Welcome to the latest edition of AlphaStaffHCM’s Monthly Compliance Updates!
We are pleased to provide you with this August edition of the AlphaAdvisor featuring federal and state legal updates including highlighted resources provided by some of AlphaStaffHCM’s trusted legal partners, to guide and help keep you in compliance.
Note: The information contained in this Compliance Update should not be relied upon as legal advice.
Federal Law Updates
DOJ New Guidance on Unlawful DEI
On July 29, 2025, the Department of Justice (“DOJ”) released guidance regarding what types of diversity, equity and inclusion (“DEI”) practices would be considered discrimination for federal funding recipients. The DOJ has now expanded upon the Trump administration’s previous Executive Order eliminating DEI in employment practices. The nonbinding guidance applies only to public and private employers that receive federal funds but may be helpful for all employers to review as to the federal government’s interpretation of the law and enforcement priorities. Read more on the guidelines here.
Fiduciary Compliance with 401k Changes
On August 7, 2025, Trump signed an Executive Order expanding alternative investments, such as private equity, commodities, real estate, and certain digital assets in 401(k) and other defined contribution retirement plans. Despite this inclusion, fiduciary obligations under ERISA still apply. Fiduciaries should consider risk, how alternatives would perform in varying market conditions, review plan governance documents to confirm they support new investment types, consider Form 5500 reporting, ERISA audits, and impact on fiduciary insurance policies. Learn more about further recommendations and compliance for fiduciaries under ERISA and generally here.
State Law Updates
Pay Transparency Updates of Late 2025 and Early 2026
Here is a brief overview of state specific laws and recent enforcement regarding pay transparency:
- Colorado’s pay transparency enforcement shows recent citations and fines issued by the Colorado Division of Labor Standards and Statistics. The issues focused on seem to be:
- Failure to Include Required Compensation Information: salary ranges not listed or listed below state minimum wage.
- Missing Benefits and Application Deadlines: failure to include description of benefits or the required application deadline.
- Technical Issues Not a Defense: employers are expected to proactively monitor and correct postings.
- Repeat and Ongoing Violations: escalating fines for repeats and failure to cure.
- Both Illinois and New Jersey are enforcing pay transparency compliance and have published guidance for employers:
- Illinois pay transparency applies to employers with fifteen or more employees regardless of where those employees are located and emphasizes that the law applies to remote positions if the employer reasonably foresees that the work could be performed in Illinois or would report to a supervisor or worksite in Illinois.
- New Jersey pay transparency law applies to employers with a minimum of 10 or more employees over 20 calendar weeks and that do business, employ people, or take applications for employment within New Jersey. Read more specifically about New Jersey here.
- Next up for enforcement and October effective dates:
- Vermont attorney general has issued guidance for compliance with job posting requirements for employers with more than five or more employees but has not yet enforced fines.
- Massachusetts’s Wage Transparency Act will become effective on October 29, 2025. Employers with twenty-five or more employees in Massachusetts must disclose pay ranges in job postings, to applicants, and to current employees upon request. The law provides a warning for a first offense, with escalating fines for subsequent violations, and a two-business-day cure period for defects until October 29, 2027.
- Cleveland’s new pay transparency ordinance will take effect on October 27, 2025. Employers with fifteen or more employees in the city will be required to include salary ranges or scales in job postings. It also prohibits inquiries into an applicant’s salary history. The city’s Fair Employment Wage Board will enforce the ordinance, and employers will have a ninety-day cure period to correct deficiencies before civil penalties up to $5,000.
- Pending Governor’s signature of a House Bill, Delaware will also be required to update pay transparency in job postings with written warnings for first offenses and civil penalties ranging from $2,000 to $10,000 for subsequent violations. The bill would take effect one year after enactment, targeting 2027.
Action Item: to follow trending state laws and stay ahead, employers may want to consider closely monitoring job postings and pay transparency details now. Read more about each state’s new laws here.
California Responds to Federal Shift on DEI
In response to further guidance on federal funding impacts due to illegal use of DEI and affirmative action, the State of California is reinforcing its commitment to nondiscrimination through compliance certification requirements. Companies seeking to do business with California should prepare to meet these obligations. California contractors will have to maintain a written non-discrimination program, compliance statements, and reporting obligations. California’s regulatory framework allows any interested person to file a written complaint with the Civil Rights Department (“CRD”) or the awarding agency resulting in penalties and termination of contract, in addition to other legal remedies.
Practice Point: California contractors should carefully balance state contracts and federal guidelines. Read more here.
Illinois Paid Military Funeral Leave
As of August 1, 2025, employers with over 51 employees must accommodate leave for paid funeral honors detail if a qualifying employee is trained to perform in a funeral honors detail and are either a retired or active member of the U.S. Armed Forces or an authorized provider, like veterans’ services. Qualifying employees must have been employed for at least 12 months and performed at least 1,250 hours of service during the 12-month period immediately preceding the start of leave. Read more about the leave details here.
Maine Likely to Pass New Employer Surveillance Laws
Pending the Governor’s approval Maine will pass law regulating surveillance of employees in the workplace. The new law will limit how employers can monitor employees using their personal devices, like computers and phones, and audiovisual surveillance systems outside of GPS tracking and security cameras for safety. The law will also require disclosing surveillance practices in the interview process and yearly to all employees. Read more about how Maine employers can comply with the new law here.
Oregon Employment Laws Update
This summer Oregon has passed several new employment laws, with more laws becoming effective in late September and January 1, 2026. For example, effective in May, Oregon passed new rights for agricultural workers to be provided with the same accommodations related to pumping breastmilk during work hours. Effective in June, the state passed new limitations on restrictive covenants for healthcare workers relating to noncompetition, nondisparagement, and nondisclosure, and included an increase on statute of limitations for civil actions in employment cases.
Effective September 26, 2025:
- Employers will be prevented from asking questions about applicants’ age or age indicators such as graduation date. Two exceptions are provided: when the employer needs the information to comply with an applicable law, or when the information is required to affirm that the applicant meets bona fide occupational qualifications. To ensure compliance, employers will want to review their hiring practices, including their application materials prior to September 26.
- Employer can require an employee to obtain medical certification that they are able to resume work after medical leave under Paid Leave Oregon. The bill also exempts certain flight crew employees from the OFLA eligibility requirements if they meet federal hours of service requirements.
- Paid Leave Oregon program will allow an authorized agent to act on behalf of a deceased or incapacitated individual with respect to their Paid Leave Oregon benefits.
- Oregon Employment Department can compromise, adjust, or write off certain debts and overpayments under the Paid Leave Oregon program.
- Employer Assistance Division of Oregon Bureau of Labor & Industries (“BOLI”) will be established to provide education, training, and interpretive guidance, including advisory opinions, to assist employers in complying with laws enforced by BOLI. Notably, BOLI will be prevented from imposing a penalty on employers that prove they relied on discussions with the Employer Assistance Division in taking any good faith action. This will be very helpful for employers needing assistance or guidance with interpretation of laws and compliance.
Effective January 1, 2026:
- Striking workers will be eligible for up to ten weeks of unemployment benefits during a strike, with some limitations.
- Property owners, contracted parties such as buyer, lessee and direct contractor will be jointly and severally liable in a civil action for any unpaid wages owed to the unrepresented employees of the direct contractor and subcontractors at any tier for construction work performed within the scope of the construction contract.
- Eligible employees may use leave earned under Oregon’s sick time law to donate blood through a voluntary program approved by the American Association of Blood Banks or the American Red Cross.
- Employers will be required to provide employees with a written explanation of the earnings and deductions shown on their paystubs at the time of hire.
Oregon employers can read more about how to comply with these laws here.
Rhode Island First in Nation to Recognize Menopausal Accommodations
Rhode Island has amended its accommodation laws for pregnancy-related conditions to include menopause-related conditions. The amendment does not recognize any specific accommodations except, “the need to manage the effects of vasomotor symptoms,” commonly known as hot flushes/flashes or night sweats. Notice to new employees and posted notice in the workplace is now required. Read more here.
Action Item: For our clients, AlphaStaffHCM will update all onboarding documents and provide Rhode Island employers with updated notice documents.
Washington Updates Law on Personnel Files
On July 27, 2025, Washington’s new law on personnel file access became effective. The new law confirms 21 days to provide a personnel file upon request. If employers fail to comply, employees now have a statutory right to sue with tiered damages. The new law also requires employers to provide upon request a structured discharge statement within 21 days. The discharge statement will include the date of discharge, whether there was a reason for discharge, and if so, the reasons for discharge. Employers should also review the statutory definition of a personnel file to ensure all the indicated documents are provided in order to be compliant. Read more about how employers can comply here.
Contact AlphaStaffHCM if you would like to learn more about compliance support and solutions available.