HR Alerts – Page 5

Maryland

May 20, 2026/in HR Alerts

Maryland: Final Regulations Issued for FAMLI Program

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MAR 30, 2026

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The Maryland Department of Labor published final regulations implementing the state’s Family and Medical Leave Insurance program.
Employers will be automatically enrolled in the state-administered plan unless they submit a Declaration of Intent to offer an Equivalent Private Insurance Plan.

Discussion

In 2022, Maryland enacted the Family and Medical Leave Insurance (FAMLI) program to provide most Maryland employees with paid family and medical leave. Following several legislatively mandated delays, the Maryland Department of Labor (MDOL) published final regulations on March 30, 2026, and updated FAQs in April 2026. Employer and employee contributions begin January 1, 2027, and benefits commence in January 2028. Key aspects of the final regulations are summarized below.

Employee Eligibility and Benefits. Employees are eligible for FAMLI benefits if they have worked at least 680 hours in Maryland over the 12 months preceding the start of leave, which may be satisfied through work with any combination of employers. Qualifying events include the employee’s own serious health condition, a family member’s serious health condition, parental bonding, military caregiver leave, and qualifying military exigencies. The definition of “family member” is broader than under the FMLA, extending to domestic partners, grandparents, grandchildren, siblings, and individuals standing in loco parentis. Benefits are calculated using a two-tier wage replacement formula providing 90% of wages up to 65% of the state average weekly wage, plus 50% of wages above that threshold, subject to a $1,000 weekly maximum.

Contributions and Plan Options. The 2027 state plan premium rate is 0.9% of payroll up to the Social Security Wage Base, with employers permitted to pass up to 50% of the cost through to employees. Employers have three options for providing FAMLI benefits: (1) the default state-administered plan; (2) a self-insured Equivalent Private Insurance Plan (EPIP); or (3) a commercially insured EPIP. The MDOL also announced that employers that wish to offer an EPIP rather than participate in the state plan must submit a Declaration of Intent (DOI) to the FAMLI Division between September 1, 2026 and November 15, 2026, followed by a full EPIP application during 2027. Employers that submit a timely DOI are exempt from state plan contributions during 2027 but must hold escrowed contributions pending EPIP approval. Employers that are enrolled in the state plan will be required to pay a full year of premiums in 2027 before benefits begin, while employers with a commercially insured EPIP will not owe premiums until January 2028.

Coordination with Existing Leave. The regulations confirm that general purpose leave (e.g., PTO, vacation, or sick leave) may not be required to run concurrently with FAMLI leave, though employees may use paid sick leave before FAMLI benefits without a written agreement. Employers may designate a separate bank of leave as Alternative FAMLI Purpose Leave (AFPL) specifically for FAMLI-qualifying purposes and require it to run concurrently with FAMLI under specified conditions, with FAMLI serving as the primary benefit and AFPL supplementing up to 100% of the employee’s average weekly wage.

Notice and Administrative Requirements. Employers must provide FAMLI notices to employees using MDOL-mandated templates at hire, annually, six months before benefits commence, 30 days before any changes to FAMLI procedures, and when the employer is aware that an employee’s leave may qualify for FAMLI. Employers must also create an online account with the FAMLI Division for submitting quarterly wage reports and remitting contributions. The FAMLI Division will create sample notices for employers to use, but they have not yet been released. Employers should monitor the Division’s “For Employers” page for future updates.

Action Items

Review the full final regulations here.
Prepare for DOI submission, if pursuing EPIP.
Review existing leave policies to prepare for coordination with FAMLI leave.
Monitor MDOL website for information on template employee notices.
Create online employer account with MDOL FAMLI Division, as appropriate.
Have appropriate personnel trained on the requirements.

Maryland: Legislative Updates

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Employees may satisfy the administrative filing prerequisite for county discrimination claims by filing with the Maryland Commission on Civil Rights.
New civil penalties are established for child labor violations, certain employer-initiated workplace committees are prohibited, and a conditional state-level labor board for private sector employees is established.
Employers are prohibited from requiring employees to attend mandatory meetings on union organizing, religious, or political matters.
Noncompete agreements are unenforceable against certain licensed architects.
Public employers are prohibited from discriminating against fire and rescue public safety employees for the valid, off-duty use of medical cannabis.

Discussion

The Maryland General Assembly’s 2026 session produced several significant pieces of legislation impacting employer obligations and employee labor rights. Key provisions are summarized below.

Child Labor Penalties, Workplace Committees, and State Labor Board. Effective June 1, 2026, SB 831 addresses three distinct subject areas:

Civil Penalties for Child Labor Violations.Maryland already imposes criminal penalties for knowingly employing a minor in violation of child labor restrictions. SB 831 adds new civil penalties of up to $16,035 per general violation and up to $72,876 per willful or repeated violation involving hazardous or prohibited employment, both subject to annual increases beginning in 2027.
Prohibition on Certain Employer-Initiated Workplace Committees.SB 831 prohibits employers from allowing the formation of workplace groups that include both supervisors and employees to address working conditions of mutual interest, where two conditions are met: (1) the group may be dissolved unilaterally by the employer, and (2) the group is expressly exempt from NLRA or NLRB jurisdiction through any federal action occurring on or after January 1, 2026. Traditional labor organizations subject to NLRB jurisdiction and committees required for industry accreditation are not affected.
Conditional State-Level Labor Board for Private Sector Employees.SB 831 establishes a conditional framework under which the existing Maryland Public Employee Relations Board (PERB) would assume authority over private sector labor relations if the NLRA is repealed or the NLRB expressly cedes jurisdiction to Maryland. If triggered, PERB would be empowered to conduct union elections, certify bargaining representatives, order employers to bargain or submit to binding arbitration, adjudicate unfair labor practices, and impose civil penalties of up to $1,000 per affected employee.

County Discrimination Claims. Effective October 1, 2026, SB 694 allows employees to satisfy the administrative filing prerequisite for bringing a civil action under county discrimination laws by filing a complaint with the Maryland Commission on Civil Rights. This option is available in addition to filing with the applicable local county agency. Current law requires employees to file with the local county agency and observe a waiting period (ranging from 45 to 60 days, depending on the county) before initiating a civil action. SB 694 extends this Commission-filing option to all counties with local discrimination laws, potentially streamlining the path to civil litigation for employees with discrimination claims.

Captive Audience Meetings. Effective October 1, 2026, SB 417 prohibits employers from requiring employees to attend mandatory meetings on union organizing, religious, or political matters. Voluntary meetings on these topics remain permissible, and an exemption applies for employee training related to compliance with federal or state laws, including those addressing discrimination, harassment, and workplace safety. Violations may result in civil penalties, cease-and-desist orders, injunctive relief, compensatory damages, job reinstatement, back pay and benefits, and attorneys’ fees and costs. Employers will also be required to post a notice regarding these prohibitions and provide it to new hires upon hire. A model notice will be developed by the Commissioner of Labor and Industry.

Noncompetes for Licensed Architects. Effective October 1, 2026, HB 1016 renders noncompete agreements unenforceable against licensed architects in certain circumstances. Specifically, the law applies where the architect’s employer had a primary Maryland worksite with more than 30 employees at the time of hire but subsequently relocated either the majority of its employees or its principal place of business outside of Maryland.

Medical Cannabis Protections for Fire and Rescue Public Safety Employees. Effective October 1, 2026, SB 439 amends the state Fair Employment Practices Act to prohibit public employers from discriminating against fire and rescue public safety employees (e.g., firefighters, emergency medical technicians, cardiac rescue technicians, and paramedics) for the valid off-duty use of medical cannabis. The law does not apply to private employers, and exceptions apply where federal law compliance or the loss of a federal benefit would be implicated by the protections. Employers retain the right to prohibit on-duty use and take action against employees who work under the influence.

Action Items

Review youth employment practices for compliance, as applicable.
Evaluate existing employer-initiated workplace committees or advisory groups, as applicable.
Review mandatory meeting practices and consult with legal counsel regarding compliance with captive audience prohibitions.
Post required notice regarding captive audience prohibitions.
Review noncompete agreements with legal counsel, as applicable.
Have appropriate personnel trained on the requirements.

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

Nebraska

May 20, 2026/in HR Alerts

Nebraska: Legislative Updates

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Minimum wage will increase by 1.75% on January 1, 2027. The youth minimum wage and training wage will increase as of July 17, 2026.
The labor commissioner may impose administrative and operational support fees for employers eligible for the unemployment insurance experience rating.
Employers must retain child labor employment certificates for 12 months following the employee’s termination or upon the employee reaching age 16.
Nebraska has implemented its own state WARN Act.
Health care staffing agencies are prohibited from entering into noncompete agreements or imposing fees when a worker is subsequently hired as a permanent employee of a health care entity, subject to limited exceptions.
Employers with 5% of employees who are non-English speaking (and all speak the same language) must provide an interpreter at the worksite while non-English-speaking employees are working.

Discussion

The Nebraska legislature recently passed several laws impacting employers. Key aspects of the bills are summarized below.

Wage and Hour Updates. Beginning January 1, 2027, LB 258 will increase the state minimum wage by 1.75% (to $15.26 per hour) and annually thereafter, rather than increasing based on the Consumer Price Index (CPI). As of July 17, 2026, the youth minimum wage will also increase to $13.50 per hour for an employee who is 14 or 15 years old and is not an emancipated minor. Beginning on January 1, 2030, and on January 1 of every fifth year thereafter, the youth minimum wage will increase by 1.5%. Between July 17 and December 31, 2026, employers may pay a training wage rate of $13.50 per hour to new employees between 16 to 19 years old, who are not seasonal or migrant workers or emancipated minors, for the first 90 days of employment. As of January 1, 2027, and annually thereafter, the training wage rate will increase by 1.5%.

Unemployment Insurance Fees and Youth Employee Records. Effective July 17, 2026, under LB 847 the labor commissioner may require, by rule and regulation, an annual administrative and operational support fee for quarterly wage reports for employers eligible for experience rating, regardless of their election to be contributory or reimbursable. The amount will be a graduated fee based on gross wages paid for the prior calendar year. Each employer will be assigned a fee category according to a table in the statute.

Additionally, if a child employee terminates or upon reaching 16 years old, the employer must keep the child labor employment certificate for 12 months thereafter and make the certificate accessible to the attendance officers and to the Nebraska Department of Labor (NDOL) upon request. Certificates may be obtained from the NDOL for any child working in Nebraska, regardless of state residence.

Nebraska WARN Act, Health Care Staffing, and Workplace Translation Requirements. LB 921 implements two new acts and revises other existing law. The bill is effective July 17, 2026, except where otherwise indicated. First, employers with 100 or more employees must give 90 days’ advance notice of a business closing (i.e., the permanent or temporary shutdown of a single site of employment of one or more facilities or operating units that will result in an employment loss for one hundred or more employees, other than part-time employees) or a mass layoff (i.e., a reduction in employment force that is not the result of a business closing and results in an employment loss at a single site of employment during any thirty-day period of 100 or more employees, other than part-time employees).

Second, effective July 1, 2027, health care staffing agencies are prohibited from (1) entering into agreements containing noncompete clauses that restrict a worker’s employment opportunities, or (2) requiring payment of liquidated damages, employment fees, or other compensation if the worker is subsequently hired as a permanent employee of a health care entity, subject to limited exceptions. Health care staffing agencies must certify compliance with these rules annually when registering with the state.

Third, employers with 5% of employees who are non-English speaking (and all speak the same language) must provide an interpreter at the worksite while non-English-speaking employees are working. Notably, where Spanish interpretation is required, interpreters must be selected from a list developed by the commissioner. Such employers must also employ an individual who serves as a referral agent to community services for non-English-speaking employees.

Action Items

Update payroll with revised minimum wage requirements.
Update record retention practices for child labor employment certificates.
Have noncompete agreements reviewed by legal counsel.
Implement a workplace interpreter, if applicable.
Have appropriate employees trained on requirements.

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

New Jersey

May 20, 2026/in HR Alerts

New Jersey: Final Rule Published Implementing ABC Test for Worker Classification

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All Employers with Workers in NJ

EFFECTIVE

OCT 1, 2026

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The NJDOL published a final rule implementing the state’s “ABC” test for determining whether workers are employees or independent contractors under multiple state laws, including wage-and-hour and wage-payment laws.
The final rule is narrower than the original April 2025 proposed rule, removing industry-specific examples, eliminating the treatment of software and applications as evidence of control, and reversing the proposed rule’s approach to legal compliance.
The burden remains on the employer to prove that a worker satisfies all three prongs of the ABC test to be classified as an independent contractor.

Discussion

On May 5, 2026, the New Jersey Department of Labor (NJDOL) published a final rule implementing the state’s “ABC” test, which is used to determine whether a worker is an employee or an independent contractor under New Jersey’s Unemployment Compensation Law, Wage and Hour Law, and Wage Payment Law. The final rule is set to go into effect on October 1, 2026.

The ABC Rule

While the ABC test itself is not new to New Jersey, the final rule aims to clarify and codify existing case law. Under the ABC test, a worker is presumed to be an employee unless the employer can demonstrate that all three of the following criteria are met:

Prong A: The worker is free from the employer’s control or direction in performing the work, both under the contract and in fact;
Prong B: The work is performed outside the employer’s usual course of business or outside all of the employer’s places of business; and
Prong C: The worker is customarily engaged in an independently established trade, occupation, profession, or business.

If a worker fails to satisfy even one of these criteria, the worker is classified as an employee. The burden of proof rests entirely on the employer to demonstrate that all three prongs are met. This makes New Jersey’s test among the strictest worker classification standards in the country.

Final Rule Clarifications

The final rule eliminated several of the more “controversial” provisions from the April 2025 proposed rule:

Industry-specific examples:The proposed rule included examples identifying rideshare drivers, drywall installers, caddies, and delivery drivers as workers performing services within a company’s usual course of business. All such examples have been removed from the final rule.
Software and applications as control:The proposed rule would have treated a business’s requirement that workers use its software or applications as evidence of control over the worker. This provision has been deleted.
Actual work vs. right to work:The proposed rule would have focused on whether a worker actually works for other clients rather than whether the worker merely has the right to do so. This provision has been removed, restoring the relevance of a worker’s contractual right to perform services for others.
Essential vs. ancillary off-site work:The proposed rule would have treated “essential” off-site work as performed at the employer’s usual places of business. This distinction has been eliminated.
Legal compliance as control:The proposed rule would have treated a business’s exercise of control necessary to comply with other laws as evidence of an employment relationship. The final rule takes the opposite approach, expressly stating that steps taken to comply with federal, state, or local law do not constitute control under the ABC test.

In addition to the above, the final rule introduces several new clarifying provisions:

Statutory exclusions: The final rule confirms that existing statutory exclusions from minimum wage and overtime requirements (e.g., those for certain “white collar” professionals) remain unaffected by the rule.
Remote work:The final rule clarifies that when a worker performs services from home, the worker’s home is not automatically considered part of the employer’s usual places of business, meaning that performing remote work alone does not automatically render a remote worker an employee.

The final rule preserves the NJDOL’s general analytical approach, maintains the employer’s burden of proof on all three prongs, and identifies specific facts relevant under each criterion, such as whether workers control their own schedules or set their own pay rates. Importantly, the final rule also retains the provision that certain facts are insufficient on their own to establish independent contractor status, including the existence of an independent contractor agreement, the worker’s use of a business entity, a low salary, or the worker holding multiple jobs.

Action Items

Audit and review independent contractor classifications with legal counsel for compliance.
Have appropriate personnel trained on the requirements.

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

New York

May 20, 2026/in HR Alerts

Discussion

New York, NY: ESSTA Expanded to Include New Qualifying Reasons for Leave

Effective February 22, 2026, amendments to New York City’s Earned Safe and Sick Time Act (ESSTA) expanded the qualifying reasons for which covered employees may use protected time off to include: caregiving for a minor child or care recipient; attending or preparing for legal proceedings or taking necessary actions related to applying for, maintaining, or reinstating subsistence benefits or housing for the employee, a family member, or a care recipient; meeting with legal or social service providers or taking other protective actions following workplace violence against the employee or a family member; and staying home when a public disaster results in workplace closure, school or childcare closure, or a directive to remain indoors or avoid travel. “Public disaster” includes events such as a fire, explosion, terrorist attack, severe weather event, or emergency declared by the U.S. President, New York Governor, or New York City Mayor. Employers should review and update their written leave policies to reflect the expanded qualifying reasons and distribute updated policies to current employees and new hires.

New York, NY: TSCA Obligations Are Significantly Scaled Back

Effective February 22, 2026, amendments to New York City’s Temporary Schedule Change Act (TSCA) eliminated the requirement that employers approve up to two temporary schedule changes per year for qualifying personal events. This change corresponds to the concurrent expansion of ESSTA’s qualifying reasons for leave, which now covers many of the personal events previously addressed by the TSCA. Employees may still request temporary schedule changes, but employers are no longer obligated to approve them and may instead approve, deny, or propose an alternative, provided they respond as soon as practicable. The TSCA’s anti-retaliation protections remain fully in effect, continuing to safeguard employees who make schedule change requests.

New York: RAISE Act Finalized

On March 27, 2026, New York Governor Kathy Hochul signed the final version of the Responsible AI Safety and Education Act (RAISE Act), which takes effect January 1, 2027, and establishes a range of safety and transparency obligations for developers of large-scale “frontier” AI models. Covered AI models are defined as foundation models trained using specific computing power, by developers with annual revenue exceeding $500 million. Covered developers must publish a Frontier AI Framework describing their approach to catastrophic risk mitigation and cybersecurity, publish transparency reports before deploying new or modified models, submit quarterly summaries of catastrophic risk assessments to a newly established oversight office within the New York Department of Financial Services, and report critical safety incidents within specific deadlines. While the RAISE Act’s direct obligations fall on AI developers rather than employers generally, organizations that develop or substantially customize large-scale AI models should evaluate with legal counsel whether they fall within the law’s scope.

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

Oregon

May 20, 2026/in HR Alerts

Oregon: Asking for a Raise is Protected Activity Under Wage Transparency Law

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EFFECTIVE

APR 9, 2026

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Oregon’s wage transparency statute protects employees from retaliation for inquiring about their own wages, including by requesting a raise.
This protection applies regardless of whether the request involves an allegation of pay inequity or class-based discrimination.

Discussion

In Mirkovic v. Tenasys Corp., the Oregon Court of Appeals held that Oregon’s wage transparency statute protects employees from retaliation for inquiring about their own wages by requesting a raise, regardless of whether the request involves an allegation of pay inequity or class-based discrimination.

Here, the plaintiff worked as a software engineer for the company and in the spring of 2022, she requested both a promotion and a salary increase. After the company offered her a new title and raise, the plaintiff emailed one of the company’s owners seeking an additional $5,000 increase and future consideration for a director-level role. Shortly after her follow-up email, the company terminated the plaintiff’s employment.

Oregon’s wage transparency law makes it an unlawful employment practice for an employer to retaliate against an employee because the employee has “[i]nquired about, discussed or disclosed in any manner the wages of the employee or of another employee.” The court held that the phrase “the wages of the employee” plainly encompasses an employee’s inquiry into their own compensation, including a direct request for a raise made to management. The court noted that nothing in the statute limits its reach to discussions among coworkers or to circumstances involving alleged pay discrimination.

This ruling makes clear that, in Oregon, asking for a raise is protected activity, and how an employer responds to that request can be consequential. Employers may lawfully deny a raise request but may not take adverse action against the employee because the request was made. Retaliation exposure may exists even in the absence of an alleged pay disparity or protected-class discrimination claim, meaning that the timing of any adverse employment action following a compensation discussion will be closely scrutinized.

Action Items

Review compensation practices for compliance with anti-retaliation protections.
Consult with legal counsel when adverse action is contemplated in close proximity to any protected activity.
Have appropriate personnel trained on the requirements.

Oregon: Legislature Resolves Federal Tax Conflict for Paid Leave Oregon

In January 2025, the IRS issued Revenue Ruling 2025-4, clarifying that the portion of state paid family and medical leave benefits funded by employer contributions may be treated as taxable wages subject to federal payroll taxes. Without legislative action, this change would have required Paid Leave Oregon to issue Forms W-2 to benefit recipients, pay and report additional federal payroll taxes on certain benefits, and make significant changes to payroll and reporting systems. In response, Oregon enacted SB 1520, which authorizes Paid Leave Oregon to adopt administrative rules reallocating how employer and employee contributions are designated, and directing employee contributions to fund all qualifying leave types, including medical leave, while limiting employer contributions to family and safe leave only. For employers participating in the state-administered Paid Leave Oregon program, no action is required, there are no new costs, and the program will continue to operate the same way it does today, with Paid Leave Oregon implementing the behind-the-scenes accounting changes by January 1, 2027. Employers using a private equivalent plan should consult their plan administrator for guidance, as SB 1520 applies only to the state-administered 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. © 2026 ManagEase

Tennessee

May 20, 2026/in HR Alerts

Discussion

Tennessee: Payment Rules for Piece Rate and Commission-Based Employees

Effective July 1, 2026, SB 2024 requires that wages earned by an employee paid on a piece rate or commission basis are due and payable by the last day of the month following the month in which they were earned. Additionally, and upon voluntary or involuntary termination, the final wages of such employees must also be paid by the last day of the month following the date or termination. Tennessee employers that compensate employees on a piece rate or commission basis should review their payroll practices and payment schedules for compliance with the new deadlines.

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

Utah

May 20, 2026/in HR Alerts

Discussion

Utah: Noncompete Agreements for Healthcare Workers

As of May 6, 2026, HB 270 prohibits Utah employers from requiring a licensed health care workers to enter a noncompete agreement. In addition, any nonsolicitation agreement with a health care worker is void and unenforceable if it prohibits the health care worker from informing a patient of their current or future place of employment. The law defines “health care worker” broadly to include most health professions regulated under Utah Code Title 58, including nurses, nurse practitioners, mental health therapists, family counselors, social workers, dieticians, dentists and others.

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

Virginia

May 20, 2026/in HR Alerts

Virginia: More Legislative Changes!

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An omnibus labor and employment bill expands remedies for employee misclassification, minimum wage and overtime violations, and commission payment disputes, and broadens the Commissioner’s investigative authority under Virginia’s wage and hour laws.
Virginia enacts pay transparency requirements and a prohibition on seeking or relying on applicants’ pay history in hiring decisions.
Employers are prohibited from retaliating against employees who miss work to serve as voluntary emergency responders during declared emergencies.
Locked-out employees who are otherwise eligible for unemployment insurance benefits may now receive such benefits, subject to limited exceptions.
The minimum wage exception for farm laborers and farmAll Users employees is eliminated.
Virginia’s safety and health regulatory body is directed to adopt heat illness prevention standards.
The overtime exemption for domestic service workers is eliminated effective July 1, 2028, contingent on reenactment by the 2027 General Assembly.

Discussion

Following last month’s update, Virginia’s governor signed a number of additional bills into law that impact employer obligations and employee rights. Key updates are summarized below.

Omnibus Labor and Employment Bill. Effective July 1, 2026, HB 238 amends various provisions of Virginia’s wage and hour laws in several significant respects:

Employee Misclassification.HB 238 expands the scope of relief available to employees who are misclassified as independent contractors. Successful plaintiffs will now be entitled to all remedies available under the Virginia Wage Payment Act (VWPA), including automatic recovery of double the amount of any unpaid wages, plus prejudgment interest and reasonable attorneys’ fees and costs. For “knowing” violations, a court may award triple the amount of lost wages.
Minimum Wage and Overtime Remedies.HB 238 similarly expands the remedies available for minimum wage and overtime violations in Virginia to the full range of VWPA remedies. This makes damages available for Virginia minimum wage and overtime violations more expansive than those available under federal law.
Commission Payments as Wages.HB 238 amends the VWPA to reverse a 2025 Virginia Supreme Court decision that had found commission payments are not covered by the VWPA. The statute is now explicitly amended to make clear that commissions constitute “wages” under Virginia law.
Expanded Investigative Authority.HB 238 also broadens the circumstances under which the Commissioner of Virginia’s Department of Labor and Industry may investigate suspected wage and hour violations. The Commissioner may now initiate investigative proceedings upon receipt of a complaint from an employee or an interested third party, or at the Commissioner’s own discretion. The statute further expressly authorizes the Commissioner, or their representative, to enter an employer’s premises to review records. Where the Commissioner determines there is a good-faith basis to believe a violation has occurred, the Commissioner may institute administrative or court enforcement action, seeking all remedies available under the VWPA.

Pay Transparency and Wage History. Effective July 1, 2026, HB 636 places Virginia among the growing list of states enacting pay transparency requirements and restrictions on the use of pay history in hiring. The law prohibits employers from:

Seeking the pay history of prospective employees;
Relying on pay history when making hiring decisions or determining compensation upon hire; and
Retaliating against a prospective or current employee for refusing to provide pay history or for requesting a pay range for an open position.

If an applicant voluntarily discloses their pay history, an employer may only consider it after making an initial job offer and solely for the purpose of justifying a higher salary.

The law also requires employers to set a salary or wage range for any open position, and include the salary or wage range in both external job postings and internal promotion or transfer opportunities. Under the law, “wage or salary range” means “the minimum and maximum wage or salary for the position, set in good faith by reference to any applicable pay scale, any previously determined wage or salary range for the position, the actual range of wages or salaries for persons currently holding equivalent positions, or the budgeted amount available for the position.”

The law creates a private right of action, with penalties of up to $10,000 damages, as well as attorneys’ fees.

Anti-Retaliation Protections for Voluntary Emergency Responders. Effective July 1, 2026, SB 100 prohibits employers from retaliating against employees who miss work to serve as voluntary emergency responders during declared emergencies. Employees who are subjected to retaliation in violation of this statute may seek reinstatement and recovery of lost wages.

Unemployment Insurance for Certain Lockout Employees. Effective July 1, 2026, SB 433 expands unemployment eligibility to certain locked-out workers. Under the amended law, locked-out employees who are otherwise eligible for benefits shall receive such benefits unless (i) the recognized or certified collective bargaining representative of the locked-out employees refuses to meet under reasonable conditions with the employer to discuss the issues giving rise to the lockout, (ii) there is a final adjudication under the federal National Labor Relations Act that such representative has refused to bargain in good faith with the employer, or (iii) the lockout is the direct result of such representative’s violation of an existing collective bargaining agreement.

Minimum Wage for Farm Laborers and Farm Employees. Historically, farm laborers and farm employees have been excepted from Virginia’s minimum wage requirements. Effective January 1, 2027, HB 20 eliminates this exception, meaning employers will be required to pay covered farm laborers and farm employees Virginia’s statutory minimum wage.

Heat Illness Prevention Standards. HB 1092 directs Virginia’s safety and health regulatory body to adopt a standard addressing heat illness in the workplace no later than May 1, 2028. While the law does not yet impose any new requirements on employers, it signals that workplace heat exposure standards are forthcoming. The rules are expected to cover both indoor and outdoor environments, and are expected to draw from prior Virginia proposals, standards enacted in other states, and guidance from NIOSH and ACGIH.

Overtime Pay for Domestic Service Workers. Similarly, domestic service workers have historically been exempt from Virginia’s statutory overtime pay requirement. HB 27 eliminates this exemption effective July 1, 2028, requiring employers to pay overtime compensation to babysitters, cooks, maids, housekeepers, nannies, nurses, caretakers, handymen, gardeners, home health aides, and personal care aides. Employers should note, however, that the statute will only take effect if it is reenacted by the 2027 Session of the Virginia General Assembly. Employers in the domestic services space should monitor legislative developments accordingly.

Action Items

Review independent contractor classifications with legal counsel for compliance.
Review commission agreements with legal counsel for compliance.
Review hiring procedures, job postings, application materials, and compensation practices for compliance with new wage transparency and salary history law.
Prepare for minimum wage compliance for covered farm laborers, as applicable.
Monitor legislative developments in 2027 regarding domestic service workers.
Have appropriate personnel trained on the requirements.

Virginia: New PFML is Coming!

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Virginia has established a new Paid Family and Medical Leave (PFML) program providing eligible employees with up to 12 weeks of job-protected leave and partial wage replacement for qualifying reasons.
Contributions are split between employers and employees, with employer obligations varying based on company size.
Contribution collection is set to begin on April 1, 2028, with benefits available beginning December 1, 2028.
Employers may opt out of the state program by obtaining Commission approval for a qualifying private plan.

Discussion

Virginia joins its regional neighbors in establishing a Paid Family and Medical Leave (PFML) program under HB 1207. The program provides up to 12 workweeks of job-protected leave for qualifying reasons and a partial wage replacement benefit during that leave. Key aspects regarding contributions, reasons for leave, benefit amounts, leave usage, and private plan alternatives are summarized below.

Contributions. The program will be administered by the Virginia Employment Commission and financed through a payroll-funded insurance model, with contributions split between employers and employees. Employer contribution obligations vary by size:

Employers with more than 10 employees may withhold up to 50% of the required contribution from employee wages, with the employer responsible for the remainder.
Employers with 10 or fewer employees are only required to collect and remit 50% of the contribution rate applicable to larger employers, with no additional employer contribution owed.

Contribution collection is set to begin on April 1, 2028, with benefits available beginning December 1, 2028.

Qualifying Reasons for Leave. Benefits are available to covered employees authorized to work in the United States who take leave for the following reasons:

To care for a new child through birth, adoption, or foster care in the first year;
Because of the employee’s own serious health condition;
To care for a family member with a serious health condition;
For reasons related to a family member’s military service; or
To seek safety services for the employee or a family member.

Under the law, “family member” means a child, grandchild, grandparent, parent, sibling, spouse, or domestic partner of an employee, including those with step, foster, or adopted relationships, and includes any individual (i) who regularly resides in the employee’s home or where the relationship creates an expectation that the employee care for such individual and (ii) who depends on the employee for care. “Family member” does not include an individual who simply resides in the home with no expectation that the employee care for the individual.

The term “safety services” is defined under the law to mean:

Legal or law-enforcement assistance or remedies to ensure the health and safety of an individual, including preparing for and participating in protective order proceedings or other civil or criminal legal proceedings related to domestic violence, harassment, sexual assault, or stalking;
Medical treatment, recovery services, or mental health counseling for injuries caused by domestic violence, pervasive harassment, sexual assault, or stalking;
Services from a victim services provider; and
Relocation and home security services to ensure the safety of an individual who has experienced domestic violence, pervasive harassment, sexual assault, or stalking.

Depending on the qualifying reason for leave, the employee’s claim for PFML must be supported by appropriate certification, such as medical records, provider statements, or official documents verifying the qualifying event.

Amount of Benefits. Employees may take up to 12 weeks of leave in a 52-week period, with the exception that leave for safety services is capped at four weeks per benefit year. The weekly benefit equals 80% of the employee’s average weekly wage, subject to a maximum cap of 100% of the statewide average weekly wage (adjusted annually).

Leave may be taken intermittently and runs concurrently with any applicable federal FMLA leave. Employees who have been employed for at least 120 days prior to the start of leave are entitled to reinstatement to their position or an equivalent upon return. Employers must maintain healthcare benefits throughout any period of PFML leave.

Private Plan Option. Employers that prefer not to participate in the state program may apply for a Commission-approved private insurance plan. To qualify, the private plan must provide benefits at least equivalent to the state program and must not cost employees more than they would pay under the state plan.

Action Items

Begin planning for PFML implementation.
Evaluate company contribution obligations based on employee headcounts.
Review leave policies and begin preparations to coordinate with PFML program requirements.
Consult with payroll administrators regarding contribution withholding obligations.
Evaluate state program versus private plan alternatives, as applicable.
Have appropriate personnel trained on PFML requirements.
Monitor Virginia Employment Commission for implementation details and regulatory updates.

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

Washington

May 20, 2026/in HR Alerts

Discussion

Washington: Updates to Rules for Minor Employees

Effective July 1, 2026, two new Washington laws impact employers that hire minor workers. HB 1121 expands allowable work hours for 16- and 17-year-olds enrolled in approved Career and Technical Education (CTE) programs, permitting eligible students to work the same number of hours and days during the school year as would otherwise be permitted only during school vacations or holidays, provided they are employed by an approved employer-partner in the CTE program. Also effective July 1, 2026, HB 1644 introduces stricter conditions for student learner variances, increases penalties for violations of youth employment laws, and requires L&I to conduct safety consultations before minors may begin certain types of work-based learning, which may result in additional administrative steps and potential delays before a minor can begin work. Employers should be aware that HB 1644 also increases potential liability exposure for workplace incidents involving minor workers, even in cases where the incident is caused by the student’s own actions. Washington employers that participate in CTE programs or otherwise employ minors should review their youth employment practices for compliance.

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

Immigration Updates

April 20, 2026/in HR Alerts

ICE Updates Classification of Form I-9 Violations and Increases Monetary Penalties

APPLIES TO

All Employers

EFFECTIVE

MAR 16, 2026

QUESTIONS?

Contact HR On-Call

(888) 378-2456

Quick Look

U.S. Immigration and Customs Enforcement has updated its long-standing fact sheet Form I-9 Inspection Under Immigration and Nationality Act § 274A to reclassify a number of technical violations as substantive violations.
Employers will no longer have a 10-day statutory cure period, upon written notice from the government, for a number of common errors and could be subject to immediate fines of $288 to $2,861 per form.

Discussion

U.S. Immigration and Customs Enforcement (ICE) has updated its long-standing fact sheet Form I-9 Inspection Under Immigration and Nationality Act § 274A to reclassify a number of technical violations as substantive violations. This means employers will no longer have a 10-day statutory cure period, upon written notice from the government, for a number of common errors and could be subject to immediate fines of $288 to $2,861 per form. These changes were made without issuing a Federal Register notice or press release. The following errors have been reclassified as substantive violations:

Missing employee date of birth (Section 1);
Missing USCIS/alien number (Section 1, when applicable);
Missing date next to employee signature (Section 1);
Missing expiration date in Section 1, Box 4;
Spanish-language Form I-9 used outside Puerto Rico;
Missing name/title of employer representative;
Incomplete List A, B, or C data in Section 2 (document title, number, issuing authority, or expiration), even where document copies were retained;
Missing first day of employment in the Certification;
Incomplete preparer/translator data in Supplement A;
Failure to check alternative procedure box/not enrolled in E-Verify when using remote verification; and
Electronic I-9 audit trail, e-signature, or security documentation deficiencies.

ICE has also removed the safe harbor rule that allowed retained copies of employment authorization documents to cure missing Section 2 information. Due to the sharp increase in worksite enforcement activity, employers should audit their Forms I-9 as soon as possible and consult with legal counsel to determine how corrective action should be taken.

Action Items

Immediately audit Forms I-9 in consultation with legal counsel.
Verify compliance of electronic Form I-9 systems.
Confirm use of remote verification only when enrolled in E-Verify, if applicable.
Have appropriate personnel trained on Form I-9 requirements.
Consult with legal counsel upon receipt of a Notice of Inspection from ICE.

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