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.
—
The information contained in this site is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Advice in Your Inbox
Join our newsletter for free bi-monthly toolkits and downloads on how to hire, support, and retain your best talent.
