State Law Updates July 2025

Compliance Human Resources State Law Updates

Mark your calendars! Many new and amended state law updates are set to take effect around July 1, 2025. Our compliance experts have compiled a summary of the updates specific to your state that may impact your business.

Please keep in mind: if state law and federal laws ever differ, employers must always adhere to the law that offers the greatest benefit to their employees.

Want a handy, downloadable quick reference? Click below for a downloadable & printable guide to these updates.

DOWNLOAD: JULY 2025 STATE LAW UPDATES

Questions? Our compliance experts are here to help!

ALASKA

AK: State Enacts Paid Sick Leave Law

Effective 07/01/2025

The new law will require nearly all employers in Alaska to provide paid sick leave to their employees. This new mandate, the result of a voter-approved ballot measure, establishes minimum standards for leave accrual, usage, and employee protections. Here’s what employers need to know to ensure compliance.

Key Provisions of the Law:

Covered Employers and Employees: The law applies to almost all employers in Alaska, regardless of size. All employees, including full-time, part-time, and temporary workers, are generally eligible to accrue and use paid sick leave.

Accrual of Paid Sick Leave: Employees will accrue a minimum of one hour of paid sick leave for every 30 hours worked. This includes overtime hours. For salaried exempt employees, accrual is based on their regular workweek, presumed to be 40 hours if their normal schedule is not less.

Annual Leave Caps: The total amount of paid sick leave an employee can use per year is capped based on the employer’s size:

Employers with 15 or more employees: Employees can use up to 56 hours of paid sick leave per year.
Employers with fewer than 15 employees: Employees can use up to 40 hours of paid sick leave per year.

Employers are permitted to offer more generous leave policies.

Permissible Uses of Paid Sick Leave:

Employees can use their accrued paid sick leave for a variety of reasons, including:

An employee’s own mental or physical illness, injury, or to seek medical diagnosis, care, or treatment, including preventive care.
To care for a family member with a mental or physical illness, injury, or who needs medical diagnosis, care, or treatment.
For absences related to domestic violence, sexual assault, or stalking, for the employee or a family member to obtain medical attention, victim services, legal assistance, or relocate.

Using and Managing Paid Sick Leave:

No Waiting Period: Employees can begin using their paid sick leave as soon as it is accrued.
Carryover of Unused Leave: Any unused accrued sick leave must be carried over to the following year. However, the annual usage caps (56 or 40 hours) still apply.
No Payout at Termination: Employers are not required to pay out unused sick leave when an employee separates from the company. However, if an employee is rehired within six months of their separation, their previously accrued, unused sick leave balance must be reinstated.

Employer Responsibilities and Prohibitions:

Notice to Employees: Employers must provide written notice to all employees about their rights under the paid sick leave state law. This notice should be given to new hires upon commencement of employment and to existing employees by the effective date of the law. Nextep has assisted in creating a notice, but will continue to monitor the state website for a template provided by the state.
No Retaliation: Employers are prohibited from retaliating against an employee for using their paid sick leave. This includes termination, demotion, or any other adverse action.
Employee Replacement: Employers cannot require an employee to find a replacement worker to cover their absence as a condition of using paid sick leave.
Documentation: For absences of more than three consecutive workdays, an employer may require reasonable documentation to verify that the leave was for a permitted purpose. However, employers cannot require the employee to disclose the specific nature of their or their family member’s medical condition.

Employers with existing paid time off (PTO) policies should review them to ensure they meet the minimum requirements of this new law. If an existing policy is as generous or more generous than what the law mandates, a separate sick leave policy may not be necessary.

AK: State Increases Salary Threshold

Effective 07/01/2025

The minimum weekly salary for overtime-exempt executive, administrative, or professional employees in Alaska increases from $952.80 to $1,040.00. Along with the threshold, the minimum wage will increase to $13.00 per hour.

ARIZONA

AZ: State Increases Wage Claim Amount

Effective 07/22/2025

An employee may file a wage claim with the Arizona Labor Department if the unpaid wages do not exceed $12,000 (increased from $5,000) and the claim is filed within one year of the violation.

Increased Exposure to Administrative Wage Claims:

Higher Ceiling for Claims: The most significant change is that employees can now file a wage claim with the Arizona Labor Department (part of the Industrial Commission of Arizona, or ICA) for unpaid wages up to $12,000, a substantial increase from the previous limit of $5,000. This means more wage disputes, potentially larger ones, will be handled through the administrative process at the Labor Department rather than requiring a civil lawsuit.
Faster, Simpler Process: The Labor Department’s administrative process is generally less formal and less expensive than a civil lawsuit. This increased threshold makes it easier and more appealing for employees to pursue higher-value unpaid wage claims without the complexities and costs associated with going to court.

Employer Responsibilities and Risks:

Prompt Payment is Crucial: Employers must ensure they are paying all wages due to employees on time and accurately. This includes regular wages, bonuses, commissions, and accrued vacation pay. Arizona law already mandates the timely payment of wages, and this change amplifies the consequences of non-compliance.
Thorough Recordkeeping: Accurate and detailed records of hours worked, rates of pay, wages paid, and any deductions are more critical than ever. In the event of a wage claim, employers will need clear documentation to demonstrate compliance and defend against allegations of unpaid wages.
Understanding the Claim Process: Employers should familiarize themselves with the Arizona Labor Department’s wage claim process. When a claim is filed, the Labor Department will investigate to determine if a dispute exists and, if the claim is valid, direct the wages to be paid.
Potential for Treble Damages in Civil Actions: While the Labor Department handles claims up to $12,000, employees still have the option to pursue civil action in court. In a civil action, if an employer fails to pay wages due, the employee may be able to recover an amount that is treble (three times) the amount of the unpaid wages, in addition to attorney’s fees and legal costs, especially if bad faith is proven. This remains a significant risk for employers regardless of the administrative claim limit.
One-Year Statute of Limitations: The bill maintains the requirement that a wage claim be filed with the Labor Department within one year of the violation. Employers should be aware of this timeframe for potential claims.

CALIFORNIA

CA: State Amends Health Insurance Requirements Related to Reproductive Health

Effective 07/01/2025

Significant change is coming to employer-sponsored group health plans in the state. Any employers involved in the renewal or issuance of such plans will be required to incorporate coverage for a broader range of infertility diagnoses and treatment options. This mandate expands upon previous legislation by explicitly including in vitro fertilization (IVF) within the covered services.

Specifically, the revised law stipulates that plans must provide coverage for up to three oocyte retrievals. Additionally, there will be no limit imposed on the number of embryo transfers that are covered under these health plans.

It is important to note that while previous legislation did address infertility treatments, it contained a significant exclusion: in vitro fertilization was not included in the list of mandated coverages. This new update removes that exclusion, ensuring that those seeking fertility assistance have greater access to necessary medical procedures.

COLORADO

CO: State Amends Changes to Privacy Act

Effective 07/01/2025

Effective July 1, 2025, entities collecting biometric data (fingerprints, voiceprints, retina or iris scans, facial mapping, facial geometry, facial templates, etc.) must meet stringent notice and consent requirements if they use or intend to use it for unique identification.

Stringent Notice and Consent: Businesses must provide clear, accessible notice to individuals before collecting biometric identifiers, detailing data usage, retention, and sharing practices. This requires “affirmative, informed acceptance.”
Employee Biometric Data Covered: Employers now need explicit written or electronic consent from employees before collecting biometric data, with fresh consent required for new purposes or data types.
Definition of Biometric Data: Includes fingerprints, voiceprints, iris scans, facial mapping, etc., used for unique identification. Digital/physical photographs and audio/voice recordings are excluded unless used for identification.

Resources:

Fisher Phillips Article

CO: State Strengthens Final Pay Penalty and Wage Theft Laws

Effective 08/06/2025

House Bill 24-1003 will significantly increase penalties for wage and hour violations, expand who can be held liable for these violations, and grant local governments the authority to enforce state wage laws. These changes create a more stringent compliance environment for all Colorado employers.

What Employers Need to Know

The new law introduces several critical changes that increase the risks associated with non-compliance with wage and hour regulations.

Steeper Penalties for Misclassification: Misclassifying an employee as an independent contractor will now result in significant fines, even if unintentional. Penalties for violations that are not corrected within 60 days of a finding by the Colorado Department of Labor and Employment (CDLE) will be even higher. Repeat willful violations within a five-year period can lead to penalties of up to $25,000 per misclassified employee, and up to $50,000 if the violation remains uncorrected.
Expanded Definition of “Employer”: The definition of an “employer” has been broadened to include individuals who own or control at least 25% of a business. This means that business owners and high-level executives could be held personally liable for wage violations, unless they can prove they have fully delegated control of day-to-day operations.
Local Enforcement is Now a Reality: Cities and counties are now empowered to enforce the Colorado Wage Act. This decentralizes enforcement and means employers could face audits and investigations from local authorities in addition to the state’s CDLE. Businesses operating in multiple jurisdictions within Colorado will need to be particularly vigilant about compliance with both state law and any local interpretations of the law.
Increased Jurisdiction for State Agency Claims: The CDLE can now investigate and resolve wage claims of up to $13,000 per employee, a significant increase from the previous cap. This amount will also be adjusted for inflation every two years, making the administrative complaint process a more viable option for a larger number of employees.
Public Shaming for Violators: The CDLE will now be required to publicly post the names of employers who have been found to have violated wage laws, indicating whether the violation was willful. This can lead to significant reputational damage for non-compliant businesses. Furthermore, the CDLE can report willful or uncorrected violations to licensing boards, which could impact an employer’s ability to operate.
Strengthened Anti-Retaliation Protections: The law enhances protections for employees who file wage complaints or cooperate in investigations. If an adverse action is taken against an employee within 90 days of them engaging in protected activity, retaliation will be presumed.
Restrictions on Payroll Deductions: Employers are now prohibited from making any payroll deduction that would result in an employee’s wages falling below the applicable minimum wage for the hours worked in that pay period.

What Employers Need to Do

In light of these significant changes, it is crucial for Colorado employers to take proactive steps to ensure compliance.

Conduct a Thorough Wage and Hour Audit: Review all pay practices to ensure they comply with federal, state law, and local laws. This includes verifying that you are correctly calculating overtime, paying at least the minimum wage (including any local minimum wages), and properly handling all deductions.
Review Worker Classifications: Carefully examine the status of all independent contractors to ensure they are correctly classified. The cost of misclassification is now substantially higher. Consult with legal counsel to assess your classifications under the new, stricter standards.
Update Employee Handbooks and Policies: Ensure your employee handbooks and any other policy documents accurately reflect the new law, particularly regarding pay practices and anti-retaliation provisions.
Train Managers and HR Personnel: All individuals involved in hiring, managing, and paying employees must be trained on the new requirements of the Colorado Wage Act. This training should emphasize the increased risks and personal liability provisions.
Maintain Meticulous Records: Colorado law requires employers to keep accurate payroll records for at least three years. In light of the increased enforcement, maintaining detailed and accurate records is more critical than ever.
Consult with Legal Counsel: Given the complexity and increased risk associated with these changes, it is highly recommended that all Colorado employers consult with experienced employment law counsel to ensure their practices are fully compliant.

Resources:

ILLINOIS – CHICAGO

IL: Chicago Paid Leave and Paid Sick and Safe Leave Ordinance Update

Effective 07/01/2025

Mandatory Changes to Chicago Paid Leave Ordinance for Medium-Sized Employers

Effective July 1, 2025, significant amendments to the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance will come into effect, specifically impacting medium-sized employers. These are defined as entities with 51 to 100 covered employees. Under these new regulations, such employers are mandated to compensate departing or transferred employees for all their unused, accrued paid leave.

Full Payout of Accrued Leave Upon Separation or Transfer:

Unlike the current provisions, the updated ordinance requires medium-sized employers to pay out the full balance of unused, accrued paid leave to employees at their final pay rate. This obligation arises when an employee separates from employment or is transferred to a location outside the geographical boundaries of the City of Chicago, thereby relinquishing coverage under the Ordinance. This stipulation aims to ensure employees receive the full value of their earned leave, reflecting the evolving standards and increased emphasis on employee benefits within the city.

Current Ordinance Provisions (Until July 1, 2025):

Prior to July 1, 2025, the current Ordinance dictates different procedures for medium-sized employers regarding the payout of accrued paid leave. Under the existing rules, these employers are required to pay a maximum of 16 hours of unused, accrued paid leave to separating or transferring employees, calculated at their final pay rate. This 16-hour cap is the minimum requirement; employers retain the discretion to set a higher limit for such payouts if they choose to.

Transition and Planning:

Employers falling within the medium-sized category should carefully review the new regulations and prepare to implement the necessary changes to their payroll and leave tracking systems by July 1, 2025. This includes updating policies, informing employees of the changes, and ensuring compliance to avoid any potential legal issues.

INDIANA

IN: Prohibits Retaliation for School Conference Attendance

Effective 07/01/2025

Indiana law will safeguard employees from negative actions by their employers when they need to be absent from work to participate in essential educational meetings. Specifically, employers are prohibited from taking any adverse employment action against an employee who is absent to attend a school attendance conference or an Individualized Education Program (IEP) meeting.

This means that employees cannot be penalized, such as through termination, demotion, disciplinary measures, or any other form of retaliation, for prioritizing their child’s educational needs by attending these meetings. The purpose of this legislative update is to support families and ensure that parents and guardians are able to actively engage in their children’s education without fear of jeopardizing their employment status.

Employers must be aware of and comply with this new regulation to avoid legal repercussions and to foster a supportive work environment that respects employees’ family responsibilities. This law aims to promote greater involvement of parents in their children’s schooling by removing potential employment-related barriers.

IOWA

IA: State Law Erases ‘Gender Identity’ from Its Civil Rights Law

Effective 07/01/2025

Iowa’s recent legislative change removes “gender identity” from the list of protected characteristics under the Iowa Civil Rights Act, effective July 1, 2025. This means that, at the state level, discrimination based on gender identity will no longer be explicitly prohibited in areas such as employment, education, housing, credit, and public accommodations.

However, it’s crucial for employers to recognize that gender identity remains a protected characteristic under federal law, specifically Title VII of the Civil Rights Act of 1964. The U.S. Supreme Court, in Bostock v. Clayton County, affirmed that discrimination based on gender identity constitutes sex discrimination under Title VII. Therefore, employers with 15 or more employees are still legally required to prohibit discrimination based on gender identity under federal law.

Additionally, some Iowa municipalities have local ordinances that continue to protect gender identity. For example, cities like Ames, Cedar Rapids, Davenport, Des Moines, and Iowa City have civil rights or human rights laws that include gender identity as a protected class. Employers operating in these jurisdictions must comply with these local regulations.

In light of these overlapping legal frameworks, employers in Iowa should:

Review and Update Policies: Ensure that company policies explicitly prohibit discrimination based on gender identity, aligning with federal and applicable local laws.
Training and Education: Provide training to management and staff on diversity, equity, and inclusion, emphasizing the importance of respecting and protecting gender identity in the workplace.
Consult Legal Counsel: We advise clients to seek guidance to navigate the complexities of state law, federal law, and local laws, ensuring compliance and fostering an inclusive work environment.

Resources:

Jackson Lewis Law Firm

Senate File 418

IA: State Amends Distracted Driver Law

Effective 07/01/2025

A new, stricter distracted driving law in Iowa will significantly impact any business with employees who drive for work-related purposes. The amendment to Iowa’s law, known as Senate File 22, transitions the state to a hands-free requirement, prohibiting the use of a handheld electronic device for any reason while driving.

Previously, Iowa’s law only specifically outlawed texting while driving. The new legislation broadens this ban to include nearly all physical interaction with a mobile phone or other electronic device while a vehicle is in motion. For employers, this necessitates immediate review and updates to company vehicle and cell phone usage policies, as well as comprehensive employee training to ensure compliance and mitigate liability risks.

Key Changes to the Law

The most significant change for drivers is the move to a “hands-free” standard. Here’s a breakdown of what the amended law entails:

Broad Prohibition on Use: Drivers are now prohibited from holding, viewing, or manipulating a handheld electronic communication device while driving. This includes activities such as making or receiving calls, sending or reading texts and emails, and using social media.
“Use” is Broadly Defined: The law defines “use” as including, but not limited to, holding, viewing, or manipulating an electronic device.
Voice-Activated and Hands-Free Mode Permitted: The use of an electronic device in a “voice-activated or hands-free mode” is still allowed. This means drivers can utilize features like Bluetooth headsets, integrated vehicle systems, or a single touch to activate or deactivate a function, such as answering a call.
Penalties for Violations: A violation of the new law will be a moving violation. The law establishes a warning period from July 1, 2025, through December 31, 2025, during which officers will issue warnings. Beginning January 1, 2026, drivers will face a scheduled fine of $100.

Expanded Exemptions

The amended law also clarifies and expands the exemptions for certain individuals and situations:

Reporting an Emergency: The law explicitly exempts individuals who are using an electronic device to report an emergency to law enforcement, a fire department, or an ambulance service.
Certain Commercial Drivers: Specific exemptions are included for certain commercial vehicle operators:
- Utility Workers: An employee or contractor of a utility in a utility maintenance vehicle is exempt while using an electronic device for the purpose of providing utility services.
- Two-Way Radios: A person using a two-way radio licensed by the Federal Communications Commission is exempt.
- Transportation Network Company (TNC) Drivers: A driver for a service like Uber or Lyft is exempt while their vehicle is not in motion.
Stopped Vehicles: Drivers are permitted to use a handheld electronic device if their vehicle is at a complete stop and removed from the traveled portion of the roadway. The law clarifies that this also applies if the vehicle cannot be entirely removed from the roadway but is stopped as far to the right as practicable.

What This Means for Employers

The new law has several critical implications for employers in Iowa:

Policy Updates are Essential: Employers must update their vehicle and cell phone policies to reflect the new hands-free requirement. Policies should clearly state that handheld use of electronic devices while driving on company business is prohibited, except under the specific exemptions outlined in the law.
Employee Training is Crucial: All employees who drive for work, whether in a company-provided or personal vehicle, must be trained on the specifics of the new law. This training should cover what constitutes “use,” the permissible hands-free options, and the details of any applicable exemptions.
Reduced Liability Risk: By proactively updating policies and training employees, employers can significantly reduce their risk of liability in the event of an accident involving a distracted employee. A clear and enforced policy demonstrates that the employer has taken reasonable steps to ensure driver safety.
Promoting a Culture of Safety: This legal change provides an opportunity for employers to reinforce a strong safety culture within their organization. Emphasizing the dangers of distracted driving and the importance of compliance can help prevent accidents, protect employees, and safeguard the company’s reputation.

IA: State Law Requires Equal Treatment of Adoptive Parents

Effective 07/01/2025

Significant update to state law mandates equal treatment of adoptive parents and biological parents in all aspects of employment. This legal requirement extends to employment policies, employee benefits, and workplace protections. Employers operating in Iowa must ensure that their practices and policies do not differentiate between employees based on whether they are biological or adoptive parents.

Specifically, the change may have notable implications for employer-provided leave policies. Any policies related to parental leave, family leave, or similar leave provisions must be revised to ensure they apply equally to both biological and adoptive parents. This adjustment to Iowa law requires a comprehensive review and update of existing company handbooks, employee guidelines, and benefit plans to maintain legal compliance and promote a fair workplace environment.

KANSAS

KS: State Law Will Presume Nonsolicitation Agreements Enforceable

Effective 07/01/2025

A new Kansas law will provide employers with greater certainty regarding the enforceability of nonsolicitation agreements in their employment contracts. The legislation, Senate Bill 241, amends the Kansas Restraint of Trade Act to explicitly state that certain nonsolicitation provisions are “conclusively presumed to be enforceable” and not in violation of the state’s antitrust laws, provided they meet specific requirements, most notably a two-year time limit for agreements with employees.

Key Provisions and What Employers Need to Do

The new law distinguishes between two primary types of nonsolicitation agreements: those preventing the poaching of employees and those restricting the solicitation of customers. To be “conclusively presumed” enforceable, each must adhere to the following:

Nonsolicitation of Employees:

An agreement that prohibits a former employee from soliciting current employees to leave the company is considered enforceable if it meets at least one of the following conditions:

Protection of Legitimate Business Interests: The agreement is designed to protect the employer’s confidential or trade secret business information, or its customer or supplier relationships, goodwill, or loyalty.
Two-Year Limitation: The restriction on soliciting employees does not extend for more than two years after the end of employment.

What Employers Should Do:

Review and Update Employee Nonsolicitation Clauses: Examine existing employment agreements to ensure that nonsolicitation-of-employees clauses either explicitly state the legitimate business interests they are protecting or are limited to a two-year duration.
For New Agreements: Draft new agreements to clearly align with one or both of these provisions to take advantage of the presumption of enforceability.

Nonsolicitation of Customers:

An agreement that prevents a former employee from soliciting the company’s customers will be presumed enforceable if it meets both of the following requirements:

Two-Year Limitation: The restriction cannot last for more than two years following the termination of employment.
“Material Contact Customers” Only: The restriction must be limited to “material contact customers.” The law defines this as any customer or prospective customer that the employee directly solicited, serviced, or produced, or about whom the employee gained confidential business information or trade secrets during their employment.

What Employers Should Do:

Define “Material Contact Customers” in Agreements: To avoid ambiguity, employers should consider defining the scope of restricted customers in their agreements in a way that aligns with the statutory definition of “material contact customers.”
Ensure Two-Year Limit: Verify that all customer nonsolicitation provisions in employment agreements are explicitly limited to a two-year post-employment period.

Understanding the Impact of the Kansas Restraint of Trade Act

The Kansas Restraint of Trade Act generally prohibits agreements that limit competition. This has historically created a degree of uncertainty for employers regarding the enforceability of restrictive covenants like nonsolicitation agreements. This new law carves out a safe harbor, clarifying that nonsolicitation agreements meeting the specified criteria are not considered an unlawful restraint of trade.

A Significant Change: Mandatory Court Modification

A crucial aspect of the new law is the requirement for courts to modify, rather than invalidate, overbroad nonsolicitation agreements. Previously, if a court found a nonsolicitation clause to be unreasonable, it could choose to strike down the entire provision. Under the new law, if a nonsolicitation agreement is found to be too broad, the court must revise it to make it compliant and then enforce the modified version. This is a significant advantage for employers, as it salvages the core protections of the agreement even if a particular aspect is deemed unreasonable.

Recommendations for Kansas Employers

In light of this new legislation, it is highly recommended that all Kansas employers:

Conduct a comprehensive review of their current employment agreements, with a specific focus on nonsolicitation clauses.
Update existing agreements to align with the new statutory requirements to benefit from the presumption of enforceability.
Consult with legal counsel to ensure that their employment contracts are fully compliant with the new law and to understand how it impacts their specific business and industry.

By taking these proactive steps, Kansas employers can confidently utilize non-solicitation agreements as a valuable tool to protect their business interests while remaining in full compliance with state law.

Resources:

Ogletree Deakins

MONTANA

MT: State Law Requires Employment Eligibility Verification

Effective 07/01/2025

All Montana employers will be required to comply with the new Legal Employment and Government Accountability Law. This law mandates a stricter verification process for all new hires to ensure they are legally authorized to work in the United States.

Here’s what Montana employers need to know to prepare for this change. Employers who use Nextep’s services will be compliant with the state law updates effective July 1, 2025. To confirm your policies are current and up-to-date, contact your HR Business Partner.

New Obligations

Under the new law, upon hiring a new employee, employers must complete and retain copies of one of the following two options for verification:

E-Verify Confirmation: Utilize the federal E-Verify program to confirm the employee’s citizenship or work authorization status. Employers must retain a copy of the verification confirmation provided by the E-Verify system.
Form I-9 and Supporting Documents: Complete the federal Form I-9, Employment Eligibility Verification, and retain copies of the corresponding documents presented by the employee. These documents must establish both the employee’s identity and their authorization to work in the United States. A list of acceptable documents is provided on the Form I-9.

Employers must ensure that these verification processes are completed for every new employee hired on or after the law’s effective date.

Penalties for Non-Compliance

The Legal Employment and Government Accountability Law establishes a clear set of civil penalties for employers who fail to adhere to these new requirements. While the specific penalty amounts may be subject to final rulemaking by the Montana Department of Labor & Industry, the framework allows for fines to be levied for each instance of non-compliance. Repeat offenses may lead to increased penalties, including potential suspension of business licenses.

What Employers Should Do Now

To ensure a smooth transition and avoid potential penalties, Montana employers are encouraged to take the following steps well in advance of the July 1, 2025, deadline:

Familiarize Yourself with the Law: Review the full text of the Legal Employment and Government Accountability Law to understand its specific provisions.
Choose Your Verification Method: Decide whether your business will use the E-Verify system or rely on the traditional Form I-9 with document retention.
Train Your Hiring Staff: Ensure that all personnel involved in the hiring and onboarding process are thoroughly trained on the new requirements and the chosen verification method.
Update Onboarding Procedures: Integrate the new verification steps into your company’s official hiring and onboarding protocols.
Review Record-Keeping Policies: Establish a secure and organized system for retaining the required verification documents, whether digital or physical, in accordance with legal retention requirements.

For more information on the E-Verify system, employers can visit the official U.S. Citizenship and Immigration Services website. For details on the Form I-9, including the latest version and instructions, employers should also consult the USCIS website.

NEVADA

NV: State Launches Retirement Savings Program

Effective 07/01/2025

New Nevada law requires most employers in the state to participate in the Nevada Employee Savings Trust (NEST) Program, a state-administered retirement savings plan. This new mandate is designed to provide a retirement savings option to private-sector employees who currently lack access to an employer-sponsored plan.

This guide breaks down what employers need to know about the NEST Program and the steps they must take to comply.

Who is a “Covered Employer”?

Your business is considered a “covered employer” and must participate in the NEST Program if you:

Employ six or more individuals in Nevada.
Have been in business for at least 36 months.
Do not currently offer a qualified, employer-sponsored retirement plan (e.g., a 401(k) or pension plan).

Employers who already provide a qualified retirement plan are exempt but will need to certify their exemption with the state.

Key Deadlines and What to Do

Registration for all covered employers is set to open on July 1, 2025, and must be completed by September 1, 2025. While initial discussions mentioned a phased rollout based on employer size, the most recent information indicates a single registration window for all affected businesses.

Here’s what covered employers need to do:

Register for the NEST Program: The state of Nevada will launch a website for the NEST Program. Employers should expect to receive a notification with an access code in June 2025 to complete the online registration. The process is expected to be brief, taking less than 10 minutes.
Facilitate Employee Enrollment: Once registered, you must automatically enroll all “covered employees” into the program. A covered employee is an individual who is at least 18 years old and has been employed for a minimum of 120 days.
Administer Payroll Deductions: You will be required to withhold a default contribution of 5% from each enrolled employee’s paycheck and remit it to the NEST Program. This contribution rate will automatically increase by 1% annually, up to a maximum of 10%. Employees can choose to opt-out, or elect a different contribution rate at any time.
Provide Information to Employees: The Board of Trustees of the Nevada Employee Savings Trust will provide informational materials for you to distribute to your employees. These materials will explain the program’s benefits, risks, and how employees can manage their accounts.

Understanding the NEST Program

The NEST Program is a state-facilitated Roth Individual Retirement Account (IRA) program. This means:

No Cost to Employers: There are no employer fees for participating in the program.
Employee-Owned Accounts: The retirement accounts are owned by the employees and are portable, meaning they can take them to a new job.
Automatic Enrollment with Opt-Out: Employees are automatically enrolled but have the option to opt-out of the program at any time.
No Employer Contributions: Employers are not required or permitted to contribute to their employees’ NEST accounts.
Limited Fiduciary Responsibility: As the program is state-run, employer fiduciary responsibility is minimal. Your primary roles are to register, facilitate enrollment, and process payroll deductions.

What If You Already Offer a Retirement Plan?

If your company already offers a qualified retirement plan, such as a 401(k), 403(b), or SIMPLE IRA, you are exempt from participating in the NEST Program. However, you will still need to go to the NEST program website to certify your exemption.

The state will mail employers guidance on seeking an exemption from the new retirement program. For assistance, please contact the Retirement Team at 401k@nextep.com.

Employers are encouraged to stay informed by visiting the official Nevada Treasurer’s website for the most up-to-date information and resources regarding the NEST Program.

Resources:

NEW HAMPSHIRE

NH: State Law Requires Lactation Accommodations

Effective 07/01/2025

A new law in New Hampshire will mandate that employers with six or more employees provide specific accommodations for nursing employees. This new legislation builds upon the federal PUMP Act, requiring compliance with both state law and federal regulations.

What this means for employers:

The law requires employers to provide a 30-minute unpaid lactation break for every three hours of work. This time is specifically for expressing milk, not breastfeeding. Additionally, employers must provide a suitable space for this purpose.

What employers need to do:

To comply with the new law, employers must take the following steps:

Update Employee Handbooks: Employers need to adopt and include a policy that outlines the provision of a sufficient space and reasonable break periods for nursing employees. This policy must be provided to all employees at the time of hire.
Provide Adequate Space: The designated lactation space must be a clean, private area that is not a bathroom. It should be shielded from view and free from intrusion. If feasible, it should also include an electrical outlet and a chair. This space must be within a reasonable walking distance of the employee’s worksite.
Establish a Notification Process: Employees are required to give their employer at least two weeks’ notice if they anticipate needing lactation breaks. Employers should incorporate this notification requirement into their policy and designate a specific person to receive these requests.
Train Supervisors: It is crucial to train supervisors on the new requirements to ensure proper communication and implementation of the law.

Exceptions and Considerations:

The law includes a limited exception for employers who can demonstrate that providing these accommodations would create an “undue hardship” on their operations. This is defined as an action requiring significant difficulty or expense in relation to the employer’s size, financial resources, and operational structure. Employers considering this exemption are encouraged to seek legal counsel.

Employers should also be aware of their obligations under the federal PUMP Act and the Pregnant Workers Fairness Act, as these laws, in conjunction with the new state law, enhance protections for pregnant and nursing employees.

Resources:

NEW YORK CITY

NYC: City Expands Earned Sick and Safe Time

Effective 07/02/2025

Employers operating within New York City must adhere to significant changes in the Earned Sick and Safe Time Act regulations. These amendments specifically mandate the provision of paid leave for employees needing healthcare services related to their pregnancy.

This new category of leave, designated as “paid prenatal personal leave,” aims to ensure that employees have access to essential medical care during pregnancy without the fear of financial repercussions from lost wages. This update recognizes the importance of comprehensive healthcare for expectant individuals and underscores the city’s commitment to supporting both employee health and work-life balance.

Employer Obligations

Update and Distribute Written Policies

1. 1. Employers must revise their existing safe and sick leave policies to include provisions for paid prenatal leave.
  2. These updated policies must be distributed to all employees:
    1. Upon hire
    2. Within 14 days of any policy change
    3. Upon employee request
  3. Distribution can be via hard copy or electronic means, such as email

Provide Updated Notice of Employee Rights

1. 1. Employers are required to provide the updated Notice of Employee Rights, which now includes information about paid prenatal leave.
  2. This notice must be provided to:
    1. All new hires
    2. Current employees when rights change (i.e., upon implementation of the new law)
    3. Employees upon request
  3. Employers must maintain a record of receipt by the employee and ensure the notice is posted in a conspicuous location in the workplace

Comply with Paystb Documentation Requirements

1. 1. For each pay period in which an employee uses prenatal leave, employers must document the following on pay stubs or other written documentation:
    1. The amount of paid prenatal leave used during the pay period
    2. The total balance of remaining paid prenatal leave
  2. This information must be clearly presented to employees

Maintain Accurate Records

1. Employers should keep detailed records of all leave balances and usage, including prenatal leave, to ensure compliance and facilitate any necessary reporting or audits.

Additional Considerations

No Retaliation: Employers are prohibited from retaliating against employees for requesting or using paid prenatal leave.
Separate Leave Entitlement: Paid prenatal leave is a standalone benefit and is in addition to other leave entitlements, such as paid sick leave.
No Payout Upon Separation: Employers are not required to pay out unused paid prenatal leave upon an employee’s separation from employment

Employers in New York City should promptly update their policies, notices, and recordkeeping practices to ensure compliance with these enhanced ESSTA requirements.

Resources:

OHIO

OH: State Law Allows Certain Online Employment Posters

Effective 07/21/2025

Ohio employers have the option of posting the following notices online rather than physically posting them at their place(s) of business:

Ohio Minor Labor Laws Poster;
Ohio Minimum Wage Poster;
Ohio Fair Employment Practices Poster;
Ohio Public Contractor Prevailing Wage Notice Poster; and
Ohio Rebuttable Presumption Notice.

The workers’ compensation fund poster obtained once an employer is covered by workers’ compensation insurance, may be posted online as well.

OREGON

OR: State Increases Garnishment Limit

Effective 07/01/2025

Effective July 1, 2025, the maximum amount that can be garnished from an employee for a creditor garnishment is the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed:

$338 for any period of one week (up from $305);
$675 for pay periods longer than one week (up from $611);
$737 for semimonthly pay periods (up from $655); or
$1,458 for monthly pay periods (up from $1,309).

The limits increase again on July 1, 2026. Starting July 1, 2027, increases will be calculated based on the state minimum wage rate in effect.

VERMONT

VT: State Law Requires Pay Information in Job Postings

Effective 07/01/2025

A new requirement will take effect for businesses operating in Vermont. Specifically, employers in Vermont that have a workforce consisting of five or more individuals will be mandated to incorporate salary or wage ranges within any publicly distributed written job advertisements.

This regulation applies to advertisements for positions that are based within the geographical boundaries of Vermont, and also extends to remote work positions where the primary responsibilities will be carried out for an office or work site located within the state of Vermont.

VT: State Law Expands the Parental and Family Leave Act

Effective 07/01/2025

Employers in Vermont must prepare for significant changes to the state’s Parental and Family Leave Act (VPFLA). The amendments, signed into law, considerably broaden the scope of the act, impacting both parental and family leave as well as short-term family leave. Key changes include expanded reasons for taking leave, a more inclusive definition of family members, modified employee notice requirements, and new confidentiality mandates.

Broader Reasons for Leave Entitlement

The amendments introduce new qualifying reasons for employees to take leave, extending beyond the traditional birth or adoption of a child or a serious health condition of a family member. Beginning July 1, 2025, employees will also be entitled to:

Bereavement Leave: To grieve the death of a family member.
Safe Leave: For reasons related to being a victim of domestic violence, sexual assault, or stalking. This can include seeking medical attention, counseling, legal assistance, or relocating.
Leave for a Qualifying Military Exigency: To address various needs arising from a family member’s active military duty.

These additions provide employees with greater flexibility to manage personal and family crises without the risk of losing their jobs.

“Family Member” Definition Significantly Expanded

A cornerstone of the amendments is the broadened definition of a “family member.” This change extends leave rights to a more inclusive range of relationships beyond the traditional nuclear family. The new definition now includes:

Domestic partners
Grandparents
Grandchildren
Siblings
Individuals in an “in loco parentis” relationship (those who stand in the place of a parent)

This expanded definition applies to both the general parental and family leave provisions and the regulations for short-term family leave. This means employees can now take leave to care for a wider circle of loved ones.

Modified Notice and Confidentiality Requirements

While the amendments maintain the principle of providing reasonable notice for foreseeable leave, they also acknowledge that some situations, such as those covered by “safe leave,” may not allow for advance planning. In such cases, employees are expected to provide notice as soon as is practicable.

Furthermore, the updated act introduces specific confidentiality requirements, particularly concerning “safe leave.” Employers will be obligated to maintain the confidentiality of any private medical information or details related to an employee’s reason for taking this type of leave, with disclosures permitted only under limited, legally specified circumstances.

Implications for Short-Term Family Leave

The expanded definition of a qualifying family member also extends to the provisions for short-term family leave. This allows employees to use their allotted short-term leave to attend to the needs of a broader range of family members, as now defined under the amended act.

Unpaid Leave and Voluntary Paid Leave (VT-FMLI)

It is crucial for employers to understand that the leave provided under the amended VPFLA remains unpaid.

However, these changes to the VPFLA coincide with the full implementation of Vermont’s voluntary Paid Family and Medical Leave Insurance (VT-FMLI) program. As of July 1, 2025, individual employees will be able to purchase this insurance, which provides partial wage replacement during qualifying leave periods. While employer participation in VT-FMLI is optional, the expansion of unpaid leave protections under the VPFLA may increase employee interest in the paid leave program.

What Employers Should Do

In light of these significant changes, Vermont employers are advised to:

Review and update their leave policies to ensure they are in full compliance with the amended VPFLA by the July 1, 2025, deadline.
Train HR personnel and managers on the new provisions, particularly the expanded definitions and the new categories of leave.
Communicate the updated policies to all employees to ensure they are aware of their rights and responsibilities.
Familiarize themselves with the VT-FMLI program to understand how it may interact with their existing leave policies and to be prepared for employee inquiries.

Resources:

HB461

VT: Workers’ Compensation Act Requires Translation Services

Effective 07/01/2025

The Vermont Workers’ Compensation Act requires an employer to pay for translation services when an injured employee does not speak English fluently, to ensure the employee fully understands their rights and can effectively participate in their medical recovery and the workers’ compensation claims process.

VIRGINIA

VA: State Law Expands Definition of ‘Low-Wage’ Employee for Non-Competes

Effective 07/01/2025

A new amendment to Virginia’s non-compete law expands the definition of “low-wage” employees to include employees classified as non-exempt under the FLSA.

Key Changes:

Expanded Definition of “Low-Wage Employee”: Effective July 1, 2025, Virginia law prohibits non-compete agreements for a broader group of employees. Previously, this applied to those earning less than the state’s average weekly wage (approximately $76,081 annually in 2025). Now, it includes any employee entitled to overtime pay under the Fair Labor Standards Act (FLSA), regardless of their salary. This means non-exempt employees are now protected.
Not Retroactive: This change does not affect non-compete agreements entered into or renewed before July 1, 2025.
Penalties for Non-Compliance: Employers who violate this law may face penalties, including civil penalties of up to $10,000 per violation and potential civil actions from employees.

What Virginia Employers Need to Do:

Review Employee Classifications: Audit your workforce to ensure all employees are correctly classified as exempt or non-exempt under the FLSA. Misclassifying employees could lead to legal issues.
Update Non-Compete Agreements: Review and revise existing non-compete agreements to ensure compliance with the new law. Any agreements with non-exempt employees that are entered into or renewed after July 1, 2025, will be unenforceable. Consider entering into new agreements with non-exempt workers before July 1, 2025, provided they earn more than the average weekly wage in Virginia.
Update Workplace Notices: Display a general notice in the workplace that includes a copy of the amended Virginia Code § 40.1-28.7:8 or an approved summary of the law.
Consider Alternatives: Explore alternative ways to protect your business interests, such as non-disclosure agreements (NDAs) or confidentiality agreements.
Consult with Legal Counsel: Given the intricate nature of state law, it is strongly recommended that you consult with legal counsel for any inquiries or guidance regarding this new amendment. They can provide assistance tailored to your organization’s specific requirements.

Resources:

Jackson Lewis

SB1218

WASHINGTON

WA: State Amends Equal Pay Law to Cover Additional Protected Characteristics

Effective 07/01/2025

Washington state employers will face expanded obligations under the Equal Pay and Opportunities Act (EPOA), which will prohibit pay and opportunity discrimination based on any protected class covered by the Washington Law Against Discrimination (WLAD). This significant amendment moves beyond the EPOA’s original focus on gender-based disparities, requiring employers to ensure equity in compensation and career advancement for all employees, regardless of their background or identity.

This change applies to all employers in Washington and necessitates a proactive review of current pay practices and opportunity pipelines to mitigate legal risks and foster a more inclusive workplace.

Expanded Protections: Beyond Gender

Previously, the EPOA specifically addressed and prohibited discrimination in compensation and advancement opportunities on the basis of gender. The amendment dramatically broadens this scope to include all protected classes under the WLAD. These protected classes include:

Race and Color
Creed
National Origin
Citizenship or Immigration Status
Sex (including pregnancy, childbirth, and related medical conditions)
Sexual Orientation
Gender Identity
Age (40 and over)
Marital Status
Disability (sensory, mental, or physical)
Honorably Discharged Veteran or Military Status
The use of a trained dog guide or service animal by a person with a disability

This means employers must now ensure that no disparities in pay or opportunities for advancement exist between “similarly employed” individuals based on any of these protected characteristics. “Similarly employed” is defined as employees who work for the same employer, whose performance requires similar skill, effort, and responsibility, and who work under similar working conditions.

Key Implications for Employers

This legislative update requires employers to take concrete steps to ensure compliance. Here are the primary areas of focus:

Comprehensive Pay Equity Audits: Employers should conduct thorough and privileged pay equity audits to identify and rectify any wage gaps between similarly situated employees that cannot be justified by bona fide, job-related factors that are consistent with business necessity. Such factors may include education, training, experience, or seniority.
Review and Revise Policies: All internal policies related to compensation, promotions, and career development should be reviewed and updated to explicitly prohibit discrimination based on all protected classes under the WLAD.
Manager and HR Training: It is crucial to train managers and human resources personnel on the expanded scope of the EPOA. This training should cover unconscious bias, equitable decision-making in hiring and promotions, and the legal ramifications of non-compliance.
Transparent and Defensible Compensation Practices: Employers should ensure their compensation-setting practices are transparent, consistently applied, and based on objective, job-related criteria. Documentation of the reasoning behind compensation decisions will be critical in defending against potential claims.
Scrutiny of Advancement Opportunities: The amendment also focuses on “opportunity” discrimination. Employers must ensure that access to training, mentorship programs, high-profile assignments, and promotional opportunities are equitable across all protected classes.

WA: State Amends Personnel Records Law

Effective 07/27/2025

Washington has updated its law related to providing current and former employees with their personnel files and other information (for up to three years post-termination).

Personnel Files

The law now specifies that personnel records need to be provided free of charge and within 21 days of a request. And, helpful for employers in the Evergreen State, the law now defines what’s included in a personnel file. A personnel file includes all of the following, if they exist:

Job application records
Performance evaluations
Nonactive and closed disciplinary records
Leave and reasonable accommodation records
Payroll records
Employment agreements

Verification of Termination

The law also now requires employers to provide a signed statement with a former employee’s discharge date and reason for discharge (if any) within 21 days of receiving a written request for this information.

Action Item

Make sure those responsible for responding to these types of requests are aware of which documents are covered and that they have 21 days to provide the records.

WA: State Law Limits Driver’s License Requirements

Effective 07/27/2025

Employers of all sizes are prohibited from requiring a driver’s license as a condition of employment or stating that applicants must have a driver’s license in a job posting. There’s an exception if driving is an essential function of the job (like for a delivery driver) or is related to a legitimate business purpose for the position.

Action Item

Remove any driver’s license requirement from your job ads, applications, and other communications, unless the exception applies.

SB 5501 was signed by the governor.

WA: State Law Expands Paid Sick Leave

Effective 07/27/2025

Washington’s paid sick leave law, which applies to employers of all sizes, will be expanded to cover leave to prepare for or take part in immigration proceedings involving an employee or their family member.

Action Item

Update your paid sick time policy to include this new leave reason.

WA HB 1875 was signed by the governor.

WA: State Enacts Mini-WARN Act

Effective 07/27/2025

Washington will require this of employers with 50 or more full-time employees in the state. They must provide 60 days’ written notice to each employee in the event of a mass layoff or business closure that causes loss of employment for 50 or more full-time employees. For the purpose of determining if and when this law applies, an employee is not considered full-time if they work less than 20 hours per week or worked less than six of the last 12 months.

A mass layoff is a reduction in employee count of 50 or more full-time employees during a 30-day period that isn’t part of a business closure. If a temporary layoff is extended, additional notice may be required. (Temporary layoffs are often referred to as furloughs.)

Employers don’t need to provide notice in certain situations, including when the layoff or closure is a result of unexpected circumstances outside of their control that weren’t reasonably foreseeable at the time notice would’ve been required.

WEST VIRGINIA

WV: State Removes Work Permit Requirements for Minors

Effective 07/11/2025

West Virginia will allow minors who are ages 14 and 15 to work without obtaining a permit. Instead, employers will be required to obtain the written consent of the minor’s parent, guardian, or custodian. Also, they will need an age certificate issued by the West Virginia Commissioner of Labor.

WYOMING

Wy: State Law Bans Noncompetes

Effective 07/01/2025

Wyoming’s new law significantly restricts the use of non-compete agreements, rendering most traditional non-compete clauses unenforceable.

This legislation will render most new non-compete agreements unenforceable, with certain exceptions:

Sale or Purchase of a Business: Non-compete clauses remain valid when tied to the sale or transfer of a business or its assets, safeguarding the interests of buyers and sellers in such transactions.
Protection of Trade Secrets: Employers can enforce non-compete agreements specifically designed to protect legitimate trade secrets, as defined by Wyoming statute. It’s crucial that these agreements are narrowly tailored to meet statutory requirements.
Recovery of Training and Relocation Expenses: Employers may recoup expenses related to training, education, or relocation if the employee departs within certain timeframes.
- Up to 100% recovery if employment lasted less than two years.
- Up to 66% recovery for employment between two and three years.
- Up to 33% recovery for employment between three and four years.

Executives and Key Professional Staff: Non-compete agreements can still be enforced for individuals in executive or management roles, as well as key professional staff. However, the statute does not clearly define these categories, so employers should carefully assess and document the roles that qualify.

Additionally, the law specifically voids non-compete provisions for physicians. It allows them to practice freely after employment termination. Also, they may inform patients with rare disorders about their new practice locations without fear of litigation.

It’s important to note that this statute applies prospectively, affecting only contracts executed on or after July 1, 2025. Existing non-compete agreements signed before this date remain enforceable under their original terms.

Employers should take the following steps:

Review and Revise Agreements: Examine existing employment contracts to identify non-compete clauses that will become unenforceable after July 1, 2025. Update these agreements to comply with the new law.
Identify Applicable Exceptions: Determine if any roles within your organization qualify under the law’s exceptions. These include executive and management personnel, officers, or professional staff, to executives and managers. Carefully assess which positions legitimately fit these categories and tailor agreements accordingly.
Protect Trade Secrets: For roles not covered by the exceptions, focus on protecting trade secrets through narrowly tailored non-compete agreements. Ensure these agreements strictly adhere to the statutory definition of “trade secret” as outlined in Wyo. Stat. § 6‑3‑501(a)(xi).

Consult Legal Counsel: Engage with experienced employment law attorneys. They can help navigate the complexities of the new legislation, ensure compliance, and safeguard your organization’s interests.

Resources: