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
FTC Dismisses Appeal of Non-Competes
- On September 5, 2025, the FTC officially dismissed its appeals of the national rule banning non-competes that it tried to promulgate in April of last year. Essentially, employers no longer need to worry about this non-compete ban taking effect nationwide. They do still need to consider individual state laws, as those remain in effect.
- Action: Strike checking the federal rule off the to-do list.
Alaska
The Alaska Department of Labor and Workforce Development has updated its Minimum Wage and Paid Sick Leave FAQ page and released new regulations related to these laws. The new FAQs and regulations clarify several points:
- The law has different requirements depending on whether an employer has 15 or more employees. The regulations clarify that to determine their employee count, employers have to use a Full Time Equivalent calculation for the previous calendar year by adding all hours worked by all employees (not just those in Alaska) during the calendar year and dividing that number by the number of hours a full-time employee would work during the calendar year.
- Employers must provide employees with notice of their sick leave rights upon hire. This notice can be included in the employer’s handbook.
- Employers that frontload the full amount of leave at the beginning of the year don’t have to allow carryover.
- Action: Ensure your Alaska sick leave policy complies with these clarifications to the law.
Arkansas
Independent Contractor/Employee Test Factors
- On April 17, 2025, Governor Huckabee Sanders signed a law that amends existing law to require employers and enforcement agencies to use the factors established by the IRS in 26 CFR 31.3121(d)-1 when determining the employment status of an individual, rather than the 20 factor test the law previously required. These amendments took effect on August 4, 2025.
- Action: Review the classification of your workers using the new employee/contractor factors.
California
Artificial Intelligence Employment Decisions
- On March 21, 2025, the California Civil Council of the Civil Rights Department approved new regulations for automated decision systems. Beginning October 1, employers may not use automated-decision systems that discriminate against applicants or employees based on protected characteristics. The rules also state that evidence of the employer’s proactive efforts to avoid unlawful discrimination in using such systems will be relevant to any claim or defense in the event of a lawsuit.
Los Angeles Hotel Worker Minimum Wage Increases
- On September 8, 2025, the Los Angeles City Clerk issued a determination removing the hold on the Los Angeles hotel workers’ minimum wage increases. That means the minimum wage for hotel workers increased to $22.50 effective immediately and will continue to increase until it reaches $30 per hour by 2028. The City’s webpage has been updated to include a link to the revised Ordinance that lists the scheduled increases.
- Action: Review your employee wages.
Connecticut
Victim Rights Extended
- On July 7, 2025, Connecticut Governor Lamont signed HB 7236, adding victims of sexual assault and human trafficking to the list of the state’s protected characteristics. Beginning October 1, 2025, employers are prohibited from discriminating against applicants and employees based on their status as victims of sexual assault or human trafficking. The new law also extends existing leave for victims of domestic violence to victims of sexual assault and human trafficking. We have updated the Domestic Violence Leave policy to comply with this change.
Delaware
Background Check Amendments
- On September 2, 2025, Delaware Governor Meyer signed HB 47, updating the state’s background check law. This amendment removes private schools and youth camps from the list of entities permitted to run name-based background checks. They are now required to use fingerprint-based checks. Employers are expected to comply with these new requirements by September 1, 2026.
- Action: Update your background check practices.
New Pay Transparency Law
- On September 26th, Governor Meyer signed a new law that will require employers with 26 or more employees to include salary or wage range information and a general description of benefits in all internal and external job postings. The law applies to jobs located in Delaware and non-international remote positions offered by a Delaware-based employer. The law doesn’t say whether employers must count all employees or only those in the state to determine their employee count.
- The requirements include the hourly or salary compensation or range, a general description of benefits and other compensation, a notification of commission basis or tipped basis payments, and notification if the job is covered under a collective bargaining agreement. Employers will be required to maintain records of each employee’s job descriptions and pay rate history for 3 years. Violations can result in penalties ranging from warnings to $10,000 fines. The law will take effect on September 26, 2027.
District of Columbia
- On June 30, 2025, Mayor Bowser signed legislation amending existing law to clarify that the subsequent increase to the minimum wage for tipped employees will not apply before October 1, 2025. The increase was initially supposed to take effect on July 1.
- Action: Prepare for the minimum wage tip credit increase on October 1, 2025.
Maryland
FMLA & Parental Leave Exemption
- Governor Moore recently signed SB 785, amending the state’s parental leave law. Effective October 1, 2025, employers who are already subject to the federal Family and Medical Leave Act for the applicable year will not also be subject to the state parental leave law.
Military Leave Expansion
- Beginning October 1, 2025, Maryland’s employment protections will no longer apply only to the more narrowly defined armed forces. Still, they will now extend to all employees who are members of the “Uniformed Services.” Under the new law, the term “uniformed services” means the Army, Navy, Air Force, Marine Corps, Space Force, Coast Guard, National Oceanic and Atmospheric Administration, and Public Health Service. We have updated the Military Leave policy to comply with this change.
Massachusetts
New Pay Transparency Law
- As previously reported, Massachusetts’ new wage transparency requirements take effect for employers with 25 or more employees in the state on October 29, 2025. These employers must provide wage ranges to applicants on all job postings, to employees who are offered a new position, and to both applicants and employees upon request.
- Action: Update your job postings and internal practices.
Michigan
Sick Leave for Small Employers
- We previously updated you on Michigan’s new sick leave law. This is a reminder that Michigan employers with 10 or fewer employees must comply with the new sick leave law starting October 1, 2025. Michigan has compiled this extensive FAQ to help with compliance.
- Action: Update your paid leave-for-any-reason policy.
Minnesota
Paid Family and Medical Leave Program
- Minnesota’s paid family and medical leave program will take effect January 1, 2026, but employers must start providing specific notices to employees by November 1, 2025. The state has released helpful information and an FAQ page for employers in advance of the program’s effective date
- By November 1, 2025, employers must post a poster that informs employees of their paid family and medical leave benefits in a place where employees will see it. The poster must be in English and in any other language that’s the primary language of at least five employees or independent contractors at the workplace, so long as the state makes the poster available in that language.
- Employers must also provide each employee with written notice within 30 days of hire or by December 1, 2025 (whichever is later) that explains paid family and medical leave benefits. The state will publish a notice that employers can use to meet this requirement. Employers can provide the notice electronically, but if they do, they must give employees access to a computer during work hours to review and print the notice. Employers must get an employee’s written acknowledgment that they received the notice. If the employee refuses to sign an acknowledgment, the employer needs to document that it provided the notice.
- Employers must also notify each seasonal employee that they aren’t eligible for paid family and medical leave benefits at the time of offer or by December 1, 2025 (whichever is later). The state will publish a notice that employers can use to meet this requirement. Employers must get an employee’s written acknowledgment that they received the notice. If the employee refuses to sign an acknowledgment, the employer needs to document that it provided the notice.
Nebraska
Sick Leave Law Effective October 1
- We previously updated you on Nebraska’s new sick leave law. This is a reminder that those restrictions will take effect on October 1, 2025. Employers were also required to display a new sick leave poster and provide that same notice (or something equivalent) to all current employees by September 15 and all new employees upon hire.
- Action: Update your sick leave policy.
Nevada
Child Labor Law Update
- Nevada’s recent updates to its child labor law take effect on October 1, 2025. Starting then, children under age 16 may no longer be allowed to work up to 48 hours in any one week. Now, they are restricted to a maximum of 40 hours per week. Further, minors may not work between the hours of 11:00 p.m. and 6:00 a.m. on school nights, unless they work as a lifeguard, an arcade employee, a stage or theatrical performer, or a performer in the production of a motion picture, or work on a farm.
- Action: Review your hiring practices for minors.
Civil Air Patrol Leave
- On May 30, Nevada passed AB 422, amending the state’s Civil Air Patrol leave requirements. Beginning October 1, Nevada employees who are members of the Civil Air Patrol are entitled to job-protected leave for up to 10 workdays per year for emergency missions training and up to 30 workdays per year for responding to emergency missions. We have updated the Emergency Services and Civil Service Leave policy to comply with this change.
- Action: Review your Civil Air Patrol leave policies.
New Jersey
Captive Audience Meeting Update
- On September 3, 2025, New Jersey Governor Murphy signed an amendment to the state’s captive audience meeting law. The law already prohibited employers from requiring employees to attend meetings whose primary purpose was to convey the employer’s views on religion or politics. This amendment clarifies that the prohibition on discussing political matters applies to “matters which relate to elections for political office; political party; legislation; regulation; and the decision to join or support any political party or political, civic, community, fraternal, or labor organization or association.” Essentially, the amendment now prohibits employers from hosting captive-audience meetings on union activity.
- Action: Review your captive audience meetings policy and practices.
New York
Delivery Workers’ Minimum Wage
- After a series of passage and veto between the NYC City Council and Mayor Adams, the City Council has passed a pair of new bills (Int 1133-A and Int 1135-A) that increase protections for delivery workers. In particular, these bills raise the minimum wage for grocery delivery workers to $21.44 per hour.
- Action: Review your employee wages.
Ohio
Cleveland Pay Transparency Law
- We previously updated you on Cleveland’s new pay transparency law. This is a reminder that the law takes effect on October 27, 2025.
Pennsylvania
Office of Worker Transparency
- On August 28, Allegheny County Executive Sara Innamorato signed an executive order requiring the development of a new Office of Worker Protections (OWP). This new office will be tasked with informing workers of their rights, developing proactive strategies for workers and industries where violations are likely to be high, developing partnerships with community organizations, establishing a comprehensive investigation process, and implementing an efficient system for handling complaints. The County Manager’s Office is still developing the new OWP, but employers should keep an eye out for further developments.
- Action: Keep up to date on the development of the new office.
Rhode Island
Paid Family and Medical Leave
- Under Rhode Island law, Temporary Caregiver Insurance (TCI) benefits will increase on January 1, 2026. Employees can currently receive up to 7 weeks of benefits in a year. Beginning on January 1, 2026, TCI benefits will increase to 8 weeks per year.
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.