APPLIES TO All Employers with Employees in NJ

EFFECTIVE As Indicated

QUESTIONS? Contact HR On-Call (888) 378-2456

Quick Look New Jersey’s Department of Labor and Workforce Development issued proposed regulations interpreting the “ABC test” used to determine independent contractor status. If adopted, these regulations will expand prior case law interpreting independent contractor status and include certain provisions that directly affect companies who use contractor services.

Discussion

On April 28, 2025, the New Jersey Department of Labor and Workforce Development (NJDOL) issued proposed regulations that significantly expand the interpretation of the ABC test used to determine whether a worker is an employee or an independent contractor under state wage, hour, and benefits laws.

 

Under current state law, the ABC test requires that all three prongs be met for a worker to be classified as an independent contractor:

 

• Prong A: The worker must be free from control or direction in performing the service.
• Prong B: The service must be outside the usual course of the employer’s business or performed outside all places of business.
• Prong C: The worker must be customarily engaged in an independently established trade or business.

 

The proposed regulations broaden each prong:

 

• Prong A: The proposed regulations go beyond existing case law by stating that even the reservation of control, whether or not exercised, can disqualify a worker from independent contractor status. The NJDOL outlines a broad list of factors to evaluate control, including who sets work hours, whether the employer requires specific tools or uniforms, whether the worker must report progress, and whether the employer provides training. Even minimal oversight or requirements could be enough to fail this prong.
• Prong B: The NJDOL adopts an expansive view of what constitutes the “usual course of business,” including any activity the employer regularly engages in to generate revenue or provide services. It also broadens the definition of “place of business” to include not just physical offices or facilities, but also customer homes, remote work locations, and even vehicles used in service delivery. This makes it more difficult for employers to argue that a contractor’s work is performed outside their business scope or location. The proposed regulations also provide examples of what will likely be deemed within the employer’s scope of business, including a transportation network company engaging a driver to transport customers, a drywall installation company engaging a drywall installer, or a country club engaging a golf caddie to work on its golf course.
• Prong C: The proposed rules raise the bar for proving that a worker is engaged in an independent business. Factors include the number of clients, business viability, investment in tools, and whether the worker advertises or sets their own rates. However, the NJDOL emphasizes that having multiple clients, a professional license, or even business insurance is not enough. The regulations also downplay the significance of independent contractor agreements and clarify that issuing a 1099 form does not determine status.

 

The proposed rules also target common employer defenses, stating that the structure of a contract (e.g., whether it was negotiated or drafted unilaterally) and the ability to terminate the relationship at-will are relevant to determining control. These proposed changes, if adopted, would make it significantly harder for employers to classify workers as independent contractors in New Jersey.

 

Action Items

1. Have independent contractor classifications reviewed by legal counsel in anticipation of proposed rules being adopted.
2. If appropriate, revise contractor agreements with legal counsel.
3. Monitor developments in the rule-making process.

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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

APPLIES TO All Employers with Employees in OR

EFFECTIVE January 1, 2026

QUESTIONS? Contact HR On-Call (888) 378-2456

Quick Look SB 1108 allows Oregon employees to use paid sick leave for blood donations connected to a voluntary program approved or accredited by the American Association of Blood Banks or the American Red Cross. SB 906 requires Oregon employers to disclose a written explanation of earnings and deductions shown on itemized statements at the time of hire. SB 426 makes an owner and direct contractor jointly and severally liable for any unpaid wages owed to the unrepresented employees of the direct contractor and subcontractor at any tier.

Discussion

The Oregon state legislature expanded employee protections in several areas. Below are the most notable changes.

 

Expanded Paid Sick Leave

 

SB 1108 allows Oregon employees to use paid sick leave for blood donations connected to a voluntary program approved or accredited by the American Association of Blood Banks or the American Red Cross. Employers will need to update their paid sick leave policies prior to the end of the year.

 

Enhanced Payroll Disclosures

 

SB 906 requires Oregon employers to disclose a written explanation of earnings and deductions shown on itemized statements at the time of hire. The explanation must include:

 

• The established regular pay period;
• All types of pay rates that employees may be eligible for, including hourly pay, salary pay, shift differentials, piece-rate pay and commission-based pay;
• All benefit deductions and contributions;
• Every type of deduction that may apply;
• Allowances, if any, claimed as part of minimum wage;
• Employer-provided benefits that may appear on the itemized statements as contributions and deductions; and
• All payroll codes used for pay rates and deductions, along with a detailed description or definition of each code.

 

Employers can comply by providing a link to a website, posting a physical document in a central location, through a shared electronic file, or delivery by electronic mail. The information must be reviewed and updated by January 1 of each year. The Bureau of Labor and Industries is tasked with developing a model written guidance document that can be customized.

 

Subcontractor Wage Theft

 

SB 426 makes an owner and direct contractor jointly and severally liable for any unpaid wages owed to the unrepresented employees of the direct contractor and subcontractor at any tier. An “unrepresented employee” means an employee of a direct contractor or subcontractor who is not represented by a construction trade labor organization that has established itself or its affiliates as the collective bargaining representative for people performing work on a project, or is not covered by a collective bargaining agreement that contains a grievance procedure and a mechanism for recovering unpaid wages and fringe benefit contributions. Indemnification clauses in construction contracts that attempt to shift liability away from the direct contractor or owner are unenforceable.

 

Before commencing a civil action, the unrepresented employee must send a notice to the owner and direct contractor describing the wage violation and provide 21 calendar days from certified delivery for correction of the violation. To make sure subcontractors are complying with their wage requirements, the direct contractor or owner can request to view the following records:

 

• Certified payroll reports, that, at a minimum, include sufficient information for the direct contractor to determine whether a subcontractor has paid in full all wages earned by unrepresented employees who performed work on the project as part of the employees’ total

compensation;

• The name, address and phone number of a contact for the subcontractor;
• The names of all workers who performed work on the construction project and notation of whether each worker is paid or classified as an employee or independent contractor;
• The name of any subcontractor with which the first-tier subcontractor contracts;
• The anticipated contract start date and scheduled duration of work; and
• An affidavit that attests to whether the subcontractor or any of the subcontractor’s current principals have, within the preceding five years, participated in any civil, administrative, or criminal proceeding involving a violation of any law providing for payment of wages or imposing a criminal penalty for the violation and the outcome of the proceeding, including damages, fees or penalty amounts paid to workers or a government agency, if any.

 

Since there are limited opportunities for direct contractors and owners to avoid liability for their subcontractors’ noncompliance with wage and hour requirements, implementing a compliance system and auditing subcontractors should be a key component of the contractor relationship.

 

Action Items

1. Update paid sick leave policies.
2. Draft required wage payment disclosures.
3. Have appropriate personnel trained on the requirements.
4. Review construction subcontractor agreements with legal counsel, if applicable.

 

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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

APPLIES TO Employers with Employees in TX

EFFECTIVE As Indicated

QUESTIONS? Contact HR On-Call (888) 378-2456

Quick Look AI may not be used to discriminate against protected classes in employment decisions. The Government Code now defines “sex” as an individual’s biological sex (e.g., male or female). Nondisclosure and confidentiality provisions in employment, settlement, or other agreements are unenforceable if they prohibit someone from disclosing sexual abuse. Hospitals must submit staffing reports to the state and are required to have a complaint resolution process for nursing staff. New limitations are imposed for non-competes for physicians and other healthcare practitioners. A regulatory framework is implemented for delivery network employees for permitting, hiring requirements, policy requirements, and the definition of independent contractors. Human trafficking prevention training is required for first responders and medical assistants; there are additional anti-retaliation and posting requirements. Unemployment claim definitions are amended to reflect the most recent employer. A grace period is implemented for PEO license renewals. Healthcare benefit plans that cover transition-related coverage must extend coverage to follow-up care, adverse effect management, and other related treatments. The types of damages that can be recovered for cybersecurity breaches has been limited.

Discussion

As a result of the most recent legislative session, Texas passed several laws impacting employers. Key aspects of the laws are discussed below.

 

Texas Artificial Intelligence Law

 

Texas’ Governor Greg Abbot has signed the Texas Responsible Artificial Intelligence Governance Act (TRAIGA), which establishes a regulatory framework for artificial intelligence systems within the state. TRAIGA does not impose any requirement on private employers to disclose to employees or applicants their use of AI when used to make or aid in employment-related decisions. However, the bill does prohibit the development and deployment of AI systems that intentionally discriminate against protected classes in violation of federal or state law. That said, the law does not create a private right of action and instead empowers the Texas Office of the Attorney General to exclusively enforce the law.

 

Amended Definition of Sex

 

Effective September 1, 2025, HB 229 amends the definition of “sex” under the Texas Code Construction Act under the Government Code, which provides rules for interpreting and applying statutes like the Texas Labor Code. Under the amended law, “sex” is defined strictly as an individual’s biological sex (e.g., male or female) based on reproductive anatomy. These definitions apply to all governmental entities in Texas that collect vital statistics, including sex, and require that individuals be identified as either male or female.

 

This change may have broader implications for how sex is interpreted in state-level anti-discrimination laws, potentially limiting protections for transgender, intersex, and gender non-conforming individuals under Texas law. While federal law under Title VII still recognizes gender identity as a protected characteristic, the divergence in definitions could create legal uncertainty for employers navigating compliance with both state and federal requirements.

 

Nondisclosure and Confidentiality Provisions for Claims of Sexual Assault

 

Effective September 1, 2025, SB 835 (“Trey’s Law”) makes any nondisclosure or confidentiality provision in employment, settlement, or other agreements unenforceable if it prohibits a person from disclosing an act of sexual abuse or related facts. This includes disclosures about abuse of a child or violations of specific criminal statutes such as sexual assault, aggravated sexual assault, and trafficking of persons. The law does not prohibit parties from agreeing to keep other aspects of a settlement confidential, such as payment amounts or unrelated terms.

 

Importantly, this prohibition applies retroactively to agreements made before the law’s effective date, unless a party obtains a declaratory judgment from a court affirming the enforceability of the nondisclosure provision.

 

Hospital Reporting & Complaint Process for Nurse Staffing 

 

Effective September 1, 2025, HB 2187 requires hospitals to submit annual nurse staffing reports to the Texas Department of State Health Services (DSHS), which will then be forwarded to the Texas Health and Human Services Commission (HHSC). Each hospital’s chief nursing officer must attest to the accuracy of the report, reinforcing accountability in staffing practices.

 

The law also mandates that HHSC establish a formal process to promptly review and resolve complaints related to nurse staffing. Importantly, it includes strong anti-retaliation protections for nurses who report violations or provide information to their hospital’s nurse staffing committee. By December 31, 2025, HHSC must adopt rules necessary to implement these provisions.

 

Non-Competes for Physicians and Other Healthcare Practitioners

 

Effective September 1, 2025, SB 1318 introduces new limitations on non-compete agreements for physicians and expands similar restrictions to a select group of health care practitioners, including dentists, nurses, and physician assistants.

 

For physicians, the law replaces the prior “reasonable price” standard for non-compete buyouts with a cap equal to one year of the physician’s salary and wages at the time of termination. It also limits the duration of non-compete clauses to one-year post-termination and restricts the geographic scope to a five-mile radius from the physician’s primary practice location. Notably, if a physician is involuntarily terminated without “good cause,” any non-compete related to the practice of medicine becomes void and unenforceable. “Good cause” is defined as a reasonable basis for discharge related to conduct or performance.

 

For other health care practitioners, including dentists, nurses, and physician assistants, the law imposes similar guardrails. Enforceable non-competes must include a buyout option capped at one year’s salary, a one-year time limit, and a five-mile geographic restriction from the practitioner’s primary work location. To ensure clarity, the law requires that all non-compete terms be clearly and conspicuously stated in writing. These new rules apply only to agreements entered into or renewed on or after September 1, 2025.

 

New Regulations for Delivery Network Companies

 

Effective September 1, 2025, HB 4215 establishes a new regulatory framework for “delivery network companies.” This includes businesses that use digital platforms to arrange deliveries of food, beverages, or consumer goods from restaurants or retailers to customers. Under the law, these companies must now obtain a permit from the Texas Department of Licensing and Regulation (TDLR), pay associated fees, and implement a range of operational policies to legally operate in the state.

 

Specifically, these companies must verify that individuals accessing the platform are at least 18 years old, possess valid government-issued photo identification or a driver’s license, and pass both a criminal background check and a driving record review. Delivery network companies must also adopt and enforce an intoxicating substance policy and a nondiscrimination policy that prohibits delivery personnel from being under the influence or discriminating based on race, religion, sex, disability, age, or geographic location.

 

The law also defines when a delivery person may be classified as an independent contractor. To qualify, the company and the delivery person must agree in writing to contractor status, and the company must not impose restrictions such as required login hours, territorial limits, or exclusivity. Noncompliance with these provisions may result in suspension or revocation of the company’s permit by TDLR.

 

Human Trafficking Workplace Training

 

Effective September 1, 2025, two new laws will expand the scope of mandatory human trafficking prevention training to additional occupational groups and introduce new signage and anti-retaliation requirements for health care facilities.

 

HB 742 requires all first responders, including fire protection personnel, EMS workers, and law enforcement officers (including volunteers and reserves), to complete a state-approved training course on identifying, assisting, and reporting victims of human trafficking.

 

HB 754 extends the same training requirement to medical assistants, defined as individuals who assist physicians with patient care, administrative duties, and clinical procedures under supervision.

 

In addition to training, both bills require hospitals, emergency departments, freestanding emergency medical care facilities, ambulatory surgical centers, public health clinics, birthing centers, outpatient clinics, and community health centers to display human trafficking awareness signage. These facilities must also comply with anti-retaliation provisions that prohibit disciplinary action against employees who make good-faith reports of suspected human trafficking.

 

The Texas Health and Human Services Commission (HHSC) is responsible for approving and publishing a list of acceptable training programs, while the Texas Attorney General will design the required signage. Both agencies are directed to act “as soon as practicable” after the law takes effect.

 

Amendments to Unemployment Claim Definitions

 

Effective January 1, 2026, HB 3699 amends Section 208.002(a) of the Texas Unemployment Compensation Act to clarify the meaning of “last work” and “person for whom the claimant last worked.” Under the revised law, these terms will now refer to the most recent employer as defined under Texas law, regardless of how many hours the claimant worked for that employer. This change eliminates the previous 30-hour threshold, which allowed claimants to manipulate eligibility by briefly working for another individual before filing for benefits.

 

Grace Period for PEO License Renewals

 

Effective September 1, 2025, SB 1254 revises licensing and enforcement provisions for professional employer organizations (PEOs) under the Texas Labor Code. The bill updates the definition of a “license holder” to mean a person holding a valid license issued by the Texas Department of Licensing and Regulation (TDLR), clarifying the legal status of PEOs operating in the state.

 

Previously, if a PEO failed to renew its license on time, its co-employer status was ambiguous. Under the new law, if a PEO does not apply for license renewal within 18 months of expiration, its status as an employer is automatically terminated. Additionally, the TDLR is authorized to take disciplinary action against any PEO that continues to operate or offer services with an expired license.

 

Healthcare Plan Coverage for Reproductive Health

 

Effective September 1, 2025, SB 1257 amends the Texas Insurance Code to require that health benefit plans that cover transition-related coverage extend that coverage to include follow-up care, adverse effect management, and other related treatments.

 

Limits on Cybersecurity Program Damages

 

Effective September 1, 2025, SB 2610 limits the types of damages that can be recovered in lawsuits arising from cybersecurity breaches, specifically for small business entities that meet certain cybersecurity standards. The law does not create a new private right of action but instead restricts the recovery of punitive damages in breach-related litigation.

 

To qualify for this protection, a business must: (1) employ fewer than 250 people; (2) own or license computerized data containing sensitive personal information; and (3) have implemented and maintained a cybersecurity program at the time of the breach.

 

The cybersecurity program must include administrative, technical, and physical safeguards; align with an industry-recognized cybersecurity framework; address specific cybersecurity risks; and be appropriately scaled to the size and complexity of the business. If these conditions are met, the business is shielded from punitive damages in the event of a data breach lawsuit.

 

Action Items

1. Review use of AI in employment decision-making.
2. Consult with legal counsel to update nondisclosure and confidentiality clauses.
3. Revise employment policies to reflect amended definition of “sex.”
4. For hospitals, prepare for compliance with annual staffing reporting requirements.
5. Have non-compete agreements reviewed by legal counsel.
6. For delivery network companies, obtain appropriate permits, implement background checks, and adopt appropriate policies.
7. Identify covered personnel for human trafficking training, update applicable handbook policies, and update required workplace signage, as appropriate.
8. Ensure health plans are updated for expanded coverage.

 

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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

APPLIES TO Employers with Employees in VT

EFFECTIVE As Indicated

QUESTIONS? Contact HR On-Call (888) 378-2456

Quick Look Vermont has enacted sweeping changes to its employment laws, including stricter wage penalties for willfully withholding wages, lower layoff notice threshold for employers with 20 employees, and new workers’ compensation requirements for medical case management.

Discussion

On May 28, 2025, Vermont Governor Phil Scott signed SB 117 into law, introducing major updates to the state’s wage and hour, unemployment compensation, and workers’ compensation laws. The law went into effect on July 1, 2025, with some provisions delayed until 2026 or 2028.

 

In the area of wage and hour law, the bill imposes stricter penalties for employers who willfully withhold wages. In such cases, employers may be required to pay up to double the unpaid amount, with half going to the employee and half to the state. Additionally, Vermont’s minimum wage will now be adjusted annually based on the lower of 5% or the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-U), rounded to the nearest cent.

 

Unemployment compensation rules are also undergoing major revisions. The threshold for mandatory layoff notifications has been lowered from 50 to 20 employees, meaning more employers will be required to notify the state in the event of a mass layoff or business closure. Employers and claimants now have the option to receive unemployment insurance notices electronically; however, those using third-party administrators should proceed cautiously to avoid disrupting SIDES participation.

 

Employers must also respond to wage and separation information requests within 10 days. In cases where a business is acquired and split among multiple entities, one must be designated to handle wage reporting and benefit tax responsibilities. The state’s Short-Time Compensation Program, which allows employers to reduce employee hours instead of conducting layoffs, will resume in 2026 following the completion of IT system upgrades. Certain unemployment benefit increases are also delayed until July 1, 2026, or earlier if the system is ready.

 

Lastly, workers’ compensation reforms under the bill include new requirements for medical case management, which is now defined and available when recommended by a provider or supported by evidence. Employers must also provide translation services for injured workers who are not fluent in English. Insurers are now subject to new timelines for approving or denying medical case management services. To ensure timely benefit payments, the law introduces escalating penalties for late weekly payments: 5% for the first offense, 10% for the second, and 15% for the third and subsequent violations. Starting October 1, 2025, employers must report late payments quarterly, and failure to do so may result in a $500 penalty.

 

Action Items

1. Audit wage payment practices for compliance.
2. Update layoff procedures, if applicable.
3. Have appropriate personnel trained for compliance.

 

 

 

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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

OFCCP Resumes Processing of Section 503 and VEVRAA Complaints

Following the revocation of Executive Order 11246, the Office of Federal Contract Compliance Programs (OFCCP) had paused enforcement of Section 503 of the Rehabilitation Act of 1973 (protecting those with disabilities) and VEVRAA (protecting certain veterans) obligations, but has now announced that all pending compliance reviews will be administratively closed. Contractors will receive formal notice of these closures, and the OFCCP will not take further action on the November 2024 scheduling list. However, the OFCCP emphasized that Section 503 and VEVRAA remain in effect, and contractors must continue to comply with their obligations under these laws. While certification through the Contractor Portal is not currently required, the OFCCP has resumed processing both new and previously held complaints under Section 503 and VEVRAA. Additionally, the moratorium on enforcement for VA Health Benefits Program providers has been extended through May 7, 2027.

 

DOL Withdraws Proposed Rule to Eliminate Subminimum Wage for Workers with Disabilities

On July 7, 2025, the Department of Labor (DOL) announced that it was formally withdrawing its proposed rule that would have phased out the issuance of subminimum wage certificates for workers with disabilities under Section 14(c) of the Fair Labor Standards Act. This marks a clear decision not to move forward with regulatory changes at this time, citing the complexity of the issue, over 17,000 public comments, and concerns about the DOL’s authority to end the program unilaterally. As a result, the current regulatory framework remains in place, and Section 14(c) certificates are still available at the federal level. However, many states have already taken steps to phase out or ban the use of these certificates, so employers must also consider state law before applying.

 

DC Circuit: Union Negotiation Impasse is Based on Evidence Not Party’s Declaration

On June 13, 2025, in Troy Grove v. National Labor Relations Board, the D.C. Circuit Court of Appeal said that the NLRB did not have sufficient evidence to say there was no impasse in negotiations between the employer and union. There had been five years of unsuccessful negotiations around the employer’s request to end pension contributions, which included a three-year strike and ongoing mutual rejections of each party’s proposed action. The employer ultimately declared impasse, but the union denied there was an impasse which would prohibit the employer from taking final action. The court indicated that the NLRB cannot declare impasse just because one party said there was no impasse. Based on the evidence presented, the appeals court said that the employer did not engage in an unfair labor practice when indicating its intent to move forward as a result of the impasse.

 

California: New Model Notice for Crime Victim Rights  

Effective January 1, 2025, California’s AB 2499 expanded workplace protections for employees who are victims of crime, broadening the definition of “victim” and extending job-protected leave and safety accommodations. The law also requires employers to provide written notice of these rights to all new hires and to current employees upon request. As of July 1, 2025, the California Civil Rights Department (CRD) issued the official model notice that employers must use or replicate, as long as it is substantially similar in content and clarity. Employers must provide this notice to all new hires at the time of onboarding and to current employees upon request.

 

Maine: Minimum Wage for Agricultural Employees

Effective January 1, 2026, LD 589 provides agricultural workers a guaranteed minimum wage. The bill amended the state’s minimum wage law to include a new section addressing agricultural workers. As of the effective date, agricultural workers will be entitled to at least $14.65 an hour with a cost-of-living increase occurring each January 1 thereafter. Employers also have recordkeeping requirements for hours worked and wages paid for a period of at least three years. Employers must provide employees a wage statement with the date of the pay period, the hours, total earnings and itemized deductions. The Maine Department of Labor is responsible for enforcing the minimum wage requirements. In addition to payment of unpaid wages, employers violating the law must pay an additional amount equal to the unpaid wages as liquidated damages and the costs, including reasonable attorneys’ fees. Employers will also be subject to a fine of not less than $50 and not more than $200.

 

Maine: Prince George’s County Minimum Wage Increase

Effective February 4, 2025, CB-088-2024 provides for annually increasing the Prince George County minimum wage rate using the Consumer Price Index (CPI). As of January 1, 2026, the Director of Finance will increase the minimum wage rate using the lesser amount of the percentage growth in the CPI or 5%. If there is no decline or growth in the CPI, the minimum wage will remain the same. The County Council also has the authority to temporarily suspend minimum wage indexing if there is negative employment growth in the Current Employment Statistics series as reported by the U.S. Bureau of Labor Statistics.

 

Oklahoma: Updates to Minimum Wage Act

Effective November 1, 2025, SB 250 will amend the Oklahoma Minimum Wage Act by updating the provisions related to the computation of minimum wage for employees. The bill specifies that credit toward the minimum required wage will be given for tips, gratuities, meals, or lodging received by the employee, provided that the employer pays a cash wage that meets or exceeds the requirements set forth in federal regulations. The previous limitation allowed credit for these benefits, but only up to 50% of the wage. Additionally, the bill introduces a new provision stating that if the minimum wage exceeds the current federal minimum wage, credit for tips, gratuities, meals, or lodging may still be applied.

 

Virginia: New “Vulnerable Victim” Law

Effective July 1, 2025, Virginia’s SB 894 establishes a new law to address an employer’s vicarious liability for an employee’s tortious conduct, requiring courts to consider whether an employer should be held vicariously liable when a “vulnerable victim” brings a personal injury or wrongful death claim against an employee. The law defines “vulnerable victim” broadly, including patients, individuals with disabilities, assisted living residents, certain transportation passengers, and clients of esthetics or massage businesses. To hold an employer vicariously liable under the law, a vulnerable victim must prove that the employee was likely to come into contact with them and that the employee’s actions directly caused their injury or death, and that the employer failed to take reasonable steps to prevent the harm or control the employee, despite having both the ability and the need to do so. In other words, the employer must have known, or should have known, that they could and should have intervened, but didn’t. The law does not require that the employee’s interaction with the victim be directly tied to the victim’s vulnerability, potentially expanding employer exposure. As a result, employers should undertake steps to conduct background screening on applicants, train employees on proper conduct, and proactively monitor employee conduct that could pose risks to vulnerable individuals.