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.
State Updates
California
California Minimum Wage Increase – January 1, 2026
California officials announced that the statewide minimum wage will increase for all employers to $16.90 on January 1, 2026. This increase will also impact the minimum exemption thresholds and operates alongside numerous local minimum wage ordinances and industry-specific rules that may impose higher or different standards.
Courts Clarify California Whistleblower Law
The Court of Appeal and the California Supreme Court provided helpful guidance on whistleblower retaliation cases. The Court of Appeal addressed who is a prevailing party entitled to fee and cost recovery under Labor Code section 1102.5 et seq., California’s whistleblower retaliation law. The California Supreme Court clarified who is an employee entitled to whistleblower protection under the statute. Read more (Littler.com)
News of an Employee’s Arrest or Pending Criminal Charges Poses a Dilemma for California Employers
Every day, the press reports on arrests for one reason or another in California and other states. Many of those arrested have jobs. In turn, the employers of the arrestees in California are confronted with a dilemma: on the one hand, the fact of the arrest may raise concerns about an employee’s suitability for continued employment (e.g., if the employee stands accused of violent, threatening, destructive, or other serious misconduct); on the other hand, state law affords the employee certain rights. Navigating between these competing risks requires careful consideration of the specific circumstances. Read more (Littler.com)
Iowa
Iowa Amends Drug Testing Statute, Relieves Some Employer Burdens
The Iowa drug testing statute (Iowa Code § 730.5) became more employer friendly effective July 1, 2025. Although the Iowa drug testing law remains one of the most technically challenging in the country, the changes will make it easier for employers to defend lawsuits. Read more (JacksonLewis.com)
Maryland
Maryland Again Delays Paid Family and Medical Leave Program
For the third year in a row, Maryland has delayed implementation of its Paid Family Leave Insurance (FAMLI) program. On May 6, 2025, Governor Moore signed HB 102, a bill modifying the FAMLI program, first established by the Time to Care Act in 2022. The new law delays the start of contributions from July 1, 2025 until January 1, 2027, and delays the availability of benefits from July 1, 2026 to between January 1, 2027 at the earliest and January 3, 2028 at the latest. HB 102 also repeals certain requirements for participating self-employed individuals, and defines an “anchor date” for the calculation of a covered employee’s average weekly wage and eligibility for increases in weekly benefits. Read more (Littler.com)
Maryland’s Supreme Court Holds That the De Minimis Doctrine Applies to State Wage Laws
Addressing an undecided issue under state law, the Supreme Court of Maryland recently held that the federal Fair Labor Standards Act’s (FLSA) de minimis doctrine, which allows employers to exclude insignificant amounts of time from compensable work hours, applies to Maryland’s Wage Payment and Collection Law and the Maryland Wage and Hour Law. Read more (Ogletree.com)
Minnesota
Minnesota Mandates Meal and Work Breaks Starting January 1, 2026—With Automatic Penalties
Starting January 1, 2026, Minnesota employers must allow expanded breaks to all employees in Minnesota. Currently, employers are only required to provide “sufficient time to eat a meal” every eight hours of work, and “adequate time from work” to use the nearest restroom every four hours. This will change to a thirty-minute meal break when working more than six consecutive hours and a fifteen-minute work break every four consecutive work hours. Employers that fail to do so will be liable for an equal amount of time paid to the employee as liquidated damages. However, the amendments seemingly leave more questions than answers—which the Minnesota Department of Labor and Industry (MNDOLI) is not ready to answer yet. Read more (Ogletree.com)
The Latest Changes to Minnesota’s Earned Sick and Safe Time Statute
On June 14th, Minnesota Governor Tim Walz signed into law, S.F. No. 17, which once again included amendments to Minnesota’s Earned Sick and Safe Time (ESST) law that went into effect in January 2024. Read more (JacksonLewis.com)
New Hampshire
New Hampshire’s Unpaid Childbirth-Related Leave Law Goes Into Effect 2026
Effective Jan. 1, 2026, Granite State employers with at least 20 employees must provide employees with up to 25 hours of unpaid leave to attend medical appointments associated with childbirth, postpartum care, and their infant’s medical appointments within the first year of the child’s birth or adoption. Read more (JacksonLewis.com)
Rhode Island
Rhode Island Bans “Captive Audience” Meetings
On July 2, 2025, Rhode Island Governor Daniel McKee signed into law House Bill No. 5506 SUB A. With the stroke of a pen, Rhode Island joined the growing list of states to ban mandatory employer-sponsored meetings regarding religious and “political matters.” Read more (Littler.com)
Texas
Texas Makes Changes to Requirements for Health Care Provider Noncompetes and Limits Confidentiality Agreements Related to Sexual Abuse
Texas has long had a special set of provisions for physicians in the state statute governing covenants not to compete (Tex. Bus. & Com. Code §15.50, et seq). The governor recently signed a new law, SB 1318, that makes material changes to these provisions including new buyout requirements, time limitations, and geographic limitations. SB 1318 further expands these provisions to cover not only physicians but also some additional types of health care professionals. Read more (Littler.com)
