Akamai HR Solutions | March 2026 HR & Legal Update

As we move further into Q1, we’re sharing our March 2026 HR & Legal Update to help you stay aligned with recent federal, state, and local employment law changes. While some updates build on last month’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 HR & legal 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. 

Federal

• On February 2,2026, the Department of Labor’s Wage and Hour Division published notice that the minimum wage owed for work performed on or in connection to Federal contracts covered by Executive Order 13658 (“EO 13658”) will increase to $13.65 effective May 11, 2026. Generally speaking, EO 13658 applies to contacts covered by the Davis-Bacon Act and Service Contract Act entered into between January 1, 2015, and January 29, 2022, and not renewed or extended on or after January 30, 2022. The notice indicates that, while the number of contracts subject to EO 13658 have significantly decreased over recent years, there remain some that would not have been considered to be a covered new contract and, as such, are still subject to the EO and its minimum wage rate.

California

• Effective January 1, 2026, California AB 692, makes it unlawful to include contract terms in any agreement with a worker that:
  • Requires the worker to pay an employer, training provider, or debt collector for a debt if the worker’s employment or work relationship with a specific employer terminates; 
  • Authorizes the employer, training provider, or debt collector to resume or initiate collection of or end forbearance on a debt if the worker’s employment or work relationship with a specific employer terminates; or 
  • Imposes any penalty, fee, or cost on a worker if the worker’s employment or work relationship with a specific employer terminates. 
• On Monday, February 2, 2026, California’s Pay data Reporting Portal opened for use. Employers with 100 or more employees are required to submit annual pay data reports through this portal. Reports for covered employers are due by May 13, 2026. Check the state FAQ for help with filing questions.
• On February 6, 2026, the state’s Labor and Workforce Development Agency announced proposed regulations that reflect recent amendments made to the Private Attorneys General Act (PAGA) in 2024. Among other topics, the proposed rules include provisions establishing additional requirements for high-frequency and vexatious PAGA filers, procedures for small employers to cure PAGA violations, the dispute and hearing process for cure claims by small employers, and procedures for all employers to cure wage statement violations. While the LWDA has not yet scheduled a hearing on these proposed rules, the comment period will be open until March 23, 2026, and the Agency has indicated it will hold a hearing if it receives a written request for one from any interested person no later than 15 days before the comment period ends.

Colorado

• The Colorado Department of Revenue adopted a new rule clarifying certain notice requirements. Employers are currently required to provide Form 0995 to all new hires and to all current employees annually. Under the new rule, employers are still required to provide the form under the same circumstances, but now it is expressly required that employers provide the form to each employee individually either in paper or electronic format. If done on paper, the form must be at least 5.5 x 8.5 inches. If provided electronically, the notice must contain the entire written content of the form–sending a link to the form is not compliant.
• On February 1, 2026, COMPS Order #40 took effect. It expands the definition of covered employers to include individuals that own or control at least 25% of an employer, with some exceptions. COMPS Order #40 also expands recordkeeping requirements for vacation and sick leave by requiring employers to maintain records showing the vacation hours accrued, used, and available for use in the current benefit year, as well as the same information for sick leave to the extent those hours are tracked separately from vacation hours.
• Additionally, the definition for minor employees has been amended to cover all individuals under the age of 18 by removing an exception that existed under prior orders for minors with a diploma or GED. The tip credit provisions in COMPS Order #40 have also been updated to reflect that, due to legislation passed in 2025, localities can establish tip credits over the statewide rate of $3.02 per hour.
• Covered employers must include a copy of COMPS Order #40 in their company handbook, manual, or policies and post a copy of the COMPS Order poster in an area frequented by employees. If the work site or other conditions make a physical posting impractical (including private residences employing only one worker, and certain entirely outdoor work sites lacking an indoor area), the employer must provide a copy of the COMPS Order or poster to each employee within their first month of employment and must make it available to employees upon request.

Maryland

• Baltimore: The city of Baltimore recently passed Ordinance 25-078, requiring employers with 2 or more full-time employees in the city to provide reasonable accommodations to pregnant employees, upon request. Effective January 10, 2026, covered employers must develop and implement a written pregnancy accommodation policy that includes the minimum contents identified in the ordinance and include it in their handbook or set of policies if they have one.

Minnesota

• Minnesota recently released new versions of the state’s Workers’ Compensation poster. 
• Duluth: The Duluth City Council recently adopted Ordinance 25-027-O, adding gender identity to the city’s list of protected characteristics. Effective December 11, 2025, employers may not discriminate against anyone on the basis of their gender identity.
• St. Paul: The City published amended Administrative Rules for the Wage Theft Ordinance which clarify requirements for employee wage notices, as well as available penalties and remedies among other items under the Wage Theft Ordinance that took effect January 1, 2025. In particular, the amended rules clarify that, in addition to the preexisting elements, the wage notices that covered employers must provide to employees at the start of their employment, and before any of its information changes, must also identify a regular payday. Employers must keep a record of signed and dated notices confirming each employee received the information at their time of hire, as well as, before any changes to the information take place. The amended rules also clarify an employer’s failure to maintain, retain, or produce when requested; copies of the notices will create a presumption that the employer violated the wage theft ordinance. Additionally, the rules establish a presumption of retaliation if an employer disciplines, discharges, penalizes or otherwise discriminates against an employee within 90 days of their filing a complaint against or suing their employer for wage theft.

Nebraska

• On February 10, 2026, Governor Pillen signed LB 258 which amends the state’s existing wage and hour laws to make several changes related to the minimum wage. In particular, the legislation amends existing law to provide for 1.75% increases to the statewide minimum wage beginning January 1, 2027. Additionally, the amendments allow covered employers to pay new employees a training wage of $13.50 per hour, which will increase by one and one-half percent annually, for their first 90 days if the employees are at least 16 but younger than 20 years old and not a seasonal or migrant worker or an emancipated minor. Employers may continue to pay a training wage for an additional 90-day period if the employee is participating in on-the-job training approved by the Commissioner of Labor that requires technical, personal or other skills necessary for their employment.

New Jersey

• Effective February 16, 2026, New Jersey will terminate the state of emergency declared for the COVID-19 pandemic. Employers will no longer have to comply with the requirements enacted in 2020 (A3848) which prevented employers from terminating or otherwise penalizing employees from taking time off due to having COVID-19.

New York

• On December 19, 2025, New York Governor Hochul signed AB A584C, makes it unlawful to include a “promissory note” in any agreement with an employee that requires the employee to pay the employer or the employer’s agent a sum of money if the employee terminates their employment before a specified period of time. While that bill became effective upon signature, Governor Hochul signed the legislation while directing the legislature to draft amendments to the bill that clarify the bill’s scope. Included in those amendments is a provision delaying the effective date of this law until December 19, 2026.

• New York passed the Trapped at Work Act prohibiting employers from requiring as a condition of employment any worker or prospective worker to execute an employment promissory note. On February 13, 2026, Governor Hochul signed A9452 amending the Act. The law previously applied to agreements with workers including independent contractors and non-employees but is now amended to apply only to employees which is defined as any person employed for hire by an employer in any employment. Additionally, there is now an exception related to tuition repayment for transferable credentials. These agreements must meet specific requirements such as the agreement must be a written contract separate from any contract for employment, it must not require the employee to obtain the transferable credential as a condition of employment, the repayment amount must be disclosed up front and cannot be greater than the employer’s actual expenses, the repayment must be prorated over time and that cannot change because of separation of employment, repayment cannot be required if the employee is terminated unless the employee is terminated for misconduct, among other things. The bill clarifies that aggrieved employees may file a complaint with the Department of Labor. The effective date of the Trapped at Work Act as amended has also been pushed out a year to December 19, 2026.

• • New York’s Governor signed a bill (S8795) amending legislation that was passed in December 2025 (A4727) expanding paid family and medical leave benefits to construction workers. The amendments streamline the writing of the bill, creating a definition for “construction employees” and utilizing that term throughout. Another change made is to the work requirements, adjusting the language in the bill from general employment to having worked the “employer’s normal workweek”. The original bill had expanded these benefits with an immediate effective date of December 19, 2025; however the amendments change the effective date to January 1, 2027.

• New York City: New York City’s Department of Consumer and Worker Protection released proposed rules related to amendments to the City’s Earned Sick and Safe Time Act that take effect on February 22, 2026. The proposed rules include recent amendments to the law requiring employers to provide 32 hours of unpaid sick and safe time and expanding the covered reasons for leave to include workplace violence, public disasters, or providing care to a child. The rules clarify that an employee’s pay statement must include the amount of paid and unpaid time off used and accrued during the pay period, as well as the total balance available to the employee.
• New York City: New York City published a new notice for notifying employees of protected time off requirements under Local Law 145. The notice outlines paid and unpaid time off available to covered employees, including sick, safe, and prenatal leave. While the new protections went into effect on February 22, 2026, employers have until March 24, 2026, to distribute the notice to workers in English and the primary language spoken by the employee (if provided by the city). The notice must be distributed in two ways, both by posting the notice in the workplace and distributing to employees individually by March 24th for existing employees and upon hire for new employees moving forward. As cited in the notice, employers also must distribute their written policy on how to use protected time off and must tell employees how much protected time off they have available on a pay statement or other written document each pay period.

North Carolina

• Holly Springs: On February 17, 2026, the Holly Springs, NC Town Council adopted Resolution No. 26-09 applying all the provisions of the Wake County Nondiscrimination Ordinance within the town of Holly Springs. The Wake County Nondiscrimination Ordinance defines protected class as race, natural hair or hairstyles, ethnicity, creed, color, sex, pregnancy, marital or familial status, sexual orientation, gender identity or expression, national origin or ancestry, National Guard or veteran status, religious belief or non-belief, age, or disability and makes it unlawful for any employer, because of the protected class of any person, to fail or refuse to hire, discharge, or otherwise discriminate against that person with respect to tenure, promotion, transfer, compensation, terms, conditions or privileges of employment, or any other matter directly or indirectly related to employment. The resolution took immediate effect.

Oregon

• Oregon finalized amendments to rule BLI 12-2025 relating to employer obligations to provide rest periods for employees to express milk. Employers must provide reasonable rest periods to accommodate an employee who needs to express milk for the employee’s child 18 months or younger. An employer with 10 or fewer employees is not required to provide rest periods if it would impose an undue hardship on the operation of the employer’s business. If feasible, the employee will take the rest periods to express milk at the same time as the rest periods or meal periods that are otherwise provided to the employee. If not feasible, the employee is entitled to take an unpaid rest period each time the employee has a need to express milk. If the employer is required by law or contract to provide the employee with paid rest periods, the employer will treat the rest periods used by the employee for expressing milk as paid rest periods, up to the amount of time the employer is required to provide as paid rest periods. Employers may, but are not required to, allow the employee to work before or after the employee’s normal shift to make up the amount of time used during the unpaid rest periods. An employer may not require an employee, including an employee who is FLSA exempt, to substitute paid leave time for unpaid rest periods provided in compliance with the rules. Employers must make a reasonable effort to provide the employee with a private location within close proximity to the employee’s work area to express milk. In addition to any other penalty provided by law, the state may assess a civil penalty of up to $1,000 against any person who intentionally violates the rule. The rule became effective on November 6, 2025.

Virginia

• On January 27, the Virginia Court of Appeals issued a decision in Sentry Force Security, LLC v. Barrera regarding the use of employee non-solicitation agreements (agreements that restrict ex-employees from recruiting other employees to leave their employment to work for a competitor). After examining the relevant agreements in this case, the court concluded that employee non-solicitation agreements qualify as non-competition agreements and must be treated the same. This means that employee non-solicitation agreements are only enforceable against employees who (i) are neither attorneys nor physicians, (ii) don’t qualify as low-wage employees, and (iii) have access to the employer’s confidential information they wouldn’t want a competitor to know about.

Washington

• Washington’s Department of Labor and Industries updated its Paid Sick Leave Frequently Asked Questions on February 4, 2024. The FAQs include information like recordkeeping, employer notice and reporting requirements, rate of pay, absence verification, and other guidance helpful to employers.
• On February 4, 2026. Washington’s Department of Labor and Industries updated its guidance on meal and rest break protections for certain healthcare workers. The document addresses meal and rest break requirements for employees working at certain hospitals in a patient care or clinical services and who receive an hourly wage or are covered by a collective bargaining agreement. The guidance was updated to reflect changes to requirements for such employees to waive their breaks implemented under HB1879.

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.