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
Trump Administration Revokes Biden’s Executive Order on Non-Competes
- On July 9, 2021, President Biden signed an executive order encouraging the FTC to limit the unfair use of non-competes. The FTC published a rule in April 2024 that created a nationwide ban.
- Courts quickly pushed back. The U.S. District Court for the Middle District of Florida issued a narrow injunction, followed by the Northern District of Texas, which vacated the rule entirely (Ryan LLC v. FTC, N.D. Tex. 2024).
- The FTC appealed, but the Trump administration stayed those appeals in March 2025 and has now revoked Biden’s order. This strongly signals that the ban will not move forward.
- Even so, FTC Chair Ferguson has indicated the agency may still pursue non-compete cases where agreements appear deceptive, abusive, or anticompetitive.
California
Labor Commissioner Granted New Investigatory Powers
- Beginning January 1, 2026, the California Labor Commissioner will have authority to investigate employers accused of tip theft, giving the agency stronger enforcement tools on wage theft claims.
Delaware
Amendments to the Crime Victim Bill of Rights
- On August 20, 2025, Governor Meyer signed Senate Bill 17, effective immediately. The law broadens definitions and enhances confidentiality/safety protections for victims.
Paid Leave Program Final Regulations
- Final Regulations took effect on August 11, 2025, these rules clarify how to calculate average weekly wage, determine employer size, apply private plans, and review the 24-month benefit period.
Florida
Minimum Wage Increase
- Effective September 30, 2025, the state minimum wage rises from $13 to $14 per hour.
- The tipped cash wage increases to $10.98.
- Employers must post updated minimum wage posters once released by the state.
Illinois
Equal Pay Registration Certificate Requirement Expanded
- As of June 30, 2025, Illinois employers with 100+ employees must obtain an Equal Pay Registration Certificate, regardless of whether they file EEO-1 reports.
Nursing Mothers Act Amendment
- Effective January 1, 2026, employers with five or more employees must pay mothers during nursing breaks at the regular rate and cannot require employees to draw on paid leave.
Increased Administrative Fines for Wage Non-Payment
- Effective August 1, 2025, Illinois employees may be subject to the following administrative fees:
- $500 if wages owed ≤ $3,000 (previously $250)
- $750 if > $3,000 but < $10,000 (previously $500)
- $1,250 if ≥ $10,000 (previously $1,000)
Military Leave Law Effective
- Reminder: changes to Illinois’ military leave entitlements became effective August 1, 2025.
Day Care Background Check Requirements
- Effective January 1, 2026, new hires/volunteers working pending background checks must be supervised; renewals extended from three to five years.
Workplace Transparency Act Amendments
- Effective January 1, 2026, employment agreements may not go against public policy and include any of the following:
- Restrict protected concerted activity
- Shorten limitations periods
- Require out-of-state law or venue for Illinois claims
- Employees may now recover consequential damages for violations.
Anti-Retaliation Protections for Crime Reporting
- Effective January 1, 2026, employers may not retaliate against employees using employer-issued devices to record crimes of violence. Employers must maintain access to related recordings.
Expanded Blood & Organ Donation Leave
- Beginning January 1, 2026, part-time employees gain eligibility for paid blood/organ donation leave.
Family NICU Leave Act
- Effective June 1, 2026, the Family Neonatal Intensive Care Leave Act provides unpaid time off to employees while their child is in a neonatal intensive care unit:
- 16–50 employees: 10 days unpaid leave
- 51+ employees: 20 days unpaid leave
- Employers must maintain insurance, reinstate employees, and may face penalties up to $5,000 per violation.
Maine
Incremental Family Leave Updates
- Effective September 23, 2025, SP 383, employees must be allowed to take family/medical leave in increments of at least one workday (shorter increments only by mutual agreement). Employees are not allowed to take less than one hour.
Report-to-Work Pay
- Beginning September 24, 2025, employers with 10+ employees must pay employees for canceled/reduced shifts as follows: the lesser of two hours’ pay or the originally scheduled shift.
PLFAR Accrual Cap Reminder
- Increased accrual caps become effective September 24, 2025.
Maryland
FMLA & Parental Leave Exemption
- Effective October 1, 2025, Maryland employers may qualify for exemption from federal FMLA and state unpaid parental leave laws.
Michigan
Sick Leave for Small Employers
- Starting October 1, 2025, Michigan employers with ≤10 employees must comply with the state’s new sick leave law. A detailed state FAQ is available.
Missouri
Sick Leave Law Repealed
- Effective August 28, 2025, HB 567 repealed Missouri’s new sick leave law. Employers are no longer required to provide state-mandated sick leave.
Montana
Emergency Service Provider Protections
- Effective October 1, 2025, new employment protections for emergency service providers go into effect.
Nebraska
Sick Leave Law Effective October 1
- Employers must comply with Nebraska’s new sick leave law and display/post required notices by September 15, 2025.
Ohio
Mini-WARN Act
- Effective September 29, 2025, Ohio’s WARN Act requires a 60-day notice for mass layoffs (50+ employees at one site) when the employer has 100+ employees working 4,000+ combined hours weekly. Federal WARN still applies.
Oregon
Clarification of Family Leave
- Effective September 28, 2025, an amendment to unpaid childcare leave applies only to an employee’s own child (under 18 or with a serious impairment). Employers may require medical certification to return.
Pre-Employment Age Inquiry Ban
- Effective September 28, 2025, Oregon employers may not ask applicants about age during hiring.
Expanded Lactation Rights for Agricultural Workers
- Governor Kotek signed HB 2541, effective May 7, 2025, granting seasonal agricultural workers the right to express milk in the workplace.
Rhode Island
Overtime & Premium Pay Rule Changes
- Effective August 17, 2025, the DLT redefined “retail business” and confirmed that exemptions from holiday/Sunday premium pay can no longer be granted.
Texas
Definition of Sex under HB 229 (“Women’s Bill of Rights”)
- In June, Governor Abbott signed HB 229, effective September 1, 2025, sex is defined by biological characteristics under Texas law. State protections for gender identity are curtailed, though federal protections (e.g., Title VII) remain.
Non-Compete Restrictions for Physicians
- Reminder: restrictions on physician non-competes became effective September 1, 2025.
Employer Takeaways
- Update required posters & notices
- Florida: Post the new minimum wage poster by September 30, 2025 ($14.00; tipped cash wage $10.98).
- Nebraska: Deliver the written sick-leave notice to current employees by September 15, 2025, and post the new sick-leave poster by October 1, 2025.
- Revise leave and time-off policies
- Illinois: Add NICU leave (effective June 1, 2026), paid lactation breaks (effective January 1, 2026), and paid blood/organ donation leave for part-time employees (effective January 1, 2026).
- Maine: Ensure family/medical leave can be taken in at least one-day increments (never less than one hour absent mutual agreement).
- Michigan: Implement the small-employer sick-leave requirements (effective October 1, 2025).
- Oregon: Apply the clarification that unpaid child-care leave is limited to an employee’s own child (or qualifying impairment) and allow fitness-for-duty certification on return.
- Update EEO/hiring policies
- Texas (HB 229): Align policy language, records, and facilities usage to the state’s biological-sex definition, while preserving compliance with federal Title VII.
- Oregon (age inquiries): Remove age-seeking questions from applications and interviews; adjust recruiter training and ATS filters.
- Audit agreements & templates (Illinois)
- Update offer letters, handbooks, and standalone agreements to comply with the Workplace Transparency Act amendments (no restriction on protected concerted activity, no shortened limitations period, no out-of-state law/venue for IL claims). Note exposure to consequential damages.
- Review wage/hour practices
- Illinois: Prepare for increased administrative fees tied to unpaid-wage orders; tighten payroll and final-pay procedures.
- Maine: Implement report-to-work pay rules and manager protocols for same-day cancellations/reductions.
- California (tips): Before January 1, 2026, review tip-pooling policies, timekeeping, and complaint intake in anticipation of expanded Labor Commissioner investigations.
- Plan for Ohio’s Mini-WARN (effective September 29, 2025)
- Confirm coverage (100+ employees working 4,000+ aggregate hours/week), build a state + federal WARN notice checklist, and map triggers for 50+ affected employees at a single site within 30 days.
- Monitor non-competes
- Keep non-compete/non-solicit templates state-law compliant; expect continued FTC scrutiny of abusive agreements notwithstanding the revocation of the prior Executive Order. For Texas physicians, apply the new physician non-compete restrictions now in effect.
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.