As a reminder, California employers are entering the fourth year of the California Pay Data Reporting cycle, with three new required data points added to the existing criteria.  The annual Pay Data Report is due by May 13, 2026.  Employers are encouraged to start planning now for this May deadline, to ensure compliance with the increasingly complex requirements.

This reporting requirement applies to all private employers of who “regularly employ” 100 or more employees and at least one (1) employee in California and/or employers who hired 100 or more workers through labor contractors with at least one (1) in California.  For the past three years, the required reporting has been specific to the pay data information regarding race, ethnicity, and gender with respect to the following job categories: executive, first or mid-level officials and managers, professionals, technicians, sales workers, administrative support workers, craft workers, operatives, laborers and helpers, and service workers.  New for this year’s 2025 reporting process, employers must include three additional data points to the above criteria. These three new data points include: FLSA exemption status, employment type (full-time/part-time), and total annual weeks worked.

Employers will be required to submit Employers Reports and Labor Contractor Reports if they fall under both criteria and for employers with multiple legal entities and multiple establishments, the report must be submitted by legal entity for each establishment.  In addition to the new reporting criteria, mandatory civil penalties will be assessed and will now be imposed against employers who fail to file pay data reports when requested to do so by the state.

The California Pay Data reporting requirements are fact specific.  Employers are encouraged to work with their various stakeholders to ensure timely compliance with the May 13, 2026 deadline.

As a PrestigePEO client, if we have previously supported your company with California Pay Data Reporting requirements, and your company remains obligated to report, we will reach out to help coordinate the necessary next steps.  If you are new to PrestigePEO and have not worked with us but think the reporting requirements apply to your company, please reach out to your HRBP for assistance.

PrestigePEO is here to help.  For questions regarding the California Pay Data Reporting requirements, please contact your HRBP.

As we have previously reported, the California Workplace Know Your Rights Act mandates that California employers provide each employee with a standalone written notice detailing specified workplace rights by February 1, 2026, and on an annual basis thereafter. The required notice must include, among other elements, information regarding workers’ compensation benefits, procedures for inspections by immigration agencies, protections against unfair immigration-related practices, the right to unionize or participate in concerted workplace activities, and constitutional rights when engaging with law enforcement at work.

This new legislation further requires employers to offer existing employees the opportunity to designate an emergency contact by March 30, 2026, and at the time of hire for new employees, to specify whether the emergency contact should be notified if the employee is arrested or detained at the worksite, during work hours, or while performing job duties offsite, provided the employer has actual knowledge of such incidents.  Employees must be permitted to update their emergency contact information throughout their employment.  If consent is given, the employer is obligated to notify the designated emergency contact in the event of an arrest or detention on the worksite. The Act includes anti-retaliation provisions that protect employees exercising or attempting to exercise rights under the law.

In order to facilitate compliance, PrestigePEO has implemented the necessary steps to ensure the notice requirements are met by including this information in the documents section of the employee self-service portal for all California locations and in required on-boarding state notices contained in the new hire on-boarding portal.

However, all clients are encouraged to review and update necessary emergency contact designates with their employees by the March 30, 2026, deadline.  While employees currently have the ability to update their existing emergency contacts through the employee self-service portal, they do not have the ability to designate whether the emergency contact is to be notified in the event of an arrest or detention on the worksite.  Importantly, only worksite managers have the ability to select this designation through the PrestigePRO manager website.  In order to meet the new requirements, clients are encouraged to provide employees with the opportunity to specify whether the current or any additional contact(s) needs to be notified, as per the new regulations, and make any necessary changes through their PrestigePRO manager website.  PrestigePEO is developing a form that managers may use for updating emergency contacts.  Please reach out to your HRBP for a copy, if needed.

PrestigePEO is here to help. For questions regarding the California Workplace Know Your Rights Act, please contact your HRBP.

The U.S. Department of Labor (DOL) recently proposed a new rule that would change how businesses determine whether a worker is an independent contractor or an employee under the Fair Labor Standards Act (FLSA). The proposal aims to provide clearer guidance for employers and workers as classification standards have shifted multiple times in recent years.

Worker classification is a key compliance issue for employers. Employees are eligible for federal wage protections like minimum wage and overtime under the FLSA. However, independent contractors are usually seen as running their own businesses and do not fall under these rules. If a worker is misclassified, employers could face liability for back pay, taxes, and penalties.

Key Elements of the Proposal

The proposed rule applies an “economic realities” analysis to determine whether a worker is economically dependent on a business or operates independently. It clarifies that the focus should be on the actual working relationship between the parties, rather than just what might be written in a contract. The rule highlights two main factors:

• Control over the work. This considers how much control the worker has over how the work is performed.
• Opportunity for profit or loss. This assesses whether the worker can increase earnings through business decisions or by taking on additional clients.

If those factors do not clearly resolve the issue, the rule allows employers to consider additional factors, including the level of skill required, the permanence of the working relationship, and whether the work is part of the company’s integrated operations.

Steps for Employers

Employers should ensure that contractor classifications comply with relevant state standards, which may be more stringent than federal rules. Several states, including New Jersey, California, Illinois, and Massachusetts, apply the stricter ABC Test. According to this system, a worker is generally presumed to be an employee unless the employer can demonstrate that the individual operates an independent business.

The proposed rule will undergo a public comment period before being finalized, with the final rule potentially taking effect later in 2026. In the meantime, employers that depend on independent contractors should review their current arrangements to ensure they comply with both federal guidance and applicable state laws. Staying proactive can help minimize the risk of misclassification claims as the regulatory landscape continues to change.

PrestigePEO continues to monitor developments that impact your workplace. If you have any questions, please contact your HR Business Partner.

The U.S. Equal Employment Opportunity Commission (EEOC) has issued guidance clarifying when telework qualifies as a reasonable accommodation under the Americans with Disabilities Act (ADA). While the guidance applies to federal agencies, it offers practical insight for private employers navigating return-to-office policies and requests for remote work from employees with disabilities.

The guidance clarifies that telework is only necessary when it enables an employee to perform their essential job functions, access equal employment benefits, or fully participate in workplace opportunities. Requests based solely on personal preference, convenience, or general symptom management, such as anxiety or fatigue, do not automatically meet this standard. Employers may, but are not required to, provide the accommodation an employee prefers if an equally effective alternative is available.

The EEOC also notes that accommodations are not automatically permanent. Employers can reevaluate telework arrangements when circumstances change, such as operational needs, shifts in job duties, or updated medical information. Employers may require in-person attendance when physical presence is necessary for supervision, collaboration, or other essential duties.

The guidance addresses common situations employers face today. For employees citing anxiety or other mental health issues, telework is not required unless the condition creates a substantial barrier to performing essential job functions on-site, and employers may assess whether in-office accommodations could address the employee’s needs.

Ultimately, the EEOC says telework is a way to help with job performance, not a right everyone automatically has. Employers can require workers to be in person when necessary, as long as they discuss it and make decisions based on the individual’s needs and evidence.

PrestigePEO is here to assist. Please reach out to your HR Business Partner if additional guidance is needed.

As previously reported, New York continues to expand worker protections through sweeping statutory changes that directly impact the workplace, including through hiring practices and the workplace decision-making process. Beginning April 18, 2026, New York State will significantly restrict employers from requesting or using consumer credit history for employment purposes, expanding protections already in place in New York City. The law defines consumer credit history broadly to include credit reports, credit scores, and information relating to credit accounts, bankruptcies, liens, or judgments. Except in limited circumstances, it will be an unlawful discriminatory practice for an employer to request or rely on this information when making hiring, compensation, or other employment decisions.

Narrow exemptions apply to specific roles, including positions where credit checks are required by law, law enforcement positions, certain high-trust appointed government roles, bonded positions, positions requiring security clearance, non-clerical roles with regular access to trade secrets or national security information, fiduciary positions with signatory authority over significant funds, and positions involving modification of digital security systems.

Employer Action Steps

• Audit background check practices and third-party screening vendors.
• Identify roles that may qualify for statutory exemptions.
• Update job descriptions and hiring documentation to reflect lawful justifications.
• Train hiring managers on prohibited inquiries.

Conclusion

These legislative developments reflect New York’s continued shift toward expansive worker protections and increased employer accountability. Employers should act proactively by reviewing policies and decision-making processes now, as early compliance efforts will be critical to mitigating risk in New York’s increasingly employee-protective legal environment.

As always, PrestigePEO is here to help with any compliance needs. For questions regarding these new regulations or other matters, please contact your HRBP for assistance.

The time has come for the launch of New York’s Secure Choice Retirement Savings Program and with it comes a few important deadlines and requirements for employers in the state.

As a reminder, in October 2025, New York launched its state-sponsored retirement savings program known as the Secure Choice Retirement Savings Program. The Program is designed to help more private-sector employees save for their future. Participation in this program or another qualified retirement plan is mandatory for businesses that meet certain criteria. An employer is required to register for the program if they:

1. Have been in business for at least two years;
2. Employed 10 or more employees in New York in the previous calendar year;
   and
3. Do not offer employees a qualified retirement plan.

If an employer currently offers a qualified retirement plan to its employees or is too new or small, then that employer must certify their exemption from the program by logging in to the program portal using the unique access code, provided to them by the state, and their EIN. If an employer does not know or cannot find their access code, then they may acquire another code through the portal as well.

Businesses may claim exemption to the Program by sponsoring another qualified retirement plan. Eligible plans include:

• 401(k)
• 403(b)
• Starter-k
• Simplified employee pension (SEP) IRA
• SIMPLE IRA

The compliance dates for employer registration and exemption certification are based on employee count. The applicable deadline dates are listed below:

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

Employers should take into account their employee headcounts or if their sponsored retirement plan is qualified for exemption. If an employer does not qualify for an exemption, then they should consider establishing a separate retirement plan for their employees or whether registration for the state program is the most appropriate option. At this time, New York businesses are not subject to penalties for non-compliance, though a penalty structure is currently in review.

Regardless of registration or exemption, New York employers should begin to gather information and data to provide to the state and ensure that any payroll providers or software utilized are capable of making the necessary deductions.

Employers and employees may find all the appropriate information on the program through the state’s website.

As always, PrestigePEO is here to help with any compliance, payroll, and HR needs. For questions regarding these regulations or other matters, please contact your HRBP for assistance.

On February 26, 2026, the National Labor Relations Board (“NLRB”) issued a final rule formally restoring the 2020 joint-employer standard, following a federal court decision that vacated the broader 2023 rule. Under the restored standard, a business will only be considered a joint employer if it possesses and actually exercises substantial, direct, and immediate control over another entity’s employees with respect to essential terms and conditions of employment—such as wages, benefits, hours, hiring, discharge, discipline, supervision, and direction. Reserved or indirect control alone is generally insufficient to establish joint-employer status, and the burden of proof rests with the party alleging joint employment.

This rule makes it more difficult for businesses to be held liable for labor law violations involving workers employed by staffing firms, franchisees, or contractors. As a result, fewer companies are expected to be deemed joint employers under the National Labor Relations Act, which may reduce exposure to unfair labor practice charges. Employers should nevertheless review operational practices and contractual arrangements with vendors, staffing agencies, and franchise partners to ensure they do not exercise direct control over another entity’s workforce in ways that could trigger joint-employer obligations.

PrestigePEO is here to assist. Please reach out to your HR Business Partner if you need additional guidance.

In addition to the Federal WARN Act, several states have enacted their own WARN (Worker Adjustment and Retraining Notification) laws, typically referred to as mini-WARN acts or laws. Most mini-WARN laws have differing triggering factors, thresholds, and/or notice requirements as compared to the federal WARN Act.

Ohio is one of the more recent states to enact its own mini-WARN act, the Ohio Revised Code, Section 4113.31 Compliance with federal WARN Act, effective September 29, 2025. As the law is titled Compliance with federal WARN Act, the Ohio Mini-WARN Act adopts many of the same definitions as found in the federal statute and ties various requirements under state law to the federal statute, including but not limited to, the employee threshold.

Who must employers notify if WARN is triggered and what must be included in the notice:

While most of the notice requirements in Ohio are the same as under the Federal Act, there are three additional requirements specific to Ohio.  These include informing state officials of actions taken to avoid mass layoffs and/or facility closures, providing state government officials with copies of the employee and/or union notifications, and providing impacted employees with access to unemployment benefit information. The overall requirements are as follows:

• The impacted employees must be informed of;
  • The reason for the layoff or closure;
  • The effective date and individual impact date for the layoff or closure;
  • A statement that the planned action is expected to either be a permanent layoff or a temporary layoff that will last longer than six-months;
  • Access to unemployment and/or other benefit assistance programs, including but not limited to available support services, such as re-training, counseling services, or job placement assistance;
  • An Employer contact to direct questions; and
  • Any bumping or reemployment rights.
• Union Representatives (if applicable) must be informed of;
  • The location of the facility closure or mass layoff,
  • The reason and nature of the closure or layoff;
  • The start date of the facility closure or mass layoff;
  • The number of impacted employees, including department and job title; and
  • The date(s) employee employment will cease.
• The Director of Ohio Job and Family Services and the Ohio Rapid Response Unit (rapdresp@jfs.ohio.gov) and local officials, the local Mayor and County Commissioner where the mass layoff or plant closing occurs, must be provided with:
  • A copy of the employee notice;
  • Union Representative contact information (if applicable);
  • Any and all actions taken by the employer in an attempt to avoid or mitigate mass layoffs or facility closure; and
  • All other information provided to the employees and/or unions.

Additionally, Ohio provides a template WARN Submission Form as well as a template WARN Notice Worker List Spreadsheet to assist employers.

Employers may face penalties if they do not comply with the sixty-day notice requirement prior to any mass layoffs or facility closures and other violations under Act, including but not limited to back-pay to impacted employees and benefits the employee would have received under their benefit plan. There is cap on liability to employers for the lessor half the number of days an employee had been employed by the company prior to the WARN Act triggering or sixty days.

As always, PrestigePEO is here to help. Please reach out to your HR Business Partner for assistance with navigating layoffs and the potential to trigger WARN Act requirements.