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Workplace laws continue to shift, and several important changes are coming soon. From minimum wage increases and pay transparency requirements to new rules on AI in hiring and expanded leave benefits, these updates can influence how you manage your teams and plan for the year ahead.

While it may feel like a lot to keep track of, a little preparation now can help you avoid compliance issues later. Updating policies, reviewing processes, and staying aware of what’s changing ensures smoother transitions when these laws take effect.

We’ve gathered the latest updates in one place to make it easier for you.

State and Local Updates

CALIFORNIA

California Minimum Wage to Increase to $16.90 on January 1, 2026
Effective January 1, 2026, California’s statewide minimum wage will rise to $16.90 per hour for all employers, regardless of size. The increase follows the state’s annual inflation-based adjustment process, certified by the California Department of Finance on August 22, 2025.

This change will impact not only hourly wages but also exempt salary thresholds, premium pay calculations, and compliance with wage-related rules. Employers must act quickly to adjust policies and payroll systems before the effective date.

Key things to know:

• Applies to all employers — No exceptions for business size.
• Exempt salary thresholds rise — Most exempt employees must now earn at least $70,304 annually ($5,858.67 monthly).
• Reassess pay structures — Inside sales, piece-rate arrangements, and tool reimbursements may need adjustments.
• Premium pay calculations change — Split shift pay, reporting time pay, and penalties for meal/rest break violations must reflect the new minimum.
• Local ordinances may require more — Employers in cities like San Francisco, Los Angeles, and Berkeley must confirm whether higher local rates apply.

Action steps for employers:

• Audit employee wages and exempt classifications.
• Update payroll systems and workplace postings.
• Train HR/payroll staff on compliance with the new rate.
• Monitor local ordinances and industry-specific rules that may impose stricter standards.

California employers should prepare now to ensure a smooth transition and avoid compliance risks when the increase takes effect.

California Adopts New AI Regulations for Employment Decisions
Starting October 2025, California employers will face stricter rules on the use of artificial intelligence (AI) and automated decision systems (ADS) in employment practices. The California Civil Rights Council approved regulations under the Fair Employment and Housing Act (FEHA) that impose new compliance obligations for businesses using AI tools in hiring and workplace decisions.

Key requirements:

• Broad definition of ADS — Includes resume-screening software, video assessments, predictive analytics, personality tests, and AI-driven job ads.
• Recordkeeping — Employers must retain inputs, outputs, and selection criteria from AI-based decisions for at least four years.
• Bias testing encouraged — Employers should test tools for discriminatory outcomes; failure to do so could be used as evidence in discrimination claims.
• Reasonable accommodations required — AI systems that evaluate voice, facial expressions, or other characteristics must account for disability and religious needs.
• Candidate disclosure — Employers must notify applicants or employees whenever AI is used in decision-making, including an explanation of how the system works and steps taken to reduce bias.

Employer accountability:

The regulations apply to any employer with five or more employees, including nonprofits and staffing firms. Even if a third-party vendor provides the AI tools, the employer remains legally responsible for compliance. Noncompliance may lead to penalties, lawsuits, or reputational damage, regardless of intent.

Action steps for employers:

• Audit existing AI and HR tools for potential bias.
• Strengthen documentation and recordkeeping processes.
• Review vendor contracts to ensure transparency and compliance.
• Train HR teams on disclosure and accommodation requirements.

Looking ahead:
California joins New York City, Illinois, and the EU in regulating AI use in employment, but its proactive stance may set the tone for other states. Employers should expect increased litigation related to discriminatory AI outcomes and should take steps now to implement fair, transparent, and compliant systems.

California Set to Restrict AI Use in the Workplace With “No Robo Bosses” Act: 4 Key Steps Employers Should Take to Comply
California lawmakers just passed a law that could soon require employers to not only provide notices to applicants and workers when AI is used in workplace decision-making, but would also prohibit the use of AI for certain workplace actions. The “No Robo Bosses” Act (SB 7), which aims to regulate the use of automated decision systems (ADS) in the workplace, now heads to Governor Newsom’s desk after passing the legislature late Friday. If signed, SB 7 will take effect on January 1, 2026, alongside a wave of other AI-related employment regulations that will create a complex compliance landscape for employers using AI in the workplace. Here’s what you should know about the new law and the four steps you should take to get ready for compliance. READ MORE HERE.

CONNECTICUT

Expands Coverage of Paid and Unpaid Family and Medical Leave To Schools

Effective October 1, 2025, Connecticut will expand paid and unpaid family and medical leave coverage to include non-certified school employees—such as bus drivers, custodians, cafeteria staff, and paraprofessionals—in both public and private K–12 schools. Under Public Act 25-174, these employees will now qualify for the Connecticut Family and Medical Leave Act (CT FMLA), which offers up to 12 weeks of job-protected unpaid leave, and for Connecticut Paid Leave (CTPL) benefits, which provide partial wage replacement funded through employee payroll contributions. Employers must update policies, begin required deductions, and ensure compliance with these new coverage rules.

COLORADO

Hiring in Colorado? Check Your Postings Before the Government Does
Colorado employers should be aware of a recent enforcement uptick regarding online job posting rules – especially since missteps can result in huge fines up to $10,000 per violation. The Colorado Equal Pay for Equal Work Act (EPEWA) requires employers to include detailed information about pay, benefits, and application logistics in their job postings. These requirements have been in place since 2021 and all Colorado employers should have already incorporated them into the hiring process. Unfortunately, however, employers may not realize that not just job seekers but the government can search their job postings – and that enforcement efforts are rising. Given the high stakes for violations, now is a great time to review your job postings for compliance and curb the potential for costly errors. Here are the answers to your top five compliance questions. READ MORE HERE.

DISTRICT OF COLUMBIA

Minimum Cash Wage for Tipped Employees for Whom Employers Take a Tip Credit Increases to $12.00 

Effective October 1, 2025, the District of Columbia will increase the minimum cash wage for tipped employees from $10.00 to $12.00 per hour under its updated wage schedule, following a delay to the originally planned July 1 increase. Employers must ensure that a tipped employee’s combined earnings—base wage plus tips—equal at least the District’s full minimum wage; if not, employers are required to make up the difference.

FLORIDA

Florida’s Mandatory E-Verify Law: A Compliance Plan for Covered Employers
Employers in Florida need to comply with the state’s stricter employment verification obligations, or they could face serious consequences. Since 2023, private businesses with at least 25 employees have been required to use the federal E-Verify system to confirm employment eligibility for new hires. Although the law garnered considerable media attention when it was first enacted, many employers may not know the state conducts compliance audits and imposes penalties for violations. Here’s how employers can be prepared and create a plan to mitigate legal and financial risks. READ MORE HERE.

Florida Enacts CHOICE Act, Expanding Noncompete Enforcement
On July 3, 2025, Florida’s Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act became law, making the state one of the most employer-friendly jurisdictions for restrictive covenants. Despite its stated effective date of July 1, the Act went into effect when Gov. Ron DeSantis allowed it to become law without his signature.

Key provisions:

• Expanded enforceability: Covered employees — those earning more than twice the mean county wage — may be bound by noncompete and garden leave agreements of up to four years.
• Presumption of enforceability: Such agreements are presumed lawful and not against public policy.
• Default injunctions: Courts may issue injunctions by default, shifting the burden to employees to prove why enforcement should not apply.
• Scope limits: The Act does not apply to other restrictive covenants (e.g., nonsolicitation provisions), creating possible inconsistencies.

Court considerations:

• Florida state courts are more likely to uphold the Act’s automatic injunction provisions.
• Federal courts may scrutinize or decline to apply the Act’s presumptions, raising questions about enforceability in federal litigation.

Next steps for employers:

• Review and update noncompete agreements to ensure compliance.
• Consider filing enforcement actions in Florida state court.
• Monitor case law as courts begin to interpret the Act.

Florida’s Minimum Wage Will Rise Again on September 30: What Employers Need to Know and What You Should Do Next
Florida’s minimum wage will rise yet again on September 30, jumping to $14/hour (and to $10.98 for tipped workers) as part of a series of scheduled increases approved by voters in 2020. While employers across the Sunshine State face a new wave of possible challenges, this increase doesn’t have to disrupt your business. We’ll tell you what you need to know and what you can do to prepare. READ MORE HERE.

ILLINOIS

Illinois Employers Must Expand Dependent Coverage to Parents and Stepparents for Fully Insured Health Plans in 2026
Illinois will soon require fully insured health policies issued in the state to cover parents and stepparents who qualify as dependents, and employers that sponsor these group health plans must take note. This expansion of the Illinois Insurance Code, which applies to policies issued, amended, delivered, or renewed after January 1, 2026, creates new administrative challenges and compliance obligations for group health plans – especially since they typically offer dependent benefits only to children and spouses or domestic partners. We’ll explain what’s changing, how it impacts employers, and what you should do next. READ MORE HERE.

MASSACHUSETTS

Massachusetts Pay Transparency Law Effective October 29, 2025
Massachusetts’ new pay transparency law, An Act Relative to Salary Range Transparency, takes effect on October 29, 2025. The law is designed to promote pay equity and requires many employers to disclose salary ranges to applicants and employees.

Who Is Covered?

• Applies to public and private employers with 25 or more employees whose primary place of work is Massachusetts.
• Includes full-time, part-time, seasonal, and telecommuting employees tied to Massachusetts.
• Employers must calculate headcount annually by averaging payroll across pay periods.

Job Posting Requirements

• Employers must include the pay range in postings for roles based in Massachusetts, including remote positions that may be performed in the state.
• Applies to both employer and third-party job postings.

Pay Range Definition

• The “pay range” means the lowest to highest pay (salary or hourly) the employer expects, in good faith, to offer for the position.
• Applies to commission- and piece-rate roles, with ranges based on estimated earnings.

Disclosure Obligations

Employers must provide the pay range:

• To any applicant upon request.
• To employees offered a promotion or transfer.
• To employees requesting the range for their own position.

Reporting Requirements

• Employers that already file EEO-1 reports with the EEOC must also submit those same reports to the Massachusetts Secretary of the Commonwealth beginning in 2025.
• Employers with 100 or more employees in Massachusetts must submit annual wage data reports to the Secretary of the Commonwealth, starting February 1, 2025.

Enforcement and Penalties

• Enforcement authority lies with the Attorney General’s Office.
• Penalty schedule:
• First offense: Warning
• Second offense: $500 fine
• Third offense: $1,000 fine
• Subsequent offenses: Up to $25,000 fine

• Employers are prohibited from retaliating against employees or applicants who request pay information or exercise rights under the law.
• Employers have a two-year “cure period” (until October 29, 2027) to fix violations before full penalties apply.
• Note: There is no private right of action under this law.

Next Steps for Employers

• Confirm coverage under the law.
• Review and update job postings to include compliant pay ranges.
• Set internal procedures for handling pay range requests from employees and applicants.
• Train HR staff and managers on compliance requirements and anti-retaliation protections.
• Prepare reporting processes ahead of the 2025 deadlines.

Why It Matters
This law is a significant step toward greater pay transparency and equity in Massachusetts. Employers should act now to ensure compliance and to build employee trust t

MAINE

Maine Expands Earned Paid Leave Carryover Rules
Starting September 24, 2025, Maine employers must comply with amendments to the state’s Earned Paid Leave (EPL) law under LD 55.

Key changes:

• Accrual cap raised: Maximum overall accrual increased from 40 to 80 hours.
• Carryover flexibility: Employees may now carry over up to 40 unused hours from the prior year without reducing their ability to accrue a full 40 hours in the current year.
• Annual limits unchanged: Employees can accrue and use up to 40 hours per year, even if their balance exceeds that amount due to carryovers.

Example: An employee with 8 carryover hours may still accrue 40 new hours, totaling 48 — but may only use 40 hours that year.

Employer steps:

• Update EPL policies and handbooks.
• Adjust payroll/HR systems to align with new accrual rules.
• Notify employees to ensure clarity and compliance.

No Work But Still Pay? Maine’s New ‘Show-Up Pay’ Law Will Require You to Update Your Wage and Hour Practices
A new Maine law set to take effect before the end of the month will require most employers with 10 or more employees to provide a minimum payment to employees called in for shifts that are cancelled or reduced. Starting September 24, Maine LD 598, “An Act to Require Minimum Pay for Reporting to Work,” will require employers throughout the state to change their wage and hour practices to ensure compliance. But unanswered questions remain. What do you need to know about this law and what are some steps you can take to avoid violations? READ MORE HERE. 

MICHIGAN

Paid Sick Leave Expanded to Employers with 10 or Fewer Employees

Effective October 1, 2025, Montana’s House Bill 128 will prohibit employers from retaliating against employees who also serve as volunteer emergency responders, such as firefighters or EMTs. The law protects employees from being disciplined or terminated for absences or tardiness resulting from responding to emergencies, provided they have completed any required probationary period and given written notice to their employer. While the time away may be unpaid, employers may request advance notice or documentation if the absence could disrupt operations. Employees who face retaliation may file a civil claim within one year.

MONTANA

Retaliation Against Employees Who Are Also Volunteer as Emergency Responders Prohibited

Paid Sick Leave Expanded to Employers with 10 or Fewer Employees

Effective October 1, 2025, Michigan’s Earned Sick Time Act (ESTA) will expand to cover employers with 10 or fewer employees, requiring them to provide up to 40 hours of paid sick leave per year. This change aligns small employers with larger ones, who must already offer up to 72 hours annually as of February 2025. Employees will accrue one hour of sick leave for every 30 hours worked, with caps on annual use and carryover. Employers should update their leave policies, notices, and tracking systems to ensure compliance by the October 1 deadline.

NEBRASKA

Nebraska Paid Sick Leave Law Takes Effect October 1, 2025
On October 1, 2025, Nebraska’s voter-approved paid sick leave law, known as Initiative 436, will require most employers in the state to provide paid sick time to eligible employees.

Key Provisions:

• • Accrual Rate: Employees will earn 1 hour of paid sick time for every 30 hours worked
  • Employer Size Requirements:
    • Small Businesses (11–19 employees): Must provide up to 40 hours of paid sick time per year.
    • Larger Employers (20 or more employees): Must provide up to 56 hours of paid sick time per year.

• Carryover: Unused paid sick time can be carried over to the following year; however, the annual accrual caps remain in place.
• Usage: Employees may use paid sick time for personal or family health needs.

Exemptions:

The law does not apply to:

• Employers with 10 or fewer employees.
• Employees under 16 years of age.
• Temporary or seasonal agricultural workers.

Enforcement:
Employees may file complaints with the Nebraska Department of Labor for violations.

Action Steps for Employers:

• Review Policies: Ensure existing leave policies comply with the new law.
• Update Handbooks: Revise employee handbooks to reflect paid sick leave provisions.
• Train HR Staff: Educate human resources personnel on the new requirements.
• Prepare for Implementation: Implement necessary changes by the effective date to ensure compliance.

NEVADA

Employers Must Provide Leave to Employees to Participate in Civil Air Patrol

Effective October 1, 2025, Nevada will require all employers to provide job-protected leave for employees who volunteer with the Nevada Wing of the Civil Air Patrol, allowing up to 10 workdays per federal fiscal year for training and up to 30 workdays for emergency missions (e.g., search-and-rescue, disaster response). Employers must maintain the employee’s position, seniority, and benefits during this leave and may treat it as unpaid, but cannot require the employee to use their existing paid leave first or penalize them for using Civil Air Patrol leave.

Child Labor Working Hour Restrictions Amended

Effective October 1, 2025, Nevada’s Assembly Bill 215 amends state child labor laws to tighten working-hour restrictions: minors under 16 will be limited to 40 hours per week (down from 48), and all minors under 19 will generally be prohibited from working between 11:00 p.m. and 6:00 a.m. on nights before a school day (with certain exceptions).

OHIO

City of Cleveland Enacts Pay Transparency and Salary History Law Covering
Employers Employing 15 or More Employees 

Effective October 27, 2025, the City of Cleveland will implement Ordinance No. 104-2025, which imposes pay transparency and salary history restrictions on private employers with 15 or more employees operating in Cleveland (or posting/applying for jobs in Cleveland). Under the new law, covered employers must include a salary range or scale in all job postings or advertisements and are prohibited from inquiring into, relying on, or discriminating based on an applicant’s current or prior compensation history. The ordinance does not apply to internal transfers, promotions, collective bargaining–governed positions, or voluntary, unprompted disclosures by applicants. Enforcement is handled by Cleveland’s Fair Employment Wage Board (FEWB), which may issue civil penalties (ranging from $1,000 to $5,000 depending on prior violations) if an employer fails to remedy violations within 90 days.

Ohio Eliminates Affirmative Action Requirements for State Contractors
Effective September 30, 2025, Ohio will no longer require state contractors to maintain written affirmative action programs (AAPs) or obtain affirmative action certifications when bidding on public improvement projects. These changes stem from House Bill 96, signed by Gov. Mike DeWine on June 30, 2025.

Key changes under HB 96:

• Contractors are no longer required to file AAPs or submit annual progress reports.
• Bidders on public improvement projects no longer need a compliance certificate tied to affirmative action.
• Public authorities may not disqualify a bidder for lacking participation in an affirmative action or diversity, equity, and inclusion (DEI) program.

Context:

• The move aligns with the Trump administration’s rollback of federal contractor AAP mandates, including the revocation of Executive Order 11246 and the winding down of the Office of Federal Contract Compliance Programs (OFCCP).
• Previously, Ohio required AAPs for contractors with 50 or more employees and contracts worth $50,000 or more.

Next steps for employers:

• Ohio contractors no longer need to maintain AAPs as a matter of state law.
• Employers should still review compliance obligations under federal and local nondiscrimination laws, which remain in effect.
• Contractors with multi-state operations should continue monitoring requirements in other jurisdictions where affirmative action rules may still apply.

WASHINGTON

Washington Supreme Court Allows Any Job Applicant to Sue under Pay Transparency Statute: 3 Steps You Should Take To Reduce Your Risk
The Washington Supreme Court just made it easier for plaintiffs to bring costly lawsuits against employers for violations of the state’s highly technical job posting requirements, making compliance more important than ever. The September 4 decision in Branson v. Washington Fine Wine & Spirits allows any “job applicant” to bring a claim for statutory damages against an employer that fails to disclose salary, wage, and benefits information in their job postings, regardless of whether they are a bona fide or good faith applicant. Yesterday’s decision invites a spike in “serial plaintiffs” who merely apply for jobs in aid of bringing large-scale class action lawsuits against employers that commit technical violations of the strict law. This Insight will review what happened in Branson, the impact of recent amendments to the law, and the three steps you can take to ensure you don’t end up as the next defendant in court. READ MORE HERE.

Federal-Level Updates

Employer Cheat Sheet for Workplace Laws Taking Effect in October 2025

October will bring vibrant foliage, cooler temperatures, and a heap of new workplace laws. From California to Connecticut, employers across the country will be impacted by state and local requirements taking effect next month. Some trends this fall include pay transparency, paid sick leave, and data privacy protections. Here’s your employer cheat sheet to the laws taking effect in October 2025. READ MORE HERE.

School-Activities-Leave Laws Can Differ Widely Across States
As schools reopen, employers need to pay close attention to school-activities-leave laws, which vary significantly from state to state. These laws govern who is eligible to take time off, how much leave can be used, what documentation employers may request, and what types of school events are covered.

Key State Coverage

• States requiring school-activities leave: California, Illinois, Massachusetts, Minnesota, Nevada, North Carolina, Rhode Island, Vermont, and the District of Columbia.
• Louisiana encourages but does not mandate school-activities leave.
• New Jersey and New Mexico allow employees to use paid sick leave for certain school obligations.

Examples of Leave Amounts

• California: 40 hours annually (no more than 8 hours per month).
• District of Columbia: 24 hours per 12-month period.
• Minnesota: 16 hours per 12-month period.
• Nevada: 4 hours per school year.

Eligibility Differences

• Minnesota: Applies to employees with biological, adopted, foster, or stepchildren, wards, or legal guardianship.
• District of Columbia: Includes parents, guardians, grandparents, aunts, uncles, or those in domestic partnerships with such individuals.
• California: Applies to parents, guardians, stepparents, foster parents, grandparents, or anyone acting in the place of a parent.

Covered School Activities

• Parent-teacher conferences.
• Classroom volunteering.
• School disciplinary meetings.
• School concerts or sporting events.
• School or child care emergencies.
• Finding or enrolling in a school or child care program.

Voluntary Policies
Even in states without requirements, employers may consider offering school-activities leave to maintain consistency across locations, boost morale, and align with employee expectations.

What Employers Can – and Can’t – Do About Employee Speech in a Volatile Climate
Private-sector employers are not bound by the First Amendment’s free speech protections, which only restrict government action. That said, employers may not be able to discipline off-duty speech with total impunity. Several states – including California, New York, and Colorado – have statutes protecting employees from retaliation for lawful off-duty conduct, and Minnesota, Connecticut, Louisiana, South Carolina, and Wyoming are among the states that specifically protect off-duty political activity. These laws may prevent employers from firing or disciplining employees for expressing their personal views unless those views have a clear, material impact on the business. READ MORE HERE.

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