| Each month, Optimum HR gathers the latest updates and changes to federal and state employment law. Read on to learn how these changes may affect you, and how Optimum can help you ensure compliance. |
| Federal Updates Fourth Circuit Rules for Employer When Employee Failed to Participate in Interactive Process In a recent decision, the Fourth Circuit Court of Appeals highlighted the requirement that employees requesting an accommodation under the Americans with Disabilities Act (ADA) must engage in the interactive process with their employers. The court in Tarquinio v. Johns Hopkins University Applied Physics Lab affirmed that the employer acted reasonably in requesting medical documentation and that the employee’s refusal to provide this information justified the denial of her accommodation request and her ultimate discharge. Read more (Ogletree.com) U.S. District Judge Blocks DHS Attempt to Terminate Haiti TPS Early On June 27, 2025, Department of Homeland Security (DHS) Secretary Kristi Noem announced that she will not renew Haiti’s TPS designation. The TPS designation will expire on Aug. 3, 2025, and the termination, including work authorization documents, will be effective on Sept. 2, 2025, according to Noem. On July 1, 2025, U.S. District Judge Brian Cogan blocked the government’s attempt to end the TPS designation for Haiti on Sept. 2, 2025. Read more (JacksonLewis.com) USCIS Issues Major Update to TN Visa Policy Manual U.S. Citizenship and Immigration Services (USCIS) has updated its Policy Manual, clarifying—and in some cases, narrowing—the eligibility criteria for the TN nonimmigrant classification under the United States-Mexico-Canada Agreement (USMCA). These changes may affect employers’ practices. The new guidance is effective immediately and supersedes prior guidance found in USCIS’s Adjudicator’s Field Manual. Read more (Ogletree.com) State Updates California California’s AI Employment Discrimination Regs Receive Final Approval The California Civil Rights Council has finally secured approval for its long-awaited regulations regarding employers’ use of artificial intelligence (AI), algorithms, and other automated decision systems. The agency says the regulations will clarify how existing administrative laws apply to the use of emerging technology to make employment decisions. The approval comes after years of consideration for new AI regulations, making California one of the first to adopt comprehensive AI regulations concerning employers. Read more (Ogletree.com) California Publishes Required Crime Victim Leave Notice Last year, California expanded its victim protection leave law and added a new notice requirement for employers of all sizes. Although the notice requirement took effect July 1, 2025, employers weren’t required to comply until the California Civil Rights Department (CRD) released a model notice. The model notice is now available. Employers need to provide this notice to new employees upon hire, to all employees annually, at any time upon request or if an employee informs the employer that they or their family member is a victim. Florida Florida CHOICE Act Overhauls Non-Compete Laws for Employers The Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act makes sweeping changes to how restrictive covenants, such as non-compete agreements, are handled in the state. While many states are tightening restrictions on these agreements, Florida is moving in the opposite direction. Effective July 1, 2025, the CHOICE Act increases employers’ ability to enforce non-compete agreements and introduces new legal tools to protect businesses. Read more (Varnumlaw.com) Oregon Oregon Enacts Expanded Wage Transparency Law On May 28, 2025, Oregon Governor Tina Kotek signed into law Oregon SB 906, which takes effect January 1, 2026. The law amends Oregon Revised Statutes (ORS) 652.610 to require employers to disclose to employees significantly more information about their payroll at the time of hire. Read more (Littler.com) Texas Texas Governor Signs Host of Bills Impacting Employment Texas has enacted new laws on artificial intelligence; non-disclosure and confidentiality provisions in cases of sexual assault; health care staffing; physician non-competes; delivery network company regulations; human trafficking training; PEO license renewals; unemployment claim definitions; health care plan coverage of reproductive health; biological sex-based definitions in the Texas Government Code; and cybersecurity program safe harbor for select Texas businesses. Read more (Littler.com) Virginia Virginia’s New Vulnerable Victim Law Increases Employers’ Potential for Vicarious Liability A new Virginia law, effective July 1, 2025, adds Section 8.01-42.6 to the Virginia Code to address employers’ vicarious liability for their employees’ tortious conduct in personal injury and wrongful death lawsuits brought by a “vulnerable victim” against an employee. Read more (Littler.com) |
