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.

As of June 8, 2025, most employers with 11 or more employees must pay workers $72 per day (up from $40) for the first three days of jury service.  The change comes through amendments to Sections 519 and 521 of the New York Judiciary Law, enacted as part of the FY 2025–2026 State Budget signed into law on May 9, 2025.

Key Employer Obligations

• Who’s covered: Employers with 11 or more employees must continue to pay employees for the first three days of jury duty.
• New rate: The required payment has increased from $40 to $72 per day.
• How it works:
  • If an employee’s regular daily wage is equal to or greater than $72, the employer pays their normal wages.
  • If the employee’s daily wage is less than $72, the employer pays the regular wages, and the state covers the difference up to $72.

Beyond the First Three Days

After paying for the initial three days, employers may stop wage payments unless:

• A collective bargaining agreement,
• Company policy, or
• Other applicable law (e.g., FLSA or NY Labor Law) requires continued compensation.

Some employers, especially those with exempt employees, may still have to pay beyond the three-day minimum.

Anti-Retaliation Reminder

New York law strictly prohibits penalizing employees for serving on a jury.

• Employers cannot discharge or discipline employees for missing work due to jury service.
• Violations may result in criminal contempt charges, fines of up to $1,000, and/or 30 days in jail under Sections 750 and 751 of the Judiciary Law.

The Bottom Line

This change underscores the importance of keeping payroll policies aligned with state law updates.  HR and payroll leaders should:

• Confirm jury duty pay practices reflect the $72 daily minimum;
• Review multi-jurisdictional policies if operating outside NY; and
• Ensure all employee communications clearly outline rights and pay entitlements during jury service.

At Forework, we help employers stay compliant and efficient by integrating legal updates—like this one—directly into payroll processes and policy guidance.

New Jersey continues to tighten its pay transparency requirements. On September 15, 2025, the New Jersey Department of Labor (NJDOL) published proposed rules clarifying how employers must disclose salary ranges and notify employees of job opportunities under the New Jersey Pay Transparency Act, which took effect June 1, 2025.  Although these rules are not yet final, they offer a preview of what enforcement may look like—and signal the need for HR teams to start preparing now.

Key Highlights of the Proposed Rules

1. Employer Coverage

The proposed rules define a covered employer as any organization with:

• At least 10 employees over 20 calendar weeks (inside or outside New Jersey), and
• Operations that do business, employ persons, or accept job applications within New Jersey.

To fall under the law, both the job solicitation and physical work location must be in New Jersey.

2. Pay Range and Benefits Disclosure

When advertising for new roles, promotions, or transfer opportunities, employers must include:

• A minimum and maximum pay range; and
• A general description of benefits such as health, life, or disability insurance, paid time off, training, and pension plans.

If you advertise a pay range instead of a single rate, the spread cannot exceed 60% of the minimum salary or hourly rate—unless the range is set by a union contract or statute.

Forework Tip: Audit your job postings and templates to ensure you can quickly integrate transparent pay ranges and benefit summaries.

3. Internal Notification of Promotions

Employers must make “reasonable efforts” to notify employees of promotion opportunities by:

• Posting notices in visible, accessible locations in the relevant departments; and
• Posting on the company intranet or internal website if one exists and is accessible to all employees.

4. Third-Party Job Boards

Employers are only responsible for postings on third-party sites if they control or approve the advertisement content. This means if a vendor posts automatically without your oversight, you likely won’t be cited—though best practice is to verify listings regularly.

Enforcement, Complaints, and Penalties

Violations carry civil penalties similar to those under the state’s Wage and Hour Law.

Employers will receive:

• Written notice of any alleged violation;
• The proposed penalty amount; and
• 15 business days to request a hearing.

Cases may go through an informal conference first; unresolved matters proceed to a formal hearing before a commissioner, with appeal rights to the New Jersey Superior Court.

Next Steps for Employers

Even though these are only proposed rules, proactive preparation is key.

• Review pay structures and job postings for compliance readiness.
• Establish salary ranges for all positions if you haven’t already.
• Ensure third-party recruiters and posting platforms follow the same guidelines.
• Compare requirements across states if you operate in multiple jurisdictions.

Forework Tip: Early alignment avoids disruption to hiring and protects your business from future penalties once the rules become final.

At Forework, we help employers simplify compliance—from wage transparency to payroll logic—by combining legal insight with technology that ensures accuracy and peace of mind.

U.S. Citizenship and Immigration Services (USCIS) has issued guidance clarifying details of President Trump’s September 2025 Presidential Proclamation, which imposes a $100,000 filing fee on certain H-1B nonimmigrant visa petitions.  The new rule significantly impacts employers sponsoring foreign professionals, particularly those filing new petitions for workers outside the U.S.

Who Must Pay the Fee

The $100,000 fee applies to new H-1B petitions filed on or after September 21, 2025, if they are:

• For workers outside the United States who do not currently hold a valid H-1B visa.
• Requesting consular notification, port-of-entry notification, or pre-flight inspection.
• Requesting a change of status, amendment, or extension where USCIS determines the worker is ineligible for the requested change or extension (for example, if the worker’s visa status has lapsed).

Who Is Exempt

The fee does not apply to:

• Petitions filed before September 21, 2025.
• Workers who already have a valid H-1B visa.
• Approved changes or extensions of stay for H-1B holders currently in the U.S.
  • Even if these workers later travel abroad and return on the same visa, the payment requirement will not apply.

How and When to Pay

• The $100,000 payment must be made before filing the petition.
• Employers must use pay.gov to complete the transaction and include proof of payment (or proof of an exception) when submitting the petition.
• Petitions filed without payment documentation will be denied.

Forework Tip: Update internal immigration compliance checklists immediately to include this new payment step and ensure coordination between HR, legal, and finance teams before submission.

Exception Process (Very Limited)

USCIS may grant an exemption only in extraordinarily rare circumstances, such as when:

• The worker’s presence is in the national interest;
• No qualified U.S. worker is available;
• The worker poses no security or welfare threat; and
• Requiring payment would undermine U.S. interests.

Employers can submit requests and supporting evidence to H1BExceptions@hq.dhs.gov, though approvals are expected to be uncommon.

Legal Challenges Already Underway

Two lawsuits have been filed challenging the legality of the Proclamation. These cases are in early stages, and courts could ultimately pause or overturn the rule. Until then, however, employers must treat the $100,000 requirement as binding and enforceable.

What Employers Should Do Now

• Assess upcoming H-1B filings to determine if the fee applies.
• Budget accordingly for the significant cost impact.
• Coordinate with immigration counsel to evaluate whether any employees might qualify for exceptions.
• Stay tuned for court developments that could affect enforcement.

At Forework, we help employers stay ahead of fast-changing labor and immigration compliance rules—so your workforce planning and payroll systems remain secure, compliant, and future-ready.

The Senate just confirmed two key federal labor leaders: Brittany Panuccio to the EEOC and Andrew Rogers to lead the Wage and Hour Division (WHD) of the U.S. Department of Labor. Both moves will influence how workplace laws are enforced—and how employers should prepare.

EEOC Restores Its Quorum (and Its Power)

After months without enough commissioners to take formal action, the EEOC now has a Republican majority and full authority to move forward on:

• Rulemaking and new guidance
• Litigation approvals
• Policy reviews and reversals

This means we’ll likely see movement on issues such as DEI initiatives, workplace investigations, and evolving interpretations of discrimination law.

Forework Tip: HR teams should keep an eye on EEOC updates and be ready to adjust policies and training programs accordingly.

New Leadership at the Wage & Hour Division

Andrew Rogers, a former senior DOL adviser, is stepping in to lead the WHD. During his confirmation, he emphasized two goals:

1. Helping employers comply through clear guidance; and
2. Holding violators accountable when wage laws are ignored.

He also flagged child labor enforcement and prevailing wage compliance on federal projects as top priorities.

Forework Tip: Expect continued focus on overtime classification, recordkeeping, and pay transparency. Now’s the time to review your time-tracking and payroll systems for accuracy.

The Bottom Line

With the EEOC and DOL both reenergized under new leadership, employers should expect:

• More active enforcement
• New rulemaking and guidance
• Increased scrutiny of wage and hour practices

Stay ahead of the curve—make sure your payroll processes, job classifications, and compliance documentation are airtight.At Forework, we combine legal expertise and technology to help employers stay compliant with evolving labor and wage laws—so you can focus on running your business.

Earlier this month, New York State announced a significant increase to its maximum weekly unemployment insurance (UI) benefit, raising it by nearly 73% — from $504 per week to $869 per week.  According to the New York Department of Labor (NY DOL), the new benefit amounts are effective immediately. Approximately 27% of current beneficiaries will now receive the new maximum benefit, while another 28% will see an increase in their weekly payments.

How the Increase Was Funded

The sharp rise in benefits results from two major policy changes aimed at strengthening the state’s unemployment system.

1. Higher Employer Contributions

New York is increasing employer contributions to the state’s Unemployment Insurance Fund. Previously, employers paid a fixed percentage on the first $12,800 of each employee’s annual earnings.

Beginning in 2026, that taxable wage base will shift to 18% of the state’s average annual wage, rounded up to the nearest $100. This formula means the wage base will automatically adjust over time — potentially increasing by approximately 10% in 2026 and beyond. The official 2026 maximum wage base will be finalized and published by the NY DOL later this year.

2. Elimination of the Interest Assessment Surcharge

New York recently repaid its $7 billion debt to the federal government’s Unemployment Insurance Trust Fund, restoring the solvency of the state fund. As a result, the Interest Assessment Surcharge (IAS) — an annual charge imposed on employers to pay interest on the federal loan — has been eliminated.

This change is expected to save employers about $100 per employee in 2026, allowing more of their contributions to directly fund unemployment benefits.

Expanded Eligibility for Partial Benefits

In addition to the increase in the maximum benefit amount, these changes may make more New Yorkers eligible for unemployment compensation.

• Reduced hours: Full-time employees whose hours drop below 30 per week may now qualify for partial unemployment benefits if their weekly earnings fall below the new $869 cap.
• Part-time work: Individuals who are unemployed but take on part-time work can also remain eligible for partial benefits, provided their weekly income remains under $869.

What Employers Should Do

Employers should proactively ensure that their payroll, HR, and tax teams are aware of the coming changes and ready to adjust for the higher taxable wage base in 2026. Staying compliant with the updated wage base and quarterly reporting requirements will be essential to avoid penalties or reporting errors.

How Forework Can HelpIf you have questions about how this change impacts your payroll or unemployment insurance obligations, contact Forework for guidance and support.