Welcome to the latest edition of AlphaStaffHCM’s Monthly Compliance Updates!
We are pleased to provide you with this March edition of the AlphaAdvisor featuring federal and state legal updates relating to federal government contractors minimum wage, immigration, OSHA’s new free program, and state law updates.
Note: The information contained in this Compliance Update should not be relied upon as legal advice.
Federal Law Updates
Crackdown on Health Care 1099s
In a recent Pennsylvania federal court ruling, the Court found that a home health company misclassified its licensed practical nurses and home health aides as independent contractors, exposing the employer to significant liability for back wages, liquidated damages, and civil penalties under the FLSA. The court emphasized that the workers were employees because the company controlled their schedules, pay, and work conditions, and the workers were economically dependent on the business. Employers can read more here, and review a 5-step plan for compliance with independent contractors.
DOL Increases Federal Contractor’s Minimum Wage
The Department of Labor announced that a $13.65 hourly minimum wage will apply to workers on certain federal government contracts effective May 11, 2026, increasing from the current $13.30 hourly rate. For tipped workers on covered federal contracts, the applicable minimum cash wage is now $9.55 per hour (up from $9.30 per hour).
Immigration Updates
Yemen TPS
On February 13, 2026, Department of Homeland Security announced that Temporary Protected Status (“TPS”) designation for Yemen will not be extended. The TPS designation will terminate 60 days after the notice is published in the Federal Register, and those Yemeni nationals holding only TPS and no other lawful immigration status will be expected to depart the U.S.
Haiti and Ethiopia TPS
A D.C. federal court has stayed the planned termination of Haiti’s TPS, which was slated to end on February 3, 3026, keeping Haiti’s TPS in place. This stay preserves TPS protections and work authorization for Haitian TPS holders while litigation continues. TPS for Ethiopia was scheduled to end on February 13, 2026, but a similar outcome occurred on January 30th, when a federal court in Massachusetts temporarily blocked DHS’s decision to terminate the program. This also preserves Ethiopia’s TPS while the case is considered.
Honduras, Nepal and Nicaragua TPS
On February 9, 2026, the 9th Circuit Court of Appeals decide to allow the government to continue its termination of the TPS program for nationals of Honduras, Nepal, and Nicaragua while its appeal plays out in California Court.
Venezuela TPS
TPS for Venezuela remains the subject of ongoing litigation. Although recent appellate decisions have questioned DHS’s authority to terminate Venezuela’s TPS designation, those rulings have not automatically restored TPS or employment authorization.
Read more here about what impacted employers should do.
Landmark Federal Court Ruling on Overtime for Recruiters
On February 11, 2026, a Pennsylvania federal court ruled that a staffing firm must provide their IT recruiters overtime pay because they perform “routine sales production work” rather than administrative duties. This is the second federal court to recently reject the application of the administrative exemption for recruiters at the same company. Staffing firms and businesses with recruiters should read more on proper classification, here.
OSHA Safety Champions Program
OSHA has launched a free self-paced Safety Champions Program to help employers structure workplace safety and health programs. The Safety Champions Program outlines several core practices employers should incorporate into their workplace safety and health plans. This program represents OSHA’s shift away from harsh enforcement-based compliance toward encouraging proactive risk management and prevention, but it is important that employers keep in mind that participation alone does not eliminate workplace hazards, nor does it ensure compliance with all OSHA standards, or prevent employers from receiving OSHA citations. Employers can read a 5 step guide to participating in OSHA’s Safety Champions Program, here.
State Law Updates
California – Stay or Pay
As noted in a prior AlphaAdvisor, California AB 692, in effect as of January 1, 2026, changed how California employers may use repayment or “stay or pay” provisions in employment agreements. AB 692 limits agreements that require employees to repay certain costs if they leave their job – largely prohibiting the use of these types of agreements in California for the repayment of costs associated with sponsoring immigrant and non-immigrant visas and permanent resident status. AB 692’s restrictions are triggered by separation and only apply to any new agreement entered into on or after January 1, 2026. Agreements executed prior to January 1, 2026 remain valid and subject to the existing legal requirements at the time the agreement became effective. Now that AB 692 is in effect, California employers who rely on green card repayment agreements should seek alternative best practices and policy adjustments following the elimination of these agreements from their sponsorship processes. Read more here.
Delaware – Supreme Court Decision in Restrictive Covenants
After a recent Delaware Supreme Court decision, employers with agreements governed by Delaware law can now rely on the consideration of the agreement to be evaluated when the contract is formed, not later when the employer seeks to enforce it. This is entirely in favor of employers in the case where the consideration is a large monetary incentive, like a structured bonus over a period of time, and the employee leaves prior to the full payout. In the case evaluated by the Court, the value of equity units had not yet been fully realized and the employee argued that the restrictive covenant was therefore unenforceable, but the Court ruled in favor of the employer. Employers interested in learning more should read here.
Maine – New Workplace Monitoring Restrictions
The new law expected to be effective this July 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 disclosures to all employees. Read more about what Maine employers can expect from the new law here.
Minnesota – Clarification on Breaks
Effective January 1, 2026, changes to Minnesota’s meal and rest break laws require employers to provide fifteen-minute breaks and a thirty-minute meal break depending on hours worked. Minnesota Department of Labor and Industry has now published guidance in the form of frequently asked questions (“FAQs”) providing some clarity. Such clarifications include: the break laws only apply to “employees” as defined by the Minnesota Fair Labor Standards Act, excluding exempt employees, employers must only provide one meal period per day if an employee works six hours or more, and an unpaid meal period of twenty minutes or more is not counted as “hours worked” for purposes of calculating rest breaks. Read more on the FAQs here.
New York – Trapped at Work Act – Amended
As noted in the prior AlphaAdvisor, New York passed the Trapped at Work Act which became effective December 19, 2025. On February 13, 2026, the governor passed a law amending the Act with a delayed effective date of February 13, 2027. The law will still prohibit employers from requiring “employment promissory notes” as a condition of employment but narrows coverage to “employees” and provides additional carve-outs to the broad definition of “employment promissory notes.” This means employers can still require repayment related to bonuses, relocation assistance, and other non-educational or non-training incentives. Employers can read more here about what they are not allowed to seek repayment for after separation.
Ohio – New Mini-WARN
This past fall, Ohio passed laws adding its own WARN requirements alongside already existing federal WARN requirements in the case of mass layoffs. Ohio’s mini‑WARN law applies when a covered employer anticipates a plant closing or mass layoff, mirroring the federal WARN Act’s requirement for 60 days’ written notice, but with different thresholds and broader triggers. Ohio employers must comply if they have over 100 employees (with certain part‑time exclusions) or over 100 employees (full time and part-time) working 4,000 aggregate hours per week, and when 50 or more employees are laid off at a single site within 30 days. The Ohio WARN also expands who must receive notice in contrast to federal WARN, to include municipal and county officials. Employers should read more about how to comply, here.
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Pennsylvania – Employers Should Review CHRIA Compliance After Recent Litigation
A federal appeals court just ruled that Pennsylvania’s Criminal History Record Information Act (“CHRIA”) may protect certain information even if the employer receives it from a source other than background check, including from an applicant’s voluntary disclosure. In making employment decisions, employers should confirm whether any criminal history they receive is protected under CHRIA, regardless of the source. Employers may only consider misdemeanor or felony convictions when they relate to job suitability and must provide written notice if criminal history information leads to a decision not to hire. Employers can read more about the latest in CHRIA compliance, here.
Virginia – Expands Non-Compete Ban to Include Some Non-Solicitation Clauses
The Virginia Court of Appeals just issued a decision based on the state’s statute banning non-competes for low-wage employees to extend the interpretation to include some solicitation clauses. The Court analyzed customer and employee non-solicitation provisions to determine whether they are “covenants not to compete” prohibited by the statute for “low-wage” employees and found that non-solicitation of employees is prohibited. Non-solicitation of customers remains permissible. Employers can read more about how to update covenants not to compete, here.