September Industry News
September: Industry News & Updates
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New Jersey Publishes Guidance on Expanded Job-Protected Leave Rights
Effective July 17, 2026, New Jersey significantly expanded employee leave and job-protection rights. The NJ Department of Labor and Workforce Development has issued new guidance to help employers understand and implement these changes.
Key updates include:
Expanded job protection for TDI and FLI: Employees receiving Temporary Disability Insurance (TDI) or Family Leave Insurance (FLI) benefits may now have job protection even if they do not qualify for NJFLA or federal FMLA. Eligible employees generally must be restored to the same or an equivalent position with comparable pay, benefits, seniority, and employment terms.
Broader NJFLA eligibility: The employer coverage threshold dropped from 30 to 15 employees worldwide. Employees now need only 3 months of employment instead of 12 months and 250 hours worked instead of 1,000 hours during the previous 12 months.
More employees may be protected: The changes particularly expand protections for employees of smaller businesses, newer and certain part-time employees, and some employees taking leave related to domestic or sexual violence.
Some requirements remain unchanged: TDI and FLI wage-replacement eligibility is still based on earnings requirements, and federal FMLA eligibility rules have not changed.
Employer action is recommended: New Jersey employers—particularly those with 15 or more employees—should review and update their leave policies, procedures, manager training, and return-to-work practices. The state has also released employer and employee FAQs to assist with compliance.
Bottom line: New Jersey's changes substantially increase the number of employees who may be entitled to job-protected leave, so employers should not assume that an employee lacks job protection simply because they are ineligible for FMLA or would not have qualified under the previous NJFLA standards.
Colorado Prohibits Employers from Retaining Employees’ Identification Documents
Effective immediately, Colorado House Bill 26-1283 creates new protections preventing employers from confiscating or improperly retaining workers' government-issued identification documents.
Key provisions include:
No confiscation or retention: Employers generally cannot require employees, applicants, migrant workers, seasonal workers, or other individuals seeking work to surrender or give up possession of government-issued identification.
Limited I-9 exception: Employers may temporarily retain identification documents solely to complete Form I-9 employment verification and make necessary copies. Documents cannot be retained for more than 10 hours.
New notice requirements: When identification is used for employment verification, employers must provide written notice explaining the individual's rights under Colorado law. The notice must be provided in the person's primary language, if known.
Recordkeeping: Employers must retain documentation of the required notice and the individual's acknowledgment that they received it.
Criminal and civil penalties: Knowingly violating the law may constitute a Class 2 misdemeanor. Affected individuals may also sue for damages and seek a court order requiring immediate return of their identification.
Bias-motivated violations: Unlawfully retaining identification—or threatening to provide it to federal immigration authorities to intimidate or harass someone based on a protected characteristic—may constitute a Class 1 misdemeanor.
Immediate employer action: Colorado employers should review hiring, onboarding, and I-9 procedures, create the required notices and acknowledgment process, train HR/onboarding staff, and ensure original identification documents are not being unnecessarily stored.
Bottom line: Colorado employers should allow employees and applicants to maintain possession of their original identification documents except for the narrowly permitted I-9 verification period. HR teams should update their procedures immediately because violations can carry both civil and criminal consequences.
Massachusetts Announces Changes to PFML Contribution Structure for 2027
Beginning January 1, 2027, Massachusetts will change how Paid Family and Medical Leave (PFML) contributions are divided between employers and employees. The changes primarily affect employers with 25 or more covered individuals.
Key changes include:
Employers with fewer than 25 covered individuals: No change. They are not required to make an employer PFML contribution and only need to remit amounts withheld from employees, although they may voluntarily pay some or all of the employee contribution.
Employers with 25+ covered individuals – Family Leave: Employers may withhold up to 40% of the family leave contribution from employees and must pay the remaining 60%.
Medical Leave: Employers may continue to withhold up to 100% of the medical leave contribution from covered employees' wages.
2027 contribution rate: The total PFML contribution rate has not yet been determined. Massachusetts will announce the final rate by October 1, 2026.
Employer preparation: Employers with 25+ covered individuals should begin reviewing 2027 budgets, payroll configurations, PFML deductions, and employee communications to prepare for the new cost-sharing requirements.
Bottom line: Starting in 2027, larger Massachusetts employers will take on a greater share of family leave contribution costs, while medical leave contribution rules remain unchanged. Employers should prepare now and watch for the final 2027 PFML rate announcement by October 1, 2026.
OFCCP’s Disability Self-Identification Form Approved Through 2029
The U.S. Department of Labor's OFCCP has confirmed that the Voluntary Self-Identification of Disability Form (CC-305) remains approved for use by covered federal contractors.
Key points include:
CC-305 remains required: Federal contractors and subcontractors covered by Section 503 of the Rehabilitation Act generally must invite applicants and employees to voluntarily self-identify whether they have a disability.
Use the approved form: Employers should ensure they are using the current OMB-approved version of CC-305 available through the Department of Labor.
Limited changes allowed: Contractors generally cannot modify the form's content. Only the "For Employer Use Only" section may be modified or removed for internal recordkeeping and analysis.
HR compliance: Federal contractors should review their onboarding, affirmative action, and disability self-identification processes to ensure the correct form is being used.
Bottom line: Covered federal contractors should continue using the current CC-305 form and avoid making unauthorized changes to it.
Illinois Requires Many Employers to Pay Employees During Jury Service
Effective January 1, 2027, Illinois will expand jury duty protections by requiring certain employers to provide paid jury duty leave under House Bill 4844.
Key changes include:
Employers with more than 25 employees: Must pay employees their regular rate of pay while they are absent from work serving on a petit or grand jury.
Employers with 25 or fewer employees: Are exempt from the paid leave requirement, but must continue to comply with existing jury duty protections.
Anti-retaliation protections remain: Employers cannot discharge, penalize, or interfere with employees because they respond to a jury summons or perform jury service.
Potential penalties: Violations may result in payment of lost wages and benefits, reinstatement, court orders preventing future violations, and potential civil or criminal contempt proceedings.
Employer preparation: Illinois employers should review employee handbooks, jury duty policies, payroll procedures, and documentation processes before the January 1 effective date.
Bottom line: Beginning in 2027, Illinois employers with more than 25 employees will need to treat qualifying jury duty as a paid, job-protected absence, representing a significant change from the state's previous requirements.
DHS and USCIS Issue Rule Allowing Mandatory Electronic Filing for Immigration Benefits
Effective August 11, 2026, DHS and USCIS issued a new rule allowing USCIS to require certain immigration benefit requests to be filed electronically.
Key points include:
Electronic filing authority: USCIS can now designate specific immigration forms and benefit requests as requiring mandatory e-filing.
No immediate change for all forms: The rule does not eliminate paper filing across the board. USCIS will announce which specific forms must be filed electronically.
Waivers available: Individuals who cannot reasonably comply with an electronic filing requirement may be able to request a waiver.
Employer impact: Employers sponsoring foreign national employees should expect more employment-based immigration petitions, work authorization requests, and other USCIS filings to transition to electronic submission.
Purpose: DHS says increased electronic filing should improve processing efficiency, system integrity, and security while reducing reliance on paper.
Public comments: Comments on the interim final rule may be submitted through October 13, 2026.
Bottom line: Employers do not need to immediately convert all USCIS filings to electronic submission, but organizations that sponsor foreign national workers should prepare for future mandatory e-filing requirements and monitor USCIS announcements identifying affected forms.
California Announces Statewide Minimum Wage Increase for 2027
Effective January 1, 2027, California’s statewide minimum wage will increase from $16.90 to $17.40 per hour.
Key points include:
New minimum wage: Most California employees must be paid at least $17.40 per hour, including employees paid on a piece-rate basis.
Local minimum wages: Employers must continue to check city and county requirements. If a local minimum wage is higher than the state rate, the higher rate generally applies.
Higher exempt salary threshold: The minimum annual salary for many California white-collar overtime exemptions will increase to $72,384 per year. Employees must also continue to satisfy the applicable duties and other exemption requirements.
Posting and payroll requirements: Employers must update wage rates, ensure accurate pay statements, and display required state and industry-specific wage orders.
Potential penalties: Noncompliance can result in unpaid wages, penalties, and liquidated damages.
Bottom line: California employers should prepare before January 1, 2027, by reviewing hourly wages, exempt employee salaries, payroll systems, workplace postings, and applicable local minimum wage rates to ensure compliance.
