EEOC must also submit them to the Secretary of the Commonwealth.

Employee Protections

The law prohibits retaliation against individuals who:
– Request salary range information or file complaints.
– Participate in investigations or proceedings under the law.

The Attorney General’s Office enforces compliance. Employers have two business days to correct violations (until October 29, 2027) upon receiving notice before penalties apply.

Action Steps for Employers

– Confirm if your organization meets the coverage threshold.
– Update job postings with accurate, good-faith pay ranges.
– Set internal protocols for handling pay range requests.
– Train HR and management teams on compliance and anti-retaliation measures.

Massachusetts Employers Should Prepare for 2026 Paid Family and Medical Leave Updates

As Massachusetts employers look ahead to 2026, the Department of Family and Medical Leave (DFML) has released its annual updates to the Paid Family and Medical Leave (PFML) program. While the maximum weekly benefit will increase, the contribution rate remains steady. Here’s a breakdown of the key changes that take effect on January 1, plus three action items for employers. READ MORE HERE.

MINNESOTA

Minnesota Paid Family Leave Antiretaliation, Notice Provisions Take Effect

November 1, 2025 Minnesota Paid Family Leave Antiretaliation, Notice Provisions Take Effect

Effective November 1, 2025, employers subject to Minnesota’s Paid Family and Medical Leave (PFML) law must comply with antiretaliation protections and prepare to provide required employee notices. Employers must post the official workplace poster and distribute written notice to all employees explaining available benefits no later than December 1, 2025.

Employees must provide at least 30 days’ advance notice for foreseeable leave and as soon as practicable for unforeseeable leave.

Quarterly wage detail reporting requirements began October 31, 2024.

Access to leave benefits and requirements regarding employee and employer contributions and pay statements begin January 1, 2026.

By April 30, 2026, covered employers must begin making deposits of premium contributions, based on wages earned between January 1 and March 31, 2026, with the Minnesota Department of Employment and Economic Development (DEED).

Amendments to the PFML law take effect November 1, 2025.

2023 Bill Text MN H.B. 2, as amended by 2023 Bill Text MN H.B. 5247.

NEW JERSEY

New Jersey Employers Face Another Minimum Wage Increase in 2026: Your Compliance Guide for the Year Ahead

For the eighth year in a row, New Jersey will be increasing its minimum wage effective January 1, 2026. Under a law passed in 2019, the New Jersey Department of Labor and Workforce Development (NJDOL) initially set a new minimum wage rate in 2024 and sets the wage for the coming year based on an increase in Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics. The NJDOL recently announced on October 1 that, based on CPI data, the minimum wage will increase by 43 cents to $15.92 per hour for most employees, fulfilling what Governor Murphy called “making the dream of a livable wage a reality.” Here is a summary of the increases that will soon take effect, along with some compliance recommendations to prepare. READ MORE HERE.

NEW YORK CITY

NYC Expands Safe and Sick Leave Requirements: What Employers Need to Know

The New York City Council just passed legislation to further expand the city’s Earned Safe and Sick Time Act. The amendments, approved on September 25, will soon broaden the reasons employees can use sick leave, introduce a new 32-hour bank of unpaid leave, and eliminate obligations under the Temporary Schedule Change Act in light of the expanded sick leave requirements. Below, we summarize the current requirements, highlight the key changes, and outline steps employers should take to prepare. READ MORE HERE.

VIRGINIA

Virginia Employment Law Updates – 2025 Highlights

The Virginia General Assembly passed several new employment laws effective in 2025, impacting noncompete agreements, unemployment, safety, and child labor.

Noncompete Ban Expansion – As of July 1, 2025, employers cannot enforce noncompetes on employees eligible for overtime pay under federal law, even if they earn above the prior wage limit. Exceptions apply to commission-based roles.

Unemployment Response Rules – Employers who fail to respond to Virginia Employment Commission requests three times may face penalties and lose appeal rights. Responses must be made within 10 days.

Benefit Increase – Starting Jan. 1, 2026, weekly unemployment benefits rise by $52.

Vulnerable Victim Liability – Employers may now be held liable for employee misconduct involving vulnerable individuals (e.g., patients, assisted living residents).

Hospital Safety Plans – Hospitals must implement incident reporting systems and submit annual workplace violence data by July 1, 2026.

Child Content Creator Protections – Minors under 16 featured in monetized content must have a portion of earnings placed in a trust account.

Youth Salon Work – Minors aged 16+ in training or licensed programs may now work in barbershops and salons.

HR Insight:

Review policies, update noncompete practices, and ensure compliance with reporting, safety, and youth labor regulations.

Federal-Level Updates

Military-Related Work Leave Hits Highest Rates Since 2006 – Does Your Company Know How to Comply with USERRA?

The deployment of National Guard and other military personnel is at its highest rate in almost 20 years, and there’s a likely chance that one or more of your employees will miss time from work because of military service in the near future. But did you know that federal law creates obligations that go well behind what you might expect from typical worker protection statutes? If you’re not familiar with the Uniformed Services Employment and Reemployment Rights Act (USERRA), or you need a refresher, this Insight will provide you with a solid overview of the law and your responsibilities. READ MORE HERE.

Open Enrollment Season in the Workplace (2025-2026 Edition): 5 Legal Considerations + Employer Takeaways

It’s that time of year again – employers are gearing up for the administrative marathon known as open enrollment season, when employees revisit their benefit plan choices for the upcoming plan year. This critical period consistently highlights the many complex rules applicable to employer-sponsored health and welfare plans, and this year brings some new additions due to changes in federal law. We’ll cover five key compliance areas for employers and share practical takeaways to help you stay compliant. READ MORE HERE.

Keeping up with workplace laws can be challenging, but preparation now helps prevent compliance issues later.