The Latest – Retirement Plans, Menopause Accommodation and Higher Minimum Wage for California
Illinois Expands Protections for Nursing Mothers
What’s new: Starting Jan. 1, 2026, Illinois employers must provide paid break time for nursing mothers, unless doing so creates an “undue hardship” under the Illinois Human Rights Act.
Why it matters: Paid breaks affect scheduling, payroll, and compliance. Managers need clarity before the rule takes effect.
What HR should do now: Audit lactation policies, update employee handbooks, and train managers to handle requests consistently.
Tax Relief on Tips and Overtime Pay — Retroactive
What’s new: The “One Big Beautiful Bill Act” (OBBBA), signed July 4, 2025, removes federal taxes on tips and overtime wages. It applies retroactively to Jan. 1, 2025.
Why it matters: Employees benefit, but payroll teams face backtracking and reconciliation challenges.
What HR should do now: Coordinate with payroll and finance to adjust systems quickly and communicate changes to affected workers.
California Minimum Wage Pushes Higher
What’s new: On Jan. 1, 2026, California’s minimum wage jumps to $16.90. Industry-specific rates run higher: fast food at $20, healthcare at $24 (soon $25), and LA’s “Olympic Wage” at $30 for hotel and airport workers.
Why it matters: Layered wage rules create compliance risks and budget strain for multi-site employers.
What HR should do now: Map your workforce by location and job type, update wage postings, and prepare for ripple effects on pay compression.
DEI Programs Face New Federal Scrutiny
What’s new: A July 29 DOJ memo warns employers to review DEI programs for compliance with antidiscrimination laws. Risk areas: preferential hiring, segregation by protected traits, and biased training.
Why it matters: Good intentions don’t shield against lawsuits. Programs may need redesign.
What HR should do now: Partner with legal to audit DEI initiatives, document decision-making, and retrain managers on compliance.
Retirement Plans Open to Alternative Assets
What’s new: An Aug. 7 executive order expands ERISA retirement plans to allow investments in private equity, real estate, crypto, and private credit.
Why it matters: Employees get new options but face higher risk. Employers must meet fiduciary standards.
What HR should do now: Review retirement plan offerings with providers, prepare plain-language education for employees, and evaluate oversight practices.
Court Limits Indefinite Leave as Accommodation
What’s new: The Fourth Circuit ruled that employers are not required to grant indefinite leave under disability law. The case: a six-month absence with no return date.
Why it matters: Employers must still provide reasonable accommodations, but open-ended leave is not one of them.
What HR should do now: Train HR and managers to engage in the interactive process, consider alternatives, and document all decisions.
Rhode Island Leads on Menopause Accommodations
What’s new: Rhode Island is the first state to require workplace accommodations for menopause, adding a new protected health consideration.
Why it matters: This could set the stage for similar laws nationwide.
What HR should do now: Update policies to include menopause accommodations, educate managers, and normalize conversations around reproductive health.
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News & ComplianceThe Latest includes a brief update on federal and state level news.
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