In this month’s update, we highlight significant employment law changes and practical compliance insights to keep your business compliant, minimize risk, and empower a productive workforce. Need a customized, legally compliant employee handbook? Visit our Handbook page to build yours in just a few clicks.
HR & Legal Updates
Federal: Supreme Court Rules That Lower Courts Cannot Issue Nationwide Injunctions
- On July 27, 2025, the US Supreme Court issued a ruling that federal district courts lack the authority to issue universal injunctions, meaning those that prohibit the government from enforcing a law against anyone, not just the parties in a case. What that means is that injunctions previously issued against the executive branch may no longer be in effect, and that we may see a revitalization of the FTC non-compete ban and enforcement of the executive’s DEI Executive Order.
Arkansas Clarifies Non-Compete Restrictions
- On March 4, 2025, Governor Sarah Huckabee Sanders signed SB 139, which bans non-compete agreements with physicians. Arkansas already restricted non-compete agreements with medical professionals, but certain carveouts still existed. This update bans non-competes with all physicians who practice medicine under the Arkansas Medical Practices Act. The law takes effect on August 3, 2025.
Colorado Restricts Non-Competes with Medical Providers
- On June 3, Governor Polis signed SB 83, excluding certain medical professionals from the exemption for highly compensated workers. Effective August 6, 2025, non-compete agreements with physicians, physician assistants, advanced practice registered nurses, and dentists are invalid.
Colorado Expands Employment Protections and Prohibits Some Deductions
- Colorado passed HB 25-1001 which provides broader employment retaliation protections and protections from immigration status-based discrimination. Any effort to use an individual’s immigration status to negatively impact the wage and hour law rights, responsibilities, or proceedings of any employee or worker is illegal. The law also prohibits employers from making payroll deductions that would reduce non-exempt employees’ pay below the applicable minimum wage. This prohibition on deduction previously only considered the federal minimum wage, but now any state or local minimum wage is used instead. This change is effective August 8, 2025.
Chicago, Illinois Raises Minimum Wage
- Beginning July 1, 2025, the minimum wage in Chicago is $16.60 per hour.
Illinois Updates Military Leave
- On June 18, 2025, the Illinois legislature sent SB 220, amending the Family Military Leave Act, to the Governor’s office for signature. If signed, this bill would require employers with 51 or more employees (employee location unspecified) to provide employees with paid leave of up to 8 hours per month (equivalent to 40 hours per calendar year) to participate in funeral honors details. Employees qualify for this if they are trained to participate in funeral honors and are either veterans or members of an authorized provider (non-service members who augment military funeral honors detail). If signed, this bill takes effect immediately. Otherwise, this bill will take effect August 17, 2025, unless it is vetoed.
Minneapolis, Minnesota Expands Anti-Discrimination Protections
- On May 12, 2025, Minneapolis amended its anti-discrimination ordinance to add to the list of protected classes. Effective August 1, 2025, all Minneapolis employers are prohibited from discriminating against employees or potential employees based on justice-impacted status, housing status, height and weight, or any combination of protected characteristics. Most notable among these is the protection against discrimination based on a person’s justice-impacted status. “Justice-impacted status” means criminal history, which includes any prior arrest, charge, conviction, time spent incarcerated, or probationary status. Employers can still use that information to make employment decisions, but only after they have undergone an appropriate review process that considers the factors outlined in the ordinance.
New York COVID-19 Paid Emergency Leave Expires
- In 2020, New York enacted COVID-19 Paid Emergency Leave (PEL) requiring employers to provide up to 14 days of protected, paid leave to employees who were required to quarantine due to COVID. Last year, Governor Hochul signed the state budget, which included an expiration date for PEL. Beginning July 31, 2025, employers will no longer be required to provide PEL.
New York City Expands Sick Leave to Match New State Prenatal Leave
- New York City updated its rules for the Earned Safe and Sick Time Act, effective July 2, 2025, to mirror the state-wide requirement to provide employees with 20 hours of paid prenatal leave. The updated rules match the state’s requirements and include additional notice and reporting requirements. Employers’ written sick leave policies must include information about prenatal leave. The state has released an updated new hire Notice of Employee Rights for Safe and Sick Leave which now also mentions prenatal leave. Lastly, employers must include the amount of paid prenatal leave used during the relevant pay period and the remaining balance of paid prenatal leave available for use on each pay stub.
Ohio Allows Digital Notices
- Beginning July 20, 2025, Ohio employers will be allowed to post their required workplace posters either physically or digitally. Ohio recently passed SB 33, specifically allowing employers to post specific workplace notices on the internet instead of in a physical location. The following posters will now be required to be posted either physically or “posted on the internet so that [they are] accessible to the employer’s employees.”
- Child Labor
- Minimum Wage
- Fair Employment Practices Law
- Workers’ Compensation
- Rebuttable Presumption Law (must be displayed in the same place as the Workers’ Compensation poster)
Oregon Passes New Paystub Requirements
- On June 6, Oregon passed SB 906, which, effective January 1, 2026, amends existing paystub disclosure rules to require employers to provide a detailed written explanation of all potential earnings and deductions at the time of hire. Employers will be required to provide a comprehensive list of all possible pay rates, benefit deductions, contributions, and any other potential deductions, along with the purpose of each. Additionally, employers must disclose any allowances claimed as part of the minimum wage, employer-provided benefits that may appear on pay stubs, and a complete list of all payroll codes with clear descriptions. This information must be made easily accessible to employees, such as through a website or a physical posting, and must be reviewed and updated annually by January 1st. The state Bureau of Labor and Industries is required to create a model guidance document for employers in English, Spanish, and other languages upon request.
Philadelphia Releases Guidance on Calculating Sick Leave Pay Rate for Tipped Employees
- Philadelphia passed Bill 250065, which among other changes, included guidance on how to calculate the rate of pay for paid sick leave for tipped employees. When employers are calculating the rate of pay for tipped employees, define as those who customarily and regularly receives more than $50 per month in tips from the same employment, they must use the numerical average of the hourly wage for “Bartenders,” “Waiters & Waitresses,” and “Dining Room & Cafeteria Attendants & Bartender Helpers” as defined under the Standard Occupational Classification Code and as published for Philadelphia County by the Pennsylvania DOL. No policy change is necessary.
Tennessee Dissolves Human Rights Commission and Moves Enforcement to the State Attorney General
- Tennessee passed HB 0910/SB 0861 which, effective July 1, 2025, terminates the Tennessee Human Rights commission and gives the commission’s responsibilities over discrimination in employment, housing, public accommodations, malicious harassment, the Civil Rights Act of 1990, the “Tennessee Anti-Slapp Act,” and education to the state attorney general and its newly created civil rights enforcement division. All existing complaints filed with the Commission will be terminated and will need to be refiled with the Civil Rights Enforcement Division of the State Attorney General’s office. We have updated the Employee Handbook, State Addenda, and Equal Employment Opportunity policy with updated contact information for Tennessee employment complaints.
Texas Signs Bill Placing Limitations on Non-Compete Agreements with Physicians
- On June 20, 2025, the Texas governor signed SB 1318, which places restrictions on non-competition agreements entered into or renewed by physicians, dentists, nurses, and physician assistants on or after September 1, 2025. These restrictions include a duration cap of one year, a buyout cap of their total annual salary and wages, and a geographic limitation of up to a five-mile radius from the location where they worked. These types of agreements will also be void and unenforceable if the physician is involuntarily discharged without good cause.
Vermont Expands Unpaid Family and Medical Leave
- Governor Scott signed H. 461, which, effective July 1, 2025, expands unpaid Family and Medical leave (VPFLA) to cover bereavement leave, safe leave, and qualifying military exigency. All types of leaves are still limited to the existing 12 weeks of available unpaid leave under VPFLA. Bereavement leave is also limited to up to 5 consecutive workdays at a time and only 2 of the employees’ 12 weeks per year. The definition of family members is also expanded to include nontraditional family structures. We have updated the Employee Handbook, State Addenda, and Family and Medical Leave policy to comply with this change.
Washington Limits Use of Criminal History in Employment Decisions
- Washington passed HB 1747, which places restrictions on when criminal history checks can be used in employment. Employers must now wait until after a conditional offer of employment has been made before conducting a criminal background check for a job applicant. Additionally, an adverse employment action can only be taken if the employer has a legitimate business interest. Employees and applicants must be given an opportunity to explain their criminal history before any adverse action is taken. This law takes effect on July 27, 2025.
Washington Enacts New Personnel Record Requirements
- Washington enacted HB 1308, which defines personnel files and requires employers to respond to requests for copies of those files from current and former employees and their representatives within 21 days. Personnel files are now defined as all job application records, performance evaluations, inactive or closed disciplinary records, leave and reasonable accommodation records, payroll records, and employment agreements. Washington employers must now also provide former employees with a copy of their personnel file or a statement regarding their effective date of discharge and the reason for discharge, if any, within 21 days of a request.
Washington Legislature Passes Amendment to Pay Transparency Law
- Washington has required employers to include wage ranges in job postings under the Equal Pay and Opportunities Act (EPOA) since 2023. Employers who violated the EPOA face fines up to $5,000 per violation. As a result, employers faced enormous liability as hundreds of class action lawsuits were filed against them under the EPOA. To address that issue, Governor Ferguson signed SSB 5408 on May 20, 2025, amending the EPOA. The most significant update is that, effective July 27, 2025, employers will be allowed up to 5 days to fix any deficient job posting after they have received notice of its deficiency. This cure period will only be in effect until July 27, 2027, however. The legislature expects employers to comply with these job posting requirements by then.
Washington Prohibits Requiring Driver’s Licenses as a Condition of Employment
- On April 22, 2025, Governor Ferguson signed SB 5501, prohibiting employers from discriminating based on a person’s possession of a driver’s license. Beginning July 27, 2025, unless driving is an essential part of the job, employers may not condition employment on a person’s possession of a driver’s license, nor include in job postings any indication that preference will be given to people who have valid licenses.
Washington Expands Use of Paid Sick Leave
- On April 25, 2025, Governor Ferguson signed HB 1875, requiring employers to allow employees to use their paid sick leave to prepare for or participate in immigration proceedings either for themselves or their family members. These changes take effect July 27, 2025. We have updated the Employee Handbook, State Addenda, and Sick Leave policy to comply with this change.
Washington Passes Mini-WARN Act
- On May 13, 2025, Governor Ferguson signed SB 5525, requiring employers to provide notice to employees of mass layoffs and business closures. Effective July 27, 2025, employers with 50 or more full-time employees must provide at least 60 days’ notice to affected employees, union representatives, and members of the state government of site closings or mass reductions in force (RIFs). The new law also protects certain employees from being included in RIFs, such as those taking paid family or medical leave under the Washington Paid Family and Medical Leave law. It imposes penalties on employers who fail to provide appropriate notice.
West Virginia Repeals Minor Work Permit Requirements
- West Virginia passed SB 427, which repeals the requirement for work permits for employees aged 14 and 15. Employers of 14 and 15-year-olds must now obtain parental or other consent as well as an age verification certificate before employing them. The State Commissioner of Labor has been empowered to issue age certificates for children 14 and older, setting requirements for age certificate contents, and providing penalties for anyone who illegally issues an age certificate. Make sure that you obtain an age certificate for any applicable minor employees.
Disclaimer: The information in this HR & Legal Update is provided for general educational purposes only and does not constitute legal advice. Akamai HR Solutions, LLC is not a law firm, and no attorney–client relationship is created by your use of this content. Laws may change or apply differently to your business. For legal guidance tailored to your specific circumstances, please consult a qualified attorney.