In a single day, Illinois Governor J.B. Pritzker signed more than 200 bills into law. Among them are over a dozen new or expanded employment-related requirements—many already effective and others rolling out through January 1, 2026. Illinois employers should begin preparing now for significant policy, compliance, and operational changes.

Two Newly Enacted Employment Laws

Workers’ Rights and Safety Act

Illinois has enacted new protections designed to “freeze” certain federal employee safeguards at their early-2025 levels. If future federal wage-and-hour or mining-safety laws are weakened, Illinois agencies must adopt state-level regulations that maintain the earlier, more protective standards. Agencies remain free to adopt even stronger employee protections and must report their actions to the Legislature.

Family Neonatal Intensive Care Leave Act

Beginning June 1, 2026, employers must provide job-protected, unpaid leave to employees who have newborn children receiving treatment in a neonatal intensive care unit (NICU).
Covered employees may take:

• Up to 10 days of NICU leave if the employer has 16–50 employees
• Up to 20 days of NICU leave if the employer has more than 50 employees

Leave may be taken intermittently in increments as small as two hours. NICU leave includes protections similar to those under the Family and Medical Leave Act (FMLA) and is in addition to any FMLA leave for eligible employees.

Key Amendments to Existing Employment Laws

Illinois Human Rights Act (IHRA)

For claims filed after January 1, 2026, fact-finding conferences will no longer be automatically required. The Illinois Department of Human Rights may hold them at its discretion or upon joint written request of both parties.
The Human Rights Commission also gains expanded authority to impose civil penalties “to vindicate the public interest,” with penalties ranging from $16,000 to over $70,000 per violation depending on employer history.

Workplace Transparency Act

Effective January 1, 2026, confidentiality provisions in employment, severance, and settlement agreements face tighter restrictions. Agreements may not prohibit employees from participating in “concerted activities” related to workplace concerns under the National Labor Relations Act (as it existed in early 2025).
Additional requirements include:

• Separate consideration for any confidentiality terms in separation or settlement agreements
• Prohibitions on non-Illinois choice of law or venue clauses
• Prohibitions on clauses shortening statutes of limitations

Wage Payment and Collection Act (WPCA)

Effective immediately and retroactively, unpaid final wage orders issued by the Illinois Department of Labor now become debts owed to the State if not paid within 35 days after the review period closes. This change streamlines enforcement, allowing the State to collect these amounts like other civil judgments.
Penalties and fees for unpaid wage orders have also increased.

Military Leave Act

The former Family Military Leave Act has been renamed and expanded. Employers with 51 or more employees must now provide up to eight hours of paid leave per month (maximum 40 hours annually) for employees who perform military funeral honors duties.

Nursing Mothers in the Workplace Act

All lactation breaks must now be paid for up to one year after childbirth. Employers may not require employees to use paid leave or experience any pay reduction for reasonable lactation breaks. Employers may still require these breaks to run concurrently with existing break periods.

Equal Pay Act

Coverage under the Illinois Equal Pay Act now extends to all employers with 100 or more employees working in or reporting to Illinois, regardless of federal EEO-1 filing status.

Victims’ Economic Safety and Security Act (VESSA)

Employees (or family members) who record incidents of violence using employer-issued devices must be granted access to the images or documentation. Employers may not take adverse action based solely on the device containing evidence of a domestic, sexual, gender-based, or other violent incident.
Employers may still enforce reasonable device-use policies and comply with investigations or court orders involving device content.

Additional Changes Affecting Employees

Other amendments expand rights for employees in areas such as:

• Eligibility for unemployment if leaving a job due to a mental health disability
• Pre-tax commuter benefit eligibility for part-time employees
• Paid leave rights for part-time organ donors
• Military differential compensation for any missed shift, regardless of length or schedule

Industry-Specific Updates

Industries facing targeted amendments include:

• Public works construction: Expanded Prevailing Wage Act coverage, enforcement tools, and penalties
• Gaming: Updated occupational licensing, background check, and identification badge requirements
• Child care: Enhanced criminal background check rules for child care workers

What’s Ahead

The Illinois Legislature continues to consider additional employment measures, including potential restrictions—or complete bans—on non-compete and non-solicitation agreements. Employers are also awaiting final Department of Labor rules interpreting the amended Day and Temporary Labor Services Act, which will further shape compliance obligations.

What Employers Should Do Now

Illinois employers are encouraged to:

• Review and update policies, handbooks, and employment agreements
• Revise confidentiality, separation, and severance agreement templates
• Prepare for expanded leave rights and paid-break requirements
• Adjust compliance systems, including payroll and timekeeping, to reflect new mandates
• Reassess AI-related employment practices, especially in anticipation of January 1, 2026 changes

Forework will continue monitoring legislative and regulatory developments to help employers stay compliant and minimize risk.

The Massachusetts Department of Family and Medical Leave has released two major updates affecting Paid Family and Medical Leave (PFML) benefits and contributions beginning in 2026. Employers must review these changes now to ensure compliance ahead of the January 1, 2026 effective date.

New Guidance on Tax Treatment of PFML Benefits and Contributions

The Department issued a memorandum clarifying how PFML benefits and contributions should be treated for federal tax purposes. The guidance reflects recent IRS rulings addressing state-administered paid family and medical leave programs. Notably, the memorandum does not address private or self-insured PFML plans.

Family leave PFML benefit payments are considered taxable income but are not wages for employment tax purposes. These payments will be reported by the Department on Form 1099-G, and employers will not have additional reporting or withholding responsibilities.

Medical leave PFML benefits have a more complex structure. For employers with 25 or more employees, Massachusetts requires the employer to cover 60% of the medical leave PFML contribution. As a result:

• Sixty percent of an employee’s PFML medical leave benefit is treated as taxable wages subject to income tax and employment taxes and must be reported on the employee’s W-2.
• The remaining forty percent is not taxable and does not need to be reported on a W-2.

Beginning January 1, 2026, the Department will withhold the employee share of FICA on the taxable portion of PFML medical leave benefits. Employers with 25 or more employees will be responsible for the employer portion of FICA and FUTA taxes on these taxable benefits. The Department will transmit benefit and withholding information through the Employer Portal.

Employers with fewer than 25 employees do not fund the employer share of medical PFML contributions. Therefore, medical leave PFML benefits paid to employees of these smaller employers are not taxable and do not create additional employer reporting obligations.

The memorandum also outlines tax rules for PFML contributions. All employers must treat employee PFML contributions as taxable wages for W-2 reporting. If an employer voluntarily pays the employee’s required PFML contribution, that payment is also treated as taxable wages. Required employer PFML contributions are not considered wages.

Although the IRS ruling is currently in effect, calendar year 2025 is considered a transition period. Employers will not be penalized for failing to follow the new rules for PFML benefits paid in 2025, but full compliance is required starting January 1, 2026.

It is essential for employers to maintain access to the Department’s Employer Portal to retrieve taxable benefit information and ensure accurate W-2 reporting.

2026 PFML Contribution Rates and Maximum Benefit Amount

The Department has announced the PFML contribution rates and maximum weekly benefit amounts for 2026.

Effective January 1, 2026, the maximum weekly PFML benefit increases to $1,230.39, up from $1,170.64 in 2025.

PFML contribution rates for 2026 remain unchanged:

• Employers with 25 or more employees:
  • Family leave contribution: .18%
  • Medical leave contribution: .70%
  • Total: .88%
• Employers with fewer than 25 employees:
  • Family leave contribution: .18%
  • Medical leave contribution: .28%
  • Total: .46%

Employers with approved private or self-insured PFML plans remain exempt from submitting contributions to the state but must update their plans to reflect the new 2026 maximum benefit amount.

Employers are also required to:

• Display the updated PFML workplace poster
• Issue 2026 rate sheets to all current employees
• Provide PFML rights-and-obligations notices to new employees within 30 days of their start date

Updated posters, rate sheets, and employee notices—including versions for employers with fewer than 25 employees—are available on the Department’s website in multiple languages.

As we enter the busy holiday season, employers face an annual question: what are your obligations when it comes to paying employees for holidays? The U.S. Department of Labor (DOL) provides clear guidance under the Fair Labor Standards Act (FLSA), but many businesses still get tripped up—leading to avoidable wage claims, audits, and litigation.

Below is an overview of the federal rules you need to know as you prepare your end-of-year schedules.

No Federal Right to Paid Holidays (For Most Employees)

Under the FLSA, hourly and non-exempt employees have no legal right to be paid for holidays they do not work. Paid holidays—such as Christmas Day, Thanksgiving, or New Year’s Day—are considered a voluntary employer benefit unless a union agreement, employment contract, or company policy requires paid time off.

Exception: Salaried Exempt Employees

For overtime-exempt salaried employees, employers generally must pay their full weekly salary if the business is closed for a holiday and the employee works any portion of that workweek. Failing to do so risks undermining the employee’s exempt status.

If Non-Exempt Employees Work on a Holiday: No Required Premium Pay

The FLSA imposes only one baseline obligation when non-exempt employees work on a holiday: they must be paid at least the applicable minimum wage for all hours worked.

Beyond that requirement, there is no federal mandate to pay premium or bonus rates for holiday shifts. Extra compensation is optional unless required by policy or collective bargaining.

Important Note About Premium Rates Below 1.5x

For overtime-eligible employees, holiday premiums can affect overtime calculations.

If an employer pays a premium that is less than 1.5 times the employee’s regular rate—for example, an additional two dollars per hour, or a premium of 1.25x or 1.3x—that additional amount must be included in the employee’s regular rate when calculating overtime. These payments increase the regular rate and therefore can increase the overtime rate owed for that workweek.

Only premium payments at 1.5x or higher are excludable from the regular rate.

These rules apply only to overtime-eligible (non-exempt) employees.

Holiday Premium Pay and Its Effect on Overtime Calculations

Under DOL regulations (29 CFR Part 778), premium pay of 1.5x or more for holiday work may be excluded from the regular rate for overtime purposes.

Premiums at 1.5x or higher do not increase overtime liability. Premiums below 1.5x must be factored into the regular rate and can increase overtime costs. These regular-rate rules apply only to non-exempt employees who are eligible for overtime under the FLSA.

Understanding this distinction is critical during the holiday season when schedules fluctuate and employees work irregular hours.

How Forework Protects Your Company During the Holiday SeasonAt Forework, our payroll rules for holidays are pre-configured to comply with federal labor laws, including the correct treatment of holiday premiums, inclusion or exclusion of premium payments from the regular rate, proper handling of exempt salary obligations, accurate overtime calculations, and state-specific holiday rules where required.

Our system ensures employees are paid correctly, employers remain compliant, regular-rate errors are avoided, and businesses minimize legal exposure and reduce the risk of costly lawsuits.

Forework exists to help employers navigate the complexities of wage-and-hour laws with confidence—especially during the most compliance-heavy time of the year.

New York State is officially moving forward with the rollout of the New York State Secure Choice Savings Plan, a state-facilitated Roth IRA program for private-sector workers who do not have access to an employer-sponsored retirement plan. After several years of delay, employer registration is now open, and beginning in March 2026, employers will be required to either register for the Program or certify that they are exempt.

The statewide rollout includes detailed deadlines tied to employer headcount. Businesses should begin preparing now for compliance, data gathering, and payroll adjustments.

Which Employers Are Covered?

An employer is required to participate in New York Secure Choice if it meets all of the following (a) Has been in business for at least two years, (b) Employed 10 or more employees in New York during the previous calendar year, and (c) Does not offer employees a qualified retirement plan (such as a 401(k), SIMPLE IRA, or SEP).  Employers that offer a qualified plan are exempt but must certify their exemption to the Secure Choice Savings Program Board.

There are no fees for employers to participate. However, enrolled employees will be charged a $28 annual account fee, plus an investment-based fee ranging from 0.22% to 0.31%.

Key Registration and Certification Deadlines

Employers must register or certify their exemption based on their New York headcount. The registration deadlines are:

– March 18, 2026: Employers with 30 or more employees
– May 15, 2026: Employers with 15 to 29 employees
– July 15, 2026: Employers with 10 to 14 employees

All covered employers must take action by their applicable deadline.

What Covered Employers Must Do

Covered employers must complete several compliance steps once required to participate:

1. Provide program information, disclosures, and instructions.
2. Manage enrollment by collecting employee elections or opt-out forms.
3. Automatically enroll employees who do not respond within 30 days at the default 3% Roth IRA payroll deduction rate.
4. Withhold after-tax Roth IRA contributions and remit them to the state-designated provider.
5. Ensure payroll accuracy and remittance compliance.

Employers are not allowed to make employer contributions or matching contributions to Secure Choice IRAs.

Employee Enrollment Rules

All employees aged 18 or older who earn taxable wages from a participating New York employer must be enrolled unless they opt out. Employees have 30 days after enrollment to select a different contribution percentage, change investment selections, or opt out entirely. Employees who do nothing will be automatically enrolled at 3% of gross income. Employers are responsible for accurate withholding and remittance.

Investment Options and Vendor Selection

New York State has pre-selected the program administrator and investment menu. Participants will choose from four state-approved funds or remain in the default investment option. Employers have no role in plan design, investments, or vendor selection.

Should Employers Consider Offering Their Own Retirement Plan Instead?

Secure Choice is intended as a baseline compliance option, not a comprehensive retirement benefit. Employers may want to evaluate whether adopting their own qualified retirement plan offers more flexibility and value.

A private plan allows employers to choose plan design, eligibility, vesting schedules, matching contributions, and investments, and it exempts them from Secure Choice entirely. Employers should also consider that lower-income employees who do not opt out may see reduced take-home pay.

What Employers Should Do NowEmployers should begin preparing now by:

– Determining whether they are covered by the mandate
– Reviewing whether an existing plan qualifies them for exemption
– Considering whether adopting a 401(k) or SIMPLE IRA before the compliance deadline is preferable
– Gathering data required for registration
– Verifying payroll provider capabilities for withholding and remittance

Forework will continue monitoring implementation developments and will ensure payroll logic supports auto-enrollment, deduction tracking, contribution remittance, and employee opt-out processing.

The legal landscape around pregnancy accommodations has shifted several times since the Pregnant Workers Fairness Act (PWFA) took effect in June 2023. Between changes in EEOC leadership, ongoing court challenges, and political turnover, employers are understandably confused about what obligations still apply.

The bottom line: Employers must continue providing reasonable accommodations for pregnancy and related conditions — but the scope of those obligations may narrow in the coming months.

This article breaks down what is happening at the federal level, what employers are still required to do today, and what may change next.

Where We Started: The PWFA and the 2024 EEOC Regulations

The PWFA requires employers with 15+ employees to provide reasonable accommodations for the known limitations of a pregnant employee, an employee recovering from childbirth, or an employee with a related medical condition.

In 2024, the EEOC issued regulations interpreting “related medical conditions” broadly — covering:

• Menstruation
• Infertility and fertility treatments
• Lactation
• Menopause
• Recovery from miscarriage
• Elective abortion, including time off to obtain one

These interpretations significantly expanded employer obligations and sparked legal and political pushback.

Where We Are Now: A New EEOC Majority and Legal Challenges

Following the 2024 election, the EEOC experienced major leadership changes, resulting in a Republican majority. The new Chair, Andrea Lucas, has publicly stated that the Final Rule overreached in several areas — especially on issues not directly tied to pregnancy or childbirth.

Meanwhile, multiple states filed lawsuits challenging the regulations. The most significant development occurred in February 2025, when the U.S. Court of Appeals for the Eighth Circuit held that states challenging the abortion-related provisions of the rule have standing to sue. The case now returns to the district court, where the legality of the Final Rule will be fully litigated.

This means:

• The rule remains in effect for now
• But portions of it may be struck down by the courts
• And the EEOC itself may revise or rescind the rule

Employers should prepare for changes — but continue complying with existing obligations until official action is taken.

What Employers Should Expect Next

1. The Final Rule may be replaced with a more moderate version

The current EEOC leadership has signaled it intends to re-evaluate the 2024 rule. Even so, the underlying duty to provide reasonable accommodation for pregnancy and childbirth is expected to remain.

2. Enforcement priorities may shift

If the Final Rule remains in place temporarily, the EEOC (now under new leadership) may take a more conservative enforcement approach — similar to its approach regarding gender-identity discrimination under Title VII.

3. Ongoing litigation may invalidate parts of the rule

If the courts ultimately reject the abortion-related expansions of the PWFA, employers will see corresponding changes in federal guidance.

Pregnancy Accommodation: What Employers Should Do Now (and Always)

Regardless of regulatory changes, the core principles of accommodation remain the same. Employers should use this moment to reinforce foundational best practices.

1. Maintain (or adopt) a clear, simple accommodation policy

Your policy should cover:

• Pregnancy and related medical conditions
• Disabilities under the ADA
• Lactation
• Religious accommodations
• Applicable state-law requirements

Direct employees to the individual or department that handles accommodation requests.

2. Engage in the interactive process

If the exact accommodation requested is not feasible, discuss alternatives with the employee before denying a request.

3. Document all steps

Record requests, conversations, medical documentation (when appropriate), and decisions.

4. Use leave only as a last resort

If possible, provide an alternative that keeps the employee working. Leave should be considered when:

• It is the only viable accommodation, or
• The employee requests leave specifically

5. Do not forget job applicants

PWFA accommodation duties apply at the application stage as well.

Specific Pregnancy-Related Guidance for Employers

Recognize accommodation requests — even if they are informal

Employees do not need to mention the “PWFA,” use legal terms, or submit a formal request.

Request medical documentation only when appropriate

The 2024 rule adopted a low documentation standard, meaning employers should not require a doctor’s note where the condition is obvious (e.g., an employee visibly in her third trimester).

Train managers and HR

Front-line managers must know how to recognize accommodation requests and route them properly.

How Forework Helps Employers Stay Compliant

Forework’s payroll logic and compliance tools are built by labor and employment attorneys. As the PWFA continues to evolve, Forework updates accommodation-related payroll rules and HR workflows to ensure:

• Compliance with federal and state accommodation laws
• Accurate treatment of modified duty schedules
• Correct handling of reduced work hours, time-off adjustments, and leave
• Protection from wage-and-hour claims tied to pregnancy-related accommodations

Our system is designed to give employers peace of mind and legal protection, even when the regulatory environment is shifting.

As the federal government shutdown continues—now several weeks in—many headlines focus on the direct impact to federal employees. But what’s less visible is the ripple effect on private employers across the country.

From delayed investigations to suspended funding and halted immigration petitions, the shutdown has far-reaching consequences for HR operations, payroll, and compliance. Employers should use this time strategically: to stabilize operations, review compliance systems, and prepare for the restart of agency oversight once the government reopens.

1. Federal Investigations Are Delayed—Not Cancelled

Most federal agencies are running on minimal staff. The U.S. Department of Labor (DOL) has furloughed roughly 90% of its employees. The EEOC is operating with about 5% of its normal workforce, and the NLRB has retained only a handful of employees to handle emergencies.

This means routine agency investigations are paused, but not forgotten. Agencies have said they will continue limited emergency functions, such as:

• Investigating claims that are about to expire under statutes of limitations
• Accepting time-sensitive EEOC charges (though not investigating them)
• Pursuing only critical or court-ordered litigation

Employers should not assume inactivity equals immunity. Use this window to review outstanding complaints, organize documentation, and proactively resolve internal disputes before agency scrutiny resumes.

2. Federal Court Operations Are Limited

Federal courts are also operating under restricted capacity. While judges continue to perform constitutional duties, clerks and administrative staff have been furloughed, and case management varies by district.

Employers involved in federal litigation should monitor their court’s website and dockets closely. Expect delays, but continue preparing filings and complying with procedural deadlines.

3. Small Business Funding Disruptions

The U.S. Small Business Administration (SBA) plays a critical role in providing loans that fuel small business operations. During the shutdown, the SBA has been unable to distribute an estimated $170 million in loans to 320 businesses per day, stalling growth plans and payroll funding.

Employers relying on SBA financing may need to implement temporary cost controls, including slowed hiring or leave adjustments. In severe cases, potential layoffs could trigger WARN Act notice obligations.

4. Federal Contractors Face Payment Gaps

Federal contractors and subcontractors are among the hardest hit. While some contracts remain funded, many are frozen until Congress restores appropriations. The White House’s shutdown guidance makes clear:

• Contracts already fully funded can continue, but payments may still be delayed
• New obligations cannot be made without appropriations, except for emergency needs
• Subcontractors may experience downstream payment disruptions tied to prime contractor status

Employers should review the funding language in their contracts and communicate directly with their Contracting Officer to determine whether their contract is covered or paused.

5. Immigration and Hiring Delays

The DOL’s Foreign Labor Application Gateway (FLAG) system—required for Labor Condition Applications (LCAs) supporting H-1B and other visa programs—is currently offline. That means visa petitions and foreign worker onboarding are on hold.

Although U.S. Citizenship and Immigration Services (USCIS) remains partially operational (since it’s funded by filing fees), its E-Verify system was suspended early in the shutdown, disrupting employment verification for new hires.

Employers must still complete Form I-9 within required timelines, but should document any E-Verify delays caused by the shutdown.

6. COBRA Continuation Obligations Remain

Even amid funding disruptions, employers must still comply with COBRA continuation coverage laws. If employees lose coverage due to furloughs or layoffs, COBRA notices and continuation options must still be provided.

7. State and Local Oversight Continues

While federal agencies are largely inactive, state and local regulators remain open. Many wage and hour, discrimination, and workers’ compensation complaints are dual-filed, meaning they may continue at the state level even as federal review stalls.

Employers should maintain compliance efforts and not rely on the temporary slowdown in federal oversight.

The Bottom Line

A government shutdown doesn’t suspend employer obligations—it just complicates them. Payroll, classification, leave, and compliance systems must remain in sync even when federal oversight slows down.

Forework helps employers stay compliant during uncertainty. Our payroll and compliance solutions integrate federal and state wage laws to ensure your business keeps running smoothly—no matter what’s happening in Washington.

When the government reopens, investigations and audits will resume. The smartest move is to stay proactive now so your company isn’t caught unprepared later.

As of October 29, 2025, Massachusetts has joined a growing list of states enforcing salary range transparency laws — and the consequences for employers who fail to comply can be costly.

Under the new “Act Relative to Salary Range Transparency,” employers with more than 25 employees in Massachusetts are now legally required to disclose salary ranges on job postings and provide pay range information to current employees. Larger employers (those with over 100 employees) must also submit annual pay and EEO data reports to the state for public release.

These rules reflect a nationwide shift toward pay equity and accountability — and they serve as a wake-up call for employers everywhere to review their compensation practices before regulators do it for them.

Key Requirements for Employers

Here’s what the Massachusetts law now mandates for covered employers:

1. Job Postings:
Every job posting — whether listed internally, externally, or through a recruiter — must include the annual salary range or hourly wage range that the employer “reasonably and in good faith expects to pay” for the position.

2. Current Employees:
Upon request, employers must disclose the pay range for an employee’s current role, even if no promotion or opening exists.

3. Promotions and Transfers:
Employers must provide pay range information whenever offering a promotion or transfer to an existing employee.

4. Remote Roles:
If a position can be performed remotely from or to a Massachusetts worksite, it is covered under the law — even if the job itself is not physically based in the state.

Reporting and Compliance Obligations

In addition to disclosure requirements, employers with more than 100 Massachusetts employees must file annual pay data reports with the Secretary of the Commonwealth, beginning February 1, 2026.
These reports mirror the federal EEO-1 data and are submitted through the state’s online reporting portal.

Enforcement and Penalties

The law is enforced by the Massachusetts Attorney General’s Office. While there’s no private right of action for employees, the AG has the authority to issue fines and injunctions:

• 1st offense: Warning
• 2nd offense: Fine up to $500
• 3rd offense: Fine up to $1,000
• 4th and subsequent offenses: Civil fines ranging from $7,500 to $25,000 per violation

Retaliation against employees or applicants who request pay range information or file complaints is strictly prohibited.

What This Means for Employers Nationwide

Massachusetts is not alone — pay transparency laws are spreading quickly across the country, including in states like California, New York, Colorado, and Washington. Even if your business isn’t based in Massachusetts, you could still be affected if you hire remote workers who live there or report into a Massachusetts office.

Employers everywhere should act now to:
✅ Establish clear, well-documented pay ranges for each role
✅ Review and update job postings for accuracy and compliance
✅ Train HR, payroll, and recruiting teams on new disclosure obligations
✅ Conduct regular internal pay equity audits to mitigate risk

How Forework Helps Employers Stay Ahead

At Forework, we help employers simplify compliance with complex labor laws like pay transparency and wage reporting. Our payroll platform combines automation with labor law intelligence—so your business can maintain compliance across every jurisdiction, from Massachusetts to California.

With Forework, you’ll always know your pay practices are transparent, compliant, and defensible.

Don’t wait for an audit to find out your pay data is noncompliant—get compliant before regulators come calling.

The recent news about Lyft paying $19.4 million to the State of New Jersey is a sharp reminder for all employers: worker misclassification is not just a paperwork error—it’s a legal and financial disaster waiting to happen.

What Happened

After drivers for Lyft filed for unemployment and disability benefits, the New Jersey Department of Labor and Workforce Development (NJDOL) audited the company’s records from 2014 to 2017. The audit revealed that Lyft had misclassified over 100,000 drivers as independent contractors instead of employees. That decision cost the company over $10.8 million in unpaid contributions, plus another $8.6 million in penalties and interest.

Even after contesting the audit in front of the Office of Administrative Law, Lyft ultimately withdrew its challenge and paid the full amount owed—nearly $20 million in total.

Why Misclassification Matters

When a business classifies workers as independent contractors rather than employees, those workers lose access to critical protections, including:

• Minimum wage and overtime pay
• Paid sick and family leave
• Unemployment insurance
• Workers’ compensation benefits

These are not optional benefits—they’re legal obligations for employees. Misclassification undermines workers’ rights and disadvantages compliant employers who play by the rules and contribute to the state’s unemployment insurance trust funds.

The State Is Watching

New Jersey’s Attorney General has made it clear: the state is serious about enforcing worker classification laws. Companies that fail to comply risk more than just audits—they face steep financial penalties, reputational damage, and public scrutiny.

What Employers Should Do

The takeaway for every business owner is simple:
✅ Audit your workforce classifications now.
✅ Ensure your payroll setup and HR systems align with wage and hour laws.
✅ Work with experts who understand compliance—not just software.

On October 29, 2025, the U.S. Department of Homeland Security (DHS) issued an Interim Final Rule (IFR) that significantly changes how Employment Authorization Documents (EADs) are handled.

Effective October 30, 2025, employees who file a renewal Form I-765 (Application for Employment Authorization) will no longer receive the automatic 540-day extension of their work authorization. This means:

• Renewal applicants filing on or after Oct. 30, 2025 will not be able to continue working once their EAD expires unless the new card is approved and issued.
• The Form I-797C (Notice of Action) for renewal applications filed on or after this date will no longer serve as proof of work authorization, even when paired with an expired EAD.

What remains unchanged:

• Employees who filed their EAD renewal before Oct. 30, 2025 will still qualify for the automatic extension if they fall under an eligible category listed in Section 5.1 of the M-274 Handbook for Employers.
• Those employees may continue to use their Form I-797C receipt notice with their expired EAD as evidence of valid work authorization.

What employers should do now:

• Review your Form I-9 processes and ensure HR or payroll staff understand the new rule.
• Track EAD expiration dates carefully, since renewal filings will no longer provide temporary extensions.
• Refer to Section 5.0 of the M-274 for updated Form I-9 compliance guidance and consult the official USCIS News Alert for more details.

At Forework, we help employers stay compliant with complex wage, hour, and immigration-related payroll regulations. Our system and compliance experts monitor regulatory updates like this one so your business stays protected and your workforce stays on track.

As part of New York’s FY 2025-2026 Budget, the State’s Legislature passed major updates to the New York’s child labor laws, the largest seen in decades. The legislation sharply increases civil penalties, strengthens reporting and certification requirements, and eliminates several longstanding exemptions and loopholes for employing minors. Employers across all industries—especially retail, food service, and hospitality—should treat this as a clear signal that child labor enforcement is now a top state priority.

1. Civil Penalties Increase Dramatically

Effective immediately, employers face much steeper fines for child labor violations under Part W of the Budget Bill:

Violation	Previous Penalty	New Penalty
First violation	up to $1,000	up to $10,000
Second violation	up to $2,000	$2,000–$25,000
Third or subsequent	up to $3,000	$10,000–$55,000

If a violation results in serious injury or death of a minor, the fines now increase dramatically:

Violation (Injury/Death)	Previous Penalty	New Penalty
First	triple max penalty	$3,000–$30,000
Second	triple max penalty	$6,000–$75,000
Third or subsequent	triple max penalty	$30,000–$175,000

Forework Tip: Even a first-time violation can now cost five figures. Employers should audit all hiring practices involving minors immediately—particularly in seasonal or part-time roles.

2. Expanded Compliance and Reporting Requirements

Two years from the law’s effective date, Part X of the Budget Bill will bring additional changes to how employers and minors are registered and certified:

• New State Database: The NYSDOL will create a centralized database tracking both employers and their minor employees.
• Employer Certification: Businesses must formally certify compliance, confirming that minors only perform legally permitted work.
• Electronic Working Papers: Minors will soon be able to apply for and register work permits electronically, replacing the traditional in-person system.

These changes are aimed at improving enforcement transparency and eliminating paperwork gaps that have historically allowed violations to go unnoticed.

3. Removal of Certain Exemptions

The new law also eliminates outdated exceptions that previously allowed minors to work under special circumstances, including:

• The exemption for newspaper carriers, and
• The allowance permitting employment of a 15-year-old deemed incapable of further instruction with a special certificate.

These changes reflect a broader push to align New York’s child labor framework with federal standards and to protect vulnerable youth from exploitation.

4. Ongoing Requirements for Employers of Minors

Even before these new provisions, New York employers were already subject to strict restrictions under the New York Labor Law and NYSDOL guidance, including:

• Maximum weekly and nightly hours based on age and school session status;
• Posting of work schedules for all minor employees, showing start/end times and meal breaks; and
• Ensuring minors hold valid working papers before beginning work.

The latest amendments add stronger enforcement mechanisms to these long-standing requirements.

What Employers Should Do Now

With heightened penalties and stricter compliance rules on the horizon, HR and payroll teams should act quickly:

1. Audit all youth employment practices — including work hours, job duties, and scheduling.
2. Verify all working papers and maintain organized documentation for inspection.
3. Train hiring managers and supervisors on new restrictions and penalty risks.
4. Plan for electronic certification and reporting changes slated to take effect in 2027.
5. Update handbooks and postings to align with new requirements.

The Bottom Line

New York’s updated child labor laws make one thing clear: enforcement is intensifying, penalties are rising, and employers are expected to maintain airtight compliance.At Forework, we help employers navigate complex wage and hour laws with software that’s built for compliance—because protecting workers (and your business) starts with getting payroll right.