July Industry News

July: Industry News & Updates

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Maine Updates Employer Substance Use Testing Requirement

Effective July 29, 2026,Maine House Bill 1425(An Act to Update Employer Substance Use Testing Policy Requirements) modernizes Maine’s long‑standing workplace drug and alcohol testing laws. While the statute continues to strictly regulate when and how employers may conduct drug and alcohol testing, the amendments give employers additional testing flexibility while reinforcing employee protections and oversight by the Maine Department of Labor.

Expanded and Renamed Categories of Permitted Testing

The revised law retains pre‑employment testing and updates existing testing categories while adding new ones. Testing previously referred to as “probable cause” testing is now expressly defined as reasonable suspicion testing, which must be based on specific, observable facts suggesting impairment and may not rely solely on anonymous tips, off‑duty conduct, or a single workplace accident without accompanying signs of impairment. The law also authorizes criteria‑based testing, allowing employers to test based on neutral, predefined events such as promotions, anniversaries, or client‑ or site‑access requirements that are unrelated to suspected substance use. In addition, the statute clarifies that random testing must use a neutral selection process that gives all covered employees an equal chance of selection.

Employers’ written substance use testing policies must clearly identify which positions are subject to criteria‑based or random testing, and those policies must continue to receive approval from the Maine Department of Labor before implementation.

Revised Test Result Handling and Medical Review Officer Role

H.B. 1425 replaces the concept of a “positive test result” with a “non‑negative test result,” reflecting modern testing protocols that require confirmatory review. Applicants and employees must be given the opportunity to discuss any legitimate medical explanation for a non‑negative result with a medical review officer (MRO) or the confirmation laboratory. Only an MRO may report a confirmed positive result to the employer, and the MRO is prohibited from disclosing any underlying medical conditions. Employers must also ensure that collection facilities and laboratories can accommodate employee requests for blood sample testing at the time of collection.

The law expressly recognizes lawful medical marijuana use as a legitimate medical explanation for a non‑negative test result, reinforcing Maine’s protections for off‑duty marijuana use and limiting employers’ ability to take adverse action based solely on marijuana test results.

Shortened Rehabilitation Period and Follow‑Up Testing

The statute shortens the maximum rehabilitation program period following a first confirmed positive result from six months to twelve weeks. Employees must still be given the opportunity to participate in rehabilitation before adverse employment action may be taken, but the cost of rehabilitation is now solely the employee’s responsibility. After an employee successfully returns to work, employers may require one unannounced follow‑up test conducted between 90 days and one year after the prior test. Consistent with prior law, termination after a first‑time positive test remains prohibited.

Additional Compliance and Oversight Requirements

Employers that intend to discontinue testing under an approved policy must provide written notice to the Department of Labor and may not resume testing until the Department is notified again. Labor‑organization testing programs now require Department of Labor approval, adding a new layer of regulatory oversight. Employers remain exempt from the Maine Substance Use Testing Law only where federal testing mandates apply and are applied uniformly to both federally and non‑federally regulated employees.

Employer Takeaway

Beginning July 29, 2026, Maine employers with drug or alcohol testing programs must revisit written testing policies, expand compliance planning to account for criteria‑based and revised random testing, adjust reasonable‑suspicion protocols, and ensure testing vendors and medical review officers are prepared to comply with updated reporting and confidentiality requirements. Employers should also exercise caution when testing for marijuana, given expanded recognition of lawful medical use and off‑duty protections, and should update training for supervisors and HR personnel to reflect Maine’s revised testing framework.

To help comply with HB 1425, HR teams and employers should consider taking the following steps:

• Review and update written substance use testing policies to reflect revised terminology, including “reasonable suspicion” testing and “non‑negative” test results, and submit updated policies for Department of Labor approval as required.

• Determine which testing categories will be used(pre‑employment, reasonable suspicion, criteria‑based, random, or follow‑up testing) and clearly identify covered positions in the written policy.

• Revise reasonable‑suspicion protocols to ensure decisions are based on specific, observable facts and not on prohibited bases such as anonymous tips, off‑duty conduct, or a single accident without signs of impairment.

• Evaluate use of criteria‑based testing, such as client‑required, site‑access, promotion‑related, or anniversary‑based testing, and confirm such testing is neutrally applied and policy‑authorized.

• Confirm random testing procedures use a neutral selection method giving all covered employees an equal chance of selection.

• Coordinate with medical review officers (MROs)to ensure MROs review confirmed positive results, assess legitimate medical explanations, and are the sole source of reporting confirmed results to the employer.

• Update procedures for handling marijuana test results, recognizing that lawful medical marijuana use may constitute a legitimate medical explanation and that off‑duty use is protected under Maine law.

• Revise rehabilitation practices to align with the shortened12‑week maximum rehabilitation periodand the shift of rehabilitation costs solely to employees.

• Implement protocols for post‑rehabilitation follow‑up testing, allowing for one unannounced test between 90 days and one year after an employee’s prior test.

• Confirm testing vendors and laboratories meet statutory standards, including the ability to conduct blood testing when requested by an employee.

• Train HR staff and supervisors on the revised testing categories, employee rights, confidentiality obligations, and documentation requirements.

• Establish procedures for discontinuing and resuming testing, including required written notice to the Department of Labor.

• Assess whether any federal testing mandates apply, and if so, ensure exemptions are properly applied only when all statutory conditions are met.

• Consult employment counsel or compliance advisors to conduct a privilege‑protected review of testing policies and implementation before the effective date.

New York City Requires Government Wages and Benefits for Security Guards

New York City has passed a new law directing employers who provide at least one security guard in the city to provide their security guard employees with minimum wage, paid vacation time and supplemental benefits that meet or exceed the minimum wage, paid vacation time and supplemental benefits required for private sector security guards engaged on New York City public building service contracts in excess of $1,500.

• Beginning January 1, 2027, an employer must pay a wage to a security guard for each hour worked that meets or exceeds the wage requirements for private sector security guards engaged on New York city public building service contracts in excess of $1,500.

• Beginning January 1, 2028, an employer must provide a security guard with paid time off benefits that meet or exceed the paid time off benefits required for private sector security guards engaged on New York city public building service contracts in excess of $1,500.

• Beginning January 1, 2029, a security guard employer must pay a supplemental benefit to a security guard that meets or exceeds the supplemental benefits required for private sector security guards engaged on New York city public building service contracts in excess of $1,500.

Employers must also provide a notice of rights to security guards at the commencement of employment or, for security guards who were already employed prior to the effective date this law (i.e., July 28, 2026), within 30 days of the effective date. Such notice may be provided in electronic format, and must be in English and the primary language of the security guard. The city will publish the notice and make it available on the city’s website.

To prepare, HR departments can consider taking the following action steps:

• Identify whether the organization employs or contracts with any security guards working within New York City.

• Review current wage rates for security guards and ensure they will meet or exceed the required minimum wage standard by January 1, 2027, aligning them with the rates applicable to private‑sector guards on NYC public building service contracts.

• Audit existing paid time off policies for security guards and update them to meet or exceed the required paid vacation benefits by January 1, 2028.

• Review and update benefit offerings to ensure compliance with the supplemental benefit requirements by January 1, 2029, including any health, welfare, or fringe benefits that must match the public‑contract standard.

• Monitor the NYC website for the official Notice of Rights once published by the commissioner, and prepare to distribute it to all security guards.

• Provide the Notice of Rights to:

  • New hires at the start of employment, and

  • Existing security guards within 30 days of the law’s effective date (July 28, 2026).

• Ensure the notice is delivered in English and the guard’s primary language, and determine whether electronic delivery will be used.

• Update onboarding materials, employee handbooks, and vendor agreements (if guards are contracted) to reflect the new requirements.

• Coordinate with payroll, legal, and procurement teams to ensure wage changes, PTO updates, and supplemental benefits are implemented on schedule.

• Document compliance steps and establish a recurring review process to track future updates issued by the commissioner.

Nebraska Enacts Comprehensive Employment and Workforce Protections, Including Layoff Notice Requirements

Effective July 18, 2026,Nebraska Legislative Bill 921(LB 921) implements a set of employment‑related reforms affecting layoffs, health care staffing agencies, language access in the workplace, and public safety benefits. The legislation adopts two major new employment statutes: the Nebraska Worker Adjustment and Retraining Notification Act and the Health Care Staffing Agency Registration Act. It also amends several existing labor and public safety laws.

New WARN‑Style Notice Requirements for Large Layoffs

LB 921 adopts the Nebraska Worker Adjustment and Retraining Notification Act, establishing a state‑level advance notice requirement for business closings and mass layoffs. Covered employers planning a closure or mass layoff affecting 100 or more employees must now provide at least 90 days’ written notice to impacted employees and the Nebraska Department of Labor. This state requirement operates independently of the federal WARN Act and carries its own enforcement penalties, including civil fines of up to $100 per day for noncompliance.

Annual Registration for Health Care Staffing Agencies

The bill also creates the Health Care Staffing Agency Registration Act, requiring health care staffing agencies operating in Nebraska to register annually with the Department of Labor. Registered agencies must maintain documentation verifying worker licensure, required credentials, and insurance coverage. Failure to comply may result in civil penalties of up to $500 for a first offense and $5,000 for subsequent offenses, as well as registration revocation for up to one year. These provisions reflect heightened oversight of contingent health care staffing arrangements.

Expanded Language Access Requirements for Employers

LB 921 lowers the coverage threshold under the Non‑English‑Speaking Workers Protection Act, expanding employer obligations to provide language assistance. Employers with more than five percent (down from more than ten percent) of employees who speak the same non‑English language must now provide an interpreter and a referral agent to ensure access to workplace rights and benefits. This change substantially broadens the number of Nebraska employers required to implement language‑access accommodations.

Additional Employment and Public Safety Reforms

The legislation also includes several notable changes beyond WARN and staffing agency regulation:

• Marketplace network contractor exclusions under Nebraska employment law are narrowed to apply only outside cities of metropolitan or primary class, potentially expanding employment‑law coverage in urban areas.

• Under the Employment Security Law, individuals may be disqualified from benefits for 12 weeks if they fail to respond to job offers or interview requests within one week.

• The bill creates new statutory presumptions for public safety officer deaths, covering heart attacks, strokes, exposure‑related cancers, and cumulative traumatic events for firefighters, law enforcement officers, emergency medical personnel, and correctional officers.

• Counties may file claims related to correctional institution incidents, clarifying compensation and responsibility frameworks.

Employer Takeaway

Beginning July 18, 2026, Nebraska employers, particularly those with large workforces, health care staffing operations, or significant non‑English‑speaking employee populations, must comply with new notice, registration, and language‑access requirements. Employers should promptly review restructuring plans, staffing agency practices, workforce language demographics, and compliance systems to account for LB 921’s expanded obligations and enforcement mechanisms. Early preparation will be critical to avoiding penalties and operational disruptions under Nebraska’s updated employment law landscape.

Covered employers can consider taking the following steps:

• Assess WARN‑style coverage exposure, including whether the organization employs100 or more employees and could be subject to90‑day advance notice requirements in the event of a business closing or mass layoff.

• Update reduction‑in‑force and restructuring procedures to ensure timely written notice is provided to affected employees and the Nebraska Department of Labor when required.

• Coordinate with legal counsel early in planning layoffs or closures to confirm compliance with Nebraska’s WARN Act and reduce civil penalty exposure.

• Identify health care staffing operations, if any, and confirm whether the organization qualifies as a health care staffing agency required to register annually with the Department of Labor.

• Establish or update registration and renewal tracking systems for health care staffing agencies to ensure timely annual filings and compliance with licensing and insurance documentation requirements.

• Audit staffing agency contracts and credentialing records to verify worker licensure, credentials, and insurance coverage are current and properly maintained.

• Review workforce language demographics to determine whether more than five percent of employees speak the same non‑English language and trigger obligations under the Non‑English‑Speaking Workers Protection Act.

• Implement interpreter and referral‑agent protocols, if required, to ensure compliant access for non‑English‑speaking employees.

• Update HR and benefits policies to reflect changes to Employment Security Law provisions, including potential benefit disqualification for failure to respond to job offers or interview requests within one week.

• Train HR staff and managers on the new notice, registration, and language‑access requirements to prevent inadvertent violations.

New Jersey Expands Family Leave Law Coverage for Employers and Employees

New Jersey has enacted Assembly Bill 3451, which amends the state's Family Leave Act. The bill makes changes to employer coverage under the Act, adjusts when employees qualify for leave, and clarifies employer responsibilities when an employee returns from certain types of protected leave. It goes into effect on July 17, 2026.

Regarding employer coverage, the bill extends coverage to more employers by lowering the minimum employee count required for an employer to be subject to the law. Employers are now covered if they employ 15 or more employees, down from the prior threshold of 20 employees, for each working day during 20 or more calendar workweeks in the current or immediately preceding calendar year.

The bill also expands employee eligibility by:

• reducing the time an individual must be employed before qualifying for family leave and related benefits from six months to three months, and

• lowering the number of base hours that must be worked during the prior 12‑month period from 500 to 250 hours.

The bill also addresses what happens when an employee returns from temporary disability or family temporary disability leave. Covered employers are required to return the employee to the same position held before the leave or to a comparable position with similar seniority, pay, benefits, status, and other employment terms. Employees must also be treated as if they had not taken leave for purposes of any applicable layoff or recall rights.

In addition, employers may not take adverse action against employees for requesting or using temporary disability or family temporary disability benefits, including failing to reinstate an employee when required. Employees who are eligible for both earned sick leave and disability‑related benefits may choose which type of leave to use and decide the order in which leave is taken, as long as they do not receive more than one type of paid leave at the same time. Courts may impose civil fines and order remedies such as reinstatement, back pay, restoration of benefits and seniority, injunctive relief, and payment of attorneys’ fees and costs if violations occur.

As these changes approach their effective date, HR departments may want to review existing policies, procedures, and training materials to ensure alignment with the updated requirements. Areas for review may include:

• Employer Coverage Thresholds
  Assess workforce size to determine whether the organization now meets the revised definition of a covered employer.

• Employee Eligibility Requirements
  Update eligibility assessments to reflect the reduced employment‑length and base‑hour requirements.

• Reinstatement After Covered Leave
  Review return‑to‑work practices to ensure employees are restored to the same or an equivalent position with comparable terms and conditions of employment.

• Layoff and Recall Rights
  Confirm that employees returning from covered leave retain applicable rights under layoff and recall systems.

• Anti‑Retaliation Protections
  Review policies to ensure adverse actions are not taken based on an employee’s request for or use of covered leave.

• Coordination of Leave Options
  Ensure leave administration practices allow employees to choose between earned sick leave and applicable disability‑related benefits and to determine the order of leave usage.

• Training and Compliance Awareness
  Provide guidance for HR staff and managers on reinstatement obligations, leave coordination, and potential consequences of noncompliance.

New York Secure Choice Savings Program Registration Deadlines

The New York State Secure Choice Savings Program is New York’s retirement savings program for private-sector employees in New York who do not have access to a retirement plan at work. Through automatic enrollment and payroll deduction, workers can save in their own Roth IRA. The Program is overseen by the New York Secure Choice Savings Program Board.

New York employers with 10 or more employees in the previous calendar year, have been in business for two or more years, and don’t offer a qualified retirement savings plan are required to register and facilitate New York Secure Choice.

Employers required to facilitate the program must register by the following deadlines:

• 30 or more employees –March 18, 2026

• 15 to 29 employees –May 15, 2026

• 10 to 14 employees –July 15, 2026

Responsibilities as an employer include:

• Register your company at www.NewYorkSecureChoice.com. Once you receive your unique Access Code, you’re ready to start. You’ll just need to provide basic information about your employees, payroll process, and banking information.

• Send your employees’ payroll contributions. Begin payroll deductions and submit contribution information and funding for the employees who choose to stay in the program. You can even invite a payroll representative to help you facilitate this process.

• Continue sending payroll contributions and maintain employee records. Submit your payroll every pay period and keep your employees’ payroll contributions and your staff list up to date.

The default savings rate is 3% of gross pay, which employees can adjust at any time. Employee participation is voluntary. Employees can stay automatically enrolled or opt-out and re-enroll later.