Akamai HR Solutions | September 2026 HR & Legal Update

As we wrap up summer and head into fall, employers continue to see new employment law developments, regulatory activity, and compliance considerations. This month’s HR & Legal Update highlights key federal, state, and local updates to help employers stay informed, keep workplace practices current, and prepare for what’s ahead.

For more resources, including prior HR & legal updates, visit our News & Insights page. If you are reviewing your employee handbook or policies, we can help ensure they’re up to date and compliant. Visit our Handbook page for more information. 

Federal

• The U.S. Department of Labor (DOL) published its Regulatory Flexibility Agenda (Agenda) on August 14, 2026. The Agenda is a subset of the Department’s broader regulatory agenda and is required by the Regulatory Flexibility Act. It identifies regulations that the Department expects to actively consider during the coming year and highlights those that may have a significant economic impact on a substantial number of small entities. The Agenda highlights several wage and hour and employment-related initiatives under consideration including changes to tipped employee and domestic service regulations under the Fair Labor Standards Act (FLSA). While not included in this Agenda, the DOL’s previously released regulatory agenda identified several additional areas where the Agency is targeting regulatory changes, including worker classification and joint employer standards under the FLSA. The Agenda does not impose new requirements but serves as an indicator of potential future regulatory activity.
• On August 21, 2026, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) issued a final rule substantially revising the regulations implementing Section 503 of the Rehabilitation Act. The rule eliminates requirements for covered federal contractors to invite applicants and employees to self-identify as individuals with disabilities, collect related disability data, and evaluate their workforces against the 7% disability utilization goal. According to OFCCP, these changes are intended to align the Section 503 regulations with the Americans with Disabilities Act and recent executive orders. Covered contractors remain prohibited from discriminating against individuals with disabilities and must continue to provide reasonable accommodations and take affirmative action. Most changes take effect September 21, 2026.

California

• On July 8, 2026, the California Civil Rights Department released new guidance addressing workplace disability protections and reasonable accommodation obligations under California law. California law protects job applicants, employees, interns, and volunteers with disabilities and applies to private employers with five or more employees, as well as all public employers; the guidance emphasizes that covered individuals may request reasonable accommodations at any time, are not required to make requests in writing or use specific language, and may seek accommodation for conditions that are temporary, intermittent, in remission, or treated with medication. Employers must promptly begin and participate in the interactive process in good faith, without delaying the accommodation process, and should evaluate the connection between the disability-related need and the requested accommodation in light of the individual’s specific circumstances. The guidance does not create new penalties, but it reinforces CRD enforcement priorities, including recent settlements involving alleged failures to address accommodation requests and improper medical documentation requirements. The guidance was effective upon release.
• San Francisco: On July 7, 2026, the San Francisco Board of Supervisors passed Ordinance 128-26 amending the city’s Fair Chance Ordinance. The amendments prohibit employers from relying on certain out-of-state convictions or arrests for conduct that is lawful in California, including abortion-related healthcare, gender-affirming care, drag performances, and pregnancy loss-related care, when making employment decisions. The ordinance also provides that these offenses cannot be treated as “directly related” convictions, requires employers to withdraw proposed adverse actions when an applicant demonstrates the decision is based solely on one of these protected convictions, and increases administrative penalties and available liquidated damages for violations. The ordinance took effect on August 10, 2026.
• San Francisco: On July 28, 2026, the San Francisco Board of Supervisors passed Ordinance 162-26 amending the City’s Paid Parental Leave Ordinance. The Ordinance modifies only one of the requirements for receiving supplemental paid parental leave compensation by reducing the minimum length-of-service requirement from 180 days to 90 days before the start of leave; all other eligibility requirements remain unchanged. The reduced service requirement will be phased in based on employer size. Employers with 100 or more employees must continue using the 180-day requirement through December 31, 2026; employers with 35 to 99 employees through June 30, 2027; and employers with 20 to 34 employees through December 31, 2027. After those phase-in periods expire, covered employees will qualify after 90 days of employment. Updated content is expected to be released on the San Francisco Office of Labor Standards Enforcement’s Paid Parental Leave Ordinance webpage.

Colorado

• Colorado’s HB26-1272 takes effect August 12, 2026, extending the state’s extreme-temperature worker protections, previously limited to agricultural workers, to indoor and outdoor employees in all industries. The law directs the Division of Labor Standards and Statistics to begin collecting data on temperature-related workplace injuries and illnesses by January 15, 2027, and to publish a model temperature-related injury and illness prevention plan by July 1, 2028.
• Colorado’s Automated Decision-Making Technology (ADMT) Act, as amended by Senate Bill 26-189, regulates “automated decision-making technology” used to materially influence consequential decisions. It imposes requirements on both developers and deployers of such systems and grants consumers the right to request and correct inaccurate personal data used by ADMT. The Colorado Attorney General’s Office must adopt rules to clarify and implement the law before its effective date of January 1, 2027. On August 11, 2026, Colorado’s DOL filed the Automated Decision-Making Technology & Conversational Artificial Intelligence Service rules with the Secretary of State. A public comment period is now open through October 26, 2026. If the formal rulemaking hearing continues beyond October 26, 2026, the comment period will continue through the last day of the formal rulemaking hearing.

Georgia

• Effective August 9, 2026, Georgia amended several unemployment insurance notice rules (300-2-4-.10, 300-2-7-.06, and 300-2-7-.15) to modernize delivery and clarify enforcement. The changes encourage electronic delivery of separation notices to employees and electronic filing of individual separation notices or mass separation notices, allow electronic signatures, add recordkeeping expectations for electronic delivery, and permit electronic employee poster notices in limited remote-work circumstances while maintaining physical posting as the default for traditional worksites.

Hawaii

• Hawaii enacted HB 1960, establishing human trafficking prevention requirements for the transient accommodations sector, which provides short-term lodging to guests. The Department of the Attorney General must develop a human trafficking awareness training program by July 1, 2027. The program will cover indicators of human trafficking, reporting procedures, and available resources. Transient accommodations employers and third-party contractors must develop and implement written human trafficking prevention policies by September 1, 2027, and begin providing the required training by December 1, 2027. Covered employees and contract workers must complete the training within 180 days after beginning employment or placement and at least once every two years thereafter. Employers and contractors must maintain training records and, beginning January 1, 2028, post signage provided by the department. Good-faith compliance provides certain liability protections, while violations may result in civil penalties of up to $100 per offense for each day the violation continues.

Illinois

• On July 31, 2026, Governor Pritzker signed HB 4725 expanding the Attorney General’s authority to investigate and enforce violations of wage and hour, workplace safety, worker classification, and other employment laws. The law grants broad investigative powers, including subpoenas, workplace inspections, employee interviews, and administrative inspection warrants, while allowing the Attorney General to seek restitution, injunctive relief, and civil penalties. The measure primarily increases enforcement authority rather than creating new employer obligations. The Act takes effect on January 1, 2027.
• On July 31, 2026, Governor Pritzker signed HB 4844 amending existing law to require employers with more than 25 employees to pay employees their regular rate of pay while serving on jury duty. The law maintains existing protections against retaliation for jury service and allows employees to recover damages, reinstatement, and attorney’s fees for violations. The Act takes effect on January 1, 2027.
• On July 31, 2026, Governor Pritzker signed SB 3777 amending the Illinois Human Rights Act (which applies to employers with 1 or more employees) to codify into statute disparate impact liability. SB 3777 makes it a civil rights violation for any employer, employment agency, or labor organization to use criteria or methods that have the effect of subjecting individuals to discrimination on the basis of unlawful discrimination, citizenship status, family responsibilities, work authorization status, arrest record, or conviction record. Such criteria or methods are unlawful if (i) the respondent fails to demonstrate that the criteria or methods are job related for the position in question and consistent with business necessity or (ii) the respondent demonstrates that the criteria or methods are job related for the position in question and consistent with business necessity and the complainant demonstrates that the business necessity could be served by another employment practice that has a less discriminatory effect. The Act takes effect on January 1, 2027.
• On August 7, 2026, Governor Pritzker signed HB 4758 amending the Job Opportunities for Qualified Applicants Act to address the use of driver’s license requirements in job postings. It restricts employers covered by the above act (those with 15 or more employees) and employment agencies from requiring a valid driver’s license in job postings unless driving is an essential function of the position and a business necessity. Specifically, the new law adds a definition of driver’s license to the current Act and a new section with a requirement to include an explanatory description when a license is required. The amendments take effect on January 1, 2027.
• On August 7, 2026, Governor Pritzker signed HB 5284 amending the Illinois Human Rights Act to define “menopause-related condition” to mean perimenopause, menopause, and associated medical or symptomatic conditions, including, but not limited to, vasomotor symptoms, sleep disruption, cognitive or mood changes, and osteoporosis-related changes. The definition of “pregnancy” was also amended to include menopause-related conditions, making those conditions subject to existing pregnancy and reasonable accommodation protections in employment. Reasonable accommodations under the Illinois Human Rights Act were also modified to include flexible scheduling or modified work hours and temperature or climate-adjusted workspace. These amendments take effect on January 1, 2027.
• On August 7, 2026, Governor Pritzker signed HB 5090, creating the Transportation Network Driver Labor Relations Act. The law establishes a new collective bargaining framework for transportation network drivers and transportation network companies, granting eligible drivers the right to organize and bargain on a sector-wide basis over compensation, benefits, deactivation procedures, and other working conditions. It also creates new obligations for covered transportation network companies, including bargaining requirements, driver notice obligations, and compliance with state oversight and enforcement provisions. The Act authorizes the Illinois Labor Relations Board to pursue remedies for violations, including cease-and-desist orders, reinstatement of improperly affected drivers, back compensation, liquidated damages in cases of egregious misconduct, attorney’s fees, and injunctive relief. The law took immediate effect upon signing.
• On August 21, 2026, Governor JB Pritzker signed SB 807, establishing a new reporting requirement for certain large-scale layoffs and separations. Beginning January 1, 2027, employers with at least 75 employees in Illinois that conduct a layoff or separation affecting 50 or more employees at a single site of employment must submit specified information to the Illinois Department of Employment Security. Required information includes the affected employees’ names, Social Security numbers, separation dates, and anticipated return-to-work dates, if applicable. Employers must submit the information as soon as practicable before the separations begin. An employer that willfully fails to comply may be assessed a civil penalty of up to $750 per day. The requirement does not apply to certain construction industry employers whose employees are covered by a bona fide collective bargaining agreement.

Maryland

• Governor Moore signed HB 1016 on April 28, 2026, limiting the enforcement of noncompete agreements against licensed architects in Maryland. Under the law, a noncompete clause is void and unenforceable against a licensed architect if the employer relocates the majority of its workforce or its principal place of business outside of Maryland. This law is effective October 1, 2026.

Massachusetts

On August 5, 2026, Governor Healey signed HB 5620, a bill addressing civil immigration enforcement in Massachusetts. Among many other provisions, Section 8 amends Massachusetts General Laws chapter 149, section 19C, to require each employer, except as required by federal law, to provide written notice to each employee within 48 hours after receiving a notice of inspection from United States Immigration and Customs Enforcement for Form I-9 employment eligibility verification forms or other employment records. The new Act, framed as an emergency law, generally took effect immediately upon enactment, including the provision noted above.

Michigan

• On July 23, 2026, Governor Whitmer signed HB 5233, establishing Military First Responder Paid Leave for full-time law enforcement officers and firefighters who also serve in the military or National Guard. Eligible first responders are entitled to at least 26 days of paid military leave each year, allowing them to fulfill training and deployment obligations without using vacation days or taking unpaid leave.

Minnesota

• Saint Paul: On August 12, 2026, the Saint Paul City Council adopted Ordinance 26-31, eliminating the city’s 90-day youth minimum wage. Under current law, eligible employees ages 14 through 17 may be paid 85% of the applicable city minimum wage during their first 90 days of employment. Beginning January 1, 2027, youth employees generally must receive the full applicable city minimum wage from the start of employment unless a specific exception applies, such as participation in certain city-approved youth training or apprenticeship programs.

Missouri 

• Missouri enacted HB 2366, expanding the state’s authority to enforce laws concerning the employment of unauthorized workers and the classification of workers on public works projects. The law authorizes the Missouri Attorney General to investigate alleged violations. Employers that knowingly employ unauthorized workers may face injunctions, substantial monetary penalties, and the suspension of state-issued licenses, permits, or exemptions. The law also provides certain liability protections to employers that report suspected violations and establishes an affirmative defense for employers that participate in a federal work authorization program and satisfy other applicable requirements. The changes take effect August 28, 2026.

North Carolina

• On August 11, 2026, Governor Stein signed SB 445 which, among other items, creates the Voluntary Portable Benefits Plan Act. The law allows businesses to make voluntary contributions to portable benefit accounts for independent contractors who opt-in through a written agreement provided they may opt out at any time. Eligible benefits include health, disability, life insurance, and retirement-related products. Under the law, providing these benefits will not be seen as evidence of an employment relationship under North Carolina labor, unemployment insurance, or workers’ compensation laws. The Act takes effect on January 1, 2027.

Ohio

• Governor Dewine recently signed HB 455 updating requirements related to the employment of minors under the age of 16. The bill revises the age and schooling certificate process and requires a parent or legal guardian to sign a minor work-hour notification form as part of the certification process. The law takes effect on October 9, 2026.

Pennsylvania

• Governor Shapiro signed HB 1286 (Act 31 of 2026) on July 21, 2026, requiring hotels, motels, short-term rental operators, and online lodging platforms to provide human trafficking awareness training to employees and contract workers who have guest contact or access to guest rooms. Covered workers must complete refresher training every two years, and violations carry escalating fines of $100 for a first offense, $250 for a second offense within 90 days, and $500 per day for subsequent violations. The law takes effect 60 days after signing, on approximately September 19, 2026.
• In July Governor Shapiro signed HB 1286 amending the state’s Human Trafficking Hotline Notification Act by requiring human trafficking awareness training for employees and contractors of covered hotels, motels, and other public lodging establishments, as well as certain short-term rental operators and third-party listing platforms. Covered entities will need to ensure training is completed within 90 days of the effective date of these requirements for existing employees and contractors or within 90 days of hire or contract commencement thereafter. Covered entities must also maintain training records and provide documentation upon request. The bill establishes graduated enforcement measures, including warnings, cure periods, administrative fines, potential license suspension, and criminal penalties for continued noncompliance. The Pennsylvania Commission on Crime and Delinquency would be responsible for approving and publishing qualifying training programs. The amendments go into effect July 20, 2027.

 

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.