Maryland: De Minimis Doctrine Applies to State Wage and Hour Laws

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July 3, 2025

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  • The Maryland Supreme Court held that the de minimis doctrine applies to claims brought under the state’s wage and hour laws, allowing employers to disregard insignificant amounts of time spent on work-related tasks.

Discussion

In Martinez v. Amazon.com Services LLC, the Maryland Supreme Court held that the de minimis doctrine applies to claims brought under the state’s wage and hour laws. The de minimis doctrine allows employers to disregard “insignificant” amounts of time spent on work-related tasks when calculating an employee’s compensable working hours.

 

The case was brought by a former Amazon employee who worked at the Baltimore fulfillment center and filed a class-action lawsuit in 2021 seeking unpaid wages for time spent going through security checks after clocking out. As part of the suit, the plaintiff alleged that she and other employees spent anywhere from 3 to 15 minutes participating in these security checks. Amazon argued that they did not owe employees compensation for this time because it fell under the purview of de minimis time. The plaintiff argued that the de minimis rule contradicts Maryland’s public policy of ensuring workers are paid for all work performed. Ultimately, the issue of whether or not state law recognizes the principle of de minimis time is what proceeded to the Maryland Supreme Court.

 

Ultimately, the court determined that the de minimis doctrine is a long-standing common-law principle that Maryland legislators would have been aware of when initially enacting the state’s wage statutes. The Court concluded that, absent a clear rejection from the General Assembly, the doctrine applies by default. According to the Court, Maryland’s wage laws are not intended to hold employers liable for negligible amounts of unrecorded time, citing the need to balance enforcement with practical workplace realities. Importantly, the court did not address whether the specific time spent by the class action employees actually constituted de minimis time. Instead, the court only addressed whether the de minimis doctrine was recognized in Maryland. The matter was therefore sent back to the lower courts to determine whether the security check time was compensable or excludable under the de minimis doctrine.

 

This decision provides some clarity and relief for Maryland employers; however, the ruling does not give employers a free pass. Employees may still argue that time spent under employer control is not de minimis, especially when aggregated across shifts or among large workforces. Despite the Court’s conclusion, the plaintiffs will be permitted to pursue their claims if they can show the time lost was substantial enough to warrant compensation under the doctrine’s parameters. The threshold for what counts as de minimis is also not clearly defined by the court’s decision, so employers should continue to monitor future legal developments.

 

Action Items

  1. Review employer timekeeping practices for compliance.
  2. Have appropriate personnel trained on timekeeping practices.

 


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

Nevada: Legislative Update

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  • Nevada has modified working hours for certain minor employees.
  • Volunteer members of the Nevada Wing of the Civil Air Patrol to take leave for training or emergency missions without penalty.
  • Nonmedical personal care service agencies are subject to new background check and employee training requirements.
  • The vicarious liability standard is revised for “delivery network companies” and their drivers.
  • Emergency medical responders (EMRs) are subject to the same workplace protections, legal immunities, and benefits currently afforded to other emergency medical personnel.
  • Entities receiving state funding must agree to comply with certain employment laws that are applicable to the entity.
  • Nevada Equal Rights Commission will consider whether antisemitism motivations exist when conducting religious creed discrimination claims.
  • Eligible employers must either register for Nevada’s new NEST Program or certify their exemption by September 1, 2025.

Discussion

Nevada’s legislative session concluded in June, passing several bills impacting employers and their employees. Key updates are summarized below.

 

AB 215 – Child Labor Restrictions

 

Effective October 1, 2025, AB 215 introduces new restrictions on the working hours of minors intended to align better with federal child labor standards. Specifically, the bill prohibits minors under 16 from working more than 40 hours in any one week (previously 48 hours) and prohibits any minor under 19 from working between the hours of 11 p.m. and 6 a.m. on any night immediately preceding a school day. There are some exceptions for minors holding positions like lifeguards, arcade employees, stage or theatrical employees, or minors who are working on a farm. Minors can also receive an exemption from their school district or juvenile court order.

 

The Nevada Labor Commissioner is required to publish an abstract of child labor laws, which employers are required to post in a visible location within the workplace.

 

AB 422 – Volunteers of Nevada Wing of the Civil Air Patrol

 

Effective October 1, 2025, AB 422 requires an employer to allow an employee who is a volunteer member of the Nevada Wing of the Civil Air Patrol to take leave for training or emergency missions without loss of position, seniority, or accrued leave or benefits.

 

AB 519 – Nonmedical Home Care Requirements

 

As of May 30, 2025, AB 519 established a new regulatory framework for agencies and organizations that provide nonmedical personal care services. This includes home-based personal care agencies, employment agencies that contract for nonmedical services, and intermediary service organizations. Under the law, these agencies are required to run criminal background checks on personal caregivers and provide workplace training for certain unlicensed caregivers and agency employees that is tailored to the nature of nonmedical care provided by the agency.

 

AB 523 – Revised Liability for Delivery Network Companies

 

Effective October 1, 2025, AB 523 revises the liability standards for certain “network delivery companies.” “Delivery network companies” are defined as businesses that use digital platforms to connect customers with drivers for delivery services. AB 523 says that these companies are not vicariously liable for any act or omission of a driver that results in harm to a person or property, provided the company does not control, direct, or manage the driver or the driver’s personal vehicle. To benefit from this liability shield, the company must also maintain a motor vehicle insurance policy that meets the minimum coverage requirements during the delivery service period.

 

SB 24 – Emergency Medical Responders

 

As of May 26, 2025, SB 24 establishes certification and regulation of emergency medical responders (EMRs) under state law. Specifically, this law extends to EMRs the same workplace protections, legal immunities, and benefits currently afforded to other emergency medical personnel, meaning they must now be treated as a formally recognized and regulated class of emergency personnel. Organizations employing or contracting with EMRs must ensure these individuals are properly certified and that their roles are integrated into existing emergency response protocols and workplace safety policies.

 

SB 162 – Compliance Required with Civil Rights Laws to Receive State Funding

 

Effective October 1, 2025, SB 162 requires an entity that is going to receive state funding to agree to comply with certain employment laws that are applicable to the entity. Specifically, under this new law, any entity that receives an appropriation of state money must formally agree to comply with a range of federal and state civil rights and employment laws, including but not limited to Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and related sections of state law. Importantly, SB 162 clarifies that this requirement applies only to state funds and does not extend to federal funds distributed by the state under federal mandates.

 

SB 179 – Review for Antisemitism Motivation in Labor Investigations

 

Existing state law prohibits discrimination in employment based upon race, religious creed, color, age, sex, disability, sexual orientation, gender identity or expression, national origin or ancestry, and authorizes the Nevada Equal Rights Commission to investigate tensions, practices of discrimination and acts of prejudice against any person or group based on these protected classifications. SB 179 will now require the NERC, when conducting an investigation into an alleged unlawful discriminatory practice based upon the religious creed of a person or group, to consider whether the practice was motivated by antisemitism. Under the law, “antisemitism” is defined by reference to the International Holocaust Remembrance Alliance, as a certain perception of Jews, which may be expressed as hatred toward Jews.

 

Reminder to Register or Certify Exemption for NEST Program

 

Nevada’s Employee Savings Trust (NEST) Program went live in June, following its enactment back in 2023. Effective immediately, eligible employers must either register for the program or certify their exemption by September 1, 2025. Eligible employers include those with six or more employees, in business for at least three years, and who do not offer a qualified retirement plan. The program is designed to minimize employer burden by eliminating fiduciary responsibilities, administrative costs, and the need to manage employee accounts. Instead, employers are tasked with facilitating payroll deductions into Roth IRAs, submitting employee data, and maintaining basic records through the NEST portal.

 

Action Items

  1. Review and update minor employment policies and practices.
  2. Prepare for expanded Civil Air Patrol Leave requests.
  3. Implement background checks and training for covered nonmedical care staff.
  4. Consult with legal counsel about certification of compliance with Civil Rights Laws when receiving state funding.
  5. Register or certify exemption for the NEST Program.

 


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

New Hampshire: Legislative Update

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  • Effective July 1, 2025, HB 358 provides nursing mothers with an unpaid 30-minute break to express breast milk for every three hours of work and a private space to express breast milk.
  • Effective January 1, 2026, HB 2 requires employers with 20 or more employees to provide up to 25 hours of unpaid leave from work to attend medical appointments for childbirth, postpartum care, or the employee’s child’s pediatric medical appointments within the first year of the child’s birth or adoption.

Discussion

New Hampshire employers with pregnant and nursing workers should be aware of two important new employee protections.

 

Accommodations for Nursing Mothers

 

Effective July 1, 2025, HB 358 provides nursing mothers with an unpaid 30-minute break to express breast milk for every three hours of work. This requirement goes further than the federal Providing Urgent Maternal Protections (PUMP) for Nursing Mothers Act, which only requires employers to provide reasonable break times for employees within the first year after childbirth. “Expression of milk” is defined to include initiation of lactation by manual or mechanical means.

 

Like the PUMP Act, employers must also provide a space to express breast milk. It cannot be a bathroom and must be shielded from view, clean, and free from intrusion from coworkers and the public. It also must be within reasonable walking distance. Employees are required to provide at last two weeks’ notice prior to needing the break periods and a space for expressing breast milk. Employers are permitted an exemption from the law’s requirements only in cases of undue hardship – which requires significant difficulty or expense in order to comply. The law was enacted in 2023, but employers with six or more employees were only required to comply as of July 1, 2025.

 

Childbirth Related Leave

 

Effective January 1, 2026, HB 2 requires employers with 20 or more employees to provide up to 25 hours of unpaid leave from work to attend medical appointments for childbirth, postpartum care, or the employee’s child’s pediatric medical appointments within the first year of the child’s birth or adoption. Parents working for the same employer are entitled to take a cumulative of 25 hours. Employees are permitted to substitute paid vacation time or any other appropriate paid leave. The leave entitlement is also job protected. Employees must provide reasonable notice to the employer and make a reasonable effort to schedule the leave so as not to unduly disrupt the operations of the employer. Employers can ask for documentation to ensure that the time is being taken for its intended purpose.

 

Action Items

  1. Review and update lactation accommodation policy to include unpaid break time of 30 minutes for every three hours of work.
  2. Designate a private area for expressing breast milk.
  3. Update leave policies to provide for childbirth-related leave.
  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. © 2025 ManagEase

Ohio: Latest State to Add Mini-WARN Act

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September 29, 2025

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  • Effective September 29, 2025, HB 96 creates a new requirement for Ohio employers to provide 60 days’ advance notice to employees, unions, and certain government officials in the event of a mass layoff or plant closing.

Discussion

Effective September 29, 2025, HB 96 creates a new requirement for Ohio employers to provide 60 days’ advance notice to employees, unions, the State Director of Job and Family Services, and the chief elected official of both the municipal corporation and the county in the event of a mass layoff or plant closing. The new mini-WARN is modeled after the federal Worker Adjustment and Retraining Notification Act (WARN). It uses the definitions of employer, mass layoff, and plant closing provided in the federal WARN Act. It also requires a 60-day advance written notice period as provided by federal WARN. However, the Ohio Revised Code Section 4113.31 requires the notice to the union to contain:

 

  • The location of the facility affected by the plant closing or mass layoff;
  • A detailed statement explaining the reason for the plant closing or mass layoff and whether it will be permanent or temporary;
  • The expected date when the plant closing or mass layoff will commence and the anticipated date on which the employees’ employment will cease; and
  • The total number of employees affected by the plant closing or mass layoff, including the employees’ job titles or positions and any department or division impacted.

 

If affected employees do not have an authorized representative, the notice must contain:

 

  • A detailed statement explaining the reason for the plant closing or mass layoff and whether it will be permanent or temporary;
  • The expected date when the plant closing or mass layoff will commence and the anticipated date on which the employees’ employment will cease;
  • An indication as to whether an affected employee has bumping rights or other reemployment rights under a collective bargaining agreement or a company policy, including any procedures for exercising those rights;
  • Information on how affected employees can access unemployment insurance benefits and other assistance programs;
  • The name, title, and contact information of an employer representative who can answer questions about the plant closing or mass layoff; and
  • Information about any available services for an affected employee, including job placement assistance, retraining programs, or counseling services.

 

The notice to the required government officials must include:

 

  • A description of any action taken or planned to mitigate the impact of the plant closing or mass layoff, including any efforts to secure alternative employment or training for affected employees;
  • The name of each employee organization representing affected employees, and the name and address of the chief elected officer of each organization; and
  • A copy of the notice provided to affected employees or their representatives, as applicable.

 

Action Items

  1. Consult with legal regarding Ohio and federal WARN notice requirements in the event of a mass layoff or plant closing.

 


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

Rhode Island: Legislative Update

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  • Effective January 1, 2026, HB 6066 increases the temporary disability insurance wage base to $100,000 from $38,000 and also increases weekly benefits.
  • Effective June 24, 2025, HB 6161 requires employers to provide workplace accommodations for applicants and employees experiencing menopause and related medical conditions.
  • Effective July 2, 2025, HB 5901/SB 576 updates the state’s hands-free driving law to include exceptions for using a GPS or navigation device while it is mounted for hands-free use or the use of a personal wireless communication device with a hands-free accessory or with the activation or deactivation of a feature or function with the motion of a single swipe or tap of the finger.
  • Effective July 2, 2025, HB 5506 bans employers from discharging, disciplining, or otherwise threatening to take any adverse employment action against an employee because the employee refused to attend an employer-sponsored meeting regarding the employer’s opinion concerning a religious or political matter or refused to listen to speech or view communications, including electronic communications from the employer intended to communicate the employer’s opinion concerning religious or political matters.
  • Effective July 1, 2025, SB 887 protects against disability discrimination in federally funded programs even if there is a change in federal law.
  • Effective July 1, 2025, SB 519 amends the state’s Fair Employment Practices Act to prohibit discrimination based on hairstyles.
  • Effective July 1, 2025, HB 5679 requires employers to provide a wage notice to employees at the start of employment.
  • Effective January 1, 2026, SB 829 expands the temporary caregiver insurance program to include benefits for participation as a bone marrow transplant donor or a living organ donor.
  • Effective January 1, 2026, SB 974 expands temporary caregiver insurance to provide for time off work to care for a sibling.
  • Effective August 17, 2025, the Rhode Island Department of Labor and Training (DLT) issued new regulations clarifying premium pay requirements and who must comply.

Discussion

The Rhode Island legislative session was a busy one for laws impacting employers and their employees. The Rhode Island Department of Labor and Training also published new rules clarifying premium pay required for work on Sundays and holidays. The most notable changes are summarized below.

 

Temporary Disability Benefits Changes

 

Effective January 1, 2026, HB 6066 increases the temporary disability insurance wage base to $100,000 from $38,000. Temporary disability weekly benefits will also increase to 4.62% of an individual’s wages in the highest-paid quarter of their wage base period. The percentage will increase to 5.38% in the 2027 benefit year and 5.77% in the 2028 benefit year and thereafter.

 

Menopause Protections

 

Effective June 24, 2025, HB 6161 requires employers to provide workplace accommodations for applicants and employees experiencing menopause and related medical conditions. The law amends the Rhode Island Fair Employment Practices Act, which requires reasonable accommodations for pregnancy, childbirth, and related medical conditions, to expressly include menopause. The definition of “related condition” is amended to include the need to manage the effects of vasomotor symptoms. Examples of vasomotor symptoms include, but are not limited to, hot flashes and night sweats. In addition to engaging in the interactive process with workers experiencing menopause, employers are also required to provide an employee, who gives them notice of menopause, with a written notice of the right to be free from discrimination for such condition within 10 days of notification.

 

Hands-Free Driving Update

 

Effective July 2, 2025, HB 5901/SB 576 updates the state’s hands-free driving law to include exceptions for using a GPS or navigation device while it is mounted for hands-free use or the use of a personal wireless communication device with a hands-free accessory or with the activation or deactivation of a feature or function with the motion of a single swipe or tap of the finger. Employers with workers who perform driving duties should ensure that workers are using approved hands-free devices in compliance with the law.

 

Captive Audience Meeting Ban

 

Effective July 2, 2025, HB 5506 bans employers from discharging, disciplining, or otherwise threatening to take any adverse employment action against an employee because the employee refused to attend an employer-sponsored meeting regarding the employer’s opinion concerning a religious or political matter or refused to listen to speech or view communications, including electronic communications from the employer intended to communicate the employer’s opinion concerning religious or political matters.

 

The law does not prohibit:

 

  • Communications the employer is required to provide by law;
  • Communications that are necessary for employees to perform their job duties;
  • Meeting with or participating in communications that are part of coursework, any symposia, or an academic program at an institution of higher education; and
  • Casual conversations between employees or the employer, provided that participation in the conversation is not required.

 

Violations of the law may result in injunctive relief, reinstatement, back pay and reestablishment of employee benefits, and reasonable attorneys’ fees and costs.

 

Disability Discrimination Protections

 

Effective July 1, 2025, SB 887 protects against disability discrimination in federally funded programs even if there is a change in federal law. The law specifically cites Section 504 of the Rehabilitation Act of 1973 which prohibits discrimination based on disability in federally funded programs and activities. In the event Section 504 is repealed or invalidated, the state will continue to enforce the prohibition on discrimination in federally funded programs and activities. Employers with programs that receive federal funding should be aware that they will be expected to comply with the prohibition on disability discrimination in Rhode Island even if the federal government changes the requirements under the Rehabilitation Act.

 

CROWN Act

 

Effective July 1, 2025, SB 519 amends the state’s Fair Employment Practices Act to prohibit discrimination based on hairstyles. The definition of race is expanded to include traits historically associated with race, including, but not limited to, hair texture and protective hairstyles. Protective hairstyles include, but are not limited to, hair texture or hairstyles commonly associated with a particular race or national origin, like hair that is tightly coiled or tightly curled, locks, cornrows, twists, braids, Bantu knots, and afros.

 

Wage Notice Requirement

 

Effective July 1, 2025, HB 5679 requires employers to provide a wage notice to employees at the start of employment. The notice must include:

 

  • The rate or rates of pay including whether the employee is to be paid by the hour, shift, day, week, salary, piece, commission, or other method;
  • Allowances claimed for permitted meals and lodging;
  • Employer policy on sick, vacation, personal leave, holidays and hours;
  • Employment status and whether they are exempt from minimum wage or overtime;
  • A list of deductions to be made from pay;
  • Number of days in the pay period, regularly scheduled payday, and the payday on which the employee will receive the first payment of wages earned;
  • The legal name of the employer and operating name;
  • Physical address of employer’s main office or principal place of business; and
  • Phone number of employer.

 

A copy of the notice shall be retained along with an acknowledgement of receipt for a period of three years.

 

Bone Marrow and Organ Donor Leave

 

Effective January 1, 2026, SB 829 expands the temporary caregiver insurance program to include benefits for participation as a bone marrow transplant donor or a living organ donor. Benefits will include time needed for procedures, medical tests, and surgeries related to the donation, including no more than five business days of recovery from a bone marrow transplant or no more than 30 business days of recovery from a living organ donor transplant. A bone marrow transplant donor is an individual from whose body bone marrow is taken to be transferred to the body of another person. A living organ donor is an individual who donates all or part of an organ and is not deceased.

 

Leave to Care for a Sibling

 

Effective January 1, 2026, SB 974 expands temporary caregiver insurance to provide for time off work to care for a sibling. “Sibling” is defined as children with a common parent, including biological siblings, half-siblings, step-siblings, foster siblings, and adopted siblings.

 

New Premium Pay Regulations

 

Effective August 17, 2025, the Rhode Island Department of Labor and Training (DLT) issued new regulations clarifying premium pay requirements and who must comply. Existing law requires time-and-a-half pay for retail employees for work performed on Sundays and certain holidays. However, there was no clear definition of a retail employer. Under the new regulations, a retail business is “an establishment engaged primarily in the sale of goods or services directly to the general public. It operates at the end of the distribution chain, selling in small quantities to the ultimate consumer in a manner consistent with other consumer goods and services.” Expressly excluded from the definition are resale, wholesale, manufacturing, food preparation and sales, and other wholesale operations that service other businesses rather than customers. The advantage of a clear definition of retailer is that the retail employer can count this premium pay towards the calculation of overtime. Non-retailers must pay overtime and premium pay separately.

 

In addition to the new definition of retailer, the new regulations also delete the ability of the DLT to provide exemptions from the premium pay requirements. The DLT had this ability prior to the state legislature removing it in 2021. The new regulations now reflect this change by removing the process for requesting an exemption.

 

Action Items

  1. Review and update leave policies referencing the temporary caregiver insurance program, if applicable.
  2. Review and update accommodations policies.
  3. Review and update safe driving policies, if applicable.
  4. Consult with legal counsel regarding mandatory meetings involving religious or political matters.
  5. Update discrimination and harassment policies.
  6. Draft and provide required wage notice to employees upon start of employment.
  7. Update payroll processes for calculation of premium pay, if applicable.
  8. 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

Tennessee: Civil Rights Enforcement Restructured

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July 1, 2025

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  • Tennessee dissolved the Tennessee Human Rights Commission as of June 30, 2025.
  • The Civil Rights Enforcement Division within the state’s Attorney General’s Office now handles state-level employment discrimination complaints for private employers.

Discussion

In a significant shift for civil rights enforcement in Tennessee, HB 910/SB 861 dissolved the Tennessee Human Rights Commission (THRC) and transferred its enforcement duties to two separate agencies:

 

  • The Division of Civil Rights Enforcement (CRED) within the state’s Attorney General’s Office now handles enforcement of the Tennessee Human Rights Act (THRA) and Tennessee Disability Act (TDA) for private-sector employers.
  • The Tennessee Department of Human Resources (DOHR) is now responsible for ensuring state agencies comply with Title VI of the Civil Rights Act.

 

Effective July 1, 2025, employment discrimination complaints must be filed with CRED instead of the THRC, with a filing deadline of 180 days from the alleged incident. It is not yet confirmed whether CRED will enter into a work-sharing agreement with the EEOC, which would allow for dual filing and extend the EEOC filing deadline to 300 days.

 

The state Attorney General must appoint a Director of CRED, who will develop new procedures for filing, investigating, and resolving complaints under state law. It remains to be seen how CRED’s approach to enforcement may differ from that of the THRC.

 

Action Items

  1. Update complaint policies and procedures to reflect entity transitions.
  2. Have appropriate personnel trained on how to handle employee complaints.
  3. Monitor future developments between CRED and EEOC.

 


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

Washington: Legislative Update

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  • Effective July 27, 2025, SB 5501 prohibits employers from requiring a valid driver’s license as a condition of employment or for a job opening.
  • Effective January 1, 2026, SB 5041 now provides for unemployment benefits for workers on strike or who are locked out by their employer.
  • Effective June 13, 2025, Ordinance 127229 amends the Seattle Commute Trip Reduction Program to include remote employees in the definition of “affected employee” and modifies strategies for compliance.

Discussion

Washington employers should be aware of continued expansion of worker protections. Recent legislation changes are summarized below.

 

Driver’s License Restrictions 

 

Effective July 27, 2025, SB 5501 prohibits employers from requiring a valid driver’s license as a condition of employment or for a job opening. Employers can only request a valid driver’s license if driving is one of the essential job functions or is related to a legitimate business purpose for a position. Violations can result in statutory damages equal to actual damages or $5,000, whichever is greater. For a first violation, the civil penalty is $500. Repeat violations are $1,000 or 10% of damages, whichever is greater.

 

Unemployment Benefits for Strikers

 

Effective January 1, 2026, SB 5041 will provide unemployment benefits to workers on strike or who are locked out by their employer. Previously, unemployment benefits were expressly excluded for those workers. Benefits for striking workers begin after the disqualification period ends. The disqualification period ends the second Sunday after the strike begins or the date the strike ends, whichever is first. There is no disqualification period for locked out workers. The one-week waiting period applies to both groups of workers.

 

Striking workers can receive up to six weeks of benefits, while locked out workers can receive up to 26 weeks of benefits. If benefits are issued as the result of a strike, the Employment Security Department (ESD) will notify the employer of mediation services available through the Public Employment Relations Commission. Benefits paid will be charged to the experience rating account in the event of a strike for a “covered contribution paying base year employer.” If a contribution paying employer is charged benefits due to a strike, the ESD will determine whether the employer is eligible to make a voluntary contribution and provide notice to eligible employers of the ESD’s determination.

 

If an eligible employee also receives retroactive wages for any week where they received unemployment benefits, the ESD will issue an overpayment assessment to recover the benefits. If a court finds a strike to be unlawful, employees must also repay benefits received. The law is set to expire on December 31, 2035. The legislature is required to review the law and decide whether to renew it.

 

Seattle Commute Trip Reduction Program Changes

 

Effective June 13, 2025, Ordinance 127229 amends the Seattle Commute Trip Reduction Program to include remote employees in the definition of “affected employee” and modifies strategies for compliance. Remote employees are excluded from the definition if they live more than 150 miles from the worksite, go to the worksite once per year or less, and work from home or a site near home. The purpose of the program was to reduce traffic congestion and air pollution by providing alternatives to driving for commuters. Employers with 100 or more employees who report in-person, hybrid, or remotely to a work site between 6 a.m. and 9 a.m. and live within 150 miles of Seattle are required to:

 

  • Appoint an individual to act as an Employee Transportation Coordinator to be a primary contact between the employer and the city and administer the Commute Trip Reduction Program;
  • Submit a program report to the city for review and approval every two years;
  • Conduct a commuter survey once every two years to measure employees’ commute patterns; and
  • Exercise a good faith effort by collaborating with the city in its administration and implementation of the law.

 

The Ordinance also modifies the strategies a covered employer can implement in order to comply with the program. Under Category B, to ensure non-drive-alone commutes are preferable options, employers can provide employee financial assistance or company-owned assets for a hybrid or remote office setup or provide subsidies for scooter share, bike share, or other shared mobility employee memberships. Under Category C, for parking management, discouraging driving single-occupancy vehicles to the workplace by omitting parking subsidies must apply to at least 90% of affected employees in order to count towards a compliance strategy.

 

Action Items

  1. Review and update job descriptions and job postings to evaluate requirement for valid driver’s license.
  2. Discuss impacts to experience rating and voluntary contribution to the Unemployment Insurance Trust Fund with legal counsel, if applicable.
  3. Review and update Seattle Commute Trip Reduction Program compliance 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

West Virginia: Legislative Updates

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  • Employers no longer need work permits from the superintendent of schools for 14 and 15-year-old workers. Instead, employers must obtain written parental consent and an age certificate from the state Commissioner of Labor.
  • Employers are authorized to extend a voluntary hiring preference for military spouses.

Discussion

Elimination of Work Permits for 14 and 15-Year-Old Workers

 

As of July 11, 2025, SB 427 allows employers in West Virginia to hire 14 and 15-year-old minors without a traditional work permit from the minor’s superintendent of schools. Although the law eliminates the previous permit requirement, it replaces it with new documentation obligations aimed at maintaining oversight and youth worker protections.

 

Now, employers must obtain and retain written parental consent and an age certificate issued by the West Virginia Commissioner of Labor, which includes key information such as proof of age, school verification, and a job description. Both documents must be kept on file and made available upon request by enforcement officers. Employers must still adhere to all federal child labor laws, applying the stricter standard where discrepancies arise. Noncompliance may result in misdemeanor charges, fines between $50 and $1,000, and potential jail time for repeat violations.

 

Voluntary Hiring Preferences for Veterans and Military Spouses

 

As of July 9, 2025, HB 3083 permits West Virginia employers to voluntarily give hiring preference to military spouses without violating the West Virginia Human Rights Act. Employers previously had the option to extend this preference to veterans and disabled veterans. To apply this preference, employers must ensure that the candidate meets all required qualifications for the role, including relevant knowledge, skills, and eligibility criteria. A “military spouse” is defined as the husband or wife of an active-duty service member who has relocated under permanent change of station (PCS) orders. Employers who follow the statute’s conditions are shielded from discrimination claims related to this hiring preference.

 

Action Items

  1. Update hiring policies and forms for minor employees.
  2. Have appropriate personnel trained on voluntary hiring preferences.

 


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

August Alerts

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OSHA Reduces Penalties for Small Businesses

The U.S. Department of Labor (DOL) updated its Occupational Safety and Health administration (OSHA) guidance on penalties and debt collection procedures for small businesses. The new policy is in the Penalties and Debt Collection section of the OSHA Field Operations Manual. The DOL cites the fact that small employers do not have the same resources that large employers do for paying penalties. By reducing penalties, small employers can focus on compliance and hazard abatement. The 70% penalty reduction has been expanded to include businesses with up to 25 employees. Employers with 26 to 100 employees are eligible for a 30% penalty reduction. Employers with 101-250 employees are eligible for a 10% penalty reduction. There is also a new 15% penalty reduction for employers that take immediate steps to address or correct a hazard. There is also an expansion of the 20% penalty reduction for employers without a history of serious, willful, repeat, or failure-to-abate violations. Also eligible are employers who have never been inspected by federal OSHA or an OSHA State Plan and those who have been inspected in the previous five years and had no serious, willful, or failure-to-abate violations. These penalty reductions are effective immediately. Penalties issued before July 14, 2025 are covered by the previous penalty structure.

 

Minimum Staffing Rules Struck Down by Federal Court and the OBBB

A recent federal court decision and provisions of the One Big Beautiful Bill have effectively nullified the Biden administration’s minimum staffing requirements for long-term care facilities participating in Medicare and Medicaid. These rules, which were set to phase in starting in 2026, mandated 24/7 on-site registered nurse coverage and specific “hours per resident day” staffing minimums. On June 18, 2025, in Kansas v. Kennedy, a federal court in Iowa ruled that these mandates exceeded CMS’s authority under the “major questions doctrine,” citing their significant economic impact and potential to force facility closures. As a result, employers, especially those operating long-term care facilities, are no longer required to comply with the 2024 CMS final rule. However, employers should continue to monitor regulatory developments as future efforts may seek to reintroduce similar standards. In the meantime, facilities should continue meeting existing Social Security Administration requirements and consider documenting staffing practices to demonstrate good faith compliance in case of audits or future rule changes.

 

Federal PAID Program Relaunched to Resolve Wage and Hour Disputes

On July 24, 2025, the U.S. Department of Labor (DOL) announced reinstatement of the Payroll Audit Independent Determination (PAID) program. This program allows employers to correct mistakes efficiently and ensure employees receive back wages or other remedies promptly while avoiding litigation. Under PAID, employers are encouraged to conduct audits and, if they discover FLSA or FMLA violations, to self-report those violations. Employers may then work in good faith with the DOL to correct their mistakes and to quickly provide 100% of the back wages due or other remedies to their affected employees. Reportedly, employers will not be assessed liquidated damages and civil money penalties if they resolve issues through the PAID program. Employers should consult with legal counsel to determine whether participation in this program is right for them.

 

Federal Court Pauses TPS Termination for Honduras, Nepal, and Nicaragua

Effective July 31, 2025, in National TPS Alliance v. Noem, the Northern District of California suspended the Department of Homeland Security’s (DHS) termination of Temporary Protected Status (TPS) for individuals from Honduras, Nepal, and Nicaragua, saying that termination violated the Administrative Procedures Act. TPS protection, including work authorization, was set to expire on August 5 for Nepal, and September 8 for Honduras and Nicaragua. The TPS termination has now been postponed until November 18, 2025. DHS released a statement confirming the suspended termination of TPS, but no further guidance has been issued.

 

Sixth Circuit: Federal Court Upholds Disability Discrimination Verdict for Plaintiff  

On July 16, 2025, the Sixth Circuit Court of Appeals upheld a jury verdict in the case Poplar v. Genesse County Road Commission in favor of an employee who had sued her employer for failing to accommodate her disability and retaliating against her after she filed complaints of discrimination. The employee, who was legally blind, had made repeated requests over the course of several years and provided medical documentation supporting her need for an assistant, but the employer failed to fill the approved assistant position. Ultimately, the jury determined this to be both a failure to accommodate and unlawful retaliation under federal law. For employers, this ruling reinforces the importance of promptly and consistently responding to employee accommodation requests. Employers should make sure that their accommodation processes are well-documented and free from undue delay, and any accommodation request denials should be reviewed with legal counsel.

 

California: New Victims of Violence Leave Resources

As of January 1, 2025, AB 2499 expanded leave protections for victims of qualifying acts of violence. Recently, the Civil Rights Division (CRD) announced resources to support employee rights and employer obligations under the new law. There are FAQs that explain key provisions of the leave and accommodations requirements. There is also a model notice employers may use to provide required information about the law to workers when hired, annually, upon request, and to any worker who informs the employer that they are a victim of violence or the family member of a victim of violence.

 

California: Headless PAGA Cases May be Permissible

On July 7, 2025, in CRST Expedited Inc. v. Superior Court of Fresno County, the California Court of Appeal said that cases under the Private Attorneys General Act (PAGA) may be brought by a plaintiff representing a group without also making their own individual claim. When the plaintiff does not make an individual claim as part of the PAGA lawsuit, the claim is deemed to be “headless.” To complicate the ruling further, this decision only applies to the version of PAGA before it was amended in July 2024. Whether the statutory language of PAGA permits headless claims remains a controversial and highly litigated issue with varying results. However, this issue is currently pending before the California Supreme Court, which is expected to resolve existing split decisions. Continue to look for updates on this topic.

 

California: Labor Commissioner May Prosecute for Unpaid Tips

As of January 1, 2026, SB 648 will give the Labor Commissioner the ability to issue citations and prosecute employers for unpaid tips owed to employees. Under Labor Code § 351, tips owed to employees cannot be kept by the employer or withheld from payment. Employers should review their tip practices for compliance.

 

California: Meal and Rest Period Amendments for Specific Industries

As of January 1, 2026, SB 693 says that employees of water corporations are exempt from the meal period requirements of Labor Code § 512 if the employee is covered by a valid collective bargaining agreement that expressly provides for meal periods for those employees, final and binding arbitration of disputes concerning application of its meal period provisions, premium wage rates for all overtime hours worked, and a regular hourly rate of pay of not less than 30 percent more than the state minimum wage rate.

 

As of January 1, 2026, AB 751 says that employees in safety-sensitive positions at “other refiner[ies]” do not need to be relieved of all duties during rest periods. Under Labor Code § 226.75, this rule already applies to petroleum facilities but adds establishments that produce fuel through the processing of alternative feedstock to the exemption. If a rest period is interrupted, another rest period must be permitted reasonably promptly after the circumstances that led to the interruption have passed. This exemption will now be made permanent.

 

California: Los Angeles Hotel Worker Minimum Wage on Hold

The minimum wage for hotel workers in Los Angeles was set to increase to $22.50 on July 1, 2025. However, the increase is on hold pending a referendum petition to get a proposed measure on the ballot. The wage increase will remain on hold if the referendum petition passes. If not, the minimum wage will go into effect. The referendum petition is still currently under review.

 

Delaware: Military Status Discrimination Prohibited

As of July 23, 2025, HB 55 amends the Delaware Discrimination in Employment Act (DDEA) to prohibit discrimination on the basis of military status. “Military status” means (1) a member of the uniformed forces or a reserve component, (2) a veteran, or (3) a dependent of a servicemember. The DDEA specifies that it is now unlawful for an employer to engage in differential treatment on the basis of military status if allowed by government contract or by state or federal law or regulation. For example, a veterans preference policy permitted by state or federal law would not violate the DDEA.

 

Kentucky: Emergency Rule on Reporting Injuries and Illnesses

As of July 1, 2025, the Kentucky Department of Workplace Standards adopted an emergency rule to amend its recordkeeping and reporting obligations to require employers to comply fully with federal regulations governing recording and reporting workplace injuries and illnesses. This emergency rule was enacted in response to recent changes in Kentucky law under HB 398 and SB 84 and the ongoing review of the state’s safety program.

 

Louisiana: Withholding Exemption for Short-Term Nonresident Employees

Effective January 1, 2026, HB 567 changes the threshold for exempting short-term service nonresident employees in Alabama from 25 days to 30 days. Currently, if a nonresident employee worked in Louisiana for 25 days or less in a calendar year, employers are exempt from withholding and remitting state taxes from employee wages. Employers should review their workforce to determine employees who may be eligible and adjust payroll processes accordingly.

 

Missouri: Paid Sick Leave Formally Repealed

On July 10, 2025, the Governor signed HB 567, officially eliminating the requirement for employers to provide earned paid sick time. Until the repeal becomes effective on August 28, 2025, employers still need to comply with the paid sick leave law, meaning employees will continue to be required to accrue paid sick leave for hours worked through August 27, 2025. Once the requirement is eliminated, employers may change paid sick leave policies on a going-forward basis.

 

Missouri: Alternative Currency Wage Payments

Effective August 28, 2025, HB 754 permits, but does not require, employers in Missouri to pay employee wages, in full or in part, in either physical specie legal tender (such as gold or silver coins) or in electronic specie currency if the employee requests payment in one of the approved alternative forms of currency. If an employer agrees to pay in physical specie, they are responsible for verifying the weight and purity of the coins or bullion before making the payment. Specie legal tender includes any specie coin issued by the federal government at any time, as well as other forms of specie, provided they do not contain Nazi insignia or symbols.  Electronic specie currency is a digital representation of actual gold and silver, specie, or bullion held in an account, which can be transferred electronically. The digital representation must reflect the exact unit of physical gold or silver in fractional troy ounces.

 

North Carolina: Amended Workplace Violence No-Contact Order Provisions

As of July 9, 2025, North Carolina SB 311 amends the state’s workplace violence law to extend civil no-contact order protections to employers and to expand the definition of unlawful conduct to cover certain forms of mass picketing. Previously, employers could only seek a civil no-contact order on behalf of an employee who suffered unlawful conduct from any individual that was carried out or could reasonably be construed to be carried out at the employee’s workplace. Now, employers can seek a civil no-contact order directly as an employer. Additionally, SB 311 expands the definition of unlawful conduct to include certain forms of mass picketing that obstruct access to or egress from a workplace, disrupt normal business operations, or threaten safety.

 

Oregon: Physician Noncompete Agreements Void with Limited Exception

As of June 9, 2025, SB 951 voids noncompete agreements with licensed physicians, physician associates, and nurse practitioners, except under limited circumstances. Specifically, noncompete agreements are permitted where the licensee has an ownership interest in the organization of 10% or more, or they own less than 10% of the entire ownership interest and have not sold or transferred their interest; the licensee does not engage directly in providing medical services, health care services, or clinical care; the hiring entity does not have a contract for management services or has a management services contract that qualifies for an exemption; or the licensee is notified of the protectable interest and the agreement is limited to a period of three years after hire.

 

Pennsylvania: Required Notice for Veterans’ Benefits and Services

Effective January 3, 2026, HB 799 adds new workplace posting requirements for employers. Those with a Pennsylvania worksite with more than 50 full-time employees must display a posting containing information for veterans and veterans’ families about federal and state benefits and services including  contact and website information for the Pennsylvania Department of Military & Veterans Affairs; substance abuse and mental health treatment; educational, workforce, and training resources; tax benefits; Pennsylvania veteran drivers’ license and non-driver identification card designation; eligibility for unemployment insurance benefits under state and/or federal law; legal services; and contact information for the U.S. Department of Veterans Affairs Crisis Line. The Pennsylvania Department of Labor and Industry is tasked with creating a standardized workplace posting for download from its website.

 

Texas: Expanded Medical Marijuana Use

As of September 1, 2025, HB 46 expands the Compassionate Use Program to allow medical marijuana to be used for patients with chronic pain, traumatic brain injury, Crohn’s disease, and any terminal illness or condition for which a patient is receiving hospice or palliative care. It also allows medical marijuana to be consumed via patches, lotions, suppositories, and approved inhalers, nebulizers, and vaping devices. The expansion does not impact employer obligations or rights to maintain a drug-free workplace.

 


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

Tax Credits and Deductions – Oh My!

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Quick Look

  • Tax deduction for employee tips up to $25,000 for tax years 2025 through 2028.
  • Tax deduction for employee overtime wages up to $12,500 for single filers, $25,000 for joint filers for tax years 2025 through 2028.
  • Calculation options expand for the paid family and medical leave tax credit for businesses.

Discussion

The “Big Beautiful Bill” was signed by the President on July 4th. Significant changes impacting employers relate to employee deductions for tips and overtime and expanded paid family and medical leave tax credit. The key points are summarized as follows.

 

Tip Tax Deduction and Credit Extension

 

Tipped employees are eligible for a tax deduction on tips received up to $25,000 annually. The deduction is subject to incremental reduction if the employee’s income exceeds $150,000 for individual filers/$300,000 for joint filers. Tips received must be reported on employee W-2s in order to take advantage of the tax deduction. If the employee is married, they must file a joint return to take advantage of the tax deduction.

The term “qualified tips” means cash tips, paid via cash or charge or received through tip sharing, in an occupation that customarily receives tips, such as food servers, bartenders, hotel staff, and beauty services. Tips must be paid voluntarily by the customer and cannot be in certain industries, like health, law, engineering, architecture, accounting, actuarial science, performing arts, consulting, athletics, financial services, and brokerage services. A comprehensive list of qualifying tipped occupations is expected to be published by the Department of Treasury by October 2. The tip tax deduction is available for tax years 2025 through 2028.

Additionally, the FICA Tip Credit is extended to beauty service employers, including barbering and hair care, nail care, esthetics, and body and spa treatments. Section 45B of the Internal Revenue Code allows employers of employees engaged in specified food and beverage services (now including beauty services) to reduce their taxable business income by claiming a tax credit for a portion of the Social Security and Medicare (FICA) taxes they pay on tips that employees receive directly from customers.

Overtime Tax Deduction

 

Employees are allowed a tax deduction, up to $12,500 for individual filers/$25,000 for joint filers, for overtime wages reported on employee W-2s. The deduction is subject to incremental reduction if the employee’s income exceeds $150,000 for individual filers/$300,000 for joint filers. If the employee is married, they must file a joint return to take advantage of the tax deduction.

 

“Qualified overtime compensation” means overtime compensation paid to an individual as required under the Fair Labor Standards Act (FLSA). It only applies to the amount in excess of the regular rate at which the individual is employed. For purposes of the FLSA, this refers to overtime pay provided for time worked over 40 hours in a week and only covers the overtime pay portion which is 0.5 times the regular hourly rate. The overtime deduction does not include qualified tips. The overtime tax deduction is available for tax years 2025 through 2028.

 

PFML Tax Credit

 

Internal Revenue Code § 45S provides a tax credit for employers who provide paid family and medical leave (PFML) to qualifying employees. The PFML tax credit historically applied to wages paid in tax years 2018 to 2025.

 

For tax years beginning in 2026, the Bill expands the credit calculation, at the employer’s choice, to either the percentage of wages paid to qualifying employees while they’re on PFML leave, or a percentage of premiums paid during the taxable year for the employer’s PFML insurance policy, if applicable. For the second option, the payment rate under the insurance policy may be used regardless of whether any qualifying employees were on PFML leave during the taxable year.

 

Additional revisions were made to the aggregation rule defining a “single employer” for purposes of receiving the tax credit and providing an exemption to the requirement to have a written leave policy in order to claim the tax credit. The Bill also expands the definition of “qualifying employees” from those who have been employed for at least a year, to also include, at the employer’s option, employees who have been employed for “not less than 6 months.” Qualified employees must also be employed for at least 20 hours per week.

 

Other Business Tax Credits

 

Additional tax credits were expanded or modified for things like business meals, business property, and domestic research. Employers should review the changes with their tax professional.

 

Action Items

  1. Review the Bill here.
  2. Separately track tips in payroll to prepare for reporting on W-2s.
  3. Separately track federal overtime amounts subject to deduction to prepare for reporting on W-2s.
  4. Consult with a tax professional on expanded or modified business tax credits.

 


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