State and local legislatures were active throughout the last quarter in passing employment laws and ordinances concerning topics such as arbitration agreements, wage transparency requirements, and drug testing laws to name a few. As always, minimum wages continue to increase in many jurisdictions and various posters have been updated.

As always, our team will continue to monitor these and other state employment law developments. If you have questions or need guidance, please reach out to your SPB contact for more information or assistance with compliance.

Arizona

  • Arizona amends military leave law – HB 2663 revises Arizona’s military leave law, which applies to employees who are members of any state’s National Guard or the US armed forces reserves, to clarify that employees may take leave to comply with state or federal military orders for active duty or any training. Previously, the law only required employers to provide leave for active duty and to attend camps, maneuvers, formations, or armory drills.

California

  • California amends state arbitration law – AB 2155 amends Code of Civil Procedure Section 1281 and provides that any agreement unenforceable under the Federal Arbitration Act (FAA) is also unenforceable under the California Arbitration Act (CAA). Effective January 1, 2027, the CAA will incorporate exclusions under the Federal Arbitration Act (9 U.S.C. § 1 et seq.) and the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (9 U.S.C. § 401 et seq.).

Colorado

  • Colorado introduces EEO-1 data reporting requirements – Effective July 1, 2027, H.B.26-1207 requires private employers conducting business in Colorado and employing 100 or more workers to include demographic workforce data collected through the US Equal Employment Opportunity Commission’s (EEOC) “Employer Information Report” (known as EEO-1 data) in period reports to the secretary of state. An employer is required to provide this data even if the federal government repeals or discontinues the federal requirement to submit EEO-1 data to the EEOC.

Connecticut

  • Connecticut expands wage transparency requirements – Pursuant to Public Act 26-12, effective October 1, 2026, Connecticut employers must include a wage range and general description of benefits in internal and external job postings. The law also expands when wage range and benefits information must be provided to applicants and employees and applies to certain remote positions reporting to a Connecticut-based supervisor or worksite.
  • Connecticut expands prohibition on employee training repayment agreements – Pursuant to Public Act 26-12, effective October 1, 2026, Connecticut’s prohibition on employment promissory notes will apply to all employers, regardless of size. The law generally prohibits employers from requiring employees to repay training costs or similar expenses as a condition of employment if the employee leaves before a specified date.
  • Connecticut requires ADA notices – Public Act 26-12 provides that employers must provide written notice of employees’ rights to reasonable accommodations under the ADA to new hires upon hire, existing employees within 120 days of October 1, 2026, and employees who disclose a disability within 10 days of such notification. Employers may satisfy the requirement through a workplace poster issued by the Labor Commissioner.
  • Connecticut expands lactation accommodation obligations – Pursuant to Public Act 26-12, effective October 1, 2026, employers must provide reasonable break time for employees to express breast milk or breastfeed at work in addition to scheduled meal or rest breaks. Previously, Connecticut law allowed these break times to run concurrently.
  • Connecticut requires large employers to adopt pay-code guides – Pursuant to Public Act 26-12, effective October 1, 2026, employers with 100 or more employees must maintain a guide explaining overtime pay codes and common pay differentials used in their payroll systems. The guide must be updated each time a new pay code is used for overtime or any pay differentials are added by the employer, and it must be available in multiple languages. Employers may either provide a website address to the guide or provide a written copy to employees individually. 
  • Connecticut expands contractor wage liability – Pursuant to Public Act 26-12, effective January 1, 2027, contractors will be jointly and severally liable for unpaid wages owed by subcontractors for work performed under a construction contract. The law also imposes new prevailing wage recordkeeping requirements beginning October 1, 2026.
  • Connecticut adopts AI notice requirements – Pursuant to Public Act 26-12, effective October 1, 2027, employers using automated employment-related decision technology must provide notices regarding the use of AI in employment decisions and certain AI-driven interactions with applicants and employees. Under the law, reliance on AI is not a defense to discrimination claims, though bias testing and similar safeguards may be considered in evaluating liability.
  • Connecticut requires employee monitoring disclosure – S.B. 472 requires employers to provide written notice to employees of any employee monitoring, including the type(s) of monitoring the employer may engage in and the specific locations on the employer’s premises where such monitoring may occur. “Employee monitoring” means the collection of information concerning employees’ activities by any means other than direct observation. Employers also must post a notice in the locations where monitoring may occur. After Oct. 1, 2026, employers must also provide new hires with a written statement advising which activities are prohibited and may be monitored, as well as which areas may be monitored, without written notice. Notice is not required when an employer has grounds to believe that employees are engaged in illegal conduct or conduct that creates a hostile workplace environment, provided electronic monitoring may produce evidence of the misconduct. Notice is not required with respect to security monitoring in areas open to the public. 
  • Connecticut allows vendors to monitor self-serve kiosks in employee break rooms – S.B. 439 allows third-party vendors who operate self-service kiosks in employee break rooms to monitor the checkout area and the area where products are for sale, provided they do not record sound or voice. Employers are not entitled to view any video recorded by the systems or from using video in any disciplinary action, unless the vendor alleges theft.
  • Connecticut adopts tax credits for employers who provide commuter benefit – Beginning January 1, 2027, S.B. 9 allows eligible employers to take a tax credit for providing a qualified commuter transportation benefit to employees. Employers are eligible if they employ more than 5 employees in the state and are subject to Connecticut’s insurance company tax, corporation business tax, or pass-through entity tax. Qualified benefits include participating in the CTpass program or any other transportation benefit that qualifies as a qualified transportation fringe under 26 U.S.C. 132(f). Employers seeking to claim the credit must apply to the Commissioner of Transportation with a proposed commuter benefit and comply with annual recordkeeping obligations.

Delaware

  • Delaware clarifies definition of “stalking” – H.B. 197 revises the meaning of “stalking” under Section 1312 of the state’s Criminal Code to include direct or indirect tracking of another person through any method, device, or means. The state’s fair employment practices law prohibits employers from discriminating against victims of stalking. Under certain conditions, it also requires reasonable accommodations related to stalking.

Florida

  • Florida prohibits local jurisdictions from taking DEI actions – Effective January 1, 2027, SB 11345 prohibits counties and municipalities from funding, promoting, or taking official action related to diversity, equity, and inclusion (DEI). The law broadly covers “any effort” to influence workforce composition based on race, color, sex, ethnicity, gender identity, or sexual orientation; provide preferential treatment on those bases; or implement training or other initiatives designed with reference to those characteristics. It expressly excludes the use of equal opportunity or equal employment opportunity materials tied to federal or state anti-discrimination laws. The law also requires recipients of county or municipal contracts or grants to certify, as a condition of award, that they do not and will not use public funds for DEI-related initiatives.
  • Florida amends EEO enforcement provisions – Effective July 1, 2026, HB 1407 amends the timing for when civil actions may be filed for alleged violations of Florida’s fair employment practices law to allow complainants to bring a civil action within 18 months after filing their complaint if a determination of reasonable cause is not made by the state commission or a Notice of Right to Sue is not issued by the Equal Employment Opportunity Commission within 180 days after the filing of the complaint.

Hawaii

  • Hawaii expands family leave to include qualifying military exigencies – SB 3082 allows employees to take leave, under the state’s family leave law, for a qualifying exigency related to the active duty service of their child, spouse, reciprocal beneficiary, sibling, grandchild, or parent in the US armed forces. To verify their need for this leave, their employer can require them to provide a copy of official military orders.

Illinois

  • Chicago, IL amends Sick and Safe Leave ordinance – Effective June 1, 2026, Chicago amended the rules implementing its Paid Leave and Paid Sick and Safe Leave Ordinance. The amendments clarify that employers may maintain a single paid time off bank in lieu of separate Paid Leave and Paid Sick Leave banks, provided the policy satisfies the Ordinance’s accrual and usage requirements, and confirm that employers may discipline employees who abuse Paid Sick Leave. The amendments also clarify that a child’s “place of care” includes informal caregiving arrangements, such as home babysitters and family members who regularly supervise a child. In addition, the rules provide that joint employers are jointly responsible for compliance with the Ordinance and that employees count toward coverage thresholds for each joint employer. Finally, successor employers in certain mergers, acquisitions, and business transfers must honor employees’ accrued and unused Paid Leave and Paid Sick Leave balances.
  • Chicago amends Fair Workweek scheduling requirements – Effective June 1, 2026, Chicago adopted amendments to the rules implementing the Fair Workweek Ordinance. The amended rules clarify that employer coverage is determined using average global headcount over a 12-month period (or 90 days for new employers), require work schedules to be time-stamped, and require good-faith schedule estimates provided at hire to identify when the estimate was provided and whether the employee is expected to work on-call shifts. The rules also provide additional guidance regarding scheduling employees who are newly hired, returning from leave, transferred, promoted, or assigned to a new position; clarify how Predictability Pay is calculated and when it applies; confirm that Predictability Pay does not count as hours worked for purposes of leave accruals; and clarify employers’ obligations regarding additional work hours, employee consent to reduced rest periods between shifts, and recordkeeping for tipped and dual-role employees.

Iowa

  • Iowa prohibits hiring or employing workers who provided false SSNs – On June 2, 2026, Iowa Governor Kim Reynolds approved Senate File 2218, prohibiting employers from hiring or continuing to employ an employee who the employer knows to have provided the employer with a social security number that does not belong to the employee. The Department of Workforce Development will enforce the law and may issue a civil penalty of $10,000, and repeated violations will require all owners and managerial employees to participate in compliance training. The law takes effect on July 1, 2026.

Kentucky

  • Kentucky amends definition of tipped employees – HB 185 amends Kentucky’s definition of tipped employees to require that they perform work that either directly supports or is itself the service for which a customer would tip, or directly supports services that involve customer interaction or is performed in the customer’s line of sight.
  • Kentucky expands trespass law to cover threatening conduct in workplaces – Effective July 15, 2026, HB 521 makes it a second-degree criminal trespass for an individual to enter or remain in a workplace and engage in threatening behavior (meaning intentional behavior that puts another person in reasonable apprehension of imminent physical injury) after receiving verbal or written no-trespass notice.

Louisiana

  • Louisiana introduces living organ donor leave – Effective August 1, 2026, employees are entitled to unpaid leaves of absence to serve as a human organ donor or a bone marrow donor, up to 30 consecutive calendar days, under SB409. Employees must submit requests for such leave in writing.

Maine

  • Maine revises workplace drug testing framework – Effective July 15, 2026, L.D. 2110 makes several changes to Maine’s drug testing framework. Key updates include replacing the “probable cause” standard with a “reasonable suspicion” standard requiring observable behavior and specific facts; requiring “criteria-based” testing tied to defined triggering events; requiring Medical Review Officer oversight, including review of valid prescriptions and medical cannabis use; prohibiting employer access to unconfirmed non-negative results for current employees; capping return-to-duty testing at one unannounced test; reducing the rehabilitation window after a first positive test result from six months to twelve weeks while shifting costs to the employee; and requiring employers to notify the Maine DOL before discontinuing a drug testing program.
  • Maine introduces pay transparency – Effective July 29, 2026, H.P. 18 requires employers with 10 or more employees to include the prospective wage or salary range in each job posting, unless the position is compensated solely on the basis of commission, in which case the posting must state that the compensation is based solely on commission. In addition, upon the request of an employee, the law requires employers to disclose the range of pay for the employee’s current position. The employer must maintain a record of each position held by an employee and the pay history of the employee in each position for the duration of the employee’s employment and for three years after the termination of the employee’s employment.

Maryland

  • Maryland enacts captive audience law – SB 417 prohibits retaliation against employees for declining to attend or participate in employer-sponsored meetings where the employer communicates its opinion about religious or political matters, including the decision to join or support a labor organization. The legislation, effective October 1, 2026, also prohibits retaliation against applicants for refusing to attend or participate in those meetings.
  • Maryland increases child labor penalties, creates contingent state labor relations framework – S.B. 831, effective June 1, 2026, amends Maryland’s child labor laws and creates a state labor relations framework that would become operative if federal labor law is repealed, rendered ineffective, or jurisdiction is ceded to the state. First, the law authorizes the Division of Labor and Industry to assess civil penalties for child labor violations of up to $16,035 per violation for knowingly employing a minor in violation of the law, providing false information to the Division, or interfering with the Division’s enforcement activities, and up to $72,876 per violation for willful or repeated violations involving hazardous occupations. The penalty amounts will be adjusted annually for inflation beginning July 15, 2027. Second, the law prohibits employers from establishing certain employer-sponsored workplace organizations or labor-management committees that address workplace terms and conditions and that would not be subject to the National Labor Relations Act (“NLRA”) or the jurisdiction of the National Labor Relations Board (“NLRB”) as a result of future changes in federal law. Finally, the law contains contingent provisions that would transfer certain private-sector labor relations functions to Maryland’s Public Employee Relations Board if the NLRA is repealed, rendered void, or if the NLRB cedes jurisdiction to the state, including authority over representation petitions, unfair labor practice proceedings, collective bargaining rights, and interest arbitration.
  • Maryland prohibits earned wage access providers from soliciting or accepting tips – S.B. 94 amends Maryland’s law to prohibit earned wage access providers, which enable employees to access a portion of their earned wages before payday, from soliciting or accepting tips, effective October 1, 2026.
  • Maryland publishes final regulations of paid family and medical leave insurance law – Maryland’s Department of Labor (MDOL) published its final regulations of the state’s paid family and medical leave insurance (FAMLI) law. Under the regulations payroll contributions will begin Jan. 1, 2027, and benefits will be payable starting January 2028. FAMLI will provide eligible employees with job-protected leave for certain qualifying family and medical reasons, with up to $1,000 per week in wage replacement. Employers may register online with the FAMLI division beginning in the fall 2026, and employers who elect to use a private plan may submit a Declaration of Intent (DOI) to the FAMLI Division by Nov. 15, 2026. Because contribution withholding is scheduled to begin on Jan. 1, 2027, employers that intend to withhold employee contributions from pay should provide written notice of the contribution requirement to employees in December 2026, at least one pay period before withholding begins.

Minnesota

  • Bloomington, MN repeals Sick and Safe Time local ordinance – Ordinance No. 2026-09 repealed Bloomington, Minnesota’s local sick and safe time ordinance, effective May 7, 2026. The state sick leave law remains unchanged.
  • Minnesota amends Human Rights Act – SF 3210 amends Minnesota’s Human Rights Act to provide that an employer’s 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 law.
  • Minnesota amends crime victim leave law – SF 4760 revises the definition of “violent crime” to include stalking, as described in Minn. Stat. § 609.749(5), effective August 1, 2026. Employees who are a victim, or whose spouse or immediate family member is a victim, of a violent crime are entitled to take leave to attend criminal proceedings related to the victim’s case.
  • Minnesota amends retirement savings program requirements – H.F. 4074 amends Minnesota’s Secure Choice Retirement Savings Program to clarify the requirements for when an employer must enroll an employee in the program. Now, the enrollment window includes the 21-day period beginning with a covered employee’s first day of employment; or the 21-day period beginning on January 1 after the calendar year during which an employer first becomes a covered employer.
  • Minnesota adopts Earned Sick and Safe Time rules – On June 29, 2026, the state Department of Labor and Industry adopted rules implementing the Earned Sick and Safe Time leave law. The rules prohibit employers from requiring employees to use sick leave and clarify that employers must clearly communicate any documentation requirements. Under the rules, if an employer wants to switch from an accrual to frontloading method of providing leave, the employer must provide written notice to employees, and the transition cannot take effect until the beginning of the next benefit year.

Missouri

  • Missouri Extends Military Leave Coverage – Effective August 28, 2026, HB2593 extends Missouri’s military leave law to employees who are ordered or called to active state duty by a state’s adjutant general.

Nebraska

  • Nebraska introduces state WARN Act, revises various employment laws – Nebraska recently enacted LB 921, effective July 18, 2026, which establishes state Worker Adjustment and Retraining Notification (WARN) requirements for employers with 100 or more full-time employees. Specifically, the law requires covered employers to provide 90 days’ advance written notice for mass layoffs or business closures. In addition, LB 921 revises the state’s employment security law to disqualify individuals from unemployment benefits if they fail to respond to a job interview request or fail to appear for a scheduled interview without providing advance notice to the prospective employer. Finally, the law expands protections for non-English-speaking employees by lowering from 10% to 5% the workforce threshold that triggers certain language-access requirements and requiring covered employers to maintain an interpreter and a designated referral agent for community services, rather than assigning those responsibilities to an existing bilingual employee.

New Jersey

  • New Jersey court recognizes private right of action for cannabis-related discrimination – On May 26, 2026, a New Jersey state appellate court held that the applicants and employees have a private right of action against employers for violations of the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA). Under CREAMMA, employers cannot discriminate against workers solely because they use cannabis lawfully or test positive for cannabinoid metabolites.

New York

  • New York City Amends Earned Safe and Sick Time Rules – New York City has finalized amendments to the Earned Safe and Sick Time Act, now referred to as the Protected Time Off Law (PTOL), through final rules, effective July 23, 2026. The final rules clarify that, in addition to paid sick leave, employers must provide employees with at least 32 hours of unpaid protected time off that is immediately available on the first day of employment and the first day of each calendar year, and this entitlement must be described in a written policy. The final rules also clarify that employers generally must apply available paid protected time off first unless the employee affirmatively elects to use unpaid protected time off instead. The rules also require employers to provide former employees with access to leave records and restore unused unpaid leave when an employee is rehired within the same calendar year.

Oklahoma

  • Oklahoma revises drug testing law requirements related to marijuana and safety-sensitive positions – HB 3127 allows employers to penalize applicants or employees solely on the basis of a marijuana-positive drug test if such action is taken pursuant to a written drug testing policy that complies with Oklahoma’s Standards for Workplace Drug and Alcohol Testing Act. The bill also amends the definition of a “safety-sensitive position” to explicitly include certain job duties and requires such positions to have a zero-tolerance drug and alcohol standard; these job duties include firefighting duties, handling hazardous materials, carrying a firearm, operating or repairing machinery and equipment, dispensing pharmaceuticals, and direct patient care.

Pennsylvania

  • Philadelphia, PA prohibits discrimination based on citizenship, immigration status – Philadelphia amended the city’s antidiscrimination ordinance to include citizenship and immigration status as protected characteristics, effective May 7, 2026.

Tennessee

  • Tennessee introduces living organ donor leave – S.B. 579 requires employers to provide employees a leave of absence, for a period of time equal to 12 weeks, to recover from surgery related to a living organ donation. If the employees learn of their surgery date fewer than 30 days in advance, they must give notice as soon as reasonably possible. The law took effect on April 23, 2026.
  • Tennessee prohibits knowingly employing unlawfully present persons as drivers – SB 1587, effective July 1, 2026, makes it a misdemeanor for employers to knowingly employ a person who is unlawfully present in the US to operate a commercial motor vehicle. The law imposes strict liability on employers to any person who suffers personal injury or property damage caused by the unlawfully present person’s operation of a vehicle. Employers are presumed to have not acted knowingly if the employer is in compliance with employment eligibility verification requirements. 
  • Tennessee passes restrictive covenant bill – Effective July 1, 2026, HB 1034 prohibits noncompete agreements with employees earning less than $70,000 annually. The law does not apply retroactively, except to agreements renewed or amended on or after the effective date, and expressly excludes confidentiality and nondisclosure agreements, as well as employee and customer non-solicitation agreements. The law also establishes presumptions of reasonableness for noncompetes lasting up to two years with employees and independent contractors, up to three years in distributor, dealer, or franchise relationships, and up to five years in connection with the sale of a business.

Virginia

  • Virginia introduces paid family and medical leave – On April 22, 2026, Virginia enacted a state paid family and medical leave insurance program that will be funded with employer and employee contributions beginning April 1, 2028, with benefits beginning December 1, 2028. The program will provide employees with up to 80% of their average weekly net earnings for up to 12 weeks of leave in any application year, or up to 4 weeks in the case of leave for safety services related to domestic violence, harassment, sexual assault, or stalking.
  • Virginia amends statute of limitations for discrimination claims – H.B. 925, effective July 1, 2026, extends the deadline for employees to file employment discrimination complaints under the Virginia Human Rights Act from 300 days to two years after the alleged discriminatory practice occurred. The law also permits employees to file a civil action if 180 days have passed since the filing of a complaint with a local human rights commission.
  • Virginia passes Arbitration Fairness Act – S.B. 227 establishes new requirements governing employment arbitration agreements involving high-volume arbitration service providers. Among other things, the law addresses arbitrator selection, conflicts of interest, tolling of statutes of limitation, and the consequences of an employer’s failure to pay required arbitration fees or costs. The law applies to arbitration agreements entered into on or after July 1, 2026, and its requirements must be included as material terms of covered agreements.