Louisiana

Louisiana Legislative Updates

APPLIES TO

All Employers with Employees in LA

EFFECTIVE

AUG 1, 2026

QUESTIONS?

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Quick Look

  • Voluntary portable benefits accounts are available for independent contractors.
  • The use of expunged criminal history record information for hiring decisions is clarified.
  • Workers’ compensation coverage is extended to employees of independent contractors who spend a substantial part of their time engaged in manual labor.
  • Unpaid leave (up to 30 consecutive calendar days) must be granted to employees who request it in writing to serve as a human organ or bone marrow donor.

Discussion

The Louisiana legislature passed several new laws expanding employee rights and protections. The significant updates are summarized below.

 

Portable Benefit Accounts for Independent Contractors. HB 301 provides for voluntary portable benefits accounts for independent contractors. A portable benefit account is owned by the independent contractor and is not associated with the hiring party. The purpose of funding the account is to provide and pay for health insurance, income replacement insurance, disability pay insurance, life insurance, and retirement benefits. Any individual may contribute funds to the account, or the hiring party may withhold a percentage from compensation owed to the independent contractor and contribute to the account, subject to a voluntary written agreement between the parties. An independent contractor can also opt out of such an agreement. The existence of such contributions is not evidence of an employment relationship.

 

Use of Expunged Criminal History Records. SB 288 clarifies the use of expunged criminal history record information for hiring decisions. The Louisiana Bureau of Criminal Identification and Information (Bureau) will not release expunged criminal history record information to private employers. However, the Bureau can release such expunged information to public entities at its discretion, based on strong evidence provided by the entity that release of the expunged information would be in the best interest of protecting the children, elderly, or individuals with disabilities served by the public qualified entity.

 

Workers’ Compensation Coverage Extended. HB 185 extends employee coverage under Louisiana’s workers’ compensation law to include employees of independent contractors who spend a substantial part of their time engaged in manual labor.

 

New Organ and Bone Marrow Donor Leave. SB 409 requires employers to grant an unpaid leave of absence when an employee requests in writing to serve as a human organ or bone marrow donor, for up to 30 consecutive calendar days, though employers may voluntarily offer longer or paid leave beyond this minimum. Employers may require physician verification of the purpose and duration of the leave; however, if an employee is ultimately determined medically ineligible to donate, any paid leave already taken is not forfeited. No employee may be discharged, demoted, suspended, threatened, harassed, or otherwise discriminated against for requesting or using organ donation leave. Any paid leave granted for organ donation carries no cash value upon separation from employment, and this leave does not diminish or affect any other employment benefits to which an employee may otherwise be entitled. Employers retain the flexibility to provide leave beyond what is outlined here, and nothing in this provision limits an employee’s rights under any other applicable employment benefit.

 

Action Items

  1. Consult with legal counsel regarding written agreement for contributions to qualified portable benefits for independent contractors, if applicable.
  2. Review and update procedures for requesting criminal history record information.
  3. Review independent contractor arrangements involving manual labor to determine potential workers’ compensation coverage obligations.
  4. Update leave policies to include organ and bone marrow donor leave.
  5. Have appropriate personnel trained on the updated requirements.

 


Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase

Maine

Discussion

Maine: Monetary Penalty for Employers Whose Unemployment Payment is Returned Unpaid

As of April 3, 2026, HP 1416 allows for a penalty of $25 or 1% of the payment amount whenever an unemployment payment is returned unpaid for any reason, including but not limited to insufficient funds, account closure, nonexistence of the account, stop-payment order or any other cause.

 


Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase

Maryland

Maryland: Legislative Updates

APPLIES TO

As Indicated

EFFECTIVE

As Indicated

QUESTIONS?

Contact HR On-Call

(888) 378-2456

 

Quick Look

  • Hospitals must adopt and train staff on written protocols for responding to immigration enforcement actions occurring on hospital premises.
  • Businesses subject to Maryland’s data privacy law are now restricted from selling consumer personal data to government units that have engaged in or supported civil immigration enforcement, subject to limited exceptions.
  • Hospitals must meet new clinical staffing committee and staffing plan requirements aligned with accreditation and federal standards.
  • Taxicab and rideshare drivers, along with rideshare companies, must complete human trafficking awareness training as a condition of licensure and continued operation.
  • Small Business Health Options Program enrollment effective dates during special enrollment periods are now aligned with federal regulations.
  • New income-based caps limit how much employers and courts may withhold from an obligor’s earnings for child support.

Discussion

Maryland’s 2026 legislative session produced a range of new requirements affecting hospitals, data privacy compliance, transportation licensing, health insurance administration, and child support withholding. Key aspects of each are summarized below.

 

Hospital Immigration Enforcement Action Policies. Effective June 1, 2026, SB 792 requires all hospitals in the state to adopt a written policy establishing the protocol to be followed when an immigration enforcement action occurs on hospital premises, consistent with guidance issued by the Maryland Attorney General under § 6-111 of the State Government Article. Hospitals must make this policy readily available to all staff members and must conduct annual training to ensure that every staff member understands and can implement the policy. This law reflects Maryland’s broader legislative effort to protect patients’ access to healthcare and ensure that hospitals are prepared to respond to immigration enforcement activities in a consistent, lawful, and transparent manner.

 

Immigration-Related Consumer Data Privacy Restrictions. Effective July 1, 2026, HB 711 amends the Maryland Online Data Privacy Act (MODPA) to further restrict the sale and disclosure of personal data to government units involved in immigration enforcement. MODPA continues to apply to businesses that control or process personal data of at least 35,000 Maryland residents, or 10,000 residents if 20% or more of gross revenue comes from selling personal data. Under the amendment, a covered “controller,” meaning a person that alone or jointly with others determines the purpose and means of processing personal data, is prohibited from knowingly selling a consumer’s personal data to a federal, state, or local governmental unit that has engaged in or supported civil immigration enforcement, through personnel or material resources, within the preceding six months. The only exception applies where the business receives a valid warrant issued by a federal or state court that particularly describes the personal data sought. Businesses may still comply with subpoenas, summonses, or law enforcement requests from governmental units or agencies that have not engaged in or supported civil immigration enforcement within the preceding six months. MODPA is enforced by the Division of Consumer Protection under the Maryland Attorney General, and violations are treated as unfair, abusive, or deceptive trade practices under the state’s Consumer Protection Act, subject to a 60-day cure period upon notice of violation.

 

Hospital Staffing. Effective October 1, 2026, SB 411 requires each hospital to comply with the staffing standards of the accreditation body that accredits the hospital and the federal Centers for Medicare and Medicaid Services (CMS) Conditions of Participation (CoPs). Each hospital must establish and maintain a clinical staffing committee that has (1) three managers and two employees, if the hospital has 150 or fewer licensed beds or (2) five managers and four employees, if the hospital has 151 or more licensed beds. The chief nurse executive of each hospital must produce a draft clinical staffing plan and submit it to the clinical staffing committee. Using the draft plan, each clinical staffing committee must finalize a clinical staffing plan that meets patient needs. Each hospital must provide the clinical staffing plan to staff on request. Of note, the bill does not apply to State hospitals.

 

Human Trafficking Awareness and Prevention Training for TNC. Effective October 1, 2026, HB 829 requires an applicant for a local taxicab driver’s license or State for-hire driver’s license to include in the license application documentation verifying that the applicant completed a human trafficking awareness training program, as specified. A human trafficking awareness training that an applicant completes under this provision must include information on how to (1) recognize potential victims of human trafficking; (2) respond to an individual who may be or is a victim of human trafficking; and (3) report suspected incidents of human trafficking to appropriate authorities. The bill also prohibits a transportation network company (TNC) from allowing a transportation network operator (TNO) licensee or license applicant to provide transportation network services unless the TNO has completed a human trafficking awareness program, as specified. The bill further specifies that an applicant for a TNO license or a licensed taxicab driver, for-hire driver, or TNO may not be held civilly or criminally liable for reporting or responding in good faith to a suspected incident of human trafficking.

 

SHOP Enrollment Effective Dates. Effective October 1, 2026, SB 14 aligns Maryland health insurance law with existing federal regulations by altering the effective dates of enrollment in a Small Business Health Options Program (SHOP) Exchange plan for individuals who enroll during a special enrollment period (SEP). If an eligible employee enrolls certain individuals in a SHOP plan during the first 31 days of an SEP, coverage must become effective on the first day of the month following receipt of the plan selection if allowed by the SHOP exchange and selected by the eligible employee.

 

Child Support Withholding Limit. Effective October 1, 2028, SB 16 introduces income-based withholding caps, under which employers may not deduct more than 35% of an obligor’s earnings, and courts may not order more than 25% of disposable earnings for combined support and arrears, when the obligor’s income does not exceed 250% of the federal poverty guidelines. These protections are overridden if the obligor was found to be voluntarily impoverished. These caps apply consistently across both administratively issued and court-ordered withholding, and earnings withholding orders must now reference the applicable state cap in addition to federal Consumer Credit Protection Act limits.

 

Action Items

  1. Hospitals should implement and distribute written immigration enforcement action policies, as applicable.
  2. Covered businesses should inventory all personal data sales for compliance with MODPA.
  3. Hospitals should establish clinical staffing committees and finalize staffing plans consistent with the new staffing requirements.
  4. Taxicab, for-hire, and rideshare companies should confirm that drivers and operators complete required human trafficking awareness training.
  5. Employers offering SHOP plans should update enrollment administration, as applicable.
  6. Have appropriate personnel trained on all of the updated requirements.

 

Maryland: Commission on Civil Rights Releases Discrimination Playbook

APPLIES TO

All Employers with Employees in MD

EFFECTIVE

JUN 22, 2026

QUESTIONS?

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(888) 378-2456

 

Quick Look

  • The Maryland Commission on Civil Rights has published guidance identifying thirty-five categories of employment discrimination claims and the specific elements it applies to prove each under state law.
  • The guidance highlights several areas where Maryland law is more employee-friendly than federal law, including broader protected classes, a lower harassment threshold, strict supervisor liability, and different accommodation standards.

Discussion

On June 22, 2026, the Maryland Commission on Civil Rights (MCCR) published its Elements of Proof Guidance, setting forth the elements it applies when evaluating employment discrimination claims under Title 20 of the Maryland State Government Article. While the guidance is an internal agency investigation tool and not binding on courts, it offers employers a valuable window into how the agency analyzes and evaluates discrimination complaints.

 

The Guidance highlights several aspects of Maryland’s framework that are more favorable to employees than federal law. Specifically, Maryland protects additional characteristics not covered federally, and Maryland’s harassment standard no longer requires conduct to be severe or pervasive in certain circumstances (such as when submission to unwelcome conduct is tied to employment terms or decisions, or when the conduct otherwise creates an abusive or hostile environment based on the totality of the circumstances).

 

Supervisor harassment carries strict liability under Maryland law based on foreseeability and scope of employment, rather than the federal standard’s focus on tangible employment actions and available defenses. Religious accommodation claims are evaluated under a lower “more than de minimis cost” standard, in contrast to the tougher federal standard from Groff v. DeJoy. Pregnancy accommodation obligations are also framed more broadly under state law, and Maryland’s retaliation standard requires only an “adverse employment action” rather than the broader “materially adverse” federal standard, though this arguably makes the state standard narrower on this particular element.

 

Because the guidance functions as the MCCR’s roadmap for evaluating claims, employers responding to complaints may benefit from directly addressing each element the agency considers, allowing for a clearer and more targeted rebuttal.

 

Action Items

  1. Review antiharassment policies and supervisor training for compliance with state-specific standards.
  2. Review accommodation policies and practices for compliance.
  3. Consult with legal counsel on how these state-level enforcement postures affect ongoing or future litigation strategies.
  4. Have appropriate personnel trained on the requirements.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase

Massachusetts

Massachusetts: Personal Liability for Sexual Harassment in Academic Settings

APPLIES TO

All Academic Employers with Employees in MA

EFFECTIVE

MAY 19, 2026

QUESTIONS?

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(888) 378-2456

 

Quick Look

  • In Sabatini v. Knouse, the Massachusetts Supreme Judicial Court ruled that individuals in academic settings can be personally liable for sexual harassment that they commit.
  • Academic institutions in Massachusetts should note that this is a notable change to the interpretation of the statute which had held that professors, advisors, and mentors accused of sexual harassment could argue that the statute only permitted claims against the institutions themselves.

Discussion

In Sabatini v. Knouse, the Massachusetts Supreme Judicial Court ruled that individuals in academic settings can be personally liable for sexual harassment that they commit. Here, a graduate student at MIT accused a tenured professor of making explicit sexual remarks. They then began a sexual relationship which ended a year later. After the breakup, the professor continued to make sexual comments and the student was afraid to end their mentorship relationship fearing professional repercussions. Unrelated to the relationship, the academic institution engaged in a culture survey which revealed reports of a sexualized culture and retaliatory environment in the professor’s lab. An independent investigation found a violation of the institution’s sexual harassment policy. The professor was placed on leave from MIT and resigned from the laboratory director position at a related institution. The professor sued the student for defamation, and the student countersued for violations of the Massachusetts sexual harassment statute.

 

The court found that the statute does indeed permit sexual harassment claims to proceed against individual perpetrators and not only against educational institutions. The plain language says “a person shall have the right to be free from sexual harassment” and does not have limiting language regarding institutions and individuals. The court also found that sexual harassment statutes are remedial and entitled to broad construction. Shielding individual abusers would contradict the purpose of the statute. In addition, students like research fellows do not have administrative remedies available and can file directly in Superior Court. The court then sent the case back to the Superior Court to address the remaining defenses to the claim.

 

Academic institutions in Massachusetts should note that this is a notable change to the interpretation of the statute which had held that professors, advisors, and mentors accused of sexual harassment could argue that the statute only permitted claims against the institutions themselves. Affected employers should consult with their legal counsel regarding future impacts and inclusion of personal liability language in sexual harassment policies.

 

Action Items

  1. Revise and update sexual harassment policies to include personal liability.
  2. Consult with legal counsel regarding specific application of expanded liability.
  3. Have appropriate personnel trained on the expanded interpretation.

 


Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase

Minnesota

Minnesota: New Paid Sick and Safe Time Rules

APPLIES TO

All Employers with Employees in MN

EFFECTIVE

JUL 6, 2026

QUESTIONS?

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(888) 378-2456

 

Quick Look

  • New rules for Minnesota’s ESST Act clarify how employers must determine employee eligibility, calculate accrual, and handle absences involving indeterminate shifts or exempt employees.
  • The rules also set boundaries around employee use, misuse, documentation requests, and how ESST interacts with incentive programs and more generous employer leave policies.

Discussion

The Minnesota Department of Labor & Industry (DLI) recently finalized rules implementing the Earned Sick and Safe Time Act (ESST). The rules clarify core issues around accrual, eligibility, and how hours are counted.

 

Accrual Year. If an employer doesn’t designate and clearly communicate an “accrual year,” it defaults to the calendar year, and any change to the accrual year’s start/end dates must be given as advance written notice and cannot negatively affect an employee’s ability to accrue time.

 

Hours Worked. For eligibility, employers must determine “in good faith” whether an employee is anticipated to work at least 80 hours per year in Minnesota—meaning they evaluated the anticipated schedule and work location in a way that is not knowingly false or in reckless disregard of the truth. The rules also address tricky counting scenarios, including how to deduct ESST for exempt employees taking a full day off and how to handle absences from “indeterminate” shifts (e.g., deducting based on the replacement worker’s hours, the employee’s most recent similar shift, or the greatest hours worked by a similarly situated employee).

 

Time Credited and Increments of Accrual. ESST must be credited each pay period based on all hours worked, no later than the regular payday after that pay period, and is considered accrued when credited. Employers need not credit in increments smaller than one hour. Rehired employees returning within 180 days are entitled to reinstatement of up to 80 hours of previously accrued but unused ESST (unless a higher amount is agreed to or required elsewhere).

 

Accrual and Advancing Methods. For employers who “advance” (frontload) ESST, the advanced amount must be calculated at no less than the statutory accrual rate; employers generally aren’t required to advance more than 48 hours; and if the advance falls short of what an employee would have actually accrued, the employer must make up the difference within 15 calendar days. Any change to an accrual method must be communicated in writing and takes effect only at the start of the next accrual year—if notice isn’t timely, the prior method stays in place.

 

Employee Use. The rules also protect employee use and set boundaries around misuse. Using ESST is the employee’s right; employers cannot force employees to use it, and an employee who declines to use it for an absence forfeits the statute’s protections for that leave.

 

Incentives. Incentives tied to goals like perfect attendance or hours worked may be denied when the goal isn’t met due to ESST use—unless the incentive is otherwise paid during other leave.

 

Reasonable Documentation. Employers may require “reasonable documentation” only as the statute allows, must clearly communicate that requirement, and must give employees reasonable time to comply.

 

Employee Misuse. Misuse (using ESST for a non-qualifying purpose) loses statutory protection and may be disciplined. Notably, the rules define a ”pattern or clear instance of suspected misuse”—such as repeatedly using ESST adjacent to days off/holidays, repeatedly using increments under 30 minutes at the start/end of shifts, using ESST on a day a paid-leave request was denied, or documentation conflicting with the claimed use—which permits an employer to request documentation without it constituting retaliation. Even so, employers cannot deny future ESST use for a qualifying purpose based on past misuse or mere suspicion.

 

More Generous Policies. Excess paid time off or other paid leave offered above the statutory minimum is subject to ESST’s minimum standards (except the accrual requirements of § 181.9446) only when used for a qualifying purpose. The rules also clarify that “other salary continuation benefits” include Minnesota Paid Leave under Chapter 268B, coordinating ESST with the state’s broader paid-leave framework.

 

Action Items

  1. Review the rules here and FAQs here.
  2. Update paid sick leave policies for compliance.
  3. Have appropriate personnel trained on sick leave requirements.

 

 

Minnesota: Disability Discrimination Accommodation

Effective August 1, 2026, SB 3210 says that failure to engage in the process to determine if a reasonable accommodation exists that would allow people with disabilities to participate fully in employment may be an unfair discriminatory practice under the Minnesota Human Rights Act. Employers should review their internal processes to ensure that they engage in the interactive process for accommodation requests. Appropriate personnel should be trained on how to recognize requests and how they should follow the employer’s process.

 

REMINDER | Minnesota: Secure Choice Retirement Program Deadlines

The Minnesota Secure Choice Retirement Program has a phased in timeline for employers with five or more employees to enroll in the program or file an exemption. The first deadline was June 30th. Covered employers should ensure compliance in accordance with their applicable deadline.

 

  • 100+ Employees: Deadline was June 30, 2026.
  • 50–99 Employees: July 1, 2026 – December 31, 2026.
  • 25–49 Employees: January 1, 2027 – June 30, 2027.
  • 10–24 Employees: July 1, 2027 – December 31, 2027.
  • 5–9 Employees: January 1, 2028 – June 30, 2028.
  • Less than 5 employees: Permanently exempt.

 

Employers should review the Secure Choice website for registration and more information.

 


Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase

Mississippi

Mississippi Legislative Update

APPLIES TO

As Indicated

EFFECTIVE

As Indicated

QUESTIONS?

Contact HR On-Call

(888) 378-2456

 

Quick Look

  • Employers who do not offer a tax favored retirement plan may allow eligible employees the voluntary choice to contribute to an individual retirement account through a payroll deduction, known as the Mississippi Work and Save Program.
  • Additional group health benefit plan coverage options are provided to professional and trade associations in Mississippi.

Discussion

The Mississippi legislative session produced a couple of new employer obligations. Employers should make sure they are compliant with applicable changes.

 

Employee Savings Program. As of April 8, 2026, HB 4073 allows employers who do not offer a tax favored retirement plan to allow eligible employees the voluntary choice to contribute to an individual retirement account through a payroll deduction, known as the Mississippi Work and Save Program. The State Treasury will create the Mississippi Work and Save Administrative Fund. The State Treasurer is also tasked with developing and implementing the program. Covered employees must be at least 18 years old. Employers and the state are protected from liability related to the program.

 

Additional Group Health Insurance Options for Professional and Trade Associations. Effective October 1, 2026, SB 2704 provides additional group health benefit plan coverage options to professional and trade associations in Mississippi. Members can purchase coverage from self-funded association plans subject to the jurisdiction of another state insurance department or the federal government. A “professional association” means member employers and individual members who are self-employed, who are of the same type of profession, such as lawyers, physicians, dentists, accountants, or architects. A “trade association” means member employers and individual members who are self-employed, who are in the same type of trade, such as plumbers or electricians.

 

Action Items

  1. Monitor State Treasury of Mississippi website for updates on retirement plan developments.
  2. Review additional options for group health benefit plan coverage options with broker, if applicable.

 

 


Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase

Nebraska

Discussion

Nebraska: New Human Trafficking Poster and Training Provisions for Hotels

Effective July 17, 2026, Nebraska’s LB 320 expands the state’s human trafficking prevention framework to require hotels and similar public lodging establishments to display informational human trafficking posters in English, Spanish, and other appropriate languages. The state Department of Labor is directed to develop compliant posters. Separately, hotels may (but are not required to) provide employees with training covering how to identify trafficking, distinguish labor from sex trafficking, and report suspected activity. Hotels that voluntarily implement this approved training, adopt reporting procedures, and establish a human trafficking prevention policy may be entitled to liability protection from claims arising out of a third party’s trafficking-related conduct at the property. Hotels are not entitled to this protection if the hotel, its owner, or its employees knowingly assisted the trafficking or failed to act reasonably.


Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase

New Hampshire

Discussion

New Hampshire: Employer Extension to Object to Wage Claims

Effective July 7, 2026, HB 1168 extends the period of time for an employer to file objections to a wage claim from 10 days to 30 days after they receive notice from the state. If an objection is not made within 30 days, the labor commissioner can order that payment be made in accordance with the claim.

 

New Hampshire: Noncompetes for Physician Associates

Effective July 7, 2026, SB 402 voids noncompete clauses for physician associates (formerly known as physician assistants) licensed in New Hampshire, though the remaining provisions of any affected contract remain enforceable.

 


Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase

New York

New York: Prevailing Wage is Mandatory

APPLIES TO

All Employers with Public Contracts in NY

EFFECTIVE

JUN 23, 2026

QUESTIONS?

Contact HR On-Call

(888) 378-2456

 

Quick Look

  • In Walton v. Comfort Systems USA (Syracuse), Inc., the New York Court of Appeals ruled that the prevailing wage is required in every covered public works contract.
  • In reaching its ruling, the court found that the Labor Law was clear in its requirement that every covered public works contract guarantees prevailing wage.

Discussion

In Walton v. Comfort Systems USA (Syracuse), Inc., the New York Court of Appeals ruled that the prevailing wage is required in every covered public works contract. Here, the defendant employed technicians who installed, maintained, inspected, tested, repaired, and replaced fire alarms, fire sprinklers, and security system equipment under service contracts with New York public entities. The contracts varied in their prevailing wage language which some stating there was no prevailing wage obligation, some stating the amount incorrectly, and some silent on the matter. All of the contracts had a clause that state no legal claim can be brought against the defendant after a year from the date of the cause of action. The plaintiffs filed a class action lawsuit alleging failure to pay prevailing wages required by New York Labor Law Section 220.

 

In reaching its ruling, the court found that the Labor Law was clear in its requirement that every covered public works contract guarantees prevailing wage. What matters is what the statute requires to be in the contract and not whether the parties choose to include it. The requirement is inserted by operation of law and not by the parties and it is for the benefit of the laborers. The laborers are the third-party beneficiaries of the statute. As a separate issue, the court found that the contractual time limitation of the claim is unenforceable where prevailing wage claims are concerned. Again, this right to a claim for laborers flows from the statute and a contract cannot shorten that right.

 

Action Items

  1. Review payroll processes for compliance with prevailing wages on public works contracts.
  2. Consult with legal counsel regarding application of specific prevailing wage requirements.
  3. Have appropriate personnel trained on prevailing wage compliance requirements.

 

 

New York: Sunset Date for Permissible Wage Deductions Extended

Effective June 26, 2026, SB S10569 extends the sunset date of certain permissible wage deductions until December 31, 2028. Employers should review the regulations to determine which deductions are permissible.

 

New York City, NY: Protections for Workers from Extreme Heat

Effective June 22, 2026, Executive Order No. 17 requires the Department of Health and Mental Hygiene (DOHMH), in coordination with New York City Emergency Management (NYCEM), and the Department of Citywide Administrative Services (DCAS), to develop worker heat illness prevention guidance and educational materials that recommend best practices to prevent heat-related illnesses, injuries, and deaths for employers and outdoor and indoor workers. The Department of Buildings (DOB) shall conduct a review of current construction safety and training requirements to determine if existing construction safety requirements sufficiently protect against worker heat illness. When the City’s Heat Emergency Plan is activated, NYCEM shall communicate worker heat illness prevention information based on the forecasted temperature. While specific requirements for employers are not yet in effect, employers should continue to monitor for the results of the requested agency plans and be prepared for the requirement to implement their own worker heat safety protocols.

 

New York City, NY: Amended Earned Safe and Sick Time Act Rules

Effective July 23, 2026, New York City amended its rules implementing the Earned Safe and Sick Time Act (ESSTA). The amended rules clarify that protected time off has the same meaning as safe/sick time within the law. It also provides examples of the separate bank of 32 immediately available hours which went into effect earlier this year. A pay statement must also inform the employee of the amount of protected time off accrued and used during the relevant pay period, differentiating between paid and unpaid protected time off. Employers who also do not provide required paid prenatal leave are subject to the following penalties: (1) application of 20 hours of paid prenatal leave to the employee’s paid prenatal leave balance; and (2) monetary relief in the amount of $500 per employee per calendar year the policy or practice was in effect.

 


Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase

North Carolina

North Carolina: Court Clarifies Trade Secret Misappropriation Standard

APPLIES TO

All Employers with Employees in NC

EFFECTIVE

MAY 22, 2026

QUESTIONS?

Contact HR On-Call

(888) 378-2456

 

Quick Look

  • Mere access to, or mere possession of, a trade secret is not enough to claim misappropriation of trade secrets.
  • An individual must have engaged the trade secret without the employer’s express or implied consent or authority.

Discussion

In Relation Insurance, Inc. v. Pilot Risk Management Consulting, LLC, the Supreme Court of North Carolina laid out the statutory definitions of a “trade secret” and clarified the standard for when a trade secret is “misappropriated” under North Carolina law. Additionally, the Court refused to “blue pencil” excessive provisions in agreements deemed unenforceable.

 

This case involves a dispute between competing insurance agencies. Several employees left the first employer for the second. Each person had signed employment agreements containing non-solicitation provisions, and the first employer alleged the departing employees forwarded company documents to personal email accounts, allegedly breaching those agreements. The first employer sued the second for trade-secret misappropriation claims under both the federal Defend Trade Secrets Act (DTSA) and the North Carolina Trade Secrets Protection Act (NCTSPA), which the Court analyzed together.

 

To prevail under either Act, a claimant must show two things: (1) that the information at issue is a “trade secret,” and (2) that the trade secret was “misappropriated.” On the first element, both statutes define a trade secret as business or technical information that derives independent economic value from not being generally known or readily ascertainable and that is the subject of reasonable efforts to maintain its secrecy. Courts assess this using a six-factor guide drawn from the First Restatement of Torts (how widely the information is known outside and inside the business, the secrecy measures taken, its value to the business and competitors, the effort/money spent developing it, and how easily it could be properly duplicated)—which the Court emphasized is an instructive guide, not a rigid six-part test.

 

Applying that framework, the Supreme Court said that whether the first employer’s client lists (including a client list and a policy renewal list) qualified as trade secrets was an issue of fact that a jury should decide. The Court pointed to evidence in support that: a compiled client list was not shown to be publicly available (individual client names may be online, but a brokerage’s specific compiled list is not); there was no evidence other employees had access to or knew of the list; the lists were password protected; the lists were valuable and took significant time and money to compile; one employee emailed a renewal list from her first employer’s account to her personal email shortly after accepting a job with the second employer; and many of the employees’ clients at the second employer appeared on the first employer’s lists.

 

Most significantly, the Court clarified the standard for when a trade secret is “misappropriated” under North Carolina law. It held that mere access to, or mere possession of, a trade secret is not enough to make out a prima facie case. Instead, the employer must show that the employee acquired, had a specific opportunity to acquire, or used the trade secret without the employer’s express or implied consent or authority. In other words, an employer cannot establish misappropriation simply by showing it once gave the employee authorized access to the information; it must instead point to an identifiable instance of the employee downloading or accessing the trade secret beyond the scope of their job duties or without consent.

 

Finally, after the lower court found the former employees’ non-solicitation agreements overbroad and unenforceable, the first employer asked the Supreme Court to invoke the “blue-pencil” doctrine to strike overbroad portions of the agreements. The Court declined to do so, explaining that the blue-pencil doctrine is not a mechanism for rewriting a contract, but only for striking “separable” or “divisible” terms from an otherwise enforceable agreement. Because the first employer sought to strike nearly fifty provisions from each employee’s non-solicitation agreement, the Court concluded that this went far beyond removing a single separable or divisible provision and would effectively require rewriting the contracts—something the doctrine does not permit.

 

Action Items

  1. Have nonsolicitation, noncompete, and nondisclosure agreements reviewed by legal counsel for compliance.
  2. Evaluate protections in place for trade secret information to ensure security processes exist and are followed.

 

 

North Carolina: “Death Discount” Discontinued in Workplace Fatality Cases

North Carolina historically followed a federal OSHA policy that, in certain tragic cases, reduced penalties after a worker is killed. On April 29, 2026, the North Carolina Department of Labor announced it would no longer apply penalty reductions in cases involving worker deaths. The updated directive ensures that “enforcement actions fully reflect the gravity of a fatality, regardless of the size of the business involved.”

 


Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase