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.
Optimum HR Updates
Financial Wellness
Looking for additional resources to support your employees? Through our benefit partner, Benefit Services Financial Group (BFSG), you have access to complimentary financial wellness webinars and on-demand learning covering topics such as retirement planning, college savings, investing, budgeting, and tax planning. We encourage you to share these complimentary resources with your employees to support their financial well-being.
Summer Webinar Series
California FUTA Penalty Update
Similar to last year, California employers can expect to see a FUTA adjustment in 2026 due to the Department of Labor’s credit reduction process. Any required updates for Q2 2026 wages will be handled automatically through payroll in August, with no action needed on your part. Q1 2026 updates have already been completed. If FUTA charges are reduced or waived by the DOL in Q4, applicable credits will be automatically applied to your invoice before the end of 2026. You can read the full update HERE.
Federal Updates
IRS Increases Standard Mileage Rate for Second Half of 2026 to 76 Cents per Mile
The IRS amended Notice 2026-10, 2026-4 I.R.B. 378, which sets the standard mileage rates for 2026. The IRS made the change to reflect the rising cost of fuel in 2026. Read More
DOL Confirms Exempt Employees May be Paid for Performing Nonexempt Work
On May 28, 2026, the U.S. Department of Labor (DOL) issued Opinion Letter FLSA2026-5, confirming that an exempt employee paid on a salary basis may be paid on an hourly basis for performing work in a secondary, nonexempt role as long as their primary duty remains exempt and they continue to be paid on a salary basis. Read more
EEOC Releases New National Enforcement Plan
On June 4, 2026, the U.S. Equal Employment Opportunity Commission released its “National Enforcement Plan Fiscal Years 2025-2029” (“NEP”). The NEP rescinds the agency’s former “Strategic Enforcement Plan Fiscal Years 2024-2028” adopted in September 2023. Perhaps unsurprisingly, the NEP focuses on issues that EEOC Chair Andrea Lucas has identified as core priorities. The stated purpose of the NEP is to set forth “subject matter priorities to guide all aspects of the EEOC’s work to prevent and remedy unlawful employment discrimination.” Read more
How can employers prepare for a potential workplace visit by Immigration and Customs Enforcement?
Even without advance notice, employers can take meaningful steps now to be ready for a potential ICE workplace visit. The primary goals for employers are safety and consistency, not panic. While the circumstances may vary, thoughtful preparation can help employers respond calmly, consistently, and lawfully.
So, what can an employer do to prepare? There are a few key considerations. Read more
EEOC Sues Reynolds IGA Foodliner for Religious Discrimination
Reynolds IGA Foodliner, Inc., owner and operator of a chain of restaurants and grocery stores, violated federal law when it refused to reasonably accommodate a Piggly Wiggly employee’s request to refrain from working on Sundays, then fired her, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit announced June 30, 2026. Read more
State Updates
California
The California’s Civil Rights Department (CRD) released an informative “Disability Accommodations at Work” fact sheet, providing guidance on workplace protections for workers with disabilities, including an employee’s right to request an accommodation due to a disability and an employer’s duty to respond to and evaluate accommodation requests, including through the interactive process. This fact sheet also discusses the steps employers should take when requesting supporting medical documentation, including what types of medical information employers may and may not request.
July was the New January
Attached is a list of notable state labor and employment laws taking effect from July 1 through October 1, 2026, provided by Littler.
Note this is not an all-inclusive list and does not include minimum wage updates previously sent. Min Wage Chart
READ HERE
