Workforce Bulletin

On July 1, 2026, new minimum wage rates will take effect in numerous localities nationwide. Many California employers—especially those in the health care sector—may need to adjust payroll settings, as statutory health care worker wage rates (explained in detail here and here) and many local rates will change at the year’s half-way mark.  Plus, one state and several cities and counties beyond the Golden State will likewise raise their minimum wage. Note that some locations mandate more than one rate, basing wage requirements on employer size, industry, or region. Employers should review these changes, set forth in the chart below, and ensure ongoing compliance.

Alaska employers should be aware that the state adjusts its minimum salary threshold for overtime exemption based on the minimum wage. Accordingly, the salary threshold will increase from $1,040 to $1,120 per week on July 1, 2026.

One more change comes later in the year: Florida’s minimum wage will increase from $14.00 to $15.00 on September 30, 2026.

What employers should know about key developments this week:

• Two Federal Agencies Target DEI: The U.S. Department of Labor (DOL) is urging its employees to file whistleblower complaints and report diversity, equity, and inclusion (DEI) activities that violate the administration’s ban. Additionally, the Equal Employment Opportunity Commission released a 2025-2029 National Enforcement Plan that prioritizes enforcement against DEI-related discrimination.
• DOL Opinion Letters: The DOL’s Wage and Hour Division published four opinion letters addressing overtime exemptions, bonuses, meal breaks, and compensable work. While these letters do not signal dramatic shifts in the DOL’s position, they provide greater clarity, consistency, and transparency.
• PAGA Standing: A California appeals court held that an employee who loses in individual arbitration may also lose standing to bring a representative claim under the Private Attorneys General Act (PAGA).

Third time’s the charm. After two consecutive vetoes by former Governor Glenn Youngkin, Governor Abigail Spanberger signed Senate Bill 215 into law on April 22, 2026,[1] bringing Virginia in line with pay transparency laws already on the books in neighboring Maryland and Washington, D.C.

For employers operating across the region, the clock is ticking: the Act takes effect July 1, 2026, and imposes both pay disclosure requirements and restrictions on when they may consider an individual’s prior compensation when making employment decisions.

On Friday, May 27, 2026, Governor Ned Lamont signed into law broad legislation addressing the use of AI in Connecticut.

The new AI law has significant implications for employers in the Nutmeg State who use any type of “automated employment-related decision technology” and those contemplating mass layoffs or plant closings.

Use of AI Tools to Interact with Job Applicants and Employees

Starting October 1, 2027, employers who deploy an automated employment-related decision technology to directly interact with job applicants or employees must ensure that they disclose in plain language that the individual is interacting with such technology, unless a “reasonable person would deem it obvious” that they are doing so. The AI law does not explain what a reasonable person would deem obvious, so employers should exercise caution and provide actual disclosures until the state provides further guidance.

What employers should know about key developments this week:

• EEOC Proposes Eliminating EEO-1 Reports: The Equal Employment Opportunity Commission (EEOC) is proposing the complete elimination of EEO-1 reports (which include employee demographic data, such as race and gender), along with the rescission of EEO-2, EEO-3, EEO-4, and EEO-5 reports. 
• Fifth Circuit Rules on Remote Work Accommodations: The U.S. Court of Appeals for the Fifth Circuit found that in-person attendance is an essential job function and that COVID-era accommodations do not define that standard today—a ruling that could prove informative as more employers implement return-to-office policies.
• New Non-Compete Restrictions in Tennessee: Beginning July 1, 2026, non-compete agreements will be unenforceable in Tennessee for employees who earn less than $70,000 a year (inclusive of wages, salary, commissions, nondiscretionary bonuses, and other forms of remuneration).

The Chicago Department of Business Affairs and Consumer Protection (BACP) Office of Labor Standards (OLS) adopted new rules for administering Chicago’s Fair Workweek and Paid Leave and Paid Sick and Safe Leave Ordinances. The new rules were published on May 18, 2026, and went into effect on June 1, 2026. A separate blog post addressing the new rules to the Fair Workweek Ordinance can be found here. Without re-hashing all the details about compliance obligations under the Paid Leave and Paid Sick and Safe Leave Ordinance, here’s a summary of what’s important to know as these rules go into force.

Employers in Chicago: new rules may require your attention, especially if you employ workers in cooperation with another employer or operate within any of the industries covered by the city’s Fair Workweek Ordinance.

On May 15, 2026, the Illinois Department of Human Rights (“IDHR”) announced proposed regulations (the “Regulations”) that address required employer notification arising from the use of AI to make employment decisions. The publication of the Regulations in the Illinois Register triggered a 45-day public comment period that ends on June 29, 2026.

On May 14, 2026, Colorado Governor Jared Polis signed SB 26-189 into law, which repeals and reenacts the Colorado Artificial Intelligence Act (“CAIA” or “SB 24-205”) and substantially alters the obligations of employers using AI to make employment-related decisions. This law marks a shift in regulating high-risk artificial intelligence and automated decision-making technology (“ADMT”). SB 26-189 becomes effective on January 1, 2027.

In the More Than 20 Federal and State Employment Trials She Handled, Only $1 Was Awarded to the Other Side. Meet Jessica Giambrone Palmese.

Most employment disputes never see the inside of a courtroom. But when they do, the attorney standing next to you matters more than you might think.

Jessica Giambrone Palmese is an Epstein Becker Green attorney whose record speaks for itself: lead counsel on 20 federal and state employment trials taken to verdict, nearly undefeated, and with a practice built on 17 years of litigating on behalf of New York City.

In this one-on-one conversation with fellow Epstein Becker Green attorney George Whipple, Jessica explains how that depth of experience shapes her approach to every case—whether it goes to trial or not.