Illinois

Discussion

Illinois: New AI Safety Rules

APPLIES TO

All Employers with Employees in Illinois; AI Developers and Businesses Procuring Frontier AI Models

EFFECTIVE

JAN 1, 2027

QUESTIONS?

Contact HR On-Call

(888) 378-2456

 

Quick Look

  • Illinois has enacted the Artificial Intelligence Safety Measures Act, imposing rigorous transparency, auditing, and incident-reporting obligations on “large frontier developers,” with steep financial penalties for noncompliance.

Discussion

Illinois Governor Pritzker signed the Artificial Intelligence Safety Measures Act (SB 315), establishing multiple transparency, auditing, and incident-reporting requirements for AI developers, along with steep financial penalties for noncompliance. Set to go into effect on January 1, 2027, the law draws a key distinction between “frontier developers” (e.g., those training AI models exceeding a computing threshold of 1026 floating-point operations) and “large frontier developers” (e.g., frontier developers with $500 million or more in annual gross revenue). The core substantive obligations apply only to the latter group, limiting the law’s direct reach to a smaller pool. Even so, employers that procure or integrate frontier AI models into their operations should be attentive to key features of the law:

 

  • Transparency Requirements. Developers must publicly disclose how they apply industry safety standards, assess model capabilities and catastrophic risk, and plan to respond to safety incidents, through a detailed public transparency framework centered on risk mitigation.
  • Mandatory Third-Party Audits. Illinois is the first state to require developers to engage independent third-party auditors to validate compliance, with audits required annually.
  • Incident Reporting Obligations. Developers must report critical safety incidents within 72 hours of discovery, shrinking to 24 hours where there is an imminent risk of death or serious physical injury. Reports go to the Illinois Emergency Management Agency and Attorney General, and to law enforcement or public safety agencies where applicable. The law also includes enhanced whistleblower protections.
  • The Illinois Attorney General may impose fines of up to $1 million for a first violation and up to $3 million for subsequent violations.

 

For Illinois employers, the most immediate concern is the potential liability that can flow down through vendor contracts when procuring frontier AI models, particularly around privacy issues or breaches. Ahead of the law’s effective date, employers should make sure to review vendor agreements and confirm that AI vendors are prepared to meet the new obligations.

 

Action Items

  1. Inventory AI vendors and tools used across the organization to identify which, if any, are subject to the law’s new requirements.
  2. Review AI procurement contracts for provisions addressing vendor compliance.
  3. Consult with legal counsel on indemnification provisions and other risk exposure provisions of vendor contracts.

 


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

Indiana

Discussion

Indiana: Legislative Updates

APPLIES TO

All Employers with Employees in IN

EFFECTIVE

JUL 1, 2026

QUESTIONS?

Contact HR On-Call

(888) 378-2456

 

Quick Look

  • Indiana’s discrimination law is amended to expressly incorporate Title VII violations as state-law violations, significantly expanding liability exposure for covered employers.
  • Indiana’s new FAIRNESS Act prohibits employers from knowingly or intentionally employing unauthorized workers, but provides a safe harbor for employers that use E-Verify or comparable diligence practices.
  • Indiana increases battery penalties for assaults against health care and school employees and creates a new semiannual reporting obligation to the Indiana Department of Labor for employers of those workers.

Discussion

Indiana passed several bills this session impacting employer obligations across discrimination, immigration compliance, and workplace violence. Key aspects of each are summarized below.

 

Employer Liability Under State Discrimination Law. HB 1193 amends the definition of “discriminatory practice” under the Indiana Civil Rights Law (ICRL) to expressly provide that any violation of Title VII also constitutes a violation of state law. The practical impact is greatest for Indiana employers with 6 to 14 employees that fall below Title VII’s 15-employee threshold and have historically been outside federal discrimination law’s substantive reach. Now, the ICRL’s lower six-employee threshold holds those employers to the same discrimination and retaliation standards as larger, Title VII-covered employers. Separately, the bill also reduces the Indiana Civil Rights Commission’s role in litigating claims on behalf of individuals, shifting more of that burden to private parties and the state.

 

New FAIRNESS Act. Indiana’s new Forging American Independence, Restoring National Exceptionalism Safely and Securely (FAIRNESS) Act (SB 76) prohibits employers from knowingly or intentionally recruiting, hiring, or continuing to employ unauthorized workers. “Employer” is defined broadly to include any person or agent employing workers in Indiana. Importantly, the law provides a compliance safe harbor when an employer is not in violation if it exercised “reasonable diligence” before recruiting, hiring, or continuing to employ the individual, which includes using E-Verify (absent circumstances suggesting the verification was unreliable) or following industry-standard verification practices.

 

The Indiana attorney general is empowered to enforce the law, typically by issuing a Civil Investigatory Demand to employers under investigation. Before filing an enforcement action, the attorney general must provide written notice of probable cause, giving the employer 15 business days to either demonstrate reasonable diligence or submit a corrective affidavit confirming it has terminated unauthorized workers, verified all current employees’ work eligibility, and will not knowingly employ unauthorized workers going forward. Satisfying either option stops the enforcement action.

 

If an employer fails to satisfy either option and the attorney general determines probable cause exists, the state may bring an action to enjoin the violation and seek additional relief, including a graduated penalty structure tied to an employer’s operating authorizations (licenses, permits, certificates, registrations, charters, and similar authorizations):

 

  • First violation (single): Suspension of all operating authorizations at the violation location for five business days.
  • First violation (multiple): Suspension at affected locations for ten business days.
  • Repeat violation: Suspension at affected locations for 180 days.
  • After 180-day suspension: Permanent revocation of all operating authorizations at affected locations.
  • Willful violations (three or more locations, after prior revocation): Permanent revocation of all operating authorizations statewide.

 

Courts may also impose a probationary period of six months to two years with quarterly compliance reporting. Notably, a suspended or revoked employer remains responsible for its tax withholding obligations.

 

Workplace Violence Against Healthcare and School Employees. HB 1249, a broader criminal law bill, increases penalties for battery committed against certain health care and school employees. More significantly for employers, the law creates a new semiannual reporting obligation, requiring employers of health care or school employees who are victims of battery to report these incidents to the Indiana Department of Labor. Relatedly, the law repeals the prior framework that required public schools to report student-caused employee injuries to the Department of Education for inclusion in a public database, consolidating that reporting into the new Department of Labor process.

 

Action Items

  1. Review anti-discrimination, harassment, and retaliation policies and procedures for compliance.
  2. Review employment eligibility verification practices for compliance.
  3. Consult with legal counsel on application of employer safe harbor protections.
  4. Implement tracking and reporting procedures for covered workplace batteries, as applicable.
  5. Have appropriate personnel trained on all updated 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

 

Kentucky

Discussion

Kentucky: Updates to Physical Therapy Practice Act

Effective July 14, 2026, HB 48 makes sweeping amendments to the licensing and regulation of physical therapists and physical therapist assistants under KRS Chapter 327. Most notably for employers, the law requires any physical therapist, physical therapist assistant, or their employer with actual or direct knowledge of certain misconduct to report the individual to the Board of Physical Therapy, including convictions for a felony or specified misdemeanors bearing on the person’s fitness to practice, suspected licensing fraud or negligent conduct, adverse licensing actions in another jurisdiction, or practicing without a valid license or privilege. Additional changes include, among other things, the handling of sexual misconduct allegations, purchase of professional liability insurance, and updated penalties and fees for statutory violations. Employers of physical therapists and physical therapist assistants in Kentucky should review the new reporting obligations and implement procedures 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

Louisiana

Louisiana Legislative Updates

APPLIES TO

All Employers with Employees in LA

EFFECTIVE

AUG 1, 2026

QUESTIONS?

Contact HR On-Call

(888) 378-2456

 

Quick Look

  • Voluntary portable benefits accounts are available for independent contractors.
  • The use of expunged criminal history record information for hiring decisions is clarified.
  • Workers’ compensation coverage is extended to employees of independent contractors who spend a substantial part of their time engaged in manual labor.
  • Unpaid leave (up to 30 consecutive calendar days) must be granted to employees who request it in writing to serve as a human organ or bone marrow donor.

Discussion

The Louisiana legislature passed several new laws expanding employee rights and protections. The significant updates are summarized below.

 

Portable Benefit Accounts for Independent Contractors. HB 301 provides for voluntary portable benefits accounts for independent contractors. A portable benefit account is owned by the independent contractor and is not associated with the hiring party. The purpose of funding the account is to provide and pay for health insurance, income replacement insurance, disability pay insurance, life insurance, and retirement benefits. Any individual may contribute funds to the account, or the hiring party may withhold a percentage from compensation owed to the independent contractor and contribute to the account, subject to a voluntary written agreement between the parties. An independent contractor can also opt out of such an agreement. The existence of such contributions is not evidence of an employment relationship.

 

Use of Expunged Criminal History Records. SB 288 clarifies the use of expunged criminal history record information for hiring decisions. The Louisiana Bureau of Criminal Identification and Information (Bureau) will not release expunged criminal history record information to private employers. However, the Bureau can release such expunged information to public entities at its discretion, based on strong evidence provided by the entity that release of the expunged information would be in the best interest of protecting the children, elderly, or individuals with disabilities served by the public qualified entity.

 

Workers’ Compensation Coverage Extended. HB 185 extends employee coverage under Louisiana’s workers’ compensation law to include employees of independent contractors who spend a substantial part of their time engaged in manual labor.

 

New Organ and Bone Marrow Donor Leave. SB 409 requires employers to grant an unpaid leave of absence when an employee requests in writing to serve as a human organ or bone marrow donor, for up to 30 consecutive calendar days, though employers may voluntarily offer longer or paid leave beyond this minimum. Employers may require physician verification of the purpose and duration of the leave; however, if an employee is ultimately determined medically ineligible to donate, any paid leave already taken is not forfeited. No employee may be discharged, demoted, suspended, threatened, harassed, or otherwise discriminated against for requesting or using organ donation leave. Any paid leave granted for organ donation carries no cash value upon separation from employment, and this leave does not diminish or affect any other employment benefits to which an employee may otherwise be entitled. Employers retain the flexibility to provide leave beyond what is outlined here, and nothing in this provision limits an employee’s rights under any other applicable employment benefit.

 

Action Items

  1. Consult with legal counsel regarding written agreement for contributions to qualified portable benefits for independent contractors, if applicable.
  2. Review and update procedures for requesting criminal history record information.
  3. Review independent contractor arrangements involving manual labor to determine potential workers’ compensation coverage obligations.
  4. Update leave policies to include organ and bone marrow donor leave.
  5. Have appropriate personnel trained on the updated 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

Maine

Discussion

Maine: Monetary Penalty for Employers Whose Unemployment Payment is Returned Unpaid

As of April 3, 2026, HP 1416 allows for a penalty of $25 or 1% of the payment amount whenever an unemployment payment is returned unpaid for any reason, including but not limited to insufficient funds, account closure, nonexistence of the account, stop-payment order or any other cause.

 


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

Maryland

Maryland: Legislative Updates

APPLIES TO

As Indicated

EFFECTIVE

As Indicated

QUESTIONS?

Contact HR On-Call

(888) 378-2456

 

Quick Look

  • Hospitals must adopt and train staff on written protocols for responding to immigration enforcement actions occurring on hospital premises.
  • Businesses subject to Maryland’s data privacy law are now restricted from selling consumer personal data to government units that have engaged in or supported civil immigration enforcement, subject to limited exceptions.
  • Hospitals must meet new clinical staffing committee and staffing plan requirements aligned with accreditation and federal standards.
  • Taxicab and rideshare drivers, along with rideshare companies, must complete human trafficking awareness training as a condition of licensure and continued operation.
  • Small Business Health Options Program enrollment effective dates during special enrollment periods are now aligned with federal regulations.
  • New income-based caps limit how much employers and courts may withhold from an obligor’s earnings for child support.

Discussion

Maryland’s 2026 legislative session produced a range of new requirements affecting hospitals, data privacy compliance, transportation licensing, health insurance administration, and child support withholding. Key aspects of each are summarized below.

 

Hospital Immigration Enforcement Action Policies. Effective June 1, 2026, SB 792 requires all hospitals in the state to adopt a written policy establishing the protocol to be followed when an immigration enforcement action occurs on hospital premises, consistent with guidance issued by the Maryland Attorney General under § 6-111 of the State Government Article. Hospitals must make this policy readily available to all staff members and must conduct annual training to ensure that every staff member understands and can implement the policy. This law reflects Maryland’s broader legislative effort to protect patients’ access to healthcare and ensure that hospitals are prepared to respond to immigration enforcement activities in a consistent, lawful, and transparent manner.

 

Immigration-Related Consumer Data Privacy Restrictions. Effective July 1, 2026, HB 711 amends the Maryland Online Data Privacy Act (MODPA) to further restrict the sale and disclosure of personal data to government units involved in immigration enforcement. MODPA continues to apply to businesses that control or process personal data of at least 35,000 Maryland residents, or 10,000 residents if 20% or more of gross revenue comes from selling personal data. Under the amendment, a covered “controller,” meaning a person that alone or jointly with others determines the purpose and means of processing personal data, is prohibited from knowingly selling a consumer’s personal data to a federal, state, or local governmental unit that has engaged in or supported civil immigration enforcement, through personnel or material resources, within the preceding six months. The only exception applies where the business receives a valid warrant issued by a federal or state court that particularly describes the personal data sought. Businesses may still comply with subpoenas, summonses, or law enforcement requests from governmental units or agencies that have not engaged in or supported civil immigration enforcement within the preceding six months. MODPA is enforced by the Division of Consumer Protection under the Maryland Attorney General, and violations are treated as unfair, abusive, or deceptive trade practices under the state’s Consumer Protection Act, subject to a 60-day cure period upon notice of violation.

 

Hospital Staffing. Effective October 1, 2026, SB 411 requires each hospital to comply with the staffing standards of the accreditation body that accredits the hospital and the federal Centers for Medicare and Medicaid Services (CMS) Conditions of Participation (CoPs). Each hospital must establish and maintain a clinical staffing committee that has (1) three managers and two employees, if the hospital has 150 or fewer licensed beds or (2) five managers and four employees, if the hospital has 151 or more licensed beds. The chief nurse executive of each hospital must produce a draft clinical staffing plan and submit it to the clinical staffing committee. Using the draft plan, each clinical staffing committee must finalize a clinical staffing plan that meets patient needs. Each hospital must provide the clinical staffing plan to staff on request. Of note, the bill does not apply to State hospitals.

 

Human Trafficking Awareness and Prevention Training for TNC. Effective October 1, 2026, HB 829 requires an applicant for a local taxicab driver’s license or State for-hire driver’s license to include in the license application documentation verifying that the applicant completed a human trafficking awareness training program, as specified. A human trafficking awareness training that an applicant completes under this provision must include information on how to (1) recognize potential victims of human trafficking; (2) respond to an individual who may be or is a victim of human trafficking; and (3) report suspected incidents of human trafficking to appropriate authorities. The bill also prohibits a transportation network company (TNC) from allowing a transportation network operator (TNO) licensee or license applicant to provide transportation network services unless the TNO has completed a human trafficking awareness program, as specified. The bill further specifies that an applicant for a TNO license or a licensed taxicab driver, for-hire driver, or TNO may not be held civilly or criminally liable for reporting or responding in good faith to a suspected incident of human trafficking.

 

SHOP Enrollment Effective Dates. Effective October 1, 2026, SB 14 aligns Maryland health insurance law with existing federal regulations by altering the effective dates of enrollment in a Small Business Health Options Program (SHOP) Exchange plan for individuals who enroll during a special enrollment period (SEP). If an eligible employee enrolls certain individuals in a SHOP plan during the first 31 days of an SEP, coverage must become effective on the first day of the month following receipt of the plan selection if allowed by the SHOP exchange and selected by the eligible employee.

 

Child Support Withholding Limit. Effective October 1, 2028, SB 16 introduces income-based withholding caps, under which employers may not deduct more than 35% of an obligor’s earnings, and courts may not order more than 25% of disposable earnings for combined support and arrears, when the obligor’s income does not exceed 250% of the federal poverty guidelines. These protections are overridden if the obligor was found to be voluntarily impoverished. These caps apply consistently across both administratively issued and court-ordered withholding, and earnings withholding orders must now reference the applicable state cap in addition to federal Consumer Credit Protection Act limits.

 

Action Items

  1. Hospitals should implement and distribute written immigration enforcement action policies, as applicable.
  2. Covered businesses should inventory all personal data sales for compliance with MODPA.
  3. Hospitals should establish clinical staffing committees and finalize staffing plans consistent with the new staffing requirements.
  4. Taxicab, for-hire, and rideshare companies should confirm that drivers and operators complete required human trafficking awareness training.
  5. Employers offering SHOP plans should update enrollment administration, as applicable.
  6. Have appropriate personnel trained on all of the updated requirements.

 

Maryland: Commission on Civil Rights Releases Discrimination Playbook

APPLIES TO

All Employers with Employees in MD

EFFECTIVE

JUN 22, 2026

QUESTIONS?

Contact HR On-Call

(888) 378-2456

 

Quick Look

  • The Maryland Commission on Civil Rights has published guidance identifying thirty-five categories of employment discrimination claims and the specific elements it applies to prove each under state law.
  • The guidance highlights several areas where Maryland law is more employee-friendly than federal law, including broader protected classes, a lower harassment threshold, strict supervisor liability, and different accommodation standards.

Discussion

On June 22, 2026, the Maryland Commission on Civil Rights (MCCR) published its Elements of Proof Guidance, setting forth the elements it applies when evaluating employment discrimination claims under Title 20 of the Maryland State Government Article. While the guidance is an internal agency investigation tool and not binding on courts, it offers employers a valuable window into how the agency analyzes and evaluates discrimination complaints.

 

The Guidance highlights several aspects of Maryland’s framework that are more favorable to employees than federal law. Specifically, Maryland protects additional characteristics not covered federally, and Maryland’s harassment standard no longer requires conduct to be severe or pervasive in certain circumstances (such as when submission to unwelcome conduct is tied to employment terms or decisions, or when the conduct otherwise creates an abusive or hostile environment based on the totality of the circumstances).

 

Supervisor harassment carries strict liability under Maryland law based on foreseeability and scope of employment, rather than the federal standard’s focus on tangible employment actions and available defenses. Religious accommodation claims are evaluated under a lower “more than de minimis cost” standard, in contrast to the tougher federal standard from Groff v. DeJoy. Pregnancy accommodation obligations are also framed more broadly under state law, and Maryland’s retaliation standard requires only an “adverse employment action” rather than the broader “materially adverse” federal standard, though this arguably makes the state standard narrower on this particular element.

 

Because the guidance functions as the MCCR’s roadmap for evaluating claims, employers responding to complaints may benefit from directly addressing each element the agency considers, allowing for a clearer and more targeted rebuttal.

 

Action Items

  1. Review antiharassment policies and supervisor training for compliance with state-specific standards.
  2. Review accommodation policies and practices for compliance.
  3. Consult with legal counsel on how these state-level enforcement postures affect ongoing or future litigation strategies.
  4. Have appropriate personnel trained on the requirements.

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

Massachusetts

Massachusetts: Personal Liability for Sexual Harassment in Academic Settings

APPLIES TO

All Academic Employers with Employees in MA

EFFECTIVE

MAY 19, 2026

QUESTIONS?

Contact HR On-Call

(888) 378-2456

 

Quick Look

  • In Sabatini v. Knouse, the Massachusetts Supreme Judicial Court ruled that individuals in academic settings can be personally liable for sexual harassment that they commit.
  • Academic institutions in Massachusetts should note that this is a notable change to the interpretation of the statute which had held that professors, advisors, and mentors accused of sexual harassment could argue that the statute only permitted claims against the institutions themselves.

Discussion

In Sabatini v. Knouse, the Massachusetts Supreme Judicial Court ruled that individuals in academic settings can be personally liable for sexual harassment that they commit. Here, a graduate student at MIT accused a tenured professor of making explicit sexual remarks. They then began a sexual relationship which ended a year later. After the breakup, the professor continued to make sexual comments and the student was afraid to end their mentorship relationship fearing professional repercussions. Unrelated to the relationship, the academic institution engaged in a culture survey which revealed reports of a sexualized culture and retaliatory environment in the professor’s lab. An independent investigation found a violation of the institution’s sexual harassment policy. The professor was placed on leave from MIT and resigned from the laboratory director position at a related institution. The professor sued the student for defamation, and the student countersued for violations of the Massachusetts sexual harassment statute.

 

The court found that the statute does indeed permit sexual harassment claims to proceed against individual perpetrators and not only against educational institutions. The plain language says “a person shall have the right to be free from sexual harassment” and does not have limiting language regarding institutions and individuals. The court also found that sexual harassment statutes are remedial and entitled to broad construction. Shielding individual abusers would contradict the purpose of the statute. In addition, students like research fellows do not have administrative remedies available and can file directly in Superior Court. The court then sent the case back to the Superior Court to address the remaining defenses to the claim.

 

Academic institutions in Massachusetts should note that this is a notable change to the interpretation of the statute which had held that professors, advisors, and mentors accused of sexual harassment could argue that the statute only permitted claims against the institutions themselves. Affected employers should consult with their legal counsel regarding future impacts and inclusion of personal liability language in sexual harassment policies.

 

Action Items

  1. Revise and update sexual harassment policies to include personal liability.
  2. Consult with legal counsel regarding specific application of expanded liability.
  3. Have appropriate personnel trained on the expanded interpretation.

 


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

Minnesota

Minnesota: New Paid Sick and Safe Time Rules

APPLIES TO

All Employers with Employees in MN

EFFECTIVE

JUL 6, 2026

QUESTIONS?

Contact HR On-Call

(888) 378-2456

 

Quick Look

  • New rules for Minnesota’s ESST Act clarify how employers must determine employee eligibility, calculate accrual, and handle absences involving indeterminate shifts or exempt employees.
  • The rules also set boundaries around employee use, misuse, documentation requests, and how ESST interacts with incentive programs and more generous employer leave policies.

Discussion

The Minnesota Department of Labor & Industry (DLI) recently finalized rules implementing the Earned Sick and Safe Time Act (ESST). The rules clarify core issues around accrual, eligibility, and how hours are counted.

 

Accrual Year. If an employer doesn’t designate and clearly communicate an “accrual year,” it defaults to the calendar year, and any change to the accrual year’s start/end dates must be given as advance written notice and cannot negatively affect an employee’s ability to accrue time.

 

Hours Worked. For eligibility, employers must determine “in good faith” whether an employee is anticipated to work at least 80 hours per year in Minnesota—meaning they evaluated the anticipated schedule and work location in a way that is not knowingly false or in reckless disregard of the truth. The rules also address tricky counting scenarios, including how to deduct ESST for exempt employees taking a full day off and how to handle absences from “indeterminate” shifts (e.g., deducting based on the replacement worker’s hours, the employee’s most recent similar shift, or the greatest hours worked by a similarly situated employee).

 

Time Credited and Increments of Accrual. ESST must be credited each pay period based on all hours worked, no later than the regular payday after that pay period, and is considered accrued when credited. Employers need not credit in increments smaller than one hour. Rehired employees returning within 180 days are entitled to reinstatement of up to 80 hours of previously accrued but unused ESST (unless a higher amount is agreed to or required elsewhere).

 

Accrual and Advancing Methods. For employers who “advance” (frontload) ESST, the advanced amount must be calculated at no less than the statutory accrual rate; employers generally aren’t required to advance more than 48 hours; and if the advance falls short of what an employee would have actually accrued, the employer must make up the difference within 15 calendar days. Any change to an accrual method must be communicated in writing and takes effect only at the start of the next accrual year—if notice isn’t timely, the prior method stays in place.

 

Employee Use. The rules also protect employee use and set boundaries around misuse. Using ESST is the employee’s right; employers cannot force employees to use it, and an employee who declines to use it for an absence forfeits the statute’s protections for that leave.

 

Incentives. Incentives tied to goals like perfect attendance or hours worked may be denied when the goal isn’t met due to ESST use—unless the incentive is otherwise paid during other leave.

 

Reasonable Documentation. Employers may require “reasonable documentation” only as the statute allows, must clearly communicate that requirement, and must give employees reasonable time to comply.

 

Employee Misuse. Misuse (using ESST for a non-qualifying purpose) loses statutory protection and may be disciplined. Notably, the rules define a ”pattern or clear instance of suspected misuse”—such as repeatedly using ESST adjacent to days off/holidays, repeatedly using increments under 30 minutes at the start/end of shifts, using ESST on a day a paid-leave request was denied, or documentation conflicting with the claimed use—which permits an employer to request documentation without it constituting retaliation. Even so, employers cannot deny future ESST use for a qualifying purpose based on past misuse or mere suspicion.

 

More Generous Policies. Excess paid time off or other paid leave offered above the statutory minimum is subject to ESST’s minimum standards (except the accrual requirements of § 181.9446) only when used for a qualifying purpose. The rules also clarify that “other salary continuation benefits” include Minnesota Paid Leave under Chapter 268B, coordinating ESST with the state’s broader paid-leave framework.

 

Action Items

  1. Review the rules here and FAQs here.
  2. Update paid sick leave policies for compliance.
  3. Have appropriate personnel trained on sick leave requirements.

 

 

Minnesota: Disability Discrimination Accommodation

Effective August 1, 2026, SB 3210 says that failure to engage in the process to determine if a reasonable accommodation exists that would allow people with disabilities to participate fully in employment may be an unfair discriminatory practice under the Minnesota Human Rights Act. Employers should review their internal processes to ensure that they engage in the interactive process for accommodation requests. Appropriate personnel should be trained on how to recognize requests and how they should follow the employer’s process.

 

REMINDER | Minnesota: Secure Choice Retirement Program Deadlines

The Minnesota Secure Choice Retirement Program has a phased in timeline for employers with five or more employees to enroll in the program or file an exemption. The first deadline was June 30th. Covered employers should ensure compliance in accordance with their applicable deadline.

 

  • 100+ Employees: Deadline was June 30, 2026.
  • 50–99 Employees: July 1, 2026 – December 31, 2026.
  • 25–49 Employees: January 1, 2027 – June 30, 2027.
  • 10–24 Employees: July 1, 2027 – December 31, 2027.
  • 5–9 Employees: January 1, 2028 – June 30, 2028.
  • Less than 5 employees: Permanently exempt.

 

Employers should review the Secure Choice website for registration and more information.

 


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

Mississippi

Mississippi Legislative Update

APPLIES TO

As Indicated

EFFECTIVE

As Indicated

QUESTIONS?

Contact HR On-Call

(888) 378-2456

 

Quick Look

  • Employers who do not offer a tax favored retirement plan may allow eligible employees the voluntary choice to contribute to an individual retirement account through a payroll deduction, known as the Mississippi Work and Save Program.
  • Additional group health benefit plan coverage options are provided to professional and trade associations in Mississippi.

Discussion

The Mississippi legislative session produced a couple of new employer obligations. Employers should make sure they are compliant with applicable changes.

 

Employee Savings Program. As of April 8, 2026, HB 4073 allows employers who do not offer a tax favored retirement plan to allow eligible employees the voluntary choice to contribute to an individual retirement account through a payroll deduction, known as the Mississippi Work and Save Program. The State Treasury will create the Mississippi Work and Save Administrative Fund. The State Treasurer is also tasked with developing and implementing the program. Covered employees must be at least 18 years old. Employers and the state are protected from liability related to the program.

 

Additional Group Health Insurance Options for Professional and Trade Associations. Effective October 1, 2026, SB 2704 provides additional group health benefit plan coverage options to professional and trade associations in Mississippi. Members can purchase coverage from self-funded association plans subject to the jurisdiction of another state insurance department or the federal government. A “professional association” means member employers and individual members who are self-employed, who are of the same type of profession, such as lawyers, physicians, dentists, accountants, or architects. A “trade association” means member employers and individual members who are self-employed, who are in the same type of trade, such as plumbers or electricians.

 

Action Items

  1. Monitor State Treasury of Mississippi website for updates on retirement plan developments.
  2. Review additional options for group health benefit plan coverage options with broker, if applicable.

 

 


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

Nebraska

Discussion

Nebraska: New Human Trafficking Poster and Training Provisions for Hotels

Effective July 17, 2026, Nebraska’s LB 320 expands the state’s human trafficking prevention framework to require hotels and similar public lodging establishments to display informational human trafficking posters in English, Spanish, and other appropriate languages. The state Department of Labor is directed to develop compliant posters. Separately, hotels may (but are not required to) provide employees with training covering how to identify trafficking, distinguish labor from sex trafficking, and report suspected activity. Hotels that voluntarily implement this approved training, adopt reporting procedures, and establish a human trafficking prevention policy may be entitled to liability protection from claims arising out of a third party’s trafficking-related conduct at the property. Hotels are not entitled to this protection if the hotel, its owner, or its employees knowingly assisted the trafficking or failed to act reasonably.


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