Akamai HR Solutions | May 2026 HR & Legal Update

We’re sharing our May 2026 HR & Legal Update, which highlights notable federal, state, and local employment law developments, key compliance deadlines, and practical guidance to help employers stay current, reduce risk, and make informed decisions.

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

• ICE has updated a Fact Sheet entitled Form I-9 Inspection Under the Immigration and Nationality Act §274A moving some former Technical Failures into the category of Substantive Paperwork Violations. Form I-9 paperwork issues that fall under the technical category are typically correctable errors, however violations that fall in the substantive category immediately lead employers to receiving monetary penalties. Examples of former technical errors that now fall into the substantive category include, but are not limited to, missing a date of birth in Section 1, Failure to date Section 1, improper use of the Spanish Form I-9. Electronic Form I-9 software is also called out in the fact sheet, stating that if the system fails to meet the standards outlined for electronic systems, that will also result in a substantive violation. The Fact Sheet was revised on March 16, 2026.
• On April 23, 2026, the U.S. Department of Labor Wage and Hour Division issued a proposed rule titled Joint Employer Status Under the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker Protection Act. The proposal would create a uniform, nationwide standard for determining when multiple entities qualify as joint employers under federal wage and hour and leave laws.
  • The proposed rule identifies two primary joint employment frameworks. Vertical joint employment applies where multiple entities benefit from the same employee’s work. Horizontal joint employment applies where separate entities are sufficiently related or associated with, such that they jointly employ a shared employee.
  • To evaluate vertical joint employment, the rule outlines four key factors: whether the potential joint employer hires or fires the employee, supervises or controls work or employment conditions to a substantial degree, determines the employee’s pay or method of payment, or maintains employment records.
  • For horizontal joint employment, the rule highlights three common scenarios: where employers have an arrangement to share an employee’s services; where one employer acts in the interest of another with respect to the employee; or where the employers share control due to common ownership or control relationships.
  • Where joint employment exists, each employer may be held jointly and severally liable for compliance with the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker Protection Act.
  • The proposed rule is subject to a 60-day public comment period, ending June 22, 2026.

Alabama

• Alabama has increased penalties for employers that fail to obtain required child labor certifications for employees ages 14–17. Employers may be fined $50 per minor employee for each violation. The change reinforces existing certification requirements and increases the cost of noncompliance. The law takes effect October 1, 2026.

Florida

• On April 22, 2026, Governor DeSantis approved SB 1134 prohibiting counties and municipalities from adopting or promoting diversity, equity, and inclusion (DEI) policies or programs. Existing DEI-related measures are void under the law. However, employers may still use equal employment opportunity materials that inform individuals about anti-discrimination protections under state or federal law. The law takes effect January 1, 2027.

Iowa

• On March 10, 2026, Governor Reynolds signed SB 579 prohibiting local governments from enacting ordinances broader than or with different categories of unfair or discriminatory practices than those provided in the Iowa Civil Rights Act. The bill took effect immediately upon signing.

Kansas

• On April 6, 2026, Governor Kelly signed HB 2602 which, among other changes, amends existing law to exclude any contributions made by a hiring party into a portable benefit plan of an independent contractor from the criterion used to determine a worker’s classification. Portable benefit plans are administered by third parties that are chosen by the independent contractor and do not include benefit plans administered by the hiring party. The legislation takes effect on July 1, 2026.

Maine

• • The governor signed House Bill 1425 amending the existing law for employer drug testing rules. The amendments include stronger protection for workers, explicitly allowing them to contest a non-negative test result by providing a legitimate medical explanation. Additionally, the amendments require that any confirmed positive result be delivered to an employer by a medical review officer. The amendments will go into effect 90 days after April 14, 2026. Importantly, employers are required to provide 60 days’ notice to employees of any change to the drug testing policy and must deliver the policy to them within 30 days of the change’s effective date.
• On April 24, 2026, Governor Mills signed HB 18 establishing pay transparency requirements for employers in Maine. Employers with 10 or more employees will be required to include pay ranges in job postings, unless compensation is based solely on commission. Employers must also provide pay range information to employees upon request and maintain records of employee positions and pay history during employment and for three years after termination. The Department of Labor is responsible for enforcement, with appropriations provided for one Labor and Safety Inspector position and related costs for enforcement. The law will become effective 90 days (estimate: 7/28/26) after legislative adjournment (projected: 4/29/26).

Nebraska

• On April 14, 2026, Governor Pillen signed LB 921 adopting the Nebraska Worker Adjustment and Retraining Notification Act. An employer who plans a business closing or a mass layoff shall not order such action until the end of a ninety-day period which begins after the employer serves written notice of such action to the affected employees or their representatives and to the state Department of Labor. Employers who have previously announced and carried out a short-term mass layoff of six months or less which is extended beyond six months due to business circumstances not reasonably foreseeable at the time of the initial mass layoff is required to give notice when it becomes reasonably foreseeable that the extension is required. Notice must be in written format and provided in any reasonable method of delivery that is designed to ensure receipt of notice. The notice must contain extensive information detailed in the Act. Exceptions to the ninety-day period apply to business closings and mass layoffs in certain circumstances. The ninety-day notice requirement may be reduced by the number of days for which severance payments or wages in lieu of notice are paid by the employer to the employee for workdays occurring during the notice period. A severance payment or wages in lieu of notice shall be at least an amount equivalent to the regular pay the employee would earn for the workdays occurring during the notice period. An employer who violates this act shall be subject to a civil penalty of not more than one hundred dollars for each day of the violation. This Act goes into effect on August 30, 2026.
• On April 14, 2026, Governor Pillen signed LB 847 which, amends existing law to require employers of minor employees to keep the minor employee’s employment certificate for 12 months after their employment terminates or the employee turns 16. The legislation will take effect three months and one day after the legislature adjourned on April 17, 2026.
• On April 14, 2026, Governor Pillen signed LB 921 amending existing law to require employers with more than 5 percent (down from 10 percent) of their employees are non-English speaking employees who speak the same non-English language to make an interpreter available at each worksite and shift. If a Spanish-speaking interpreter is needed, the employer shall select an interpreter from a list of interpreters developed by the commissioner. If an interpreter is needed for a language other than Spanish, the employer shall select an interpreter capable of explaining and responding to questions regarding the terms, conditions, and daily responsibilities of employment. Employers must also Employ an individual who shall serve as a referral agent to community services for the non-English-speaking employees. The name of the individual serving as the referral agent shall be provided at each worksite. Such information shall be provided in the language of the non-English-speaking employees. The primary responsibility of the referral agent shall be to develop and maintain a list of contact persons and agencies, telephone numbers, and addresses of the community services provided within the community where the relevant worksite is located. The referral agent shall assist non-English-speaking employees in working with and through those services. These amendments go into effect on August 30, 2026.

Oklahoma

• The Oklahoma legislature enacted a bill (HB 3127) amending the existing medical marijuana law to clarify employer rights under workplace drug policies. Employers may take adverse action, including refusing to hire or terminating an employee for a positive marijuana test, if the action is consistent with a lawful written drug and alcohol policy. The law also updates the definition of safety-sensitive positions and permits zero-tolerance policies for those roles. The amendments take effect November 1, 2026.

Oregon

• On March 31, 2026, Governor Kotek signed HB 4111 making it an unlawful practice for an employer to discharge an employee or in any manner discriminate, retaliate or otherwise take adverse action against an employee because the employee updates or attempts to update the employee’s personal information based on a lawful change in the employee’s federal employment authorization documentation. It is not unlawful for an employer to take actions necessary to comply with federal employment authorization verification requirements. Under the law, an employer is not considered to have engaged in an unlawful practice solely because a third-party benefit administrator independently takes adverse action in response to changes in the employee’s personal information or federal employment authorization. These provisions will take effect on June 5, 2026.
• On April 1, 2026, an Oregon court clarified that employees are also protected from retaliation simply for asking for a raise, even where there is no claim of pay inequity or class-based discrimination. Mirkovic v. Tenasys Corp., 348 Or App 70 (2026).

Tennessee 

• Governor Bill Lee signed a bill to amend the state’s employment eligibility law. The existing law requires employers with six or more employees to either: 
  • Keep copies of the employment eligibility documents they were shown to complete the employee’s Form I-9 upon hire, or 
  • Enroll in E-Verify, which also requires and employer to make copies of identity and work authorization documents. 
  • The amendments change the definition of “private employer”, lowering the threshold from six down to one employee. If an employer violates the law, the state may suspend the employer’s business license upon the first and second violation. Upon a third violation, the employer’s business license may be suspended permanently. The law goes into effect on January 1, 2027, and applies to any new hires on or after that date.  

Virginia

• On April 13, Virginia passed new restrictions on non-compete agreements (SB 170). Under SB 170, for a non-compete to be enforceable against employees who are terminated without cause, employers must provide severance benefits to those employees. The law doesn’t provide exceptions for highly-compensated employees or even the sale of a business. So, if your employee non-compete falls within the definition of a non-compete under the law, this restriction applies. These changes take effect July 1, 2026.
• On April 8, 2026, Virginia Governor Spanberger signed SB 1, amending the state’s minimum wage schedule to increase to $15 per hour by 2028. The new schedule requires a minimum wage of $13.75 per hour starting January 1, 2027, and $15 per hour starting January 1, 2028. After that, minimum wage will increase based on an increase in the Consumer Price Index.
• On April 8, 2026, Governor Spanberger signed HB 20 and SB 121 amending existing law to remove farm employees and laborers from the list of employees that are excluded from the state’s minimum wage law. As a result of the legislation, beginning January 1, 2027, farm employees and laborers will be considered to be employees who are entitled to receive the state’s minimum wage for all hours worked.
• Governor Spanberger signed legislation (SB 100) providing employment protections for volunteer emergency responders. Employers cannot discharge, discipline, threaten, discriminate against, penalize or retaliate against an employee for failure to report to work because they are responding as a volunteer emergency responder to an emergency alarm or state emergency. Employees are required to notify their employer of their absence due to response to a covered emergency at least one hour before they are scheduled to report to work and must provide required documentation upon return to work. Employers are not required to pay an employee when they are absent due to covered reasons, however, an employee may request to use a vacation day or sick leave if they have such leave available. If an employer violates this law, an employee may bring civil action against them and the employer may be required to reinstate the employee and provide compensation for lost wages, benefits, and other renumeration with interest, and cover reasonable attorney fees and costs. These protections go into effect on July 1, 2026.
• Virginia enacted House Bill 1092 to strengthen workplace protections related to heat illness. The law adds a new section to the Code of Virginia, directing the Safety and Health Codes Board to adopt enforceable standards to protect workers from heat-related medical conditions, both indoors and outdoors, including by requiring employers to develop heat illness prevention plans. The Board must finalize regulations by May 1, 2028, using existing draft standards and guidance from federal and state occupational safety authorities, with input from a stakeholder advisory panel.
• On April 13, 2026, Governor Spanberger signed SB 637 to amend Virginia’s Human Rights Act to include more employers and increase the statute of limitations. The definition of employer has been amended to mean a person employing 5 (decreased from 15) or more employees for each working day in each of 20 or more calendar weeks in the current or preceding calendar year. The timeframe for filing a complaint alleging unlawful discrimination with the Office of the Attorney General has been increased from 300 days to 2 years. These amendments go into effect on July 1, 2026.
• On April 22, 2026, the state enacted identical bills HB 627 and SB 128 when both parts of the legislature accepted the governor’s recommended amendments, establishing prohibitions for employers entering into, enforcing, or threatening to enforce covenants not to compete with health care professionals in addition to existing protections for low-wage employees. The bill defines “health care professional” as any person licensed, registered, or certified by the Board of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work. There are exceptions in certain circumstances related to the sale of a business. Additionally, nothing in the law prohibits employers of health care professionals from including provisions in employment agreements that require repayment for all or a prorated portion of recruitment-related costs, including relocation expenses, signing or retention bonuses, and other remuneration provided to induce relocation or establishment of a practice in a specified geographic area, as well as recruiting, education, or training expenses from a departing health care professional who has been employed for fewer than five years, or from requiring a health care professional, for the benefit of an employer and for a stated period of time following termination, to refrain from soliciting or attempting to solicit any business from any of such employer’s customers except for any notice or communication as required by state or federal law. Nothing in this act invalidates, alters, or otherwise affects any contracts, covenants, or agreements entered into or renewed prior to July 1, 2026.
• After the Governor’s recommendations on the bills were accepted and the legislation was returned to her office, Governor Spanberger approved HB 27 and SB 28 which amend the state’s existing law to expand overtime protections to cover domestic workers, requiring employers to pay one and one-half times the regular rate for hours worked over 40 in a workweek. Domestic workers include individuals performing household services in private homes. The law is contingent on reenactment in 2027 and, if reenacted, will take effect July 1, 2028.
• Virginia companion bills HB 1207 and SB 2 have been enacted, creating a statewide Paid Family and Medical Leave insurance program for employees in the state of Virginia. The program will offer Virginia employees up to 12 weeks of paid, job-protected leave for covered reasons. Contributions from both employees and employers will fund the program, with contributions starting on April 1, 2028 and benefits available on December 1, 2028. The Virginia Employment Commission (VEC) will administer the program and will set the contribution rate each year. The VEC has already released a PFML FAQs document.
• On April 22, 2026, the state enacted identical bills HB 636 and SB 215 when both parts of the legislature accepted the governor’s recommended amendments, establishing prohibitions on employers from seeking or relying on the wage or salary history of prospective employees and requiring employers to disclose good faith wage or salary ranges in all job postings – internal and external. In addition, employers may not retaliate against prospective or current employees for refusing to provide wage history or requesting pay range information. The Attorney General is empowered to bring civil enforcement actions, with civil penalties of up to $1,000 for first violations and up to $5,000 for subsequent violations. Legal and equitable relief is also available to employees through private causes of action within one year of a violation; however, employers can correct posting violations within 15 business days of written notice before private actions may proceed. Both laws go into effect on July 1, 2026.
• After the legislature accepted the Governor’s recommendations, on April 22, 2026, Governor Spanberger approved HB 238 which makes several amendments to the state’s wage and hour laws. Among other changes, the legislation modifies the penalties available to employees whose employers fail to pay them overtime wages and for workers misclassified as independent contractors to allow the recovery of unpaid wages plus an equal amount in liquidated damages plus triple damages for employers that knowingly failed to paid wages in accordance with state law. For actions to recover unpaid wages that begin on or after July 1, 2026, the legislation establishes a good faith defense employers may claim provided they cured the violation by paying all wages unlawfully withheld within 14 days of being notified. Additionally, the legislation establishes a three-year statute of limitations for actions to recover unpaid overtime. The legislation also requires employers to retain paystubs or an online accounting for at least three years after the date of the work performed. The legislation takes effect on July 1, 2026.

West Virginia

• On April 1, 2026, Governor Morrissey signed HB 4009 amending existing law to exclude any portable benefit contributions made by a business from the factors considered when determining a worker’s classification as an employee or independent contractor for purposes of coverage by the state’s employment laws and regulations. Under the law, portable benefit plans are considered to be third-party plans that offer, but are not limited to, health, life, and disability insurance, as well as retirement benefits. The legislation takes effect on June 12, 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.