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 Updates
Open Enrollment Reminder
The annual Benefits Open Enrollment period is coming up for all clients with Optimum benefits. Our Benefits team has provided clients with updated plan details, options and resources for a successful Open Enrollment for you and your employees. If you are unsure of the process or have additional questions, please reach out to your Benefits Professional or benefits@optimumhr.net.
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 Q3 2026 wages will be handled automatically through payroll in October and November, with no action needed on your part. Q1 and Q2 2026 updates have already been completed. If FUTA charges are reduced or waived by the DOL this quarter, applicable credits will be automatically applied to your invoice before the end of 2026. You can read the full update HERE.
Data Security Reminder
As open enrollment and W-2 season approach, we want to remind you to stay vigilant against phishing emails and other fraudulent communications designed to obtain sensitive personal information.
Please keep the following security reminders in mind:
- Verify the sender: Legitimate emails from Optimum HR will come from an @optimumhr.net email address, and emails from isolved will come from @myisolved.com.
- Watch for look-alike email addresses: We recently shared an alert regarding fraudulent emails impersonating isolved by using the letters “r” and “n” together to resemble the letter “m” in “myisolved.” These subtle differences can be easy to overlook. You can read the original alert HERE.
- Think before you click: Avoid clicking suspicious links or opening unexpected attachments, especially those requesting login credentials, personal information, or urgent action.
- Protect sensitive information: Never send Social Security numbers, banking information, passwords, or other personally identifiable information (PII) through unsecured email. Additional best practices are linked HERE.
When in doubt, verify! If you receive an email that appears suspicious or are unsure whether a communication is legitimate, please contact your Optimum HR service team directly before clicking any links or sharing information.
Your security is important to us, and we appreciate your continued vigilance in helping protect sensitive employee and company information.
Federal Updates
Employment AI Tools Raise New Bias, Privacy, and Compliance Challenges
As employers adopt artificial intelligence (AI) tools throughout the employee lifecycle, they must address evolving local, state, federal, and supranational requirements governing bias, privacy, transparency, and potential discrimination risks, while also providing meaningful human oversight. Read more
Federal Court Issues New Order Blocking Agency Implementation of $100,000 H-1B Fee
On September 30, 2026, a federal district court in California blocked federal agencies from enforcing or implementing policies tied to the $100,000 H-1B payment requirement established under Presidential Proclamation 10973 and extended by Presidential Proclamation 11069. The ruling applies to implementation by U.S. Citizenship and Immigration Services (USCIS), U.S. Customs and Border Protection (CBP), and the U.S. Department of State. Read more
IRS Guidance Answers Questions on Employer Tax Credit for Paid Leave
On August 5, 2026, the Internal Revenue Service (IRS) and the U.S. Department of the Treasury released guidance to clarify rules around employer tax credits for paid leave under the Working Families Tax Cuts Act (WFTC). Read more
When a Workplace Protest Isn’t “Protected”: NLRB Advice Memo Gives Guidance
A recent NLRB Division of Advice memorandum gives employers a useful roadmap for handling on-site demonstrations that are driven by political or social causes rather than workplace conditions. The takeaway: not every group employee action is “protected concerted activity,” and discipline for a genuine policy violation can be lawful, but the margin for error is narrow, especially in California. Read more
Why are deepfakes a workplace concern?
It could be because they’ve increased by over 900% annually. Or because the cost to create a convincing deepfake has dropped to a few dollars, with voice clones only requiring 3 seconds of audio. Or because the vast majority of online deepfakes are non-consensual, intimate images of women. Key liability issues are already taking shape. Read more
State Updates
California–An In-Depth Look at California’s Stay-or-Pay Rules After AB 1697
On September 30, 2026, Governor Gavin Newsom signed Assembly Bill (AB) 1697 into law, revising California’s restrictions on stay-or-pay provisions, including allowing employers to recoup advanced paid time off under certain conditions. Read more
California– California Governor Signs 3 Bills Targeting AI and Workplace Surveillance
On September 30, 2026, California Governor Gavin Newsom signed a package of artificial intelligence (AI) bills targeting the use of AI in the workplace. Read more
California– California Law Broadens Definition of Family Member For Bereavement Leave to Include A “Designated Person”
Effective January 1, 2027, Senate Bill (SB) 1149 expands the California Family Rights Act (CFRA) bereavement leave law to let covered employees take bereavement leave for the death of a “designated person” — broadening who counts as a “family member” beyond the categories currently listed in the statute. Read more
Connecticut– Get Ready Connecticut Employers: New Laws Take Effect
The Connecticut Legislature took an active look at its employment laws in 2026 and made changes to several. With the deadline looming, employers should ensure they are prepared. The following discussion highlights some of the most significant generally applicable changes to Connecticut’s employment laws. Read more
District of Columbia– Changes to D.C. Universal Paid Leave Act
The District of Columbia City Council has passed legislation, effective October 1, 2026, that reduces the number of weeks of paid leave available to workers in the District under the D.C. Universal Paid Leave Act (UPLA). Read more
Maryland– Facial Recognition and AI in Hiring: A Reminder for Maryland Employers
As AI-powered hiring tools become more widespread, it is important to remember that some states have acted early and their laws should be reflected in an organization’s governance, risk, and compliance program. Maryland’s Labor and Employment Code Section 3-717 which became effective October 1, 2020, is one example. Read more
New York– New York Expands Employee Access to Personnel Records: What Employers Need to Know Before November 8
Beginning November 8, 2026, all New York employers – public and private, regardless of size – must provide current and former employees with copies of their personnel records within five business days of a written request, at no cost to the employee. Read more
New York– NY Employers Must Stock Opioid Antagonists (Antidotes) in First Aid Kits by December Deadline
Beginning Dec. 13, 2026, covered employers in New York must stock opioid antagonists, such as naloxone (commonly known as Narcan), in their workplaces. Labor Law § 27-f applies broadly to private employers, including corporations, LLCs, and other business entities federally required to keep first aid supplies on hand. Labor Law § 27-f does not apply to government employers. Read more
