Colorado: New COMPS Order #40 and Updates to Wage, Leave, and Youth Employment Rules

APPLIES TO All Employers with Employees in CO

EFFECTIVE FEB 1, 2026

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

Quick Look The Colorado Department of Labor and Employment has adopted COMPS Order #40, amending administrative regulations implementing the Colorado Wage Act, and released an updated COMPS Order poster. The revisions expand the definition of “employer,” allow localities to increase tip credits consistent with recent statutory amendments, increase employers’ recordkeeping obligations for vacation and sick leave, and tighten rules governing the employment of minors.

Discussion

The Colorado Department of Labor and Employment (CDLE) has adopted Colorado Overtime Minimum Pay Standards (COMPS Order) #40, amended administrative regulations implementing the Colorado Wage Act, and released an updated COMPS Order poster. These updates bring changes to employer compliance obligations across wage and hour, employee leave, and youth employment rules. Key updates are summarized below.

 

Definition of Employer. The updates expand the definition of “employer” to include any individual owning or controlling at least 25% of a business, unless the employer can prove that the owner has fully delegated day‑to‑day operational authority. This change potentially exposes more owners to personal liability under the Colorado Wage Act.

 

Tip Credits. Employers with tipped workers must also adjust payroll practices, as COMPS Order #40 now allows local governments with higher minimum wages to authorize larger tip credits, enabling employers in those jurisdictions to apply a locally‑approved credit while still ensuring workers’ direct wages plus tips meet or exceed the applicable minimum wage.

 

Recordkeeping for Vacation and Sick Leave. Under the updates, employers are required to track not only hours worked, wage rates, and tips, but also detailed vacation and HFWA sick‑leave accrual, usage, and available balances. Employers must be prepared to provide written or electronic leave‑balance information upon request, no more than once per month unless company policy allows more frequent updates.

 

Pay Rate for HFWA Leave. The revised Wage Protection Rules also create more precise standards for determining the rate of pay for leave under the Healthy Families and Workplaces Act (HFWA), with detailed rules for different forms of compensation:

 

• Salary, Commission, or Piece Rate. If the use of leave does not reduce an employee’s pay, such as if the employee is paid solely on a salary, commission, or piece rate basis and the leave does not impact those forms of compensation, then the employee does not earn any additional compensation solely for using leave.
• Salary Plus Commission. If an employee is paid based on salary plus a commission, then the commission is not included in the pay rate.
• Multiple Pay Rates. If an employee works at multiple rates (e.g., they earn shift differentials or work separate jobs for the same employer), the employee is paid the rate they would have earned during the period of sick leave if such a schedule is known at the time the sick leave request is made.

 

Youth Employment Rules. Colorado has also adopted final rules under the Colorado Youth Employment Opportunity Act (CYEOA), which impose stricter compliance obligations on employers who hire minors. The rules further expand and detail prohibited employment for minors, including restrictions on hazardous occupations, use of power‑driven equipment, exposure to toxic substances, and employment in certain establishments such as liquor stores, operation of power-driven machinery, some manufacturing industries, marijuana dispensaries, casinos, and adult entertainment venues. Additional limitations apply to minors under 16 and under 14. The new rules also clarify the CDLE’s Division of Labor Standards and Statistics authority under the CYEOA to investigate complaints, assess penalties, and issue written determinations ordering corrective action, fines, or damages to affected minors.

 

Action Items

1. Display updated COMPS Order poster.
2. Review and update tip-credit practices, if applicable.
3. Review recordkeeping practices for vacation and sick leave for compliance with new requirements.
4. Review HFWA leave compensation practices for compliance.
5. Review and update youth employment practices to comply with expanded minor-employment restrictions, if applicable.
6. Have appropriate personnel trained on the requirements.

 

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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. © 2026 ManagEase

New Jersey: Court Interprets State ESLL for the First Time

APPLIES TO All Employers with Employees in NJ

EFFECTIVE JAN 28, 2026

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

Quick Look The New Jersey Appellate Division issued the first published appellate interpretation of the state’s Earned Sick Leave Law, which significantly expands potential exposure for employer noncompliance. The court’s ruling emphasizes that statutory sick leave requirements will be strictly enforced, with close scrutiny of exemptions, notice practices and recordkeeping.

Discussion

In Cano v. County Concrete Corporation, the New Jersey Appellate Division issued the first published appellate interpretation of the state’s Earned Sick Leave Law (ESLL), which significantly expands potential exposure for employer noncompliance.

 

In this case, the court found that a concrete supplier’s vacation and PTO policies failed to meet the ESLL’s requirements, holding that paid leave programs must allow employees to take leave for all purposes specified in the statute, not merely vacation, holidays, or bereavement. The court also confirmed that requiring a doctor’s note for absences of fewer than three consecutive days violates the ESLL, underscoring that employers may not impose additional conditions on the use of protected leave.

 

The ruling further clarifies that the ESLL’s “construction industry” exemption is narrowly construed. Although County Concrete argued that it was exempt as a construction‑industry employer, the court rejected this claim, concluding that producing and delivering sand, gravel, and ready‑mix concrete constituted manufacturing, not construction of “houses, schools, or other structures.” The decision makes clear that employers relying on exemptions must evaluate their core business activities, rather than their proximity to the construction industry or the existence of a collective bargaining agreement.

 

The court also highlighted the consequences of failing to meet the ESLL’s notice and recordkeeping requirements. Here, the employer posted notices only at one location and in an inaccessible area, and it did not maintain records showing employees’ accrued and used sick leave. Because the ESLL presumes that an employer failed to provide required sick leave when adequate records are not maintained, the court found that these deficiencies independently supported a finding of liability and contributed to substantial damages.

 

For employers, this decision emphasizes that courts will enforce the ESLL strictly, closely scrutinize any claimed exemptions, and hold employers to the statute’s detailed accrual, use, notice, and recordkeeping rules.

 

Action Items

1. Review PTO policies, postings, and documentation practices for compliance with ESLL requirements.
2. Consult with legal counsel on potential exemptions from ESLL requirements.

 

 

New Jersey: Title IX Preempts Grievance and Arbitration Procedures in CBA

On January 29, 2026, the New Jersey Supreme Court held, in Rutgers v. AFSCME Local 888, that Title IX preempts grievance and arbitration procedures in a collective bargaining agreement (CBA) where those procedures do not provide equal rights to both the complainant and the respondent in a Title IX matter. The court overturned an order requiring Rutgers to arbitrate the termination of an employee found responsible for Title IX violations, concluding that the CBA’s arbitration process conflicted with federal regulations requiring equal procedural protections for both parties because it was only available to the disciplined employee and the union. Although the case arose in the public‑sector context, the court emphasized that similar federal preemption concerns could apply to private universities governed by the NLRA.

 

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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. © 2026 ManagEase

New York: Amendments to Trapped at Work Act Delay Implementation and Add Clarification

APPLIES TO All Employers with Employees in NY

EFFECTIVE DEC 19, 2026

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

Quick Look Due to employer concerns about the scope of the Trapped at Work Act, the legislature has enacted A9452 which narrows the scope of the law and delays its implementation to December 19, 2026.

Discussion

Enacted late last year, S4070B prohibited the use of reimbursement clauses or promissory notes as a condition of employment. This includes requirements that the worker pay the employer a sum of money if the worker leaves employment before the passage of a stated period of time. The law would apply to an agreement that requires the worker to reimburse the employer for training provided to the worker.

Due to employer concerns about the scope of the law, the legislature has enacted A9452 which narrows the scope of the law and delays its implementation to December 19, 2026. The amendment narrows the application of the law to only employees rather than the broader definition of “worker.” In addition, new exceptions have been added to narrow the scope of applicability. The original exceptions included:

• An agreement that requires the repayment of an advance;
• An agreement that requires the worker to pay for any property that was sold or leased to them by the employer;
• An agreement that requires educational personnel to comply with the terms and conditions of sabbatical leaves; or
• An agreement subject to collective bargaining.

The amendment now adds the following additional exceptions:

• An agreement that requires the employee to reimburse the employer for the cost of tuition, fees, and required educational materials for a transferable credential provided certain conditions are met through a written agreement; and
• An agreement that requires the employee to repay a financial bonus, relocation assistance, or other non-educational incentive or other payment or benefit that is not tied to specific job performance, unless the employee was terminated for any reason other than misconduct or the duties or requirements of the job were misrepresented to the employee.

Although the law will not go into effect until the end of the year, employers should begin reviewing their reimbursement clauses and promissory notes with their legal counsel to make sure their agreements are in compliance.

Action Items

1. Review reimbursement clauses and promissory notes with legal counsel.

 

New York, NY: Mandatory Notice of Employee Rights and Additional Guidance on Unpaid Sick Leave

APPLIES TO All Employers with Employees in New York, NY

EFFECTIVE As Indicated

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

Quick Look Pursuant to amendments to the New York City Earned Safe and Sick Time Act which took effect on February 22, 2026, the New York City Department of Consumer and Worker Protection issued updated guidance and the Notice of Employee Rights. The updated guidance is in the form of FAQs which answers questions raised by the proposed rules. The proposed rules are set to clarify implementation of the amendments.

Discussion

Pursuant to amendments to the New York City Earned Safe and Sick Time Act which took effect on February 22, 2026, the New York City Department of Consumer and Worker Protection issued updated guidance and the Notice of Employee Rights. The amendments require employers to distribute the mandatory notice to all employees regularly working in New York City in the employee’s primary language and post the notice in the workplace. In addition, employers must grant employees 32 hours of unpaid sick leave on the first day of employment and on the first day of each calendar year. There are also new covered uses for sick leave.

 

The updated guidance is in the form of FAQs which answers questions raised by the proposed rules. The proposed rules are set to clarify implementation of the amendments. The most notable questions that the revised guidance addresses are:

 

• Employers must provide the full 32 hours of unpaid sick leave to part-time employees or mid-year hires;
• Employers can provide 32 hours of additional paid sick leave in lieu of providing unpaid sick leave as long as it is immediately available for the employee’s use;
• Protected time to care for a minor child or care recipient includes school holidays, day care closures, and babysitter cancellations; and
• Unpaid sick leave can be taken in increments initially of a maximum of four hours and a minimum of 30-minute or smaller increments thereafter.

 

An additional guidance document, Rules for Protected Time Off Policies, addresses how employer PTO policies can meet the requirements under the law. Employers intending to use their PTO policies to comply should review the requirements to make sure all provisions are met.

 

Action Items

1. Review and update sick leave and paid time off policies, as applicable.
2. Distribute and post mandatory Notice of Employee Rights.
3. Have appropriate personnel trained on the requirements.

 

 

New York: Extension of PFML Benefits to Construction Workers is Postponed 

New York Governor Kathy Hochul signed S8795, requiring certain unionized construction workers to continue receiving union health plan/fund benefits while on paid family leave, as if they were still actively working. The law also delays the effective date of A4727/S50, which extends paid family leave eligibility for certain construction employees who work for multiple CBA employers. Under the amendments, A4727/S50 is not set to go into effect on January 1, 2027.

 

REMINDER | New York: Registration for Secure Choice Retirement Savings Program Is Open

Following its establishment in 2018 and after much delay, registration is open to eligible employers for the New York Secure Choice Retirement Savings Program, according to the following phased-in schedule: (1) Employers with 30 or more employees must register by March 18, 2026; (2) Employers with 15 to 29 employees must register by May 15, 2026; and (3) Employers with 10 to 14 employees must register by July 15, 2026. Under the program, an employer is “eligible” if they have 10 or more employees, they do not offer a qualified retirement plan, and they have been in business for at least two years.

 

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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. © 2026 ManagEase

Discussion

Oregon: Additional Workplace Violence Prevention Requirements for Certain Healthcare Settings

Effective May 1, 2026, Oregon will require all home health agencies, hospice programs, and special inpatient care facilities to establish, implement, and maintain a workplace violence prevention program including patient-specific risk intake and hospital discharge coordination (to obtain any known violence history within the prior 12 months), staff notification protocols, training and quarterly safety assessments, patient identity verification steps, and safety check mechanisms (e.g., mobile app, communication devices, or regular check-ins). Covered entities must also adopt related policies, including off-site documentation options and escort procedures when safety concerns exist, and must implement an EHR/visual “flagging” system with written protocols to alert personnel to potential threats or disruptive behavior.

 

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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. © 2026 ManagEase

Discussion

Rhode Island: Updated Rules for Secure Choice Retirement Savings Program

Effective February 20, 2026, Rhode Island has issued a final rule clarifying employer requirements under the state’s Secure Choice Retirement Savings Program. Specifically, the revised rule specifies the steps employers must take when notified to register or formally certify that they are exempt. It also establishes clearer procedures for employers to follow in providing required program materials to employees and confirms the timelines for distributing information to new hires. Additionally, the rule refines how employers must determine employee eligibility and coverage under the Program, ensuring consistent application of the 120‑day employment and age 18 requirements.

 

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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. © 2026 ManagEase