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.
Myth or Fact
Myth: “Discrimination laws are for women and minorities.”
Fact: Every employee has a race, a gender, a national origin, a creed or religion (including atheism and agnosticism), fill in the blank with any protected class. In truth, there is no such thing as “reverse” discrimination under the law (reverse discrimination commonly refers to when a member of a majority or historically privileged class is discriminated against, e.g., when a white male is discriminated against because he is white). Anyone can be discriminated against, and everyone has a right to bring a complaint of workplace discrimination under federal or state anti-discrimination laws.
Federal Updates
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 will be handled automatically through payroll, with no action needed on your part. 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.
EEOC Consolidates Power, Signaling Aggressive, ‘America First’ Agenda Enforcement
In January 2026, through a series of party-line votes, the U.S. Equal Employment Opportunity Commission (EEOC) continued its agency overhaul—revising internal voting procedures, restricting the general counsel’s litigation authority, and rescinding Biden-era harassment guidance.
The moves signal that agency scrutiny of diversity, equity, and inclusion (DEI) initiatives, together with a shift in enforcement priorities to the discrimination claims of majority-group plaintiffs, will continue to be among the EEOC’s top enforcement priorities, along with protecting religious freedom and protecting American workers from national origin discrimination. Read more HERE.
Reasonable Accommodation Lessons From the EEOC’s New Telework Guidance
As return-to-office mandates rise, so, too, do employee requests for telework accommodations under the Americans with Disabilities Act (ADA). On February 11, 2026, the U.S. Equal Employment Opportunity Commission (EEOC) released guidance titled “Frequently Asked Questions from the Federal Sector about Telework Accommodations for Disabilities” (FAQs), which address federal government agencies’ rights and obligations regarding providing, modifying, and denying telework as a reasonable accommodation for federal employees with disabilities under the federal Rehabilitation Act of 1973. Although the EEOC issued the guidance in the federal-sector context in the wake of President Donald Trump’s directive that federal agencies return employees to full-time, in-person work, the FAQs reflect principles that apply equally to private employers under the ADA. Read more HERE.
Remote Control: When Employers Can Reject Work-From-Home Accommodation Requests
Requests for remote work accommodations are on the rise, and a recent decision from the U.S. Court of Appeals for the Fourth Circuit, Haggins v. Wilson Air Center, LLC, offers timely guidance to employers navigating such requests under the Americans with Disabilities Act (ADA). Read more HERE.
State Updates
Colorado
Colorado Implements Changes to Wage and Hour Rules for 2026
Several important changes will impact legal compliance for Colorado employers in 2026. This article HERE summarizes the most notable changes, particularly concerning wage and hour rules.
Maine
Maine Enacts Law Requiring Employers to Notify Employees About Surveillance Tools
On January 11, 2026, Maine enacted a law (House Paper (H.P.) 25 / Legislative Document (L.D.) 61) prohibiting employers from using surveillance tools without first informing job applicants and employees. The new law is part of a growing trend of states restricting employers’ ability to monitor and surveil employees.
In recent years, more employers have begun using technology to track employee movements and actions. This may include cameras in the workplace, GPS tracking on phones and wearable devices, keystroke monitoring, and biometric monitoring. Some employers use these tools to identify potential areas for cost savings and encourage productivity and efficiency. Others use them to effectively manage administrative tasks, including tracking mileage for employee reimbursement and monitoring sales activities. These tools tend to be more commonly used in industries such as trucking, delivery, construction, utilities, sales, and home healthcare.
Under the new Maine law, employers using surveillance must (1) inform job applicants about the surveillance during the interview process and (2) provide written notice at least once per year to all impacted employees. The law broadly defines surveillance to include all types of data collection. Read more HERE.
New Jersey
New Jersey Dramatically Expands Job-Protected Family Leave and Benefits
On July 17, 2026, amendments to the New Jersey Family Leave Act (NJFLA) and the laws administering New Jersey Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) benefits will take effect, expanding employer and employee coverage under the NJFLA and potentially increasing protections related to paid benefits from the state. On his way out of office, Governor Murphy executed numerous pieces of legislation, including A3451 (the “Act”), which increases the NJFLA’s reach to businesses with fewer employees and decreases the eligibility requirements for individual employees seeking FLI benefits. Read more HERE.
NJ’s New Disparate Impact Rules Reinforce Employers’ Need for Antidiscrimination Vigilance
The New Jersey Division on Civil Rights (DCR) adopted new regulations re-enforcing the New Jersey Law Against Discrimination’s (NJLAD) prohibition on employment practices or policies that disproportionately harm a protected group, even absent discriminatory intent.
The New Jersey rules come following President Donald Trump’s executive order calling for an end to theories of disparate impact and ordering federal agencies to stop enforcement of antidiscrimination laws based on such theories. In response to the executive order, the Department of Justice issued a final rule eliminating liability for disparate impact discrimination under Title VII of the Civil Rights Act of 1964. Read more HERE.
Pay Attention or Pay Up: A Costly Lesson in New Jersey Paid Sick Leave Noncompliance
On January 28, 2026, the New Jersey Superior Court, Appellate Division, issued a landmark decision in Cano and Bonelli v. County Concrete Corp.—a case that marks the first published appellate interpretation of New Jersey’s Earned Sick Leave Law (ESLL). Read more HERE.
New York
New York “Trapped at Work Act” Amended to Change Effective Date and Resolve Ambiguities
On February 13, 2026, New York Governor Hochul, signed amendments to New York’s Trapped at Work Act into law. The Trapped at Work Act prohibits certain “stay or pay” agreements that require employees to repay their employer for training costs if the employee resigns before a specified period. However, there were some ambiguities with the law, including, for example, where training costs might also be characterized as tuition assistance programs. This amendment clarifies those ambiguities and changes the effective date of the Act. Read more HERE.
