A new year means new compliance obligations, and January 2026 brings a long list of employment law updates that employers should have on their radar. From expanded paid leave programs and workplace protections to minimum wage increases and new notice requirements, many states are starting the year with meaningful changes.
Below is a state-by-state roundup of key employment law updates effective in January 2026, along with clear action items to help HR teams stay compliant and proactive.
New Hampshire
Leave for Childbirth and Postpartum Care
Employers with 20 or more employees must now provide up to 25 hours of job-protected, unpaid leave for certain baby-related medical appointments. Covered reasons include:
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Medical appointments related to childbirth
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Postpartum care for the employee
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Pediatric medical appointments within one year of a child’s birth or adoption
If both parents work for the same employer, they may share the 25-hour entitlement for the child’s appointments. Employees may substitute accrued paid leave.
▶ HR Action Item: Update leave policies and ensure managers understand the new entitlement.
Protections for Military Spouses
Employers with 50 or more employees at the same New Hampshire location must provide employment protections for spouses of service members called into active duty, including protections against discrimination and reemployment rights.
▶ HR Action Item: Review policies and practices related to military leave and reemployment.
Colorado
Expanded Paid Leave for NICU Care
Colorado’s FAMLI program now allows employees to take an additional 12 weeks of paid leave when a child requires inpatient care in a neonatal intensive care unit (NICU). When combined with other pregnancy-related leave entitlements, this can result in up to 28 weeks of paid leave in a 12-month period.
▶ HR Action Item: Update FAMLI policies and ensure leave tracking systems reflect the expanded entitlement.
Minimum Wage and Salary Threshold Increases
Statewide (Effective January 1, 2026):
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Minimum wage: $15.16/hour
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Tipped minimum wage: $12.14/hour
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Exempt salary threshold: $57,784/year
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Highly compensated employee threshold: $130,014/year
Several local jurisdictions, including Denver, Boulder, Edgewater, and unincorporated Boulder County, have higher local minimum wages.
▶ HR Action Item: Audit pay rates, exemption classifications, and local wage compliance.
Connecticut
Minimum Wage Increase
Connecticut’s minimum wage increases to $16.94 per hour.
Paid Sick Leave Expansion Reminder
Beginning January 1, 2026, Connecticut’s paid sick leave law applies to employers with 11 or more employees in the state.
▶ HR Action Item: Confirm payroll updates and sick leave eligibility thresholds.
Oregon
New Hire Wage and Deduction Notice
Employers must provide new hires with a written notice detailing earnings, deductions, benefits, payroll codes, and pay periods. The notice must be accurate as of January 1 each year and can be provided individually or made easily accessible.
▶ HR Action Item: Implement a compliant wage notice process for all new hires.
Sick Leave for Blood Donation
Employees may now use accrued sick leave to donate blood through approved programs.
▶ HR Action Item: Update sick leave policies to include blood donation as a permitted use.
Expanded Workplace Violence Prevention Requirements
Oregon significantly expanded its workplace violence prevention law, including:
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Coverage of home health agencies and hospice programs
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Broader definitions of workplace violence
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New training, planning, and documentation requirements
▶ HR Action Item: Develop or update workplace violence prevention plans and training schedules.
California
California employers face one of the most extensive sets of January 2026 updates, including:
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Expanded crime victim leave and related paid sick leave use
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Updates to pay equity, clarifying that “sex” includes gender identity and expression and that all forms of compensation count
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More specific pay transparency requirements for job postings
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Expanded access to personnel records
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New recordkeeping rules for pay data reporting
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Updated Cal/WARN notice requirements
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Prohibition on “stay or pay” agreements
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Increased statewide minimum wage ($16.90/hour) and exempt salary threshold ($70,304/year)
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Numerous local minimum wage increases, many exceeding $18 per hour
▶ HR Action Item: California employers should prioritize handbook updates, compensation audits, contract reviews, and local wage compliance checks.
Illinois
Organ Donor Leave Expanded to Part-Time Employees
Paid organ donation leave now applies to part-time employees at covered employers.
AI Use in Employment Decisions
Employers must notify employees if artificial intelligence is used in recruiting, discipline, or other employment-related decisions and may not use AI in discriminatory ways.
Lactation Break Pay Clarified
Paid lactation breaks must be compensated at the employee’s regular rate of pay, and employers cannot require employees to use other paid leave during lactation breaks.
▶ HR Action Item: Review technology use, update policies, and train managers and HR staff.
Minnesota
Sick and Safe Time Documentation
Employers may now require documentation when ESST is used for more than two consecutive scheduled workdays (previously three).
Expanded Meal and Rest Break Requirements
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Meal breaks required after six consecutive hours
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Rest breaks must be long enough to use the nearest restroom
Paid Family and Medical Leave Begins
Minnesota’s Paid Leave program officially begins January 1, including payroll deductions and reporting requirements.
▶ HR Action Item: Update leave policies and confirm payroll systems are ready for Paid Leave deductions.
Washington
Paid Family and Medical Leave (PFML) Updates
Key changes include:
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Job protection now applies to employers with 25 or more employees
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New written notice requirements regarding reinstatement rights
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Ability to coordinate unpaid FMLA leave with PFML, with proper notice
Minimum Wage Increase
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State minimum wage: $17.13/hour
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Exempt salary minimum: $80,168/year
Several cities, including Seattle, Tukwila, Everett, and Renton, have higher local minimum wages.
▶ HR Action Item: Review PFML coordination practices and confirm wage compliance by location.
Final Takeaway for 2026 State Employment Law Updates
January 2026 brings a heavy mix of wage increases, expanded leave rights, notice obligations, and policy updates, especially for multi-state employers. This is an ideal time to:
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Update employee handbooks
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Train managers on new leave and pay rules
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Audit wage and exemption classifications
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Review hiring and technology practices
Staying ahead of these changes now can help prevent compliance issues later in the year.
Want help keeping up with these changes?
Start the year with confidence by ensuring your employee handbook, payroll setup, and leave policies are legally compliant and easy to manage.
▶ Schedule a compliance review with our team to make sure you’re covered in 2026.
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Don’t let outdated policies put you at risk.
▶ Grab our guide: 5 Mistakes to Avoid in Your Employee Handbook.
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