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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