Discussion

The Arkansas Legislature enacted several laws impacting employee rights and protections. Key aspects of laws are summarized below.

SB 598 | Changes to Independent Contractor Test. The Empower Independent Contractors Act is amended to require employers and enforcement agencies to use federal regulation 26 C.F.R. § 31.3121(D)-1, as it existed on January 1, 2025, as the test to use when determining whether a worker is an employee or an independent contractor under Arkansas’s wage and hour law, equal pay law, wage payment law, workers’ compensation law, and unemployment insurance law. Previously, Arkansas used the federal Internal Revenue Service’s 20-Factor Test.

26 C.F.R. § 31.3121(D)-1, as it existed on January 1, 2025, specifies that individuals are “employees” if they perform services for remuneration under certain prescribed circumstances in the following occupational groups:

• As an agent-driver or commission-driver engaged in distributing meat products, vegetable products, fruit products, bakery products, beverages (other than milk), or laundry or dry-cleaning services for their principal;
• As a full-time life insurance salesperson;
• As a home worker performing work, according to specifications furnished by the person for whom the services are performed, on materials or goods furnished by such person which are required to be returned to such person or a person designated by them; or
• As a traveling or city salesperson, other than as an agent-driver or commission-driver, engaged upon a full-time basis in the solicitation on behalf of, and the transmission to, their principal (except for side-line sales activities on behalf of some other person) of orders from wholesalers, retailers, contractors, or operators of hotels, restaurants or other similar establishments for merchandise for resale or supplies for use in their business operations.

SB 3 | Elimination of Affirmative Action Requirements for State Contractors. Arkansas has eliminated its affirmative action requirements for state contractors. State entities are directed to neither discriminate against nor grant preferential treatment to an individual or group on the basis of race, sex, color, ethnicity or national origin in matters of state procurement. Notwithstanding, state agencies are no longer directed to include language encouraging minority participation in requests for proposals or take minority inclusion into consideration when evaluating proposals for state contracts. Notably, veterans preference programs are unaffected by the amendments.

HB 1643 | Disclosure of Sexual Harassment Allegations.  HB 1643 adds to the types of information that an employer may disclose to a current or former employee’s prospective employer with the employee’s written consent. The amended law now authorizes employers to disclose substantiated allegations of sexual abuse or sexual harassment by the employee and the individual’s resignation during a pending investigation of sexual abuse or sexual harassment allegations against the employee.

SB 497 | Veterans’ Benefits and Services Poster. Arkansas employers with 50 or more full-time equivalent employees are required to post a Veterans’ Benefits and Services Poster in the workplace and provide electronic access for remote workers. A model poster has been jointly published by the Arkansas Department of Labor and Licensing and Department of Veterans Affairs.

SB 279 | Collection of Unpaid Wages. SB 279 provides that the Arkansas Department of Labor has one year from the entry of the final order in an unpaid wage claim to initiate legal action to recover the unpaid wages, and that the assessment period is two years preceding the filing of the complaint.

Action Items

1. Review worker classifications.
2. Update reference and background check protocols to reflect expanded employer disclosures.
3. Obtain and display the required Veterans’ Benefits poster.
4. Revise wage record retention policies and procedures.

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. © 2025 ManagEase

Discussion

Effective June 30, 2025, HB 128 makes additional changes to Delaware Paid Leave program which begins on January 1, 2026. The most significant changes impacting employers are summarized below.

Private Plans. Employers with self-insured private plans can begin collecting employee contributions as of June 30, 2025. The Delaware Department of Labor will accept applications for approval of a private plan on a rolling basis with effective dates of January 1, April 1, July 1, or October 1.

Coordination of Disability Benefits. Disability insurance benefits can be offset by family and medical leave benefits in accordance with the terms of the disability insurance policy. Employers with approved private plans do not have to provide claim documentation to the Department unless the claim is the subject of an appeal, complaint, audit, or other specific inquiry from the Department. Lastly, employers with less than 25 employees that voluntarily provide coverage through a private plan must comply with all of the law’s requirements as if they were a covered employer.

Accrued Time Off. Employers cannot require eligible employees to use unused accrued paid time off prior to applying for family and medical leave benefits. Both the employer and employee can agree to use the paid time off to supplement paid family and medical leave benefits.

Income Replacement Priority. The paid family and medical leave insurance program is the primary payor. Other income replacement benefits are to be paid in accordance with the terms of the policy or other available benefits.

Disclosure of Child Support Obligations. Individuals filing a new claim for family and medical leave benefits must disclose at the time of filing whether they owe child support. If they do and are eligible for benefits, the Department will notify the appropriate state or local child support enforcement agency and the Department will withhold child support obligations from the family and medical leave benefits.

Department Enforcement Tools. For individuals and employers that fail to pay an assessment, interest, or penalty for violating the law, the Department can issue a warrant for levy and sale of personal or real property, garnish bank accounts, and garnish wages, salaries, and other amounts due from employers.

Action Items

1. Review and update Delaware Paid Leave policy.
2. Submit applications for private plans for approval to the Department, if applicable.
3. Begin collecting employee contributions under approved private plans.
4. Train appropriate personnel 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. © 2025 ManagEase

Discussion

HF 767 was recently enacted amending Iowa’s drug testing law. The amendments revise definitions, notice requirements, penalties, and the burden of proof.

The definition of a “safety-sensitive position” was revised to mean a position “designated by the employer” as one where an accident could cause loss of life, serious bodily injury, or significant property or environmental damage. This means that a safety-sensitive position designation is at the discretion of the employer. The amendments also changed the law to apply specifically to “employers” rather than individuals, such as managers or supervisors.

Currently, following a positive test result, an employer must notify the employee of the results of the test, and the employee’s right to a confirmatory test paid for by the employee. The employee must now request the second confirmatory test via certified mail, return receipt requested; a verbal, in-person request is not permitted. The amendment also says that in lieu of providing required notices via certified mail, return receipt requested, an employer may offer the employee the option to choose to communicate instead by in-person exchange of written materials or by electronic notification, including to satisfy notice requirements that the employee must provide.

The required burdens on the parties were also revised. An award of “reasonable” attorneys’ fees for statutory violations was qualified by placing the burden on the employee or applicant to prove by a preponderance of the evidence that a violation of the law directly caused any damages for which affirmative relief is sought. Additionally, the amendments also eliminated the employer’s burden to prove that the requirements of the law were met.

Action Items

1. Have drug testing policies updated.
2. Review jobs for safety-sensitive position designations.
3. 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. © 2025 ManagEase

Discussion

Minnesota’s Chapter 31 recently made updates to its drug testing law for medical cannabis. Generally, employers cannot discriminate against an employee for testing positive for medical marijuana, unless a failure to do so would violate federal or state law or cause an employer to lose a monetary or licensing-related benefit under federal law. This prohibition has been expanded to include protections for a person’s status as a Tribal medical cannabis program patient.

If an employer wants to take adverse action for a positive drug test based on federal or state violation implications for the employer, the employer must provide written notice to the person at least 14 days before taking adverse action against them. The written notice must cite the specific federal law or regulation that the employer believes would be violated if the employer fails to take action, and what federal or state monetary or licensing-related benefit the employer would lose if the employer fails to take action.

Additionally, employers cannot retaliate against individuals for asserting their rights or seeking applicable remedies. Further, minimum violation civil penalties increased to $1000, plus the ability to obtain injunctive relief was added. Employers should evaluate their drug testing and hiring practices to ensure compliance with the new rules.

Action Items

1. Review drug testing policies and procedures for compliance.
2. Evaluate impact from federal and state requirements prohibiting marijuana use and implement required notice.
3. 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. © 2025 ManagEase

Discussion

The Virginia Legislature enacted several laws enhancing employee rights and protections. The most significant new laws are summarized below.

Non-Compete Agreement Restrictions for Low-Wage Employees

Effective July 1, 2025, SB 128 amends the existing law restricting noncompete agreements to expand the definition of “low-wage employee.” Until the amendment, the definition of a low-wage employee was an employee whose average weekly earnings were less than the average weekly wage in Virginia. Now, this definition is expanded to also include an employee “who, regardless of his average weekly earnings, is entitled to overtime compensation under the provisions of 29 U.S.C. § 207 for any hours worked in excess of 40 hours in any one workweek.” This means employers cannot enter into or enforce a noncompete agreement against employees with nonexempt classification under the Fair Labor Standards Act. The changes only apply to agreements entered into or renewed before the law’s effective date.

Unemployment Claims

Increased Penalties for Employer Failure to Timely Respond to Unemployment Claims. Effective July 1, 2025, HB 14 provides that an employer’s unemployment insurance account will not be relieved of charges related to an erroneous payment if the Virginia Employment Commission determines that the employer established a pattern of failing to respond timely or adequately to requests for information regarding the claim. A response is timely if it is made within ten calendar days after the delivery or mailing of the request for information. Delivery now also includes through the Employer Self-Service Tax System.

Assessments of penalties for failure to respond have also changed. For the first failure, the Commission will send a warning letter. The second failure will result in an assessment of a $100 civil penalty against the employer. The third failure will result in the employer waiving all rights in connection with the claim, including losing appeal rights to the Commission’s decision on the claim. An employer does have the ability to show good cause for the failure of a timely or adequate response if they demonstrate the Commission: (1) did not deliver such request to the physical or electronic mailing address specified in writing by the employer for unemployment insurance claim matters, or (2) did not deliver such request to the employer’s designated attorney or authorized representative for unemployment insurance claim matters.

Increased Unemployment Compensation Benefits. Effective January 1, 2026, HB 1766 increases an eligible individual’s weekly benefit amount an additional $52 more than the current weekly benefit amount. Annual adjustments will be made to the individual weekly benefit amount based on the average weekly wage.

Injuries to Vulnerable Victims

Effective July 1, 2025, HB 1730 amends Virginia’s employer liability law to permit employers to be held vicariously liable for personal injury or wrongful death of a “vulnerable victim” caused by their employee. The definition of a vulnerable victim is any person who is at a substantial disadvantage relative to an employee due to circumstances, including the person’s physical or mental condition or characteristics. This includes:

• A patient of a health care provider;
• A person under a disability;
• A resident of an assisted living facility;
• A passenger of a common carrier, excluding those transit services and transit facilities under the Washington Metropolitan Area Transit Authority Compact of 1966;
• A passenger of a nonemergency medical transportation carrier; or
• A business invitee of an esthetics spa or a business offering massage therapy.

To determine whether the employer was vicariously liable for the actions of its employee, a plaintiff must show:

1. The employee’s tortious conduct occurred while the employee was reasonably likely to be in contact with the vulnerable victim and such conduct proximately causes personal injury to such vulnerable victim or the death of such vulnerable victim by wrongful act;
2. The employer failed to exercise reasonable care to (i) prevent the employee from intentionally harming such vulnerable victim, or (ii) control the employee resulting in an unreasonable risk of a vulnerable victim suffering personal injury or death by wrongful act;
3. The employer knew or should have known of the ability to control the employee; and
4. The employer knew or should have known of the necessity and opportunity for exercising such control over the employee.

Workplace Violence Prevention and Reporting for Hospitals

Effective July 1, 2025, HB 2269 requires healthcare employers to create workplace violence prevention reporting systems. Workplace violence means any act of violence or threat of violence, without regard to the intent of the perpetrator, that occurs against an employee of the hospital while on the premises of such hospital and occurring during the performance of the employee’s duties. Workplace violence includes: (1) the threat or use of physical force against an employee that results in, or has a high likelihood of resulting in, injury, psychological trauma, or stress, regardless of whether physical injury is sustained, and (2) any incident involving the threat of using dangerous weapons or using common objects as weapons or to cause physical harm, regardless of whether physical injury is sustained.

Hospitals must:

1. Establish a workplace violence incident reporting system, through which each hospital shall document, track, and analyze any incident of workplace violence reported.
   • The analysis is to be used to make improvements in preventing workplace violence, including improvements achieved through continuing education in targeted areas, including de-escalation training, risk identification, and violence prevention planning.
   • The reporting system must (i) be clearly communicated to all employees, including to any new employees at the employee orientation, and (ii) include guidelines on when and how to report incidents of workplace violence to the employer, security agencies, and appropriate law-enforcement authorities;

2. Record all reported incidents of workplace violence as voluntarily reported by an employee; and

3. Adopt a policy that prohibits any person from discriminating or retaliating against any employee of the hospital for reporting to, or seeking assistance or intervention from, the employer, security agencies, law-enforcement authorities, local emergency services organizations, government agencies, or others participating in any incident investigation.

Hospital employers’ systems must document, track and analyze the following aspects of any reported incidents of workplace violence:

• The date and time of the incident;
• A description of the incident, including the job titles of the affected employee;
• Whether the perpetrator was a patient, visitor, employee, or other person;
• A description of where the incident occurred;
• Information relating the type of incident, including whether the incident involved (i) a physical attack without a weapon; (ii) an attack with a weapon or object; (iii) a threat of physical force or use of a weapon or other object with the intent to cause bodily harm; (iv) sexual assault or the threat of sexual assault; or (v) anything else not listed above;
• The response to and any consequences of the incident, including (i) whether security or law enforcement was contacted and, if so, their response, and (ii) whether the incident resulted in any change to hospital policy; and
• Information about the individual who completed the report, including such individual’s name, job title, and the date of completion.

The above data collected must be reported to the chief medical officer and the chief nursing officer on a quarterly basis and a report on the number of incidents voluntarily reported by an employee sent to the Department of Health annually.

Content Creators and Child Labor Protections

Effective July 1, 2025, HB 2401 requires children under age 16 engaging in content creation to be compensated by the content creator. A content creator is defined as an individual or individuals 18 years of age or older, including family members, who create video content performed in Virginia in exchange for compensation. It does not include a child who produces their own video content.

A child under the age of 16 is considered to be engaged in the work of content creation if during the previous 12-month period: (1) at least 30% of the content creator’s compensated video content produced within a 30-day period includes the likeness, name or photograph of the child; and (2) the number of views received per video segment on any online platform met the online platform’s threshold for the generation of compensation or the content creator received actual compensation for video content equal to or greater than $0.10 per view. The compensation is to be set aside in a trust account to be preserved for the benefit of the child upon turning 18 years old or having been declared emancipated.

Content creators who feature a child under the age of 16 engaged in the work of content creation have to maintain records of the following and provide them to the child and the holder of their trust account:

• The name and documentary proof of the age of the child engaged in the work of content creation;
• The number of videos that generated compensation during the reporting period;
• The total number of minutes of the video content that the content creator received compensation for during the reporting period;
• The total number of minutes each child was featured in video content during the reporting period;
• The total compensation generated from video content featuring a child during the reporting period; and
• The amount deposited into the trust account for the benefit of the child engaged in the work of content creation.

Minors Permitted to Work in Barbershop or Salon

Effective July 1, 2025 , HB 1667 amends Virginia’s child labor law to allow children age 16 years or older to serve in a licensed barbershop or cosmetology salon as a registered apprentice, as part of a work-training program administered under the rules of the state Board of Education, or if they have obtained a cosmetology or barber license from the Board for Barbers and Cosmetology.

Action Items

1. Review noncompete agreements with legal counsel.
2. Provide a timely response to inquiries from the Virginia Employment Commission regarding unemployment claims.
3. Consult with legal counsel on claims involving injuries to third parties caused by employees.
4. Implement workplace violence prevention and reporting requirements, if applicable.
5. Compensate children under age 16 used in video content creation in accordance with the requirements, if applicable.
6. Review the hiring of children age 16 years or older in licensed barbershop or cosmetology salon in accordance with the requirements, 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. © 2025 ManagEase