Akamai HR Solutions | February 2026 HR & Legal Update

As we move further into Q1, we’re sharing our February 2026 HR & Legal Update to help you stay aligned with recent federal, state, and local employment law changes. While some updates build on January’s latest developments, this month’s summary highlights what employers should continue monitoring—along with key compliance deadlines and practical next steps.

For more resources, including prior updates and handbook guidance, visit our News & Insights page.

If you are reviewing your employee handbook or policies this quarter, we can help ensure they’re up to date and compliant. Visit our Handbook page for more information. 

HR & Legal Updates

Federal

• On January 26, 2026, the Department of Labor published a series of compliance assistance resources for employers. These resources are meant to help employers comply with federal labor law. The resources are:
  • a compliance assistance webpage,
  • an FMLA video series, and 
  • revamped industry-specific compliance assistance toolkits.
• On January 5, the DOL published an opinion letter clarifying that employees may use their FMLA leave not only for the time spent in medical appointments, but also for the time spent traveling to and from medical appointments for their own serious health condition, or that of a qualifying family member. The opinion also stated that any medical certification required by the employer does not need to address travel time to be complete and sufficient under the FMLA.
• By February 1, employers with 11 or more employees that are not exempt from OSHA record keeping requirements must post the OSHA Form 300A (Summary of Work-Related Injuries and Illnesses) for the previous calendar year. The summary must be posted in a conspicuous location at each worksite where employee notices are customarily displayed and remain posted through April 30.
• By February 2, employers must provide Form W-2 to each employee and file copies with the Internal Revenue Service (IRS). Form W-2 reports an employee’s wages and tax withholdings for the previous calendar year. Employers must also furnish Form 1099 (as applicable) to independent contractors or freelance workers who were paid $600 or more during the prior tax year.
• By February 2, employers must file Form W-3 (Transmittal of Wage and Tax Statements) with the Social Security Administration (SSA). Form W-3 summarizes all Forms W-2 issued by the employer for the previous calendar year and is used to transmit those wage and tax statements to the SSA.
• By February 2, employers must file Form 940 and pay any Federal Unemployment Tax Act (FUTA) taxes due for the prior calendar year. Employers that deposited all FUTA taxes on time may delay filing Form 940 until February 10, 2026.
• By February 2, employers must file Form 1099-NEC (Nonemployee Compensation) with the Internal Revenue Service (IRS) and furnish copies to recipients. Form 1099-NEC is required for each nonemployee individual or business paid $600 or more during the prior calendar year. The form may also be used to report direct sales of $5,000 or more of consumer products for resale, including buy-sell arrangements, deposit commissions, or similar transactions.
• By March 1, employers or plan administrators must file Form M-1 with the Employee Benefits Security Administration (EBSA) if they operate a multiple employer welfare arrangement (MEWA) that provides medical benefits. Form M-1 is an annual filing used to report information about the MEWA’s structure and compliance with federal requirements.
• By March 2, employers that physically file Affordable Care Act (ACA) information returns must submit Form 1094-B or Form 1094-C to the Internal Revenue Service (IRS), as applicable. Employers with fewer than 50 full-time equivalent (FTE) employees file Form 1094-B. Employers with 50 or more FTEs file Form 1094-C. Form 1094 serves as a transmittal and summary of all Forms 1095 filed for the prior calendar year. Employers that file electronically must submit Form 1094 by March 31.
• By March 2, employers that offer employee health benefit plans, such as group health insurance or health reimbursement arrangements (HRAs), must file Form 1094-B or Form 1094-C with the Internal Revenue Service (IRS), as applicable. Employers with fewer than 50 full-time equivalent (FTE) employees file Form 1094-B. Employers with 50 or more FTEs file Form 1094-C. Form 1094 serves as a summary and transmittal of all Forms 1095 filed for the prior calendar year.
• By April 15, employers and group health plan sponsors must file Form 8928 to self-report certain compliance failures related to the administration of their health plans.
• Form 8928 is used to report failures including, but not limited to:
  • Failing to provide the required level of coverage for pediatric vaccines under Section 2713 of the Public Health Service Act
  • Failing to comply with COBRA administration requirements
  • Failing to meet portability, access, renewability, or market reform requirements
  • Failing to make comparable Archer medical savings account (MSA) contributions
  • Failing to make comparable health savings account (HSA) contributions
• By May 1, employers with calendar-year plans subject to the Employee Retirement Income Security Act (ERISA)must distribute a Summary Plan Description (SPD) to plan participants. For plans with an effective date of January 1, the SPD must be provided within 120 days after the plan is established. If the employer makes non-material changes to the SPD that do not affect participants’ coverage, an updated SPD may be distributed within 210 days after the end of the plan year in which the changes took effect.
• By June 1, insurance carriers and employer-sponsored health plans must submit Prescription Drug Data Collection (RxDC) reporting for 2025 calendar year plans. RxDC reporting requires the submission of information regarding prescription drug costs and overall health care spending. For fully insured plans, the insurance carrier typically completes the RxDC filing. Employers sponsoring self-insured or level-funded plans are responsible for submitting the report or coordinating filing through a third-party administrator (TPA).
• By July 31, organizations with calendar-year employee benefit plans subject to ERISA must file Form 5500. Form 5500 is an annual filing used to report information about an organization’s retirement and welfare benefit plans. This requirement also applies to employers offering an Individual Coverage Health Reimbursement Arrangement (ICHRA) with 100 or more plan participants. The specific version of Form 5500 required depends on the type of organization and the benefits offered. Employers may request a one-time filing extension by submitting Form 5558.
• By September 30, organizations with calendar-year employee benefit plans subject to ERISA that file Form 5500 must distribute a Summary Annual Report (SAR) to plan participants. The SAR provides a summary of the information reported on Form 5500 and must be delivered within nine months after the end of the plan year.
• By October 2, employers that choose to follow federal guidance for advance notice must provide a 90-day notice to employees regarding the offer of a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) or an Individual Coverage Health Reimbursement Arrangement (ICHRA). The notice should inform employees that the QSEHRA or ICHRA will be offered effective January 1, 2027.
• By December 31, employers with calendar-year benefit plans should complete nondiscrimination testing (NDT) for applicable health and welfare benefit plans. While testing is generally completed by the end of the plan year, employers are encouraged to conduct testing earlier to allow time to identify and correct any compliance issues.Benefit plans subject to nondiscrimination testing may include retirement plans, flexible spending accounts (FSAs), health savings accounts (HSAs), and health reimbursement arrangements (HRAs). Nondiscrimination testing is used to ensure that benefit plans do not disproportionately favor highly compensated employees.

California

• The California Civil Rights Department recently published preliminary versions of pay data reporting templates for Reporting Year 2025. The 2025 preliminary templates are a simplified version of the official templates and are intended to help filers become familiar with the expected format and data fields for Reporting Year 2025. A companion FAQ document provides answers to frequently asked questions on the templates, including three newly proposed columns to collect information on employee exemption status, employment type, and weeks worked. These templates are subject to change and are intended for planning purposes only; they should not be filed with the state. As a reminder, the employer filing period is expected to run from early February until May 13, 2026.
• On October 12, 2025, Governor Newsom signed Senate Bill (SB) 294, which requires employers in California to provide a stand-alone written notice of worker rights to each new employee when hired, and annually to all current employees. In response, the California Labor Commissioner published this model notice for employers to provide to employees. Employers have until February 1, 2026, to provide this notice to employees. The notice must be provided in a language the employer normally uses to communicate with employees about business matters that employees understand. At present, the Labor Commissioner’s template is available in English and Spanish.
• The Department of Labor Standards Enforcement released a revised Healthy Workplaces/Healthy Families Act: California Paid Sick Leave poster that reflects changes to sick leave law concerning the use sick leave by employees or their family members who are victims of domestic or other types of violence.
• Los Angeles County: Under Ordinance 2025-0057, retail employers must now provide predictability pay at a rate of one-half the regular rate of pay for the time employees do not work because the employer reduced their work time from what is stated in their work schedule (resulting in a loss of more than 15 minutes) or scheduled the retail employee for an on-call shift but did not call them in.

Connecticut 

• Then CT Paid Leave maximum benefit rate is now $1,016.40, which is capped at 60 times the state minimum wage.

District of Columbia

• Under amendments to the DC Fiscal Year 2026 Budget, employers must include all the sources of an employee’s compensation on their pay stubs, including bonuses, commissions on sales, service charges, as well as any other sources.

• The DC income threshold for non-competes is adjusted each year to conform to changes in the Consumer Price Index (“CPI”). For 2026, the CPI increase resulted in a new non-compete income threshold of $162,164 per year for normal highly-compensated workers, and $270,274 for medical specialists.

Florida

• Under HB 531, the state’s Agency for Healthcare Administration was required to develop a background check resource web page by January 1, 2026. Under Florida law, qualified employers are required to post the link to that resource on certain job postings. Qualified employers must include the webpage on any job postings for a position that requires a screening through Florida’s Care Provider Background Screening Clearinghouse. Qualified employers are businesses or organizations that provide care or care placement services, including a business or organization that licenses or certifies others to provide care or care placement services.

Illinois

• On December 9, 2025, Governor Pritzker signed HB 1312 amending the Illinois Whistleblower Act to prohibit employers from retaliating against an employee for disclosing or threatening to disclose in good faith any violation of the Illinois or US. Constitution during civil immigration enforcement or violations of the Illinois Bivens Act. These amends took effect upon becoming law.

Louisiana

• Louisiana requires employers to provide Form 77 to the state and the separating employee detailing the reasons for the separation. Employers now have 10 days (an increase from the prior requirement of 3 days) to provide separated employees and the state with the separation form. Additionally, the law specifies that the form needs to be electronically transmitted to Louisiana Works, removing the options for mail or delivery.

Maine

• Maine prohibits non-competes with employees who earn less than 400% of the federal poverty level. The Department of Health and Human Services has released updated federal poverty guidelines, which places Maine’s new non-compete income threshold at $63,840 per year.
• On January 11, 2026, Maine Bill LD 61 became law without the Governor’s signature. Effective immediately, employers who monitor their employees’ electronic activity are subject to certain restrictions. Under the law, employers may not use electronic monitoring systems unless they notify the affected employees prior to starting the surveillance. Except in limited circumstances, employers may not use audiovisual monitoring on employees’ private property or install monitoring software on private employee devices. Further, employers must provide notice of electronic monitoring to prospective employees during the interview process and must provide written notice of electronic monitoring to all employees annually

Massachusetts

• Revere: On October 27, 2025, the Revere City Council adopted an ordinance amending existing law, which prohibits employers from committing wage theft by not making a timely or complete payment of wages including earned overtime and allows for anonymous reporting of wage theft. The amended Ordinance also permits the City to revoke licenses, stop tax incentives, or suspend contracts with businesses that commit wage theft. The amended Ordinance took immediate effect.

Minnesota

• Under Minnesota’s new paid leave law, employers are now required to include any amount deducted by the employer under the paid leave law in employee pay stubs.

New Hampshire

• Under New Hampshire’s parental leave law, employers with 20 or more employees must provide up to 25 hours of leave for employees to attend their own medical appointments related to pregnancy, childbirth, or postpartum care, or to attend their child’s pediatric medical appointments within 1 year of the child’s birth or adoption.

New Jersey

• On December 15, 2025, New Jersey’s Division on Civil Rights adopted new rules on disparate impact employment discrimination. The final rules are generally similar to the disparate impact discrimination protections provided under federal law prior to the current administration, but they also clarify that the use of automated employment decision tools is subject to the same disparate impact protections as other processes used to make employment decisions, including those related to recruiting, interviewing, and the terms and conditions of employment. The final rules also confirm that automated employment decision tools that screen out applicants must include a mechanism for applicants to request reasonable accommodations.
• On January 17, 2026, New Jersey Governor Murphy signed A3451 revising New Jersey Family Leave Act (NJFLA) eligibility requirements. Currently, for an employee to be eligible for NJFLA job-protected leave, the employee must (1) work for an employer with 30 or more employees, (2) have been employed for at least 12 months, and (3) have worked 1,000 hours in the last 12 months. 
  • This update expands the eligibility requirements to include more employees. Now, employees are eligible for this leave if they (1) work for an employer with 15 or more employees, (2) have been employed for at least 3 months, and (3) have worked 250 hours in the preceding 3 months. Additionally, employees who utilize Temporary Disability Insurance benefits for their own medical needs are now entitled to job protection.
  • Under the amendments, employees who are eligible for both earned sick leave and either temporary disability benefits or family temporary disability leave benefits are allowed to choose whether and in what order they use those benefits, though they can’t use them both at once.
  • These amendments are effective July 17, 2026.
• This month, the New Jersey Office of the Attorney General and Division on Civil Rights published guidance about language discrimination. This guidance states that language discrimination is discrimination based on a English proficiency, biases based on a person’s native language, accent, and speech patterns, or valuing English above other languages. Language itself is not a protected characteristic, but discrimination based on language violates the Law Against Discrimination (LAD) when it constitutes discrimination based on language-related characteristics that are tied to protected classes like national origin, ancestry, nationality, race, religion, or disability. The guidance discusses the link between language and protected characteristics at length. Employers should review it for more information.
• On January 20, 2026, New Jersey passed Bill A4302 amending the state’s child labor laws to include protections for child vloggers. These amendments require vloggers who employ minors to maintain certain documentation for them, abide by all child labor law requirements, and ensure the minor is paid according to all relevant State wage, benefit, and tax laws. Under these amendments, minors are considered to be employed by vloggers if they are actively or passively featured in video content and:
  • at least 30 percent of the vlogger’s compensated video content produced in a month incudes the minor, and
  • the number of views received per video segment on any platform meets the platform’s threshold for compensation or the vlogger receives actual compensation for the content greater than $0.10 per view.
• On January 20, 2026, New Jersey passed Bill A5588 amending the state’s child labor laws to include greater protections for minors employed in theatrical productions. Among other things, minors employed for a guaranteed 3 or more days of employment must provide at least 3 hours per missed day of school to fulfill the minor’s educational requirements.
• On January 20, 2026, Governor Murphy signed NJ S3800, adding military service to the state’s list of protected characteristics. Effective immediately, it is considered unlawful discrimination to take adverse employment action against applicants or employees based on their “service in the Armed Forces of the United States,” which is defined as “being in active service in any branch of the Armed Forces of the United States or National Guard, or having been discharged or released from active service in any branch of the Armed Forces of the United States or National Guard.”

New York

• On December 19, 2025, Governor Hochul signed a law clarifying the standard for when an employment practice has a discriminatory effect and confirming that a practice may be unlawful due to its discriminatory effect even when it is not motivated by a discriminatory intent. In particular, the legislation amends existing law to clarify that a practice has a discriminatory impact where it actually or predictably results in a disparate impact on a group because of their membership in a protected class. Exceptions exist for practices that have a legally sufficient justification due to being job-related and consistent with business necessity which cannot be served by another practice with a less discriminatory effect. The legislation took immediate effect. 
• Governor Hochul signed a law extending paid family and medical leave benefits to more workers. Covered employees who perform construction, demolition, reconstruction, excavation, rehabilitation, repairs, renovations, alterations, or improvements for multiple employers under a collective bargaining agreement are now eligible to apply for paid family and medical leave benefits if they were employed for at least 26 of the last 39 weeks. The law went into effect upon signing on December 19th, 2025.
• On December 19, 2025, Governor Hochul signed AB 584 creating the “Trapped at Work Act.” The Act prohibits employers from requiring as a condition of employment any worker or prospective worker to sign a contract that requires the worker to pay a sum of money if the worker leaves employment before the passage of a stated period of time or requires reimbursement for training provided to the worker. Nothing prohibits an employer from requiring repayment of advanced sums to the worker unless those sums were used to pay for training related to the worker’s employment with the employer or requiring the worker to pay the employer for any property it has sold or leased to the worker. Employers found to have violated this Act will be fined by the Labor Commissioner not less than $1,000 and not more than $5,000 per violation. Workers or prospective workers who were required to execute an employment promissory note can bring an action against the employer to recover actual damages or $5,000, whichever is greater, injunctive relief, reasonable costs, and attorney fees. The Act took effect immediately upon the Governor’s signature.
• On December 19, 2025, Governor Hochul signed Senate Bill 3072 which prohibits employers from requesting or using the consumer credit history of an applicant or employee to make employment decisions. The legislation establishes limited circumstances where it would be acceptable to consider an applicant or employee’s credit history, such as for employees in positions that require security clearance under federal or state law. The legislation takes effect 120 days after being signed into law, on April 18, 2026.
• On December 12, 2025, Governor Hochul signed Senate Bill S5294-B, requiring all general hospitals and nursing homes in New York to implement comprehensive workplace violence prevention programs. The law is designed to enhance safety and reduce injuries, deaths, and violent incidents affecting healthcare workers, patients, residents, and visitors. Starting January 1, 2027, hospitals and nursing homes must complete an annual safety and security assessment and develop written plans that include engineering controls, security measures, staff training, incident reporting, and ongoing employee involvement. Nursing homes may satisfy state requirements through compliance with federal Centers for Medicare & Medicaid Services (CMS) regulations if their plans address workplace violence. Additionally, hospitals in jurisdictions with over one million residents must maintain at least one off-duty law enforcement officer or trained security professional in emergency departments at all times. Smaller hospitals face similar requirements, with exceptions for critical access, sole community, and rural emergency hospitals, though these organizations may be required to comply if violence rates rise. These security measures, combined with assessment and written plan mandates, establish a framework to reduce workplace violence and strengthen accountability in healthcare settings.
• Governor Hochul signed Assembly Bill A2725 on December 12, 2025, requiring New York employers who are federally mandated to maintain workplace first aid supplies to include an opioid antagonist, such as naloxone, in those kits. The law applies to private-sector employers across all industries, excluding government agencies, and takes effect June 10, 2026. The Department of Labor will issue regulations specifying quantity requirements and training standards to ensure proper storage and administration.

Ohio

• Governor DeWine signed the E-Verify Workforce Integrity Act (HB 246) which requires nonresidential contractors, subcontractors, and labor brokers that provide workers in construction industry to use E-Verify to verify worker employment eligibility. Penalties under the Act for violations of this requirement include fines between $250-$25,000 for each violation depending on the section of the law violated and the pattern of occurrence. Employers can also be subject to civil action and disqualification from state contracts. This law will go into effect March 19, 2026.

Oregon

• The Oregon income threshold for non-competes is adjusted each year to conform to changes in the Consumer Price Index (“CPI”). For 2026, the CPI increase resulted in a new non-compete income threshold of $119,541 per year.

Pennsylvania

• Pennsylvania requires employers with 50 or more full-time employees to display a veteran’s benefits and services poster.
• Delaware County: The Delaware County Council recently enacted Ordinance No. 2025-06 prohibiting discrimination based on protected characteristics in employment, housing, public accommodation, education, and healthcare. Under the Ordinance, protected characteristics are actual or perceived race, ethnicity, color, religion, creed, national origin or citizenship status, ancestry, sex (including pregnancy, childbirth, and related medical conditions), gender identity, gender expression, sexual orientation, genetic information, marital status, familial status, physical or mental disability, relationship or associations with a disabled person, source of income, age, veteran status, use of guide or support animals and/or mechanical aids, or domestic or sexual violence victim status.
• Pennsylvania City: On December 3, 2025, Mayor Parker signed a bill that now makes it unlawful for employers to discriminate against employees on the basis of menstruation, perimenopause, and menopause. The ordinance goes into effect on January 1, 2027.

Rhode Island

• Beginning January 1, 2026, Rhode Island requires employers to allow employees to use up to 8 weeks of leave under the Temporary Caregiver Insurance (TCI) program to participate as a bone marrow or living organ donor. This leave is a small expansion of the program which previously only allowed employees to use leave to bond with a new child or to care for a family member with a serious health condition.

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.