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
H-1B Visa Program Changes
On September 19, 2025, the President issued a Proclamation, Restriction on Entry of Certain Nonimmigrant Workers, an initial step to reform the H-1B nonimmigrant visa program. Under the Proclamation, new H-1B petitions filed at or after 12:01 a.m. EST on September 21, 2025 must be accompanied by an additional $100,000 payment as a condition of eligibility. The USCIS has issued a H-1B FAQ page. If you currently have any H-1B visa holders, please be aware of new requirements and keep an eye out for additional changes to come.
DACA Expected to Reopen: What Employers Need to Know About the Latest Legal Shift
In a major policy shift and subject to court approval, the federal government has indicated in a court filing that it plans to resume processing of initial applications under the Deferred Action for Childhood Arrivals (DACA) program for the first time since 2021. Read more (Ogletree.com)
EEOC Quorum Restored: Changes to the Pregnant Workers Fairness Act Regulations Coming Soon
On October 7, 2025, the Senate confirmed President Trump’s nomination of Brittany Panuccio as the third Equal Employment Opportunity Commission (EEOC) Commissioner giving the EEOC the quorum needed to make significant policy changes such as amending or adopting new regulations and guidance. Read more (JacksonLewis.com)
State Updates
California
Assembly Bill 858: COVID Right of Recall Continues in California
Governor Newsom has signed Assembly Bill (AB) 858, which extends the sunset date of the recall and reinstatement rights of employees laid off as a result of the COVID-19 pandemic until January 1, 2027. Read more (JacksonLewis.com)
California Again Expands Reasons Employees Can Use Paid Sick Leave and Unpaid Leave
On October 1, 2025, Governor Gavin Newsom signed AB 406 to expand the reasons employees can take leave under California’s Healthy Workplaces Healthy Families Act (HWHFA), the statewide paid sick and safe time law, and under California Government Code section 12945.8, which provides job-protected unpaid leave for various reasons. This year’s amendments come only one year and a day after these two laws were last amended. Read more (Littler.com)
California Court Clarifies Employer Liability for Off-Site Harassment
In Kruitbosch v. Bakersfield Recovery Services, Inc., the California Court of Appeal, Fifth Appellate District, held that an employee had stated a cognizable claim for sexual harassment hostile work environment based on the employer’s response to a nonsupervisory coworker’s offsite, nonwork-related sexual harassment. The court held that coworker offsite harassment is not, by itself, imputable to the employer under the California Fair Employment and Housing Act (FEHA). However, an employer’s response to an employee’s complaint about off-site harassment can independently create a hostile work environment if it objectively alters the complainant’s working conditions. Read more (Ogletree.com)
California Expands State WARN Act Obligations
California has enacted legislation that significantly expands the information that employers must include in their WARN notices and actions they must take under the California Worker Adjustment and Retraining Notification Act (“CalWARN”). Starting January 1, 2026, employers can no longer simply include the federal WARN Act notice content in their CalWARN notices. Read more (Littler.com)
Delaware
Delaware Joins Pay Transparency Wave: New Law Effective 2027
On September 26, 2025, Delaware Governor Matt Meyer signed House Substitute No. 2 to House Bill 105, adding Delaware to the growing list of states with pay transparency obligations for employers. Read more (JacksonLewis.com)
Florida
Florida’s New Open Carry Landscape: What Business Owners Need to Know About Customers, Employees, and Their Right to Set the Rules
The legality of firearms possession in Florida continues to evolve, with an important change as of September 25, 2025. After the First District Court of Appeal struck down the state’s decades-old Open Carry ban in McDaniels v. State on September 10, 2025, declaring § 790.053, Fla. Stat., unconstitutional, Florida’s attorney general instructed prosecutors and law enforcement not to enforce the ban, making Open Carry the new “law of the state.” In plain English: adults who can lawfully possess a firearm may now carry it openly in most public places, subject to important limits. Read more (Littler.com)
Illinois
Overview of Recent Amendments to the Illinois Workplace Transparency Act
On August 15, 2025, Illinois Governor JB Pritzker signed HB 3638 into law, amending the Illinois Workplace Transparency Act (IWTA) and imposing additional obligations on employers to ensure that their employment contracts – including settlement agreements, termination agreements, and arbitration agreements – omit language that may restrict employees from reporting or disclosing allegations of unlawful conduct in the workplace. Read more (Littler.com)
Minnesota
Minnesota Provides Guidance on 2026 Meal and Work Break Amendments
The January 1, 2026, changes to Minnesota’s meal and rest break laws require employers to provide fifteen-minute breaks and a thirty-minute meal break depending on hours worked. However, the vague amendments left more questions than answers. The Minnesota Department of Labor and Industry (MNDOLI) has now published guidance in the form of frequently asked questions (FAQs) providing some clarity. Read more (Ogletree.com)
Minnesota’s Paid Leave Law Takes Effect January 1, 2026: 5 Steps for Employers to Prepare
On January 1, 2026, Minnesota’s Paid Leave law will take effect, providing qualified employees with up to twelve weeks of paid medical leave, twelve weeks of paid family leave, and employees who need both family and medical leave in a single benefit year may qualify for up to twenty weeks. The law sets forth several actions for employers to take prior to the start of the new year, and employers may want to consider additional steps. Read more (Ogletree.com)
