State and local legislatures were active in passing employment laws and ordinances concerning topics such as artificial intelligence, paid leave, and hiring practices, to name a few. As always, minimum wages continue to increase in many jurisdictions and various posters have been updated.

Our team will continue to monitor these and other state employment law developments. If you have questions or need guidance, please reach out to your SPB contact for more information or assistance with compliance.

California

San Francisco Amends Fair Chance Ordinance – As of August 10, 2026, San Francisco’s Fair Chance Ordinance prohibits discrimination based upon certain out-of-state convictions or unresolved arrests for conduct that is lawful under California law, including abortion-related convictions, drag-related convictions, and gender-affirming care convictions. The amendments also increase administrative penalties for violations of the ordinance.
San Francisco Shortens Paid Parental Leave Eligibility Period – San Francisco Ordinance No. 162-26 reduces from 180 to 90 days the length of employment required to qualify for supplemental compensation under the City’s Paid Parental Leave Ordinance. The 90-day requirement takes effect January 1, 2027 for employers with 100 or more employees, and January 1, 2028 for employers with 20 to 99 employees. Other employee eligibility requirements remain unchanged.
California Expands Remedies for Independent Contractor Misclassification – Effective January 1, 2027, SB1444 expands remedies for willful misclassification by allowing any affected employee, rather than only specified public employees, to recover statutory civil penalties as damages.
California Expands Labor Commissioner Enforcement Procedures – Effective January 1, 2027, SB1316 allows the Labor Commissioner to renew liens on an employer’s real property for additional 10-year periods to secure amounts due under final orders in favor of employees. Previously, the lien expired after 10 years, unless it was satisfied or released sooner. The law also limits employers’ ability to rely on certain records in administrative proceedings if those records were not timely produced, and expands those evidentiary restrictions to certain proceedings involving retaliation or discrimination citations.
California Delays Bar on Stay-or-Pay Agreements to 2027 – AB 1697 postpones California’s restrictions on stay-or-pay agreements by one year. The restrictions will now apply only to agreements entered into on or after January 1, 2027. The law also eliminates potential liability for agreements that would have been covered during 2026. In addition, AB 1697 expands permissible repayment arrangements, including certain bonus repayment agreements, specified government-funded recruitment and retention incentives, certain financial services affiliation agreements, and repayment of limited advanced paid time off upon voluntary resignation.
California Revises Definition of “Family Member” under Bereavement Leave Law – Effective January 1, 2027, SB 1149 revises the definition of “family member” under the bereavement leave law to include a person designated by the employee who is either related to the employee by blood or has an association with the employee that is equivalent to a family relationship. Employers may limit employees to one designated person per 12-month period.
California to Require Anti-Hate-Speech Training in 2028 – Beginning January 1, 2028, AB 1803 requires employers with five or more employees to incorporate anti-hate-speech training into their mandatory sexual harassment prevention training for California employees. The training must provide practical guidance on recognizing, reporting, and confronting workplace speech that vilifies, humiliates, or incites hatred against people based on legally protected characteristics.
California Expands Protections Against Retaliation – AB 2495, effective January 1, 2027, expands protections against unfair immigration-related practices with the purpose of, or with the intent of retaliating against individuals exercising or attempting to exercise rights under local, state, or federal employment laws and regulations. It also prohibits employers from engaging in conduct involving perceived immigration status that would reasonably discourage individuals from exercising workplace rights or pressure them to engage in conduct they may legally refuse. Prohibited retaliatory practices include misusing E-Verify, demanding unnecessary employment verification documents, and threatening to contact immigration authorities.
California Requires WARN Notices to Include AI Information – SB 951, effective January 1, 2027, requires additional disclosures in California Worker Adjustment and Retraining (CalWARN) Act notices when a mass layoff, relocation, or termination is caused wholly or substantially by AI or other automated technology replacing or automating employment positions. The notice must identify the number, classifications or occupations, and work locations of affected layoffs; the job functions being automated; and the category or type of technology responsible. It must also display “This notice is for a technology displacement” at the top. The Employment Development Department will publish summaries of these notices and quarterly statewide reports on technology displacement.
California Increases Penalties for Pay Data Reporting – SB 1237 increases the potential consequences for an employer’s failure to file state pay data reports. Effective January 1, 2027, the maximum penalty for subsequent failures increases from $200 to $1,000 per employee. The maximum penalty for an initial failure remains $100 per employee.
California Restricts AI Workplace Surveillance Tools – Two new California laws (AB 1331 and AB 1883) restrict employers’ use of workplace surveillance tools. Effective January 1, 2027, California will prohibit employers from using workplace surveillance tools in employee bathrooms and will restrict the use of AI tools designed to analyze employees’ emotions or collect neural data. The laws include limited exceptions for safety, security, and certain federally regulated activities.
California Limits Automated Discipline and Termination Decisions – Beginning July 1, 2027, SB 947, known as the “No Robo Bosses Act,” prohibits employers from relying solely on automated decision systems (ADS) to discipline or terminate employees. When an employer primarily relies on ADS output, a human must corroborate the decision using underlying data or other relevant information. Employers may not use output that cannot be corroborated or is found to be inaccurate, incomplete, or misleading. Employers must also provide affected employees with a separate written notice explaining the ADS reliance, confirming human review, and describing their right to request information about the employee data used. The law also prohibits using ADS to infer protected status or predict and take adverse action against workers for exercising legal rights.
California Expands Workplace Violence Restraining Orders – Effective January 1, 2027, under AB 1961 employers may obtain workplace violence restraining orders to protect a worksite or group of employees when threats or violence target the workplace itself, without naming individual employees in the order.
California Expands Paid Family Leave Benefits for Military Families – AB 2054 expands eligibility for Paid Family Leave benefits for qualifying exigencies related to a spouse’s, domestic partner’s, child’s, or parent’s military service. The law also broadens “covered active duty” beyond foreign deployments to include training and domestic deployments, as well as federal or state active-duty orders for reserve members, including the National Guard. The legislation takes effect July 1, 2028, or earlier if the Employment Development Department completes specified claims-system updates.
California Clarifies Definition of Sex Discrimination – Effective January 1, 2027, AB 2563 requires California laws prohibiting sex or gender discrimination, including the Fair Employment and Housing Act, to be interpreted using a uniform definition of “sex discrimination.” That definition encompasses discrimination and harassment based on actual or perceived sex or gender category, conformity to sex or gender stereotypes, gender identity or expression, sexual orientation, and variations in sex characteristics. It also includes pregnancy and related medical conditions, such as childbirth, abortion, lactation, miscarriage, fertility, and contraception, as well as decisions about and access to related care, products, or services, and access to or use of gender affirming care. Where statutory definitions conflict, the provision offering greater protection against discrimination controls. The Legislature stated that the law is intended to clarify existing protections, rather than create new protected characteristics.

Colorado

Colorado Proposes Rules for AI-Assisted Employment Decisions – The Colorado Attorney General has proposed rules implementing the state’s Automated Decision-Making Technology Act, which takes effect January 1, 2027. The proposed rules provide additional detail regarding employers’ obligations when automated decision-making technology materially influences employment decisions, including required disclosures and adverse-decision notices. The rules would also require employers, upon request, to generally complete meaningful human review and reconsideration of an adverse decision within 45 days, with review conducted by an independent, qualified individual who has authority to change the decision and does not use the automated technology to conduct the review. The proposal was filed August 11, 2026, and remains subject to the ongoing rulemaking process.

District of Columbia

D.C. Reduces Paid Family and Medical Leave Benefits – The District of Columbia has amended its Universal Paid Leave Amendment Act of 2016 to temporarily reduce the duration of family and medical leave benefits from 12 workweeks to six workweeks. Parental leave remains unchanged at 12 workweeks, and prenatal leave remains unchanged at two workweeks. In addition, the amendments lower the maximum weekly benefit from $1,190 to $1,100. These amendments apply to claims submitted on or after October 1, 2026. Beginning October 1, 2030, the leave durations are scheduled to return to 12 workweeks; however, the amendment to the maximum weekly benefit amount is not scheduled to automatically revert.

Delaware

Delaware Enacts Captive Audience Law – Effective September 30, 2026, HB 84 prohibits retaliation against employees for declining to attend or participate in employer-sponsored meetings where the employer communicates its opinion about religious or political matters, including the decision to join or support a labor organization.

Illinois

Illinois Requires Paid Jury Duty Leave – Effective January 1, 2027, HB4844 requires Illinois employers with 26 or more employees to provide paid time off for employees to serve jury duty. The law does not specify a maximum duration for paid jury duty leave. Employers with 25 or fewer employees must continue to provide unpaid time off for jury duty purposes.
Illinois Regulates Employer Use of Biomarker Information – Effective January 1, 2027, Illinois will expand its Genetic Information Privacy Act (GIPA) to regulate employers’ use of biomarker testing and biomarker information. Under SB2886, employers generally may not request, require, purchase, use, or disclose an employee’s or applicant’s biomarker information, or discriminate based on that information. The law also restricts the use of biomarker testing in workplace wellness programs and prohibits offering employment, compensation, or benefits in exchange for taking a biomarker test. Limited exceptions apply, including for employee-authorized testing related to a workers’ compensation claim.
Illinois Revises Volunteer Emergency Responder Leave – Effective January 1, 2027, HB1353 requires employers to provide protected leave for volunteer emergency responders to attend required training. The law also expands protections by prohibiting employers from disciplining or otherwise penalizing employees for covered absences or tardiness related to their volunteer emergency response duties.
Illinois Expands Attorney General’s Worker Protection Enforcement Powers – Effective January 1, 2027, HB4725 expands the Illinois Attorney General’s powers to investigate potential labor and employment law violations, and employers may face penalties for failing to cooperate with investigations.
Illinois Restricts Driver’s License Requirements in Job Postings – Effective January 1, 2027, HB 4758 prohibits employers and employment agencies from stating in a job posting that an applicant must have a valid driver’s license unless driving is an essential function of the position and a business necessity. When a license is required, the posting must briefly explain why.
Illinois Expands Workplace Protections for Menopause-Related Conditions – Effective January 1, 2027, HB5284 amends the Illinois Human Rights Act to expressly include menopause-related conditions within the definition of pregnancy. As a result, employees and applicants with menopause-related conditions are protected from discrimination and may be entitled to reasonable accommodations, including flexible scheduling, modified work hours, and temperature- or climate-adjusted workspaces, absent undue hardship. Employers must also update required workplace notices and handbook information to reflect these accommodation rights.
Illinois Expands Definition of Harassment Under Protective Order Laws – Effective January 1, 2027, SB3020 expands the statutory definition of “harassment” under Illinois protective order and domestic violence laws to include repeatedly contacting a person’s workplace electronically, where the conduct otherwise meets the definition’s requirements. Illinois law prohibits employers from discriminating against employees because they are protected by an order issued under those laws.
Illinois Codifies Disparate Impact Theory for Employment Discrimination Claims – Effective June 1, 2027, SB3777 amends the Illinois Human Rights Act to prohibit employment practices or policies that have a discriminatory effect on protected groups, even without discriminatory intent. An employer may defend a challenged practice by showing that it is job-related and consistent with business necessity, although a claimant may still prevail by showing that the business necessity could be served by another practice with a less discriminatory effect.

Maryland

Maryland Opens Employer Registration for Paid Family and Medical Leave Insurance – On September 1, 2026, Governor Wes Moore announced that employers may begin registering for Maryland’s Paid Family and Medical Leave Insurance (FAMLI) program through the Maryland Department of Labor’s website and encouraged employers to register as soon as possible. All employers with at least one Maryland-based employee must register, but employers have the choice to participate in FAMLI’s state plan or apply to provide a private plan. Employers must begin withholding FAMLI contributions via payroll deductions in January 2027. Employees are eligible to apply for FAMLI leave beginning January 2028.

Massachusetts

Massachusetts Requires Notice of Form I-9 Inspections – Bill H.5620, effective August 5, 2026, requires Massachusetts employers to provide written notice to employees within 48 hours after receiving notice of an ICE inspection of Forms I-9 or other employment records, except where otherwise required by federal law.

Michigan

Michigan Amends Youth Employment Permit Process – Effective October 2, 2026, Michigan employers hiring workers under age 18 must use the state’s new Youth Employment Permit Portal (YEPP) to complete the youth work-permit process. The new system transfers responsibility for issuing work permits from schools to the Michigan Department of Labor and Economic Opportunity (LEO) and requires employers of minors to register through the portal and submit required employment and worksite information before hiring a minor. Existing school-issued permits will remain valid, but a new permit will be required if a minor changes employers or works at a different worksite. LEO is encouraging employers to register in YEPP before the October 2 implementation date.

Missouri

Missouri Protects Employers from Liability if Employee Record Has Been Expunged – SB 1421, effective October 1, 2026, protects employers from liability for a claim arising out of an employee’s misconduct where the misconduct relates to the employee’s expunged criminal history record, unless the employer otherwise failed to exercise reasonable care in determining that the employee does not pose a danger or risk to others.
Missouri Amends Employment Eligibility Verification Law – Effective August 28, 2026, HB2366 provides that contractors may be liable for subcontractors’ violations of Missouri law prohibiting the employment of unauthorized workers if the contractor knew of the violation. Employers that participate in the federal E-Verify program have an affirmative defense.

New Jersey

New Jersey Launches Mandatory Unemployment Separation Reporting Portal – The New Jersey Department of Labor and Workforce Development has launched its electronic Employer Response Portal, which employers must now use to report employee separations, including layoffs, discharges, resignations, and retirements. Employers generally must submit separation information within seven days and must continue to provide separating employees with Form BC-10. Employers that fail to timely provide required information may lose the ability to challenge certain unemployment benefit charges and may be subject to penalties for willful noncompliance.

New York

New York Allows Employee Access to Personnel Records – Effective November 8, 2026, New York employers must provide current and former employees with a copy of their personnel records within five (5) business days of a written request. Senate Bill 3460 also requires employers to notify employees within ten days after placing information in their personnel file that may negatively affect employment, promotion, compensation, transfer, or potential disciplinary action. Employees generally may review their records twice per calendar year and may submit a written statement disputing information in the file. Employers must retain complete personnel records for three years after termination.
New York Enacts Construction Industry Reporting Pay Requirements – Effective December 8, 2026, New York’s new Construction Reporting Pay Act requires construction employers to provide employees who report for work at the employer’s request or permission with at least four hours of pay, or pay for the employee’s regularly scheduled shift if shorter, at the employee’s promised hourly wage. Employers also must provide two hours of pay when a scheduled shift is cancelled with less than 12 hours’ notice. For construction projects subject to New York’s prevailing wage laws, covered laborers, workers, and mechanics are entitled to these reporting and cancellation payments at the applicable prevailing wage rate, including supplements.
New York City Updates Fair Chance Act Rules – Effective October 30, 2026, amended Fair Chance Act rules largely codify existing law and guidance governing employers’ consideration of criminal history. The rules require employers to complete noncriminal screening before making a conditional offer and allow applicants and employees at least five business days to respond to a Fair Chance Act Notice before adverse action. They also establish a rebuttable presumption that unpaid leave during the review process should not exceed five business days. The rules identify per se violations, including pre-offer criminal history questions on applications—even with instructions to skip them—and failure to conduct a new analysis after an individual identifies a material error in the criminal history considered.

Ohio

Ohio Revises Child Labor Provisions – Effective October 9, 2026, House Bill 455 permits minors under age 16 to work between 7:00 p.m. and 9:00 p.m. on nights before a day when school is not in session, with approval from a parent or legal guardian.

Pennsylvania

Pennsylvania Requires Human Trafficking Training for Certain Hospitality Workers – Pennsylvania’s House Bill 1286 requires hotels, motels, inns, and similar lodging establishments with more than 10 guest rooms to provide human trafficking awareness training to employees and contract workers who interact with guests or access guest rooms. Existing covered workers must complete the training within 90 days of the effective date (July 20, 2027), and newly hired or contracted workers generally must complete it within 90 days of hire or contract commencement. Training must be renewed every two years, and employers and contractors must maintain records of completion.

Washington

Seattle Expands Protected Sexual Orientation Categories – Effective June 1, 2027, Council Bill No. 121278 amends the anti-discrimination ordinance to extend sexual orientation protections to individuals who identify as pansexual or asexual and to individuals in consensual non-monogamous relationships.