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
Form I-9 Updates: ICE Sets Aside Many of the Prior Positions for Determination of Substantive and Procedural Errors
On March 16, 2026, the U.S. Immigration & Customs Enforcement (ICE) issued new rules regarding substantive and technical violations of Form I-9 which may lead to increased employer fines. These changes were made to ICE’s “Form I-9 Inspection Under Immigration and Nationality Act § 274A,” which is a longstanding fact sheet that lays out the I-9 inspection process. Read more
Home Health Company’s Overtime Settlement: A Cautionary Tale for Healthcare Employers With ‘Program Managers’
A Columbus, Ohio–area home health services company recently agreed to pay $975,000 to resolve a collective action alleging it misclassified its program managers as exempt from overtime pay. The case may serve as a cautionary reminder for healthcare employers about the risks of classifying frontline supervisors as exempt. Read more
IRS Issues Final Regulations for ‘No Tax on Tips’ Occupations
On April 10, 2026, the Internal Revenue Service (IRS) and U.S. Department of the Treasury unveiled a new final rule implementing the “No Tax on Tips” provision of the 2025 One Big Beautiful Bill Act (OBBBA), allowing eligible taxpayers in more than seventy occupations to claim “qualified tips” as a deduction. Read more
The Mark of the Bot: When Employees Raise Religious Objections to Workplace AI Usage
While the use of artificial intelligence (AI) continues to grow in many workplaces, some employees are asking for religious accommodations to avoid using AI tools at work. Read more
State Updates
California
California’s Automated Decision-making Technology Regulations: Seven Steps for Employers
Effective January 1, 2027, many California employers must comply with a challenging and detailed set of new requirements before using automated decision-making technology (ADMT) for certain employment actions (“Covered ADMT”). These requirements include documented risk assessments, pre-use notices, changes to privacy policies, vendor provisions, and compliance with rights to opt out and obtain more information about the use of the Covered ADMT. Practical compliance will entail new administrative processes and coordination with other legal requirements. To meet this deadline, California employers should start preparing now. Read more
Maine
Maine Greatly Expands Department of Labor’s Enforcement Powers Against Employers
Employers in Maine will soon face enhanced penalties for any violation of state employment laws under a recently enacted law granting the Pine Tree State’s Department of Labor broad enforcement powers. Read more
New Jersey
No Papers so no Wages? No Way, Says the New Jersey Supreme Court
On March 19, 2026, the New Jersey Supreme Court, in a unanimous decision, held that employers are required to pay undocumented individuals whom the employer permits to work in accordance with the WPL and WHL, regardless of that individual’s undocumented status. Read more
Oregon
Oregon Court Clarifies That Asking for a Raise Is Protected by Wage Transparency Law
In a clarification of Oregon’s wage transparency statute, the Oregon Court of Appeals has held that ORS 659A.355 protects an employee from retaliation for merely asking for a raise, even where no claim of pay inequity or class-based discrimination is alleged. In Mirkovic v. Tenasys Corp., 348 Or App 70 (2026), the court rejected a narrow reading of the statute and found that its protections extend beyond coworker wage discussions to include employee‑employer wage negotiations. The decision reverses a trial court’s grant of summary judgment for the employer and provides important guidance for Oregon employers navigating compensation discussions with employees. Read more
