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New Year, New Employment Laws – What Takes Effect January 1, 2026?

By Joy Rosenquist, Bruce Sarchet, and Sebastian Chilco

  • 14 minute read

At a Glance

This roundup of new laws provides a snapshot of generally applicable labor and employment laws taking effect in or around January 1, 2026.

As the calendar turns to 2026, employers across the country face a fresh wave of labor and employment law changes that will reshape workplace compliance, employee rights, and business operations. From expanded protections for gig workers and whistleblowers to new rules governing employment contracts, data privacy, and workplace transparency, this year’s legislative updates reflect a growing emphasis on fairness, accountability, and adaptability in the modern workforce. 

This roundup of new laws provides a snapshot of generally applicable labor and employment laws taking effect in or around January 1. It is not meant to be all-inclusive, and does not include certain industry-specific laws affecting every workplace. Additionally, the following roundup does not include new minimum wage-related laws taking effect in the new year, which will be covered in a separate article. Employers with questions about which laws are taking effect in the jurisdictions in which they operate should consult with employment counsel.

Alabama

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Alabama SB 86

 

Independent Contractor/ Employee Benefits

Allows independent contractors to open and contribute to tax deductible “portable benefits accounts” to fund benefit plans.

December 31, 2025

California

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

California AB 260

 

Reproductive Health

Prohibits prosecution of pharmacists and other medical professionals for manufacturing, prescribing, or furnishing mifepristone or other medication abortion drugs. Would also prohibit healthcare plans or insurance policies from excluding coverage for mifepristone, even if it has not been approved by the FDA.

January 1, 2026

California AB 288

 

Labor Law Claims

Allows an employee to petition the Public Employment Relations Board to hear an unfair labor practice case if the NLRB has failed to act in six months.

January 1, 2026

California AB 316

 

Artificial Intelligence (AI)/Technology

Prohibits a defendant who developed, modified, or used artificial intelligence (AI) from asserting a defense that the AI autonomously caused harm to the plaintiff.

January 1, 2026

California AB 406

Paid Sick Leave / Crime Victims Leave (Unpaid)

Allows employees to use leave if they or a family member are a victim of certain crimes and are attending judicial proceedings related to that crime.

January 1, 2026

California AB 578

 

Food Delivery Platforms/Tips

Prohibits food delivery platforms (FDPs) from using tips or gratuities to offset the base pay of delivery drivers. Requires FDPs to provide an itemized breakdown of pay received for a delivery and prohibits deducting delivery drivers’ gratuities from customer refunds.

January 1, 2026

California AB 592

 

Employee Training / Hospitality Industry

Requires restaurants to provide training for all employees upon hire, and annually, on pest prevention practices, pest control procedures, and on the employee’s responsibility to maintain a vermin-free environment.

January 1, 2026

California AB 692

 

Employment Contracts and Agreements

Prohibits, with certain exceptions, contracts that require a worker to repay an employer, training provider, or debt collector for a debt when the employment relationship or work ends. 

January 1, 2026

California AB 774

 

Garnishments

Requires an employer to provide additional information to the levying officer in an employee wage garnishment.

January 1, 2026

California AB 858

 

Recall and Reinstatement

Extends until January 1, 2027, the recall and reinstatement rights of employees laid off due to the COVID-19 pandemic. 

January 1, 2026

California AB 1340

 

Union Organization/Rideshare Drivers

Allows “transportation network company drivers” (rideshare drivers) who meet certain criteria to unionize and collectively bargain, and provides rules and timetables for union certification.

January 1, 2026

California SB 261

 

Wage Payment Judgments

Provides for penalties of up to three times the outstanding amount if a final judgment for unpaid wages remains unsatisfied 180 days after the appeal period ends.

January 1, 2026

California SB 294

 

Notice Requirements

As of February 1, 2026, requires employers to provide notices of labor rights to new employees, and current employees annually, and to notify an employee’s emergency contact if the employee is arrested or detained on their worksite.

January 1, 2026

California SB 303

 

Discrimination and Harassment 

Provides that an employee’s assessment, testing, admission, or acknowledgment of their own personal bias, as part of a bias mitigation training, does not constitute unlawful discrimination.

January 1, 2026

California SB 412

 

Home Health Care

Beginning on January 1, 2027, and annually thereafter, requires home care aides to have training on the special needs of clients with dementia before providing home care.

January 1, 2026

California SB 446

 

Privacy and Data Security

Requires businesses to disclose a data security breach to impacted consumers and the state attorney general within 30 days of the breach.

January 1, 2026

California SB 464

 

Pay Data Reporting

Increases the job categories for pay data reporting and requires employers to store demographic data separately from personnel records. 

January 1, 2026

California SB 477

 

Discrimination

Defines the term “group or class” for purposes of filing a complaint under the Fair Employment and Housing Act, and tolls the time for a complainant to file a civil action in certain circumstances.

January 1, 2026

California SB 513

 

Personnel Files

Expands the scope of personnel documents employers must allow employees to inspect to include education and training records.

January 1, 2026

California SB 590

 

Paid Family ⁄ Medical Leave

Permits employees to use paid family leave to care for a “designated person” beginning July 1, 2028, and defines the term.

January 1, 2026

California SB 596

 

Healthcare

Defines “on-call list” of nurses for purposes of determining whether an administrative penalty is to be assessed for nurse-to-patient ratio violations.

January 1, 2026

California SB 617

 

Reductions in Force (RIFs ⁄ WARN)

 

Expands the information required to be included in notices of mass layoffs, relocation, or termination of a covered establishment under the California Worker Adjustment and Retraining Notification Act (Cal-WARN).

January 1, 2026

California SB 642

 

Pay Transparency

Revises the definition of “pay scale” under the Pay Transparency Law, and extends the statute of limitations for filing suit and the look-back period for calculating damages. 

January 1, 2026

California SB 648

 

Tips 

Authorizes the Labor Commissioner to investigate and issue a citation or file a civil action for gratuities unlawfully taken or withheld by the employer.

January 1, 2026

CPPA - Final Regulations 

Privacy and Data Security

Requires businesses to conduct cybersecurity audits, risk assessments, and, for businesses that use automated decision-making technologies (ADMT), creates consumer information requirements, and opt-out rights. 

January 1, 2026

Colorado

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Colorado SB 25-144

 

Paid Family/Medical Leave

Provides up to an additional 12 weeks of leave for any parent who has a child receiving care in a neonatal intensive care unit (NICU), and slightly lowers premiums.

January 1, 2026

 

Connecticut

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Connecticut SB 5005 (2024)

Paid Sick Leave

Employers covered by law expanded to include those with 11 or more employees.

January 1, 2026

 

Delaware

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Delaware SB 1 (2022)

Paid Family/Medical Leave

Provides up 12 weeks of paid parental leave, 6 weeks of paid family caregiver leave, or 6 weeks of paid medical leave in an application year

January 1, 2026

 

Illinois

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Illinois HB 1278

 

Discrimination: Employer-Provided Electronic Devices

Prohibits employers from disciplining or retaliating against employees for using employer-provided electronic devices to record acts of violence.

January 1, 2026

 

Illinois HB 1616

 

Blood and Organ Donation Leave

Expands eligibility for leave under the Blood and Organ Donation Leave Act to include part-time employees.

January 1, 2026

Illinois HB 2462

Health Care

Amends the Epinephrine Injector Act to require an anaphylaxis training program completion certificate; creates good Samaritan protections for authorized entities and persons.

January 1, 2026

Illinois HB 3094

 

Employee Benefits

Provides that the Transportation Benefits Program Act does not apply to construction workers covered by a union contract, and expands program eligibility to part-time employees.

January 1, 2026

Illinois HB 3178

 

Technology; Employment Contracts

Provides that the failure to include a reasonably specific description of the intended uses of a digital replica in contracts for the performance of personal or professional services does not render an agreement unenforceable under the Digital Voice and Likeness Protection Act.

January 1, 2026

Illinois HB 3200

 

Unemployment/New Hire and Wage Reports

Expands eligibility for unemployment benefits to individuals who cannot perform work due to a mental health disability; Provides for the recovery of unemployment benefits, plus interest and penalties, paid to ineligible individuals; Permits courts to enjoin an employer from doing business for willful failure to file required new hire or wage reports.

January 1, 2026

Illinois HB 3638

 

Labor Law/Contracts and Agreements

Prohibits any contract or agreement that restricts employees or former employees from engaging in concerted activities to address work-related issues.

January 1, 2026

Illinois HB 3773

 

Discrimination: Artificial Intelligence (AI)

Amends the Human Rights Act to prohibit employers from using AI that has the effect of subjecting employees to discrimination or using zip codes as a proxy for protected classes; Requires employers to notify employees of the employer’s use of AI.

January 1, 2026

Illinois SB 212

 

Paid Lactation Breaks

Requires employers to compensate employees during lactation breaks at their regular compensation rate.

January 1, 2026

Illinois SB 1288

 

Workplace Training: Food Service

Requires food service sanitation managers to include training on celiac disease and the safe handling of gluten-free foods.

January 1, 2026

Illinois SB 1422

 

Workplace Training: Restaurants and Truck Stops

Expands the Human Trafficking Recognition Training Act to cover restaurant and truck stop employers and adds enforcement provisions.

January 1, 2026

Illinois SB 2487

 

Discrimination and Harassment

Provides that fact-finding conferences for charges under the Human Rights Act are discretionary rather than mandatory; Provides for per-violation penalties for civil rights violations.

January 1, 2026

Indiana

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Indiana HB 1125

 

Wage and Hour

Creates the Indiana Earned Wage Access Act, which allows consumers to access their earned but unpaid wages, salary, or compensation before their scheduled pay date, and provides regulations for provider compliance.

January 1, 2026

Indiana SB 5

 

Privacy and Data Security

Creates a new consumer data privacy protection law, which provides rights for consumers regarding the processing and protection of their personal data.

January 1, 2026

Kentucky

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Kentucky HB 15

 

Privacy and Data Security

Provides requirements for businesses that control or process personal data of at least 100,000 consumers regarding the protection of personal data, including a notice and consent requirement.

January 1, 2026

Maryland

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Maryland HB 861 (SB 1018)

 

Wage and Hour/ App-Based Workers

Requires transportation network companies (TNC) to provide operators with weekly fare and earnings summaries; Requires annual reports of certain information to the Public Service Commission.

January 1, 2026

Minnesota

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Minnesota Final Rules re Paid Family and Medical Leave (Minn. Rules Part 3317) / Minnesota HF 2 (2023)

 

Paid Family/Medical Leave

Employee may take up to 12 weeks of paid leave for their own serious health condition and up to 12 weeks of paid leave for bonding, family care, safety, or a qualifying exigency, but are limited to an aggregate of 20 weeks of paid leave in a benefit year. The final rules address various issues, including requirements for notifying employers of the need for leave and requests for leave changes.

January 1, 2026

Minnesota SF 17 

 

Meal/ Rest Breaks

Requires employers to allow employees a paid rest break of at least 15 minutes “or enough time to utilize the nearest convenient restroom, whichever is longer” within every four hours of consecutive work. Employees working for six or more consecutive hours must be provided a paid 30-minute meal break. 

January 1, 2026

Minnesota SF 17 

 

Paid Sick Leave

Amendments address advancing paid sick and safe time in advance of accrual

January 1, 2026

Minnesota: Minneapolis Ordinance No. 2025-041

 

Paid Sick Leave

More closely aligns the Minneapolis paid sick and safe leave ordinance with the statewide law and modifies enforcement provisions.

December 31, 2025

Minnesota: St. Paul Ordinance No. 25-55

 

Wage and Hour

Amends the St. Paul minimum wage ordinance to delete the macro business category; Requires employers to provide all new employees with a wage notice and all employees with wage statements.

November 16, 2025

Minnesota: St. Paul Ordinance No. 25-56

 

Wage and Hour Penalties

Amends the St. Paul wage theft ordinance to authorize the Labor Standards Division to obtain an administrative search warrant if an employer fails to produce wage records.

November 16, 2025

Minnesota: St. Paul Ordinance No. 25-57

 

Paid Sick Leave

More closely aligns the St. Paul paid sick and safe leave ordinance with the statewide law.

November 16, 2025

Montana

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Montana HB 211 (LC885)

 

App-Based Workers

Allows retail licensees, such as grocery stores, to use third-party delivery services to deliver beer and wine, with strict requirements, including training

January 1, 2026

Nevada

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Nevada SB 260 (BDR 961)

 

Workplace Safety

Provides actions certain employers must take to reduce employee exposure to poor air quality from wildfire smoke.

January 1, 2026

New Hampshire

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

New Hampshire HB 2

 

Unpaid Family/Medical Leave

Requires employers with 20 or more employees to provide 25 hours of unpaid leave for one year after childbirth to attend medical appointments related to childbirth, postpartum care, and infant pediatric needs.

January 1, 2026

New Hampshire HB 225 (LSR 216)

 

Military/Spouse Employment Protection

Provides employment protections to the spouses of military service members involuntarily mobilized due to war, national emergency, or contingency operations.

January 1, 2026

New Jersey

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

New Jersey AB 4429

Labor Management Relations

Amends the state’s captive audience law to modify the definition of “political matters” to expressly include the decision to join or support a labor organization; clarifies exceptions to the law.

December 2, 2025

New York

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

New York Budget Amendments to Healthy Terminals Act

 

Wages, Benefits, and Leaves

Provides that wage, benefit, and leave obligations for covered airport workers at JFK and LaGuardia Airports will be tied to the federal Service Contract Act framework as designated by the New York State Department of Labor.

January 1, 2026

New York: NYC Int. No. 0780-2024

Paid Sick Leave / Unpaid Sick Leave / Paid Prenatal Leave / Scheduling

Expands the permissible uses for paid sick and safe time; requires employers to provide an additional bank of 32 hours of unpaid sick and safe time, officially incorporates additional bank of 20 hours of state paid prenatal leave into local ordinance, and clarifies employers’ obligations in responding to requests for temporary schedule changes.

February 22, 2026

New York General Business Law Article 43

Retirement Benefits

New York’s Secure Choice Program is a state-run retirement program that mandates and facilitates the creation of Roth IRAs for private-sector employees who do not have access to a qualified retirement plan through their employers. Beginning in March of 2026, New York will require most private-sector employers to register for the Program or certify their exemption from the Program. *Employers with 30 or more employees must register by March 18, 2026; those with 15-29 must register by May 15, 2026; those with 10-14 employees must register by July 15, 2026.

March 18, 2026*

North Carolina

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

North Carolina HB 805

 

Gender Identity/

Discrimination and Harassment 

Provides that for purposes of any state law or rules and regulations, "sex" means a person’s biological sex, either male or female, at birth. Adds provisions to prevent the sexual exploitation of women and minors.

January 1, 2026

North Dakota

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

North Dakota SB 2047

 

Tax Withholding

Prohibits employers from withholding or deducting income taxes from wages without employee consent.

January 1, 2026

Oklahoma

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Oklahoma SB 626

 

Data Security

Amends the definitions of “personal information” and “reasonable safeguards” under the Security Breach Notification Act.

January 1, 2026

Oregon

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Oregon SB 426

 

Construction industry/Unpaid Wages

Imposes joint and several liability on both property owners and direct contractors for unpaid wages owed to employees not covered by a collective bargaining agreement.

January 1, 2026

Oregon SB 537

 

Healthcare/

Workplace Violence

Creates workplace violence prevention requirements for certain health care entities.

January 1, 2026

Oregon SB 858

Paid Family/Medical Leave

Employees cannot receive benefits while they are eligible to receive workers’ compensation or unemployment benefits.

January 1, 2026

Oregon SB 906

 

Wage Statements

Requires employers to provide employees with an explanation of their wage statements at the time of hire.

January 1, 2026

Oregon SB 916

 

Unemployment / Labor Law

Provides unemployment benefits to striking workers after two weeks of unemployment.

January 1, 2026

Oregon SB 1108

 

Paid Sick Leave

Allows employees to use paid sick time to donate blood.

January 1, 2026

Oregon SB 1168

 

Home Health and Home Care/Wage and Hour

Prohibits per-visit compensation for home health care and home hospice care staff.

 

January 1, 2026

Pennsylvania

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Pennsylvania: Philadelphia Ordinance No. 250373

 

Criminal Background Checks

Amends the Fair Criminal Record Screening Standards Ordinance to clarify and expand the required procedures for individualized assessments and adverse action notices regarding criminal records in hiring decisions.

January 6, 2026

Pennsylvania: Pittsburgh Ordinance No. 2025-1736

 

Paid Sick Leave

Modifies the accrual rate, use and accrual caps for paid sick leave.

January 1, 2026

Rhode Island

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Rhode Island HB 5563

 / Rhode Island SB 549

 

Workplace Training

Requires hotel employees to receive human trafficking awareness training annually

January 1, 2026

Rhode Island HB 5679 /

Rhode Island SB 70

 

Hiring / Onboarding

Requires employers to provide each employee with a written notice of specific conditions of employment upon hire.

January 1, 2026

Rhode Island HB 6065 /

Rhode Island SB 829

 

Paid Family/Medical Leave

Provides that an employee may use temporary caregiver insurance benefits retroactive to January 1, 2025, to serve as a bone marrow transplant donor or a living organ donor.

January 1, 2026

Rhode Island HB 6066 /

Rhode Island SB 974

 

 

Disability Insurance / Paid Family/Medical Leave

Increases the percent of wages used to determine temporary disability insurance benefits and amends duration period of caregiver benefits; extends temporary caregiver benefits eligibility to workers who are caring for a sibling.

January 1, 2026

Texas

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Texas HB 149

 

Artificial Intelligence (AI)

Regulates the use of AI systems; establishes antidiscrimination and disclosure requirements for deployers of AI systems.

January 1, 2026

Texas HB 3699

 

Unemployment

Changes the definition of "last work" for unemployment compensation purposes.

January 1, 2026

Washington

Bill / Ordinance / Regulation

Main Topic

Summary

Effective Date

Washington HB 1162

 

Workplace Violence/Healthcare

Requires health care employers to develop and implement a workplace violence prevention plan; requires employers to investigate workplace violence incidents and submit an assessment report to the state.

January 1, 2026

Washington HB 1213

 

Paid Family/Medical Leave

Amends state paid family and medical leave program to expands employment restoration protections and requires employers to provide written notice regarding employment restoration.

January 1, 2026

Washington HB 1524

 

Workplace Safety/Training

Requires employers in specified industries to provide annual training to managers, supervisors, and isolated employees on sexual assault and sexual harassment.

January 1, 2026

Washington HB 1879

 

Meal Period Waiver

Provides that a health care worker may agree to waive certain meal periods if a written waiver is completed.

January 1, 2026

Washington SB 5041

 

Unemployment

Clarifies the requirements for unemployment benefits eligibility during a labor strike.

January 1, 2026

Washington SB 5101

 

Victims of Violence Leave / Paid Sick Leave

Expands access to domestic and sexual violence leave and safety accommodations to include workers who are victims of hate crimes, which also affects “safe” time reasons under separate paid sick and safe time law.

January 1, 2026

Washington SB 5291

 

Long Term Care Insurance

Introduces expanded participation options, new insurance frameworks, and streamlined qualification requirements for the Washington Cares long-term care insurance program. 

January 1, 2026

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.

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