The Latest – State Trends – AI Legislation, Layoff Notices, Salary Transparency and Paid Leave

By Published On: October 8, 2025

AI Regulation

Effective Date: January 1, 2026

What’s Changing: On September 23 2025, the California Office of Administrative Law approved the California Privacy Protection Agency (CPPA’s).

Existing anti-discrimination laws apply to AI-driven employment decision but the CPPA will now also establish privacy rules for automated-decision making technology.

What This Means for HR: Starting January 1, 2026, businesses that use automated decision-making technology (ADMT) for significant decisions will be required to:

  • Conduct risk assessments to evaluate potential impacts and ensure compliance.

  • Provide advance notice to consumers explaining the use of ADMT in significant decision-making.

  • Offer an opt-out option to California consumers, with limited exceptions.

  • Allow consumers to request information about the company’s use of ADMT, including details about the system’s logic and how its outputs influence decisions.

  • Provide an appeal process enabling California consumers to challenge or appeal ADMT-driven decisions.

Harassment Prevention Training

Effective Date: October 1, 2025

What’s Changing: California Governor Gavin Newsom signed Senate Bill (SB) 303, amending the Fair Employment and Housing Act (FEHA), to clarify that it is not unlawful discrimination when an employee acknowledges or discusses their own personal bias during required bias mitigation or harassment prevention training.

What This Means for HR: Employers may continue conducting bias mitigation and harassment prevention training as required under FEHA without concern that employee participation or self-disclosure will create legal exposure.

Layoff Notification Rules

Effective Date: October 1, 2025

What’s Changing: Both the federal WARN Act and California’s Cal-WARN Act require employers to provide at least 60 days’ advance notice to employees in the event of certain facility closures, relocations, or mass layoffs.

Under the federal WARN Act, coverage is determined by the total number of employees across the enterprise, regardless of each facility. In contrast, Cal-WARN applies to employers with 75 or more employees within the preceding 12 months at a single facility.

On October 1, Governor Newsom signed Senate Bill 617, expanding Cal-WARN’s notice requirements. California employers must now include additional information in layoff or closure notices, such as:

  • Whether the employer plans to coordinate services (e.g., rapid response orientations) and through which entity.
  • Contact information for the local workforce development board (email and phone number).
  • Description of rapid response activities available to affected employees.
  • Information about CalFresh, including a program description, benefits helpline, and website link.
  • Employer’s email and telephone number for follow-up contact.

What This Means for HR:

  • Assess coverage: Determine whether your organization or worksites are covered under federal WARN, Cal-WARN, or both — especially if facilities are geographically close or operationally integrated.
  • Review notice templates: Update WARN and Cal-WARN notice language to include all newly required elements.
  • Confirm compliance: Ensure your HR, legal, and operations teams are aligned on notice procedures before any planned workforce changes.

Colorado’s AI Act

Effective Date: June 30, 2026

What’s Changing? The Colorado AI Act effective date of February 2026, has been delayed to June 30, 2026. This law designates that employers using “high-risk” AI, defined as making a substantial or “consequential decision” about an individual, should prevent algorithmic discrimination by implementing a risk management program, conducting an impact assessment, and provide notices to candidate and employees to safeguard protected classes from discrimination. It’s important to note that this applies to predictive AI that makes decisions instead of generative AI like ChatGPT that creates content.

What This Means for HR:

  • Disclose the use of any high-risk AI systems to affected individuals and relevant stakeholders.
  • Disclose known or reasonably foreseeable risks of algorithmic discrimination from AI use.
  • Complete and maintain impact assessments that evaluate risks and safeguards.
  • Provide advance notice to individuals before making any “consequential decisions” (e.g., hiring, promotion, termination) made or assisted by AI.
  • In the case of an adverse decision, inform individuals of:
    • Their right to an explanation of the decision.
    • Their right to correct inaccurate information.
    • Their right to appeal for human review.
  • Ensure individuals are informed of their right to opt out of AI processing of personal data (as provided under the Colorado Privacy Act).
  • Implement risk management and bias mitigation practices, including an annual review for algorithmic discrimination.
  • Maintain documentation to demonstrate compliance—this creates a rebuttable presumption of reasonable care under the law.

Massachusetts Announces 2026 PFML Contribution Rates and Benefit Amounts

Effective: January 1, 2026

What’s Changing? The Massachusetts Department of Family and Medical Leave has released the 2026 weekly benefit amount and contribution rates for employers and employees under the Paid Family and Medical Leave (PFML) Act.

What This Means for HR: Effective January 1, 2026, the total contribution rate will remain at 0.88% of eligible wages for all employers. Here is the contribution breakdown:

  1. Employers with 25 or more covered individuals:
    • Family leave: Employers may withhold up to 18% of eligible wages from employees.
    • Medical leave: Employers may withhold up to 28% of eligible wages and are responsible for contributing an additional 0.42% of eligible wages directly.
  2. Employers with 24 or fewer covered individuals:
    • Family leave: Employers may withhold up to 18% of eligible wages from employees.
    • Medical leave: Employers may withhold up to 28% of eligible wages, but are not required to pay the employer portion for medical leave.

Reminder: These contribution rates apply equally to employers with approved private plans. All employers should review their PFML plans and contribution structures to ensure compliance by January 1, 2026.

Pay Transparency Law

Effective Date: October 29, 2025

What’s Changing: Massachusetts’ new Pay Transparency Law — An Act Relative to Salary Range Transparency — will require covered employers to disclose pay ranges in job postings and to current employees in certain situations.

What This Means for HR:

Covered employers must:

  1. Include pay ranges for all positions in any external or internal job posting.
  2. Provide pay range information to current employees upon request for their existing position.
  3. Disclose pay ranges to current employees when offering a promotion or transfer to a new position.

Who’s Covered:

  • Applies to public and private employers with 25 or more employees in Massachusetts.
  • The Office of the Massachusetts Attorney General will enforce the law and has issued compliance guidance clarifying coverage, including for out-of-state employers.
  • For remote or hybrid employees, the “primary place of work” — where the employee performs most of their duties  — determines coverage, aligning with definitions used under the Massachusetts Earned Sick Time Law.

Who’s Considered an Employee: The Act defines an employee as any individual performing services for wages, remuneration, or other compensation including full-time, part-time, seasonal, and temporary workers.

Paid Leave Law

Effective Date: January 1, 2026

What’s Changing: Minnesota’s Paid Leave Law takes effect, granting eligible employees up to 12 weeks of paid medical leave and 12 weeks of paid family leave each year. Employees who qualify for both may take up to a combined 20 weeks of paid leave within a single benefit year.

What This Means for HR: The law establishes several obligations for employers ahead of the effective date, including planning, communication, and compliance steps.

  • Plan design and coordination: Determine the type of paid leave plan(s) your organization will use, how premiums will be shared (if applicable), and how existing company benefits will coordinate with the new state program — including policies for intermittent leave.
  • Notice and communication: Employers must post a notice and distribute written information to employees by December 1, 2025, if payroll deductions will begin on January 1.

Min miMinimum Wage Increase

Effective Date: January 1, 2026

What’s Changing: New Jersey’s statewide minimum wage will increase to $15.92 per hour, up from $15.49 per hour, for most employees. This adjustment follows the state’s annual inflation-based increase requirement.

What This Means for HR:

  • Update payroll systems by early January to reflect the new minimum wage of $15.92 per hour.
  • Seasonal and small business employees: Minimum wage increases from $14.53 to $15.23 per hour.
  • Agricultural workers: Minimum wage increases from $13.40 to $14.20 per hour.
  • Review pay structures: Employers should evaluate compensation ranges and pay equity to ensure ongoing compliance with the new wage rates.

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The information contained in this site is provided for informational purposes only, and should not be construed as legal advice on any subject matter.

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