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
- The EEOC recently published guidance clarifying that Title VII of the Civil Rights Act protects employees and applicants from discrimination based on their national origin, including Americans.
- Action: Ensure your employment practices do not discriminate based on national origin.
California
- On January 1, 2026, the hourly minimum wage will increase to $16.90 from $16.50.
- California’s exemption salary thresholds require employees to earn at least twice the state minimum wage. Beginning January 1, 2026, the minimum wage will be $16.90 per hour, meaning for employees to qualify for an administrative, professional, or executive exemption, they must earn at least $70,304 per year.
- Action: Update your pay practices.
Colorado
- In Colorado, employers can’t execute non-compete agreements unless the employee earns enough to be classified as “highly compensated.” That amount is updated annually. While not final yet, the state has released a proposed PAY CALC Order raising the threshold for highly-compensated employees to $130,014. The state also has an income threshold for employers using non-solicit agreements, which is 60% of the highly compensated threshold. In this case, that is $78,008.40. We will monitor the progress of these increases and will update our tools when more information becomes available.
- Action: Review income for employees with non-competes.
- Colorado has not yet finalized the state’s annual PAY CALC Order, but the proposed order includes an increased salary thresholds for exemptions. If this proposed order takes effect, on January 12, 2026, the new administrative, executive, and professional (EAP) exemption threshold will be $1,111.23 per week, and the new threshold for computer employee will be $34.85 per hour.
- Colorado published to official 2026 COMPS Order. This order must be posted in a visible place where employees can see it. It must also be included in employee handbooks. This new Order takes effect January 1, 2026. The state has not yet released the official poster but employers can view the changes through link included here. The proposed Order can be found here.
- Action: Update the COMPS posting.
District of Columbia
- The DC income threshold for non-competes is adjusted each year to conform to changes in the Consumer Price Index (“CPI”). The next CPI update is scheduled to be released on January 13. We will monitor the progress of these increases and will update our tools when more information becomes available.
- Action: Review income for employees with non-competes.
- DC recently released new versions of its Paid Family Leave poster.
- Action: Update your Paid Family Leave poster.
Maine
- Maine prohibits non-competes with employees who earn less than 400% of the federal poverty level. The updated federal poverty level is generally released in mid-January. We will monitor the progress of this increase and will update our tools when more information becomes available.
- Action: Review income for employees with non-competes.
- Beginning January 1, 2026, the salary threshold for Maine executive, administrative, and professional exemptions will be $45,300.32 per year (3,000 times the state minimum wage—$15.10 per hour for 2026).
Maryland
- In Maryland, non-competes are prohibited with employees earning less than 150% of the minimum wage. For 2026, the state minimum wage will be $15.10 per hour, which means that the non-compete income threshold will be $22.65 per hour.
- Action: Review income for employees with non-competes.
Minnesota
- We previously notified you of updates to Minnesota’s Paid Family and Medical Leave law. This is a reminder that employers are responsible for providing notices of the program to their employees. By November 1, 2025, employers must put up a poster that informs employees of their paid family and medical leave benefits in a place where employees will see it.
By the later of December 1, 2025, or within 30 days of hire, employers must also provide each regular employee with a written notice that includes an explanation of paid family and medical leave benefits. The state has provided a sample 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).
- Minnesota’s new paid family and medical leave program will start on January 1, 2026. Employers must provide each employee with a written notice within 30 days of hire or by December 1, 2025 (whichever is later) that includes an explanation of paid family and medical leave benefits. The state has published a sample notice that employers can use to meet this requirement. Employers can provide the notice electronically, but if they do that they have to 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. If an employer offers a private equivalent plan instead of participating in the state-run leave program, it must provide employees notice of that fact.
- Minnesota recently released new versions of the state’s Minimum Wage and Paid Leave posters. We have updated these posters in our tools.
- Action: Update your Minimum Wage and Paid Leave posters.
Minneapolis City
- Minneapolis Mayor Frey recently signed Ordinance No. 2025-041 amending the city’s paid sick leave ordinance. Among other things, the amended ordinance clarifies who is not considered an employee, expands the definition of family member, repeals the 90-day waiting period for employees to use sick time, permits leave to accrue in fractions of an hour, allows leave to be taken in the same increments of time for which an employee is paid, expands the reasons leave can be used, and updates the ways employers are allowed to frontload leave.
Employers are allowed to frontload leave in two different ways: an employer can provide 48 hours to each employee at the beginning of the year and pay the employee for all accrued but unused time at the end of the year; or an employer can provide 80 hours to each employee at the beginning of the year and not pay employees for any remaining accrued but unused time at the end of the year. This ordinance will go into effect on December 31, 2025.
- Action: Our sick leave policy already complies with these changes.
Nevada
- Nevada recently passed amendments to wage and hour laws that update compensable time calculations to mirror existing federal requirements, including by clarifying that employees must be paid for time spent dressing or undressing into and out of uniform or PPE if it can’t be done at home. The legislation incorporates federal standards on compensation for, among other things, time spent traveling, waiting, and training.
- Action: Review compensable time calculations and practices.
New York
- Beginning January 1, 2026, the salary threshold to qualify for the Administrative or Executive exemptions for employees working in New York City and Nassau, Suffolk, and Westchester Counties will be $1,275 per week. Employees working in other areas of New York must earn at least $1,199.10 per week to qualify. New York doesn’t have a salary threshold for the Professional exemption.
- New York City has amended its Temporary Schedule Change Act to roll back employers’ requirements. Currently, eligible employees can request up to 2 temporary schedule changes per year. Beginning February 22, 2026, employers no longer have this right but may still request a temporary schedule change. Employers are then required to respond to the request as soon as practicable, and employers may propose an alternative temporary schedule change.
Oregon
- The Oregon income threshold for non-competes is adjusted each year to conform to changes in the Consumer Price Index (“CPI”). The next CPI update is scheduled to be released on January 13. We will monitor the progress of these increases and will update our tools when more information becomes available.
- Action: Review income for employees with non-competes.
Rhode Island
- Rhode Island prohibits non-competes with employees who earn less than 250% of the federal poverty level. The updated federal poverty level is generally released in mid-January. We will monitor the progress of this increase and will update our tools when more information becomes available.
- Action: Review income for employees with non-competes.
- The minimum wage in Rhode Island will be increasing to $16.00.
- Rhode Island’s salary threshold for white collar exemptions is any salary that exceeds the state minimum wage when divided by their hours worked. The minimum wage will be $16 per hour beginning January 1, 2026, meaning that the salary threshold for 2026 will be $640 per week in Rhode Island. That threshold is still below the federal requirements though, so the federal threshold of $684 per week should be followed.
- Action: Update minimum wage payments.
Washington
- Effective January 1, Washington’s new non-compete income threshold will be $126,858.83.
- Action: Review income for employees with non-competes.
- Beginning January 1, 2026, Washington’s salary threshold for administrative, professional, and executive exemptions, will be 2.25x the state minimum wage ($17.13 per hour in 2026) for all employers regardless of size. This rate will continue to grow annually until it reaches 2.5x the state minimum wage in 2028.
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.