Compliance Watch, Issue 01: 12 employment rule changes

Rules already in effect in Massachusetts, Washington and New Jersey, plus a September 21 change for federal contractors.

RJ Ryan Joyce 4 min read

Pulled from DOL, OSHA, EEOC, the Federal Register, CalChamber and the big employment law firms, then cut down to what matters for your team.

Dates to know

Date What happens
Sep 21 Federal contractor Section 503 and VEVRAA changes take effect. Comments also close on California’s proposed heat-rule revisions.
Sep 24 Comments close on the proposed $103,265 H-1B petition fee.
Jan 1, 2027 California minimum wage increases to $17.40.
Colorado’s AI law takes effect.
Washington’s Fair Chance Act amendments reach employers under 15 employees.
San Francisco’s parental-leave eligibility requirement changes for larger employers.

Every item is tagged by status and listed from what is already in effect to what is still in progress.

Federal

Five federal changes

1
Federal contractor disability requirements change September 21Effective Sep 21 · Federal contractors. OFCCP’s final Section 503 rule eliminates the CC-305 disability self-identification form and 7% utilization goal beginning September 21.
2
DOL: a mid-day commute the employee asked for is not paid timeIn effect · Wage & Hour. Under a July 22 DOL opinion letter, a nonexempt employee who chooses to work from home, go to the office later, and return home to finish the day generally does not have to be paid for that commute if no work is done while driving.
3
Tobacco surcharges: agencies won’t penalize plans that drop the charge going forwardIn effect · Benefits. When an employee finishes a stop-smoking program mid-year, the plan can drop the tobacco surcharge from that point forward.
4
DHS proposes a $103,265 H-1B petition feeComments due Sep 24 · Immigration. The proposed fee would apply to cap-subject H-1B petitions, including students already here changing to H-1B status, on top of existing filing fees.
5
EEO-1 reporting may be on the way outIn progress · Reporting. The EEOC has proposed ending the EEO-1 report, the annual workforce demographic filing required of private employers with 100 or more employees.

California

Three California changes

1
California: Minimum wage rises to $17.40 on January 1, 2027; exempt floor to $72,384Action before Jan 1 · Minimum wage. California’s statewide minimum wage increases from $16.90 to $17.40 on January 1, 2027, for employers of all sizes.
2
California: Cal/OSHA proposes broader high-heat requirementsComments due Sep 21 · Workplace safety. Today California’s outdoor high-heat procedures apply only to agriculture, construction, landscaping, oil and gas, and some transportation.
3
California: Cal/OSHA’s permanent workplace violence standard is due by year endIn progress · Workplace safety. The latest draft came out July 22.

Other states

Four new state rules

1
Massachusetts: 48-hour employee notice after ICE inspection requestsIn effect · I-9 & immigration. Massachusetts employers must now give written notice to each employee within 48 hours of receiving an ICE Notice of Inspection for I-9 forms or other employment records, unless federal law requires otherwise.
2
Washington: Criminal-history checks move to after a conditional offerIn effect · Hiring. Since July 1, Washington employers with 15 or more employees may not ask about criminal history until after a conditional offer.
3
New Jersey: Separations must be reported within seven daysIn effect · Unemployment. New Jersey’s Employer Response Portal is live.
4
Colorado: AI law takes effect January 1, with draft rules now outEffective Jan 1, 2027 · AI in hiring. Colorado’s rewritten AI law, SB 26-189, takes effect January 1, 2027 whether or not the rules are final.

From our desk

Why seven unpaid minutes before a shift can cost years of back pay

Minutes worked before a paid shift starts are wages. Here is how the back pay is calculated and how to stop it.

This one goes with the DOL commute guidance in the Federal section.

Also worth knowing

  • Mileage: The IRS business mileage rate rose from 72.5 to 76 cents per mile on July 1, so if your reimbursement policy uses the IRS rate, update it. (IRS)
  • TPS work authorization: TPS end dates now differ by country, so before reverifying an A12 or C19 EAD, check USCIS for that country (Salvadoran TPS holders keep work authorization until DHS announces a decision). (USCIS)
  • San Francisco parental leave: The service requirement under the Paid Parental Leave Ordinance drops from 180 days to 90 days beginning January 1, 2027 for employers with 100 or more employees worldwide. (SF Board of Supervisors)

Questions about this issue?

If you’re a VertiSource HR client. You do not need to translate every update in this issue into a payroll setting, policy, form or employee notice yourself. We handle the payroll and tax changes that fall on our side. When something requires action from you, your HR advisor will help identify what applies and what needs to change.

If you’re not a client. Every “What to do” line above is a task for someone at your company. Our clients hand the payroll and tax pieces to us and get an HR advisor for the rest.

Talk to an HR advisor How we handle this for clients

Compliance Watch goes out every week or two. General information from VertiSource HR, not legal or tax advice. How a rule applies depends on your company and your state. Check with us or your attorney before acting.

Have a question on this?

Talk to the VertiSource HR specialist who handles compliance watch work every day. No script, no sales drip.

Get your free HR review

More on Compliance Watch

Compliance Wire Tobacco surcharges: agencies won’t penalize plans that drop the charge going forward September 11, 2026 Compliance Wire DHS proposes a $103,265 H-1B petition fee September 11, 2026 Compliance Wire EEO-1 reporting may be on the way out September 11, 2026