Alabama

New Withholding Rules for Out-of-State Employees (Effective January 1, 2026): Alabama has enacted new payroll withholding requirements for non-resident employees working intermittently in the state.

What this means for employers:

• Employees who work 30 days or fewer in Alabama during the year may be exempt from Alabama income tax withholding.
• Once an employee exceeds 30 days, withholding becomes mandatory retroactively to the first day worked.
• Employers will need to maintain accurate work-location and day-count tracking for any employees who travel into Alabama to work.

Portable Benefits Accounts for Independent Contractors (Effective late 2025 / operational in 2026): For employers, this means contractors may request payment structures that accommodate these accounts, and the change could affect how you manage contractor relationships, benefit expectations, and worker classification reviews.

Alaska

Minimum Wage & Exempt Salary Increases

• The state minimum wage will rise to $14.00 per hour on July 1, 2026. Source
• The salary threshold for exempt (“white-collar”) employees will increase to $1,120 per week on July 1, 2026. Source

Paid Sick Leave & Mandatory-Meeting Prohibitions

• The new paid sick leave requirements (accrual at 1 hour per 30 hours worked, caps of 40 or 56 hours depending on employer size) became effective on July 1, 2025.
• Employers must provide written notice of the law to employees by July 31, 2025 (for existing employees) or at hire (for new employees).
• The prohibition on mandatory meetings primarily for sharing religious, political or labor-organization viewpoints is also part of the same law and became effective on July 1, 2025.

Arizona

Minimum Wage
The minimum wage in Arizona will increase to $15.15 per hour starting January 1, 2026. The minimum wage for tipped employees will increase to $12.15. The minimum wage for Flagstaff will increase to $18.35 and increase to $15.45 in Tucson.

Arkansas

N/A

California

State Minimum Wage Increase

Effective January 1, 2026, the minimum wage in the state of California will increase to $16.90/hour for all employers. California has local counties and cities with higher minimum wage requirements and they can be found at this link [HERE].

The overtime rate of pay for hours worked over 8 in a day increases to $25.34 per hour and the double time rate of pay for some hours worked more than 12 in a day or on the 7th straight day of work increases to $33.80 per hour.

State Minimum Salary Wage Increase for Exempt Positions and Selected Occupations

To be exempt from overtime, positions must generally be paid at a minimum of 2x the state minimum wage and meet other criteria for exemption. Because minimum wage is increasing, the new threshold for state minimum wage for exempt executive, administrative and professional positions will be $70,304 annually.

The minimum wage for certain licensed physicians and surgeons in California is $103.75 per hour as of January 1, 2025 and will increase to $107.17 as of January 1, 2026.

Minimum Wage: Fast Food Industry

The fast food minimum wage in California remains $20 per hour in 2026. Certain bakeries, grocery store restaurants, and eight categories of restaurants are excluded from the “fast food restaurant” definition.

The California Department of Industrial Relations FAQs provides more information.

Minimum Wage: Health Care Workers

As of October 16, 2024, the minimum wage for health care workers in California will vary depending on the type of facility and the number of employees it has.

The California Department of Industrial Relations FAQs provides more information.

Exempt Computer Professional Wage Increase

To qualify for the California computer professional exemption, starting January 1, 2026 California employers must pay their computer professional employees a salary of at least $122,573.13 annually ($10,214.44 monthly) or an hourly wage of $58.85 for every hour worked.

More information on minimum wage increases can be found here.

Ban on “Stay-or-Pay” Employment Contract Provisions or Training Repayment Agreement Provisions (TRAPS) (AB 692)

Effective Jan 1, 2026, for contracts entered on/after that date. Prohibits employment or work-relationship contracts that require the worker to repay an employer (or training provider or debt collector) if employment terminates, impose a fee, or allow debt collection upon termination, with limited exceptions (e.g., separate tuition-repayment programs). Employers must revise onboarding/training/bonus and repayment agreements. The full bill can be found here.

California Workplace Know Your Rights Act (S.B. 294)

Signed on October 12, 2025, the Act requires California employers to give all employees a stand-alone written notice of their constitutional and workplace rights by the following dates:

By February 1, 2026: Employers must provide a stand-alone written notice to all new hires in California and all current California employees annually. This notice must be delivered directly to employees (via email, text, or another regular communication method) and is not satisfied by a workplace poster alone. Employers must retain proof of delivery of the notice for at least three years. See the full bill here for more information.

Download and share: California Workplace Know Your Rights Notice

By March 30, 2026: Employers must give California employees the opportunity to designate a contact person to be notified if the employee is arrested or detained at the worksite or while performing job duties. Employees are not required to complete or provide this information, but employers must offer the opportunity. Any completed emergency contact designation must be returned to and maintained by the worksite employer, who is responsible for acting on the employee’s instructions if notification is required. Here is a form you can provide to your employees to designate their emergency contact. The full bill can be found here.

Download and share: Employee Emergency Information Record Form

Job Posting Requirements and Equal Pay Act Updates

The new law updates California’s pay transparency requirements by redefining “pay scale” as a good-faith estimate of the salary or hourly wage range the employer reasonably expects to pay upon hire. It also makes notable revisions to the California Equal Pay Act, including extending the statute of limitations for pay discrimination claims to three years and allowing employees to seek up to six years of lost wages.

Paid Sick Leave / Crime Victims Leave (Unpaid)

California has expanded the allowable reasons employees may use paid sick and safe time under the Healthy Workplaces Healthy Families Act (HWHFA) and unpaid job-protected leave under Government Code section 12945.8. Effective January 1, 2026, employees may now use leave if they or a family member are victims of certain specified crimes and are attending related judicial proceedings, such as arraignments, sentencing, post-conviction hearings, or any proceeding involving their rights as a victim.

The definition of “victim” is broadened to include individuals harmed by a range of serious and violent crimes. Additionally, beginning October 1, 2025, the HWHFA also incorporated existing unpaid leave rights allowing employees to use paid sick and safe time when appearing in court as a witness under subpoena or court order, and when serving on an inquest or trial jury. See bill 406 for more details.

Pandemic-Related Recall Rights Extended

California has extended its COVID-19-related rehire protections for hospitality workers, which were previously set to expire at the end of this year, through January 1, 2027. See bill 858 for more details.

Personnel Records Production Requirements Expanded

California SB 513, effective January 1, 2026, expands the definition of “personnel records” to include education and training documents that employers maintain. Current and former employees now have the right to inspect and receive copies of these records within 30 days of submitting a written request. Employers are not required to create or maintain training records if they do not already do so, but if such records exist, they must include specific details (such as the employee’s name, training provider, dates, competencies, and certifications) and must be produced on request. Failure to provide records on time can result in penalties of up to $750 per violation, plus potential injunctive relief and attorneys’ fees. Employers should review their recordkeeping practices to ensure any existing training or education documents are incorporated into personnel files and can be accessed promptly when requested. See the full bill here.

Colorado

N/A

Connecticut

Minimum Wage
Connecticut’s minimum wage beginning January 1, 20265, will be increased to $16.94.

Paid Family Leave Changes
Beginning January 1, 2026, the premium rate is not changing from 2025 which is 0.5% of wages, up to the Social Security Cap ($184,500) for 2026. All employers are required to withhold the premium from their employees. Employers do not pay any portion of the premium. The premium is paid by the employees. PFML resources for Connecticut: Employer Page | FAQs

Expansion of Paid Sick Leave
Beginning January 1, 2026, employers covered by Connecticut’s paid sick leave has been expanded to include those with 11 or more employees.

Delaware

Paid Family Medical Leave
Beginning January 1, 2026, Delaware premium rate is not changing from 2025. Employers are responsible for 100% of the contributions under the plan, but the State allows the employer to require their employees to pay up to (but no more than) half of their contributions. The required coverages provided by each employer depends on their Employee Count that works in the state (see below). Employers and employees pay a family-leave insurance contribution on wages up to the federal Social Security cap ($184,500) for 2026. PFML resources for Delaware: Employer Page | FAQs

The 2026 SUTA (State Unemployment Tax Act) wage cap for Delaware is $14,500. This is an increase from the 2025 wage base of $12,500.

Pay Transparency / Posting Requirements (Upcoming)

• Under HB 105 (signed Sept 26 2025) employers with 25 or more employees (some sources say 26+) in Delaware will be required to include a salary or wage range and a general description of benefits in job postings (both internal and external).
• This posting requirement will take effect September 26, 2027 (two years after enactment).
• Employers must retain records of job descriptions and wage-rate history for each employee for at least three years after termination.
• Penalties: After a written warning for a first offense, civil penalties of $500-$10,000 per violation for subsequent offenses.

Delaware Personal Data Privacy Act
The DPDPA applies to businesses handling personal data of at least 35,000 Delaware residents, or 10,000 residents if 20 percent of revenue comes from selling data. It requires businesses to honor universal opt out tools by 2026, disclose third party data recipients upon request, and comply even if they are nonprofits or educational institutions. Companies must also conduct data protection assessments for high risk processing. A 60 day cure period is available through 2025, after which enforcement is at the Attorney General’s discretion.

District of Columbia

N/A

Florida

Minimum Wage
Florida’s minimum wage will increase to $15 per hour effective September 30, 2026.

Tipped Minimum Wage
Florida’s tipped minimum wage will increase to $11.98 effective September 30, 2026.

Georgia

N/A

Hawaii

Minimum Wage Increase
Effective January 1, 2026, minimum wage scheduled to rise to $16 on January 1, 2026, for tipped wages the minimum is $14.75.

Streamline to Unemployment Insurance Process
HB 477 was signed into law in July 2025. HB 477 modernizes Hawaiʻi’s unemployment insurance (UI) system. The bill expands work-registration exemptions for union members in good standing, individuals engaged in labor disputes, and employees suspended from work. It also authorizes electronic communication of UI notices unless a party opts for mail and repeals outdated online posting requirements. Collectively, these changes are intended to streamline and increase the efficiency of UI processes. ProService will continue to manage UI claim administration for clients as the new process rolls out.

Accommodation Process for Prescribed Medical Cannabis
A revision to an existing administrative rule now clarifies that employers must consider reasonable accommodation for the prescribed use of medical cannabis by employees with qualifying disabilities. This clarification removes prior ambiguity but also introduces new complexities for employer policies and disciplinary action. Specifically, positive cannabis test results will no longer automatically justify disciplinary measures or termination. Updated rule will make it more challenging for employers to impose discipline when an employee has a valid medical cannabis prescription. Employers will need to adjust drug testing policies, assess accommodation requests more carefully, and ensure managers understand when a situation may trigger the ADA/Hawaiʻi disability accommodation process.

Idaho

N/A

Illinois

Illinois Amends the Nursing Mothers Act:
Beginning January 1, 2026, employers with more than 4 employees are required to pay mothers during nursing breaks at their regular rate of compensation and can’t require employees to use paid leave to take the break.

Illinois Amends Background Check Requirements for Day Care Centers:
Beginning in January 2026, there will be updates for background checks for Illinois day care centers. Day care centers that allow new hires and volunteers to work pending the results of their background check must provide supervision for those employees or volunteers.

Illinois Amends Workplace Transparency Act:
Effective January 1, 2026, the amended Workplace Transparency Act makes it against public policy to execute any agreement, clause, covenant, or waiver that is a condition of employment that:

• prevents an employee from engaging in protected concerted activity to address work-related issues;
• intends to shorten the applicable statute of limitation; or
• applies non-Illinois law to an Illinois employee’s claim or requires a venue outside of Illinois to adjudicate employees’ claims.
• This amendment also allows employees to recover consequential damages when challenging contract violations.

Illinois Employers Prohibited from Retaliation:
Beginning on January 1, 2026, Illinois employers are now prohibited from discriminating or retaliating against employees for using employer-issued equipment to record crimes of violence committed against an employee or their family or household member. Employers also can’t take away employer-issued equipment solely because the employee tried to use it for such purposes, and must grant employees access to any photographs, recordings, or any other digital documents or communications related to any crimes of violence committed against the employee or their family or household members.

Illinois Expands Blood and Organ Donation Leave Time:
Starting January 1, 2026, part-time Illinois employees will be able to take paid time off for blood or organ donation. The amendment also explains how to calculate this type of leave.

Illinois Expands Leave to Include Neonatal Intensive Care:
Starting June 1, 2026, the Family Neonatal Intensive Care Leave Act will require employers to give employees unpaid time off while their child is in a neonatal intensive care unit. The amount is based on employer size:

• 16-50 employees: maximum of 10 days
• 51+ employees: 20 days
• Employers must maintain the employee's health insurance and reinstate the employee to their former or a substantially equivalent position with no loss of benefits upon return from leave. Penalties for violations can reach up to $5,000 per affected employee.

Illinois Epinephrine Injector Act
Effective January 1, 2026, an amendment to the Epinephrine Injector Act requires an anaphylaxis training program completion certificate, and creates good Samaritan protections for authorized entities and persons. More information can be found here.

Unemployment / New Hire and Wage Reports
Beginning January 1, 2026, employers expand eligibility for unemployment benefits to individuals who cannot perform work due to a mental disability, and provides for the recovery of unemployment benefits plus interest and penalties, paid to inedible individuals.

AI Discrimination
Beginning January 1, 2026, employers are prohibited under Human Rights Act from using AI that has the effect of subjecting employees to discrimination or using zip codes as a proxy for protected classes. The amendment also requires employers to notify employees of the employer’s use of AI.

Indiana

Indiana Earned Wage Access Act
Beginning on January 1, 2026, employers will have to follow the Indiana Earned Wage Access Act, which allows consumers to access their earned but unpaid wages, salary or compensation before their scheduled pay date, and provides regulations for compliance. More information can be found here.

Consumer Privacy and Data Security
Effective January 1, 2026, there is a new consumer data privacy law in Illinois, which provides rights for consumers regarding the processing and protection of their personal data. More information can be found here.

Iowa

Minimum Wage
The minimum wage in Iowa remains at $7.25. Iowa does not have a state law mandating paid sick leave, vacation, or paid family leave (outside of what is already required under federal law).

Unemployment Insurance
Under Senate File 603 (2025), Iowa revamped its unemployment insurance (UI) tax system for employers. As a result, for calendar year 2026, employers’ UI tax obligations will reflect a reduced taxable wage base and a simplified tax table system.

Under SF 607, Iowa overhauled its unemployment tax system in 2025:

• Cut the taxable wage base formula from two-thirds to one-third of the state average annual wage.
• Iowa Workforce Development’s 2025 review states that, for Calendar Year 2026, the taxable wage base will decrease from $39,500 (2025) to $20,400 (2026).

Hands-Free / Cell Phone Driving Law – Enforcement Shift on 1/1/2026
Technically, the law took effect July 1, 2025, but the citation/enforcement regime changes on January 1, 2026, which matters for fleet, home-health, delivery, etc.

For employees who drive as part of their job in Iowa, your distracted-driving policy and fleet training should be fully aligned by Jan 1, 2026, because:

• Violations move from “educational” to ticketable.
• This can impact MVRs, insurability, and negligent-entrustment exposure.

Drug Testing Law effective July 1, 2025
Below is a concise summary of the key components of Iowa’s Drug Testing Law (Iowa Code § 730.5), as amended by HF 767. These are the primary compliance requirements we must follow for all Iowa worksite employers.

1. Written Policy Requirement: Employers must maintain and distribute a comprehensive written drug and alcohol testing policy. The policy must describe when testing will occur, employee rights, and how collection and laboratory procedures are handled. The policy must also be posted in a visible workplace location.
2. Permitted Types of Testing: Iowa permits testing in specific circumstances, including pre-employment, random testing, reasonable suspicion, post-accident or workplace injury, return-to-duty, and follow-up. Random testing may be limited to safety-sensitive positions or to employee pools of 50 or more.
3. Safety-Sensitive Positions (Expanded Definition): HF 767 broadened the definition of “safety-sensitive” to include roles where impairment could result in serious harm—for example, operating vehicles or heavy machinery or performing duties involving vulnerable populations. This expansion increases the range of positions eligible for random testing.
4. Testing Procedures & Laboratory Standards: Test collection and analysis must follow strict procedural safeguards, including chain-of-custody documentation and use of an HHS-certified or otherwise accredited laboratory. Confirmatory testing must use scientifically valid testing methods such as GC/MS or LC-MS/MS.
5. Reasonable Suspicion Documentation: Supervisors must document specific observable behaviors that support reasonable suspicion, including appearance, speech, behavior, or odors. When practical, a second supervisor should corroborate the observations.
6. Employee Rights: Employees have a right to receive written notice of test results, request a confirmatory retest at their own expense, access records relating to their sample, and dispute results through legal or administrative processes.
7. Employer Protections (Good-Faith Immunity): Employers are protected from liability when they act in good faith, follow the statutory requirements, apply testing consistently, and administer testing under a compliant written policy.

Kansas

N/A

Kentucky

N/A

Louisiana

N/A

Maine

Minimum Wage
Maine State minimum wage beginning January 1, 2026, will be increased to $15.10. Maine has local counties and cities with higher minimum wage requirements and they can be found at this link [HERE].

Salary threshold for administrative, professional, and executive exempt employees
The salary threshold for administrative, professional and executive exempt employees is increasing in Maine. Maine will set its 2026 exempt salary threshold at $45,300.32 per year, tied to a minimum wage of $15.10 per hour.

Paid Family Leave Changes
Beginning January 1, 2026, Maine premium rate is not changing from 2025. Employers with one or more employees working in the state between October 1, 2023 and September 30, 2024 are required to withhold the Paid Family Medical Leave tax. Employers are responsible for 100% of the contributions under the plan, but the employer may withhold up to 0.5% of your employees’ wages with advance notice. The wage base is capped up to the Federal Social Security cap ($184,500) for 2026. Rates access are by employee count (see below). PFML resources for Maine:
Employer Page | What Employers need to know | FAQs

Maryland

Minimum wage update
Maryland has local counties and cities with higher minimum wage requirements and they can be found at this link [HERE]

Paid Family Leave changes
Maryland has pushed back their start date of Paid Family Medical Leave. Beginning on January 1, 2027, employers with one or more employees working in the state are required to withhold the Paid Family Medical Leave tax. Reporting these contributions will begin in April 2027. Employers will need to register with the State through the FMLI’s website in the Fall of 2026. The wage base is capped up to the Federal Social Security cap for 2027. Rates for employee and employer will be set by May 1, 2026. Employers with fewer than 15 employees worldwide do not have to pay the required employer share of the Paid Family Medical Leave contribution. Employers with more than 15 employees worldwide are required to pay the employer share of the Paid Family Medical Leave contribution. FMLI resources for Maryland: Employer Page | FAQs | Employee Page | Claims

Massachusetts

Paid Family Leave Changes
Beginning January 1, 2026, Massachusetts premium rate will stay the same 0.88%, up to the Social Security cap ($184,500) for 2026. The contribution is divided into a medical leave contribution, which is 0.7% for 2026, and a family leave contribution, which is 0.18% for 2026. All of the family leave contributions can be withheld from employees’ pay, while up to 40% of the medical leave contribution, or 0.28%, can be withheld. Employers must pay at least the other 60%, or 0.42%, of the medical leave contribution. Employers with fewer than 25 employees do not have to pay the required employer share of the medical leave contribution, so their contribution rate is 0.46% for 2026.

End of 2025 Wage / Pay Transparency Changes
Beginning October 29, 2025, Massachusetts employers with 25+ employees must include wage ranges in all job postings and provide them to applicants and employees upon request. Employers must also give wage ranges to current employees when they are offered a new position. The law prohibits retaliation against anyone who requests or discusses wage information. Existing rules continue, including employees’ rights to discuss wages and the requirement for employers with 100+ Massachusetts employees to submit an annual wage data report by February 1 each year.

Michigan

Minimum Wage

Michigan State minimum wage beginning January 1, 2026, will be increased to $13.73.

Tipped Employees — Tip Credit Adjustments
For tipped workers, the “tipped minimum wage” (i.e. the base-wage portion before tips) will shift to 40% of standard minimum wage as of January 1, 2026.

Earned Sick Time Act
Small businesses (those with 10 or fewer employees) are subject to the act effective October 1, 2025:

• Small businesses can limit employees to a total of 40 hours of sick leave per year. Before the change, small businesses had to allow employees to use 40 hours of paid sick leave and an additional 32 hours of unpaid sick leave, for a total of 72 hours. An annual use cap of 72 hours still applies to all other employers.
• Small businesses can comply with the sick leave law by frontloading 40 hours of paid leave, as opposed to 40 hours of paid leave and 32 hours of unpaid leave, which the law previously required.
• Employers can frontload leave for part-time employees if they meet certain requirements set out in the law.
• Employers that frontload the full amount of sick leave no longer have to allow carryover of unused leave to the next year.
• Employers can cap the amount of unused sick leave that carries over to 40 hours for small businesses and 72 hours for all other businesses. Before the change, there was no cap on carryover.
• Employers can require new employees hired after February 21, 2025 to wait 120 days (instead of 90 days) to start using accrued leave. Employees hired before that date can use sick leave as soon as it is earned.
• If the need for leave is unforeseeable, employers have the option of requiring employees to follow the employer’s normal policy for requesting sick leave if the employer provides certain notice to employees about that policy.
• If an employee is rehired within 2 months (instead of 6 months) of separation, the employer has to give them back their previously accrued and unused sick leave.
• The prior version of the law let employees take leave in increments of one hour or the smallest increment used by the employer’s payroll system, whichever is smaller. The change appears to allow employers to use increments of either one hour or the increment their payroll system uses, without regard to which is smaller.
• If an employer requests documentation from the employee showing that leave was taken for an allowable reason, the employee has 15 days to provide that. Employers can still only request documentation if an employee takes leave for more than 3 days in a row.
• The updated law provides a three year grace period for new small businesses. The sick leave requirements don’t apply to small businesses until 3 years after they hire their first employee.

Youth Employment / Minor Hour Restrictions Scheduled Later in 2026 (not Jan 1)
Under Public Act 196 of 2024 (House Bill 5594), updated restrictions on work-hours for minors aged 14–15 will take effect March 31, 2026 — not Jan 1.

An amended youth-employment statute (stemming from Youth Employment Standards Act) updates work-hour restrictions for minors under 16.

Among the rules (for minors under 16):

• During school sessions: work limited to no more than 3 hours per day and no more than 18 hours per week.
• When school is out (breaks / summer): up to 40 hours per week allowed.
• Hour-of-day restrictions: For example, during much of the year, work may be limited to between 7 a.m. and 7 p.m.; in summer or breaks, there may be altered allowable hours (e.g., 7 a.m.–9 p.m. during summer period).

Note: Although these changes stem from 2025 legislation, the first full summer period where employers must follow the new minor-hour rules will be 2026 — so companies employing minors should adjust scheduling, time-tracking, and compliance accordingly.

Minnesota

Minimum Wage
Minimum wage will increase to $11.41 in 2026. Minnesota has local counties and cities with higher minimum wage requirements and they can be found at this link
[HERE].

Meal and Rest Breaks
Beginning in January 1, 2026, employers must allow employees working six or more consecutive hours with a thirty-minute unpaid meal break and two fifteen-minute rest break for every four consecutive hours worked. Longer breaks are required to utilize the nearest bathroom if one is not convenient. If meal break is less than 20 minutes, it must be counted as hours paid.

Paid Family Leave changes
Effective January 1, 2026, Minnesota Paid Leave for employees that will need to care for child bonding, caring for a family member, managing military leaves, personal safety issues and caring for themselves that have a medical issue. Employers that have one or more employees working in the state are required to withhold Paid Leave tax. Employers will need to notify their employees by Dec. 1 regarding the new tax. Here is a template provided by the Minnesota Department of Paid Leave, for you to customize for your employees. For registration of the new taxes, there is no action on your part if you already have an Unemployment account, as the state will convert your Unemployment account to accommodate the new reporting structure for Paid Leave. Reporting these contributions will begin in April 2026. Contribution rates for employers and employees are based on the size of their workforce. See chart below. Employers will contribute up to 44% of the total premium, but can choose to pay up to 100%. We will set all employers rates to 22% or 44%, unless otherwise notified. Paid Leave resources for Minnesota: Employer Page | Fact Sheet | Resource Toolkit | FAQs

Paid Sick changes
Effective July 1, 2025, Minnesota employers may reasonably require notice for unforeseeable sick leave, request documentation after three consecutive missed workdays, and allow but not require employees to voluntarily trade shifts instead of using leave. Beginning January 1, 2026, employers may frontload sick and safe time based on anticipated hours, with additional time required if employees work more than expected. These changes give employers more flexibility in administering leave while maintaining employee protections. Employers should consider midyear updates to their Minnesota sick leave policies or include Minnesota in yearend multistate policy revisions.

Mississippi

N/A

Missouri

Minimum Wage
Missouri State minimum wage beginning January 1, 2026, will be increased to $15.00.

Montana

Minimum Wage
The minimum wage will increase to $10.85 per hour effective January 1, 2026.

App-Based Workers / Alcohol Delivery
Effective January 1, 2026, Montana has enacted HB 211 (LC885), which permits retail licensees—including grocery stores and similar establishments—to use third-party app-based delivery services to deliver beer and wine. The new law includes strict compliance requirements, such as mandatory training for delivery personnel, and sets operational standards to ensure responsible alcohol delivery.

Employers utilizing or planning to utilize third-party delivery services should begin reviewing their procedures, delivery partnerships, and training protocols to ensure compliance by the effective date.

Nebraska

Minimum Wage
Nebraska State minimum wage beginning January 1, 20265, will be increased to $15.00. After 2026, the minimum wage will be adjusted annually (starting January 1, 2027) based on cost-of-living increases tied to the Consumer Price Index (for the Midwest region).

Nebraska Healthy Families and Workplaces Act (HFWA) — Paid Sick Leave
Although the Act took effect on October 1, 2025, it remains new and will significantly impact employers throughout 2026 and beyond. Under the HFWA, as amended by Legislative Bill 415 (LB 415), most private employers with 11 or more employees must provide earned paid sick time (PST). Eligible employees—after working at least 80 hours in Nebraska—accrue one hour of PST for every 30 hours worked. Small employers with 11–19 employees must provide up to 40 hours of PST per year, while employers with 20 or more employees must provide up to 56 hours annually. Additionally, employers are required to provide statutory notices and post the mandatory poster by September 15, 2025. Although not a regulation that becomes effective in 2026, it is new for the 2026 calendar year and therefore requires full integration into employer leave policies, payroll configuration, and compliance practices. More information can be found here.

Nebraska Wage Payment & Collection Act Amendments – Enforcement Trend for 2026
While not tied to a single new statute, Nebraska has significantly increased enforcement attention on timely payment of all wages—including bonuses, commissions, and earned PTO—proper classification of exempt versus non-exempt employees, and the accuracy of itemized pay statements. This heightened focus aligns with broader Nebraska Department of Labor enforcement patterns that began emerging in 2024–2025. As a result, employers should take steps to review final-pay practices, confirm payout obligations under wage agreements, and ensure paystub disclosures are complete and compliant.

Nevada

N/A

New Hampshire

Unpaid Childbirth-Related Leave
Beginning January 1, 2026, employers with more than 20 employees will be required to provide up to 25 hours of unpaid leave for medical appointments related to childbirth or postpartum as well as the child’s pediatric medical appointments within the first year.

Military Spouse Leave Changes
Starting January 1, New Hampshire employers with 50 or more workers at one location must give unpaid, job-protected leave to employees whose spouses are called into military service. This applies when the spouse is involuntarily deployed for up to a little over one year for a war, national emergency, or similar operation. After the leave, the employee must be given their same job or an equivalent one back.

Veteran Hiring Preferences
Beginning on January 1, 2026, New Hampshire has expanded its veteran hiring preference law so that it now covers not only veterans but also their spouses and all active-duty service members, no matter how long they’ve served. This update allows employers to extend hiring or employment preferences to a wider group of military-affiliated applicants.

New Jersey

Minimum Wage
New Jersey State minimum wage beginning January 1, 2026, will be increased for Most employers: $15.92. Minimum wage for seasonal employers and small employers with no more than five employees will increase to $15.53. Minimum wage for agricultural employers will increase to $14.20. Minimum wage for long-term care facility direct care staff will increase to $18.92.

Captive audience ban
New Jersey enacted Bill No. 4429, effective December 2, 2025, which expands the state’s ban on mandatory “captive audience” meetings to include communications about an employee’s decision to join or support a labor organization. The amended law broadens the definition of “political matters,” preserves existing protections against employer retaliation, and provides specific exceptions for legally required communications, job-related information, anti-harassment training, and certain institutional settings.

Unemployment Insurance & Leave-Related Contribution
The employer wage base for Unemployment Insurance (UI) and Temporary Disability Insurance (TDI) increases to $44,800 (from $43,300). The employee wage base for Family Leave Insurance (FLI) increases, with the taxable wage maximum rising to $171,100. The maximum weekly benefit amount for TDI and FLI claimants will be $1,199/week in 2026 (up from $1,081/week in 2025).

NJ Law Against Discrimination (LAD) – Updated Protections & Enforcement Expansion (2025 → 2026 Cycle)

The New Jersey Division on Civil Rights (DCR) adopted rules in late 2025 expanding its authority to investigate workplace bias, retaliation, harassment, and failure to accommodate, effective 2025–2026 enforcement cycle, meaning employers’ 2026 compliance obligations increase.

• Increased scrutiny on reasonable accommodation practices, especially for pregnancy, disability, and religious accommodations.
• Broader interpretation of “hostile work environment” and protected classes.
• Expanded penalties for retaliation and recordkeeping failures.
• Stronger requirements to demonstrate individualized, interactive-process engagement.

More information found at N.J. Admin. Code (N.J.A.C.) 13:10-1 et seq. (Division on Civil Rights rule amendments; enforcement dates staggered into 2026).

NJ Earned Sick Leave Law – Enforcement Update & Employer Monitoring Obligations
DOL expanded employer obligations around:

• Recordkeeping for sick leave accrual and use,
• Posting requirements, and
• Retaliation presumptions for adverse action taken within 90 days of an employee using sick leave.

Impact for employers:

• Handbooks must reflect the new retaliation presumption standard.
• Employers must maintain accrual and usage records for 5 years.
• Written policy distribution and acknowledgment is strongly recommended.

Family Leave Act (NJFLA) + Federal FMLA Interaction Updates (Clarifications for 2026)

NJ DOL issued updated guidance clarifying:

• Eligibility calculations for employees working hybrid schedules.
• Expanded definitions of family member and serious health condition.
• Employer obligations when employees exhaust federal FMLA but remain eligible for NJFLA.

Impacts for employers:

• Employers must update leave policies to reflect broadened family definitions.
• Scheduling and reinstatement rights become more complex.
• HR must separately track NJFLA vs. FMLA time.

More information may be found at N.J.A.C. 13:13-1.1 et seq. (2025/26 administrative guidance cycle).

Worker Classification Enforcement (ABC Test) – Continued 2026 Enforcement Expansion

New Jersey is one of the strictest states for independent-contractor classification.
DOL announced that 2026 will include strengthened enforcement around:

• misclassification audits,
• joint-employment investigations,
• payroll tax evasion reviews,
• subcontractor reporting.

Impacts for employers:

• Must reassess 1099 and gig-style arrangements.
• Increased risk of back wages, taxes, benefits, and penalties.

More information found at N.J.S.A. 43:21-19(i)(6) (ABC test)

Workplace Violence Prevention Requirements (Healthcare sector)
Healthcare facilities must maintain and annually update:

• workplace violence prevention plans,
• staff training,
• incident logs,
• hazard assessments.

While this law became effective earlier, annual compliance resets 1/1/2026. More information may be found at N.J.S.A. 26:2H-5.44 et seq.

Expanded Pregnancy & Postpartum Accommodations
Enhancements to LAD’s pregnancy-accommodation rules include:

• Modified duty, schedule changes, and additional break time.
• Limits on requiring medical certification unless reasonable.
• Expanded protections for postpartum recovery.

Impacts for employers:

• Must update accommodation procedures and training.
• Policies must reflect postpartum considerations and restrictions on requiring medical proof.

More information may be found here.

New Mexico

Minimum Wage
The Las Cruces minimum wage will increase to $13.01 per hour effective January 1, 2026 and supersedes the state minimum wage of $12.00 per hour. New Mexico has local counties and cities with higher minimum wage requirements and they can be found at this link [HERE].

New York

New York Minimum Wage
The minimum wage is scheduled to increase to $17.00 per hour in New York City, Nassau, Suffolk and Westchester counties, and $16.00 per hour in the rest of the state on January 1, 2026. More information on minimum wage increases can be found here.

Salary threshold for administrative, professional, and executive exempt employees
The salary threshold for administrative, professional and executive exempt employees is increasing in New York City and in Nassau, Suffolk, and Westchester Counties. Employees in New York City, Nassau, Suffolk and Westchester counties must earn at least $1,275 per week, while those in other regions must earn at least $1,199.10 per week.

Expansion of Paid Sick Leave in New York
New York City will enact a large set of amendments on February 22, 2026. These amendments expand the definitions of family members, add new covered reasons for leave such as workplace violence and public disasters, and introduce two new leave entitlements: thirty two hours of unpaid sick and safe leave each year and twenty hours of paid prenatal personal leave every fifty two week period. The rules for how employees may request and use leave will also change, including updated standards for minimum increments and shift makeup arrangements. In addition, the city will strengthen confidentiality protections related to medical and safe leave information and modify the conditions under which a collective bargaining agreement may waive the law. More information on these changes can be found here.

Changes to New York’s Secure Choice Program
New York’s Secure Choice Program is a state-run retirement savings program that requires private-sector employers without a qualified retirement plan to help employees save through Roth IRAs. Beginning in March 2026, most employers must either register for the program or certify their exemption. Employers with 30 or more employees must register by March 18, 2026; those with 15–29 employees must register by May 15, 2026; and those with 10–14 employees must register by July 15, 2026. More information can be found here.

Sexual Harassment Training Reminder
Since 2018, employers have been required to provide sexual harassment training at hire and annually thereafter, making it a routine part of their operations. In 2025, both the City Human Rights Commission and the State Division of Human Rights have been more active in enforcement, a trend expected to continue. Employers must therefore be prepared to prove that they train all employees, including managers, executives, and owners, who may themselves be held liable in certain situations. More information and links to training can be found here.

North Carolina

Gender Identity / Discrimination and Harassment
Under HB 805, which takes effect January 1, 2026, the term “sex” is defined for all state laws, rules, and regulations as a person’s biological sex—male or female—assigned at birth. The bill also includes provisions intended to prevent the sexual exploitation of women and minors.

North Dakota

Vaccine Opt-Out Procedures
North Dakota House Bill 1454 went into effect on May 2, 2025 and establishes a formal opt-out procedure for required vaccines, creating a statutory process by which individuals may decline vaccination requirements under certain conditions. While this bill does not function as a broad, private-sector employment law, it directly intersects with workplace health and safety policies and may influence how employers structure vaccination expectations, medical-related accommodations, and risk-mitigation protocols. For employers or industries that maintain vaccination requirements—such as healthcare, laboratory environments, or roles with patient or resident contact—HB 1454 may affect compliance planning, documentation processes, and the handling of employee exemption requests. Accordingly, organizations should review their existing vaccination and exemption policies to ensure alignment with this new state-mandated opt-out framework.

More information may be found at HB 1454 – Overview | North Dakota Legislative Branch.

Ohio

Minimum Wage
Ohio State minimum wage beginning January 1, 2026, will be increased to $11.00.

Oklahoma

Oklahoma Expands Data Security Requirements (SB 626)
Effective January 1, 2026 Oklahoma has enacted SB 626, updating the state’s Security Breach Notification Act and expanding employer obligations related to data protection.

What Employers Need to Know:

1. Expanded Definition of “Personal Information”
SB 626 broadens what qualifies as “personal information,” increasing the types of employee and customer data that require protection. Employers should expect the definition to now cover a wider range of identifiers beyond traditional items like Social Security numbers or financial information.

2. Updated Requirements for “Reasonable Safeguards”
The law also revises what constitutes “reasonable security measures” for protecting personal information. Oklahoma businesses—including employers that store employee data—will be expected to maintain administrative, technical, and physical safeguards aligned with current cybersecurity best practices.

Oregon

Minimum Wage (Effective Date: July 1, 2025 through June 30, 2026)
Oregon’s minimum wage varies by region, and the rates in effect remain tiered as follows:

• $16.30 per hour – Portland Metro:
  Applies to work performed inside the urban growth boundary in areas of Clackamas, Multnomah, and Washington counties.
• $15.05 per hour – Standard Counties:
  Covers Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, Yamhill, and areas of Clackamas, Multnomah, and Washington counties outside the urban growth boundary.
• $14.05 per hour – Non-Urban Counties:
  Applies to workplaces in Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties.

Pay Transparency / New Hire Notices
Beginning January 1, 2026, employers must provide new hires with a written explanation of their pay or deduction at the time of hire. The explanation must include the regular pay period, all potential pay rates and a list of applicable benefit deductions and contributions along with all payroll codes used for pay rates and deductions along with a detailed description or definition of each code.

Construction Industry / Unpaid Wages
Effective January 1, 2026, this law imposes joint and several liability on property owners and direct contractors for unpaid wages owed to “unrepresented” employees of subcontractors (those not covered by a collective bargaining agreement).

Healthcare Workplace Violence Prevention
Effective January 1, 2026, certain healthcare employers require expanded workplace violence prevention measures, including written prevention plans, incident reporting, annual training, safety assessments, and patient-flagging protocols.

Paid Family & Medical Leave (PFML)
Beginning January 1, 2026, the premium rate stays the same 1% of wages, up to the Social Security cap ($184,500) for 2026. Employers pay 60% and the employees pay 40%. For employers with 24 or fewer employees, contributions are only paid by the employee. For employers with 25 or more employees working for them, contributions are paid by employer and employee.

Wage Statement Explanation Requirement
Effective January 1, 2026, employers are required to give new hires a written explanation of their wage statements—including pay types, deductions, benefit contributions, allowances, and payroll codes—at the time of hire.

Unemployment Benefits for Striking Workers
Under this law, effective January 1, 2026, workers engaged in a strike may be eligible for up to 10 weeks of unemployment benefits following a two-week strike period.

Paid Sick Leave for Blood Donation
Expands Oregon’s paid sick leave law to allow employees beginning in January 1, 2026 to use accrued sick time to donate blood through an accredited blood-bank program.

Home Health & Home Care Compensation Rules
Starting January 1, 2026, employers are prohibited from using per-visit compensation for home health and home hospice staff, requiring employers to move to an alternative compliant pay model.

Pennsylvania

Pennsylvania’s New CROWN Act Protections
Pennsylvania has enacted the CROWN Act, amending the Pennsylvania Human Relations Act (PHRA) to prohibit discrimination based on hair texture, protective hairstyles, and head coverings historically associated with an individual’s race or religion. Taking effect January 24, 2026, the law clarifies that “race” and “religious creed” include these traits, aligning Pennsylvania with more than half of U.S. states that have adopted similar protections. While employers may still enforce grooming or safety-related policies, such rules must be nondiscriminatory, narrowly tailored, consistently applied, and justified by legitimate health or safety needs. Importantly, this exception does not eliminate employers’ obligations to evaluate religious accommodation requests under existing laws.

Philadelphia Ban the Box
Beginning in January 1, 2026, an employer in Philadelphia is prohibited from asking about convictions until after a conditional job offer has been made. Felony convictions may be considered for 7 years, misdemeanors for 4 years and summary offenses not at all.

Pittsburgh Paid Sick Amendments
Beginning January 1, 2026, employers with less than 15 employees must accrue 1 hour every thirty hours worked up to 48 hours annually. Employers with more than 15 hours must accrue up to 72 hours annually. Sick leave is available to use after 90 days of employment.

Rhode Island

Minimum Wage
Rhode Island State minimum wage beginning January 1, 20265, will be increased to $16.00 per hour.

Payment of Wages
Beginning on January 1, 2026, employers are required to provide new hires written notice containing employee rate(s) of pay, allowances, sick, vacation, personal leave, holidays, FLSA employment status, number of days in a pay period, scheduled payday and the payday on which the employee will receive their first pay as well as employers contact information such as legal name, operating name address and phone number. Employers must retain a copy of this notice, signed by each employee.

Revisions to Paid Family Leave
Effective January 1, 2026, an employee may use temporary caregiver insurance benefits retroactive to January 1, 2025 to serve as a bone marrow transplant donor or a living organ donor.

Temporary Disability Insurance Benefits
Beginning January 1, 2026, revisions to Rhode Island law increases the percentage of wages used to determine temporary disability insurance benefits, amends duration period of caregiver benefits and extends temporary caregiver benefits eligibility to workers who are caring for a sibling.

New Hire Notice Requirements
Starting in 2026, Rhode Island employers must give every new hire a written notice with detailed pay, schedule, leave, and employer information, have the employee sign it, and keep the signed copy for at least three years. The notice must clearly state pay rates, pay periods, employment status, possible deductions, leave policies, and full employer contact details. Failure to follow these requirements can result in a 400 penalty for the first two violations. Additional violations may lead to criminal penalties, including higher fines and up to one year in jail.

South Carolina

N/A

South Dakota

Minimum Wage
South Dakota Minimum Wage Law will continue to apply; effective Jan 1, 2026 the non-tipped minimum wage will increase to US$ 11.85/hr, and the tipped base wage to US$ 5.925/hr.

Employers must still ensure that total pay for tipped workers (base pay + tips) meets or exceeds the non-tipped minimum wage, and must maintain records of all tips.

Tennessee

N/A

Texas

Texas HB 149 – AI Regulation & Governance (Effective: January 1, 2026)
Texas House Bill 149, officially titled the Texas Responsible Artificial Intelligence Governance Act, establishes state-level standards governing the development and utilization of AI systems. This legislation mandates that organizations disclose the deployment of AI, incorporates safeguards to mitigate discriminatory outcomes, and stipulates penalties for non-compliance. Furthermore, the act preempts cities and counties from enacting independent AI regulations, thereby ensuring regulatory uniformity across the state. Businesses involved in the creation or application of AI tools may be required to revise internal policies, contractual agreements, and disclosure protocols to align with these new compliance obligations.

Texas HB 3699 – Revised Definition of “Last Work” for Unemployment Claims (Effective: January 1, 2026)
HB 3699 revises the criteria by which Texas determines a worker's “last work” and “last employer” in the evaluation of unemployment benefits. The state has abolished the prior mandate that an employee must have completed 30 hours of work within a single week for an employer to be designated as the “last employer.” The updated definition now adheres to the modified language within the Texas Labor Code. These amendments may influence which employer bears the responsibility for responding to unemployment claims, potentially reassigning associated liability or administrative obligations.

Utah

N/A

Vermont

Minimum Wage
Vermont State minimum wage beginning January 1, 2026, will be increased to $14.42.

Virginia

Minimum Wage
Virginia State minimum wage beginning January 1, 2026, will be increased to $12.77.

West Virginia

N/A

Washington

Minimum Wage
Washington State minimum wage beginning January 1, 2026, will be increased to $17.13 per hour. This new state wage also impacts the salary exempt levels required. See the Washington News Release for more information.

Local Minimum Wage
Multiple jurisdictions within Washington have minimum wages that exceed the Washington State minimum wage, and which also increase each year to account for inflation. Learn more here.

Salary Threshold for Administrative, Professional, and Executive Exempt Employees
The salary threshold for administrative, professional and executive exempt employees is increasing in Washington. Washington will require exempt employees to earn 2.25 times the state minimum wage as of January 1, 2026, resulting in an annual threshold of about $80,038 based on a minimum wage of $17.13 per hour, with increases planned through 2028.

Paid Family and Medical Leave
Effective January 1, 2026, employer expanded protections for employees of small employers with 25 or more employees; job protection eligibility must be provided for employees who have completed 180 days. Employers must actively exercise their right to return to work at the end of their leave. More information can be found here.

Unemployment Insurance
Beginning January 1, 2026, unemployment benefits will be extended to striking or locked out workers.

Paid Sick Days
Beginning January 1, 2026, paid sick leave laws are amended to add protections to individuals who are victims of hate crimes.

Wisconsin

Workers’ comp hearings move back to DWD effective January 1, 2026

This legislation transfers all non-appellate workers’ compensation adjudication from the Department of Administration’s Division of Hearings and Appeals (Office of Worker’s Compensation Hearings) back to the Department of Workforce Development (DWD).

From 1/1/2026 forward, DWD is again the single agency that handles WC claims from start to finish (investigation → hearing → decision).

More information may be found here.

Wyoming

N/A