Akamai HR Solutions | June 2026 HR & Legal Update

As we move into June and the midpoint of 2026, now is a good time for employers to revisit key compliance obligations, policy updates, and workplace practices. This month’s HR & Legal Update highlights notable federal, state, and local employment law developments, along with practical guidance to help employers stay current, reduce risk, and prepare for what’s ahead.

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Federal

• On May 27, 2026, the US Department of Labor published a rule indicating there would be no inflation-related adjustments to the civil monetary penalties the Agency assesses for 2026. The civil money penalty amounts represent statutory fines that Divisions of the Agency can assess against employers for instances of noncompliance such as the Wage and Hour Division assessing fines against employers for minimum wage and overtime violations. As a result of the announcement, the civil money penalty amounts will remain the same amounts as the rates that took effect on or after January 16, 2025, listed in full on Agency’s webpage. 
• The U.S. Department of Labor published a final rule formally rescinding the 2024 Biden-era overtime rule and restoring the 2019 FLSA salary thresholds for white-collar exemptions. The standard salary level returns to $684 per week ($35,568 annually) and the highly compensated employee threshold returns to $107,432 per year. The old rule’s automatic annual increase to the salary thresholds was also removed.

Alabama

• Governor Ivey signed SB 307 allowing private employers to adopt a voluntary veterans’ preference employment policy. The policy must be in writing and applied uniformly to the hiring and promotion decisions of the employer. The policy can be offered to all of the following: a veteran who submits to the employer a copy of the veteran’s Department of Defense Form 214 or its successor form or record and the spouse of a veteran or active-duty service member who submits certain information to the employer. Employers must notify the Alabama Department of Workforce of their policy so that the department may maintain a registry of private employers who have a voluntary veterans’ preference employment policy on their website. This act becomes effective on January 1, 2027.

California

• Pasadena: On March 30, 2026, Pasadena’s City Council adopted Ordinance 7467. Employers with one or more employees are prohibited from discriminating against another person because of that person’s actual or perceived: race; color; ethnicity; creed; age; national origin; religion; citizenship or immigration status; gender; gender identity or expression; sexual orientation; visible or non-visible disability; medical condition; genetic information; marital status; partnership status; pregnancy and/or reproductive health choice(s); employment status; housing status; source of income; military status; veteran status; or primary language or any other characteristic protected by law. It also makes it an unlawful employment practice for any employer to fail or refuse to hire, or to discharge any person, or otherwise to discriminate against any person with respect to compensation, terms, conditions, or privileges of employment among other things. Employers are not prohibited in selection, rejection or dismissal based upon a bona fide occupational qualification. A person alleging a violation may file a civil action within one year of the alleged discriminatory acts. An employer found to be in violation is liable for actual damages, costs, and attorney’s fees, for a total of not less than $250 but not more than $10,000 per violation. The ordinance went into effect on May 2, 2026.

Colorado

• On April 22, 2026, Governor Polis signed SB 121 which amends existing law to increase the threshold for when agricultural employers must pay overtime to agricultural employees. Beginning January 1, 2027, agricultural employers must pay overtime for any time worked in excess of 56 hours in a workweek instead of the current 48-hour standard. The new law also imposes a 10% penalty for agricultural employers that willfully fail to pay wages at least 3 times in a 5-year period and a $70,000 fine for employers that willfully misclassified employees as non-employees 3 or more times in a 5-year period. That amount increases to $90,000 if the violation is not remedied within 60 days. While the overtime threshold doesn’t change until January 1st, the amended penalty amounts apply to time worked and contracts entered into or renewed on or after the legislation was signed into law on April 22nd.
• On May 12, 2026, Colorado lawmakers passed SB 26-189 which advanced a major rewrite of the state’s AI discrimination law, replacing strict bias audit and risk assessment mandates with a more flexible transparency focused framework. The legislation regulates the use of automated decision-making technology (ADMT) in consequential decisions such as employment, housing, lending, insurance, and healthcare. The changes follow widespread criticism from businesses and technology companies that the original 2024 law created impractical compliance burdens. The revised framework takes effect January 1, 2027, and introduces new obligations for employers and AI deployers operating in Colorado. Under the bill, employers using covered AI systems will need to provide notice when ADMT tools are used in employment-related decisions, offer plain-language explanations following adverse outcomes, and allow individuals to request meaningful human review. The legislation also establishes data correction rights and requires deployers and developers to maintain compliance records for at least three years. For employers, amendments signal a continued shift toward AI accountability and transparency while avoiding the more aggressive audit requirements contained in the original law.
• On May 14,2026, Governor Polis signed SB 189, amending the state’s AI law and scaling back employer obligations from the previous version. The new law addresses the use of automated decision-making technology in consequential decisions affecting consumers’ access to education, employment, housing, financial services, insurance, health care, and government services. In employment, the new CO AI Act regulates the use of automated decision-making technology (ADMT) to “materially influence” a “consequential decision,” which includes “access to, eligibility for, selection for, or compensation for” employment. It applies to both internal and external employment decisions. This new version of the CO AI Act requires that employers (1) provide notice before using a covered ADMT, (2) implement a robust adverse action process, including notice, a right to correct, and a right to meaningful human review, and (3) retain records about the use of a covered ADMT for three years. The Act splits liability for any potential algorithmic discrimination claim between developers and employers. The Colorado attorney general will enforce this law, and violations will constitute unfair and deceptive trade practices, carrying potential civil penalties of up to $20,000 for each violation. Before initiating an enforcement action, the attorney general must provide a 60-day notice of violation and opportunity to cure. The law delays the upcoming effective date of June 30, 2026, and will become effective January 1, 2027.

Connecticut 

• On May 11, 2026, Governor Lamont signed HB 5003 which, among other changes, amends the state’s existing breastfeeding law to require employers to provide reasonable break time for employees to express breast milk that is in addition to the employee’s scheduled breaks. These changes take effect on October 1, 2026.
• On May 11, 2026, Governor Lamont signed HB 5003 which, among other changes, amends the state’s existing law on wage statements to require employers with more than 100 employees to create a guide for the pay codes used for overtime and the employer’s most commonly paid differentials (e.g., shift differentials, on call pay, hazard pay, holiday pay, etc.) that appear on the statutorily required itemized statement provided to employees at the time wages are paid. The guide must, if applicable, include no less than 10 pay codes and be posted on the internet in English, Spanish and other languages most commonly spoken by employees and be updated each time a new pay code for these sorts of payments is added by the employer. The website for the guide must be included on employees’ wage statements though employers who do not have websites may comply with these requirements by providing employees with a written copy of the guide. These changes take effect on October 1, 2026.
• On May 11, 2026, Governor Lamont signed HB 5003 amending pay transparency requirements for employers in Connecticut. The Act modifies several workforce protections; among them, pay transparency requirements have been revised to include provision of benefit descriptions and inclusion of wage ranges and benefits descriptions in job postings. Previously, wage range information was required to be provided to applicants but was not explicitly required to be included in job postings and advertisements. “Benefits” are defined as health insurance benefits, retirement benefits, fringe benefits, paid leave and any compensation other than wages offered with a position. The Act also adds retaliation protections for employees and applicants related to wage and benefit information provisions. Lastly, the Act makes slight modifications to the definition of wage range, and the timing of when pay and benefits information must be provided to an applicant. The law is effective October 1, 2026.
• On May 11, 2026, Governor Lamont signed HB 5003 amending the state’s existing prohibition on employment promissory notes. Now all employers, regardless of size, will be prohibited from executing or enforcing agreements which require an employee to pay the employer a sum of money if the employee leaves such employment before the passage of a stated period of time. This requirement goes into effect on October 1, 2026.
• On May 11, 2026, Governor Lamont signed HB 5003, which requires employers to provide written notice of an employee’s right to reasonable accommodations in the workplace for a disability pursuant to the Americans with Disabilities Act of 1990. Notice must be provided to new employees at the commencement of employment, to existing employees within one hundred twenty days of October 1, 2026, and to any employee who notifies the employer of such employee’s disability within ten days of such notification. The Labor Commissioner will post information on the Labor Department website concerning the Americans with Disabilities Act of 1990 in a form available for downloading by an employer to display at the employer’s place of business in a conspicuous place accessible to employees in both English and Spanish. This requirement goes into effect on October 1, 2026.

Illinois

• Chicago: On May 15, 2026, the Office of Labor Standards published updated regulations addressing requirements under the city’s Fair Workweek Ordinance which took effect on July 1, 2020. The updated rules contain a number of changes that, include, but are not limited to: changing “calendar week” to “week” which is defined as seven consecutive 24-hour periods that can begin on any day of the week and any hour of the day; clarifying an individual’s immigration status has no bearing on their status as an employee covered by the ordinance; confirming that, for coverage purposes, an employer’s size is determined based on the average number of global employees over a 12-month period which is shortened to 90-days for new employers; details on how covered employers can meet schedule notification requirements under the Ordinance in different scenarios such as transfers, promotions, or being assigned to new job classifications; and clarifications about when predictability pay is owed and how it should be calculated for employees that receive pay differentials. The revisions to the regulations take effect on June 1, 2026.
• Chicago: The City of Chicago has revised the rules for the Paid Sick and Safe Leave Ordinance providing clarifications for employers and employees. Changes include clarifying the terms “place of care” and “closure” related to using leave to care for a family member, confirming a single bank of PTO may be able to satisfy obligations under the law if statutory requirements are met, and allowing for an employer to take disciplinary action for the misuse of sick leave. The rules also clarify violations related to employer obligations to preserve leave balances upon the sale, transfer or assignment of the business. The rules take effect on June 1, 2026.
• Chicago: On May 20, 2026, the City Council approved an Ordinance that delays scheduled increases to the tipped minimum wage. Under the Ordinance, the current minimum wage for tipped employees ($12.62) will remain in effect until July 1, 2028, after which the tipped minimum wage will increase based on employer size until it is fully phased out for all employers by 2033.

Georgia

• On May 11, 2026, Governor Kemp signed HB 987 establishing the Voluntary Portable Benefit Plan Act which permits hiring entities to make voluntary contributions to a portable benefit account on behalf of an independent contractor without jeopardizing the worker’s status provided certain conditions are met. Under the legislation, voluntary contributions using funds withheld from compensation owed to the independent contractor will not cause the contractor to be classified as an employee or the hiring party as an employer if: the withholding the compensation is expressed in a written agreement; the agreement is clear, unambiguous and prominently displayed in the contract covering the contractor’s services; the withholding is voluntary and requires the contractor to opt-in; and the independent contractor can choose to opt out of the withholding at any time. The legislation takes effect on July 1, 2026.

Hawaii

• Governor Josh Green has signed SB 3082 which expands the reasons that covered employees can take leave under the Hawaii Family Leave Law. Qualifying employees that work for covered employers will be eligible to take up to four weeks of unpaid, job-protected leave for a qualifying military exigency. The law goes into effect on July 1, 2027.

Louisiana

• On May 15, 2026, Governor Landry signed HB 315 prohibiting contracts, agreements or provisions entered into by an intern, whether paid or unpaid, or apprentice and the employer restraining the intern or apprentice from engaging in a business or an employment similar to that of the employer. The contract or agreement or provision shall not restrict an intern or apprentice from pursuing employment, educational, or professional opportunities following the completion of the internship or apprenticeship. The intern or apprentice shall, however, remain subject to the employer’s confidentiality, intellectual property, and data protection agreements. The law goes into effect on August 1, 2026.
• On May 11, 2026, Governor Landry signed HB 232 which amends existing law to change the requirements for employing a minor. The legislation requires the state’s Department of Labor to post the employment certificate form, which must include specific information such as signatures by the minor seeking employment and their legal guardian, on its webpage. The legislation also clarifies that the employment certificate is only valid for the employer listed on the employment certificate form. The law took effect when signed on May 11th.

Maryland 

• On April 28, 2026, Governor Moore signed SB 417 prohibiting employers from discharging or disciplining employees (or threatening to do that) because the employee declines to attend, participate in, or listen to an employer-sponsored meeting during which the employer communicates their opinion on religious or political matters. It also prohibits employers from refusing to hire an applicant because of their refusal to attend an employer-sponsored meeting where the employer expresses their opinions on religious or political matters. 
• Employers are not prohibited from communicating information that is required by law, conducting voluntary meetings about religious or political matters, and communicating information necessary for its employees to perform their job duties, among other things. Employers are required to post the poster or notice developed by the Commissioner in a place where employee notices are customarily posted or in another conspicuous place accessible by all employees. If an employee believes that an employer has violated this law, they have 180 days after the alleged violation to file a written complaint with the Commissioner. Employers found to have violated the law face civil penalties up to $10,000 for an initial violation, up to $25,000 for further violations, injunctive relief, compensatory damages, affirmative relief, and reasonable attorney’s costs. This law takes effect on October 1, 2026.
• On April 28, 2026, Governor Moore signed SB 831 which amends state law to make several changes, including increased penalties for child labor law violations and establishing labor protections for private-sector employees. Beginning June 1, 2026, the legislation allows the state’s Division of Labor and Industries to fine employers up to $16,035 every time they interfere with or hinder an investigation or knowingly provide false information and up to $72,876 for willfully employing a minor in a prohibited occupation. These amounts will be adjusted annually for inflation beginning July 15, 2027. The legislation also allows private employees to petition the state’s Public Employee Relations Board to protect and enforce their rights to collectively bargain and organize in the event that NLRA coverage is repealed or rendered entirely null and void or the NLRB cedes jurisdiction over the employer, employees, trade, industry, or labor dispute that’s covered under the NLRA.

Minnesota 

• On May 18, 2026, Governor Walz signed SF 3210 amending Minnesota law to include that failure to engage in the process to determine if a reasonable accommodation exists that would allow people with disabilities to participate fully in employment may be an unfair discriminatory practice. This provision goes into effect on August 1, 2026.
• Bloomington: On April 27, 2026, the city of Bloomington repealed the Earned Sick and Safe Time ordinance, citing the statewide law that fulfills the purpose of guaranteeing paid sick and safe time. The city’s website has been updated to reflect this change. These changes went into effect upon publication, on May 7th, 2026. Employers may need to update applicable policies, posters and employee notices.

New Jersey

• On May 5, 2026, the Department of Labor and Workforce Development announced the adoption of final regulations to provide clarity on the state’s ABC test for determining a worker’s classification as an employee or independent contractor for purposes of the New Jersey Unemployment Compensation Law, the New Jersey Wage and Hour Law, and the New Jersey Wage Payment Law. The final regulations, which confirm the ABC test has been in place in the state for nearly 90 years, review the facts that are relevant to determining a worker’s status under the 3-part test and the Department’s approach to enforcing it. The regulations also clarify how various factors including preexisting exclusions, such as exemptions from minimum wage and overtime protections, remote work and requiring compliance with federal, state, and local laws should be taken into consideration when determining a worker’s classification under the ABC test. The final rules take effect on October 1, 2026.

Pennsylvania

• Philadelphia: On April 15, 2026, the City’s Department of Labor released proposed regulations addressing the requirements under the City’s POWER Act for the accrual, use, and payment of protected sick leave. Among other things, the regulations clarify that if an employee is separated and then rehired within 5 months of separation by the same employer, previously accrued, unused sick time must be reinstated and available for immediate use. The proposed regulations are subject to a 30-day review period during which any member of the public can request a hearing.
• Philadelphia: On April 23, 2026, Philadelphia’s City Council passed Bill No. 260058 amending the city’s Fair Practices Ordinance to prohibit discrimination on the basis of citizenship or immigration status. Citizen or immigration status is defined as a person who is a citizen or national of the United States, including a person who holds United States citizenship in addition to citizenship of another country, or has migrated to and is neither a citizen nor national of the United States, including but not limited to, persons with status as lawful permanent residents, refugees, asylees, unauthorized immigrants, and persons having temporary protected status. The amendment does not make it an unlawful practice to engage in any conduct based on a person’s citizenship or immigration status where such conduct is expressly authorized or required by federal or state law, regulation, rule, or government contract. The ordinance went into effect immediately upon passage.

Tennessee

• On May 7, 2026, Governor Lee signed HB 1034 establishing that notwithstanding a law to the contrary, an employer shall not require, request, or enforce a noncompete agreement against an employee whose annualized compensation is less than $70,000. The bill also establishes the rebuttable presumptions a court will use for determining the reasonableness in time of restrictive covenants. These provisions take effect on July 1, 2026, and apply to proceedings occurring and agreements entered into, renewed, or amended, on or after that date.  

Virginia

• Virginia has enacted HB 675 prohibiting an employer from using coercion or issuing a threat to an employee based on immigration status in furtherance of committing a violation of the Virginia Minimum Wage Act or provisions related to the payment of wages. An aggrieved employee is permitted to file a complaint with the Commissioner of Labor and Industry within 180 days of the alleged coercive action or threat. Definitions for ‘coercion’ and ‘threat’ have also been provided in the law. Civil penalties may be brought against the employer ranging from $5,000-12,000 depending on the number of violations that have occurred. This law goes into effect on July 1, 2026.
• Virginia’s Governor Spanberger signed legislation (HB 5/SB 199) enacting paid sick leave for employees of private employers. Covered employers must provide eligible employees with one hour of paid sick leave for every 30 hours worked and can accrue up to a cap of 40 hours in a year. Employers will be phased into the program over a few years, depending on size. Employers of at least 50 employees must provide qualifying leave beginning July 1, 2027, employers with at least 25 employees by January 1, 2028 and employers with at least one employee by January 1, 2029. Covered employees may take sick leave for a variety of reasons including for their own illness, to care for a covered family member, and covered reasons related to domestic violence, sexual assault or stalking. The commissioner is expected to provide regulations for implementation and enforcement of the law, including employer notice and recordkeeping requirements. The law goes into effect on July 1, 2027.

Washington

• In late April, the Washington State Department of Labor & Industries (L&I) adopted new rules implementing amendments to the Equal Pay and Opportunities Act (EPOA) that were enacted in 2025, including Substitute SB 5408, which clarifies wage and salary posting requirements under EPOA. The rules help to clarify the definitions of “applicant” and “posting” and refine guidance on the disclosure of wage or salary range by an employer. An “applicant” is any person who applies to a job posting intended to recruit job applicants for a specific available position. A “posting” is defined as any solicitation intended to recruit job applicants for a specific available position, including recruitment done directly by an employer or indirectly through a third party; “posting” does not include a solicitation for recruiting job applicants that is published without an employer’s consent. Upon request of an employee offered an internal transfer to a new position or promotion, the employer must provide the wage scale, salary range, or fixed wage amount for the employee’s new position. These rules apply to employers with 15 or more employees total at the time a job opening is posted. The rules become effective May 22, 2026.

Wisconsin

• Earlier this year Governor Evers signed AB 446 requiring that each state agency and local governmental unit shall consider the definition of antisemitism adopted by the International Holocaust Remembrance Alliance on May 26, 2016, including its examples, when evaluating evidence of discriminatory intent for any law, ordinance, or policy in the state that prohibits discrimination based on race, religion, color, or national origin or that provides for enhanced criminal penalties for criminal offenses when the defendant intentionally selects the victim or group of victims or selects the property that is damaged or otherwise affected by the crime because of the victim’s or group of victims’ actual or perceived race, religion, color, or national origin. This law went into effect on March 29, 2026.

 

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.