The U.S. Department of Justice (DOJ) has expanded its corporate enforcement efforts to include violations of federal immigration law—particularly misuse of work visa programs like the H-1B. This change, announced in a new policy memo titled “Focus, Fairness, and Efficiency in the Fight Against White-Collar Crime,” means employers could face more investigations and whistleblower complaints related to immigration practices.

What’s new?
The DOJ’s Corporate Whistleblower Program now includes immigration-related violations. This gives whistleblowers a new way to report suspected visa fraud or misuse of employment-based immigration programs, such as underpaying workers or filing false visa petitions. The DOJ is also working closely with the FBI, which is prioritizing immigration enforcement over other white-collar crimes.

Why this matters to employers:
Although past whistleblower lawsuits under the False Claims Act (FCA) often failed in immigration-related cases, the new DOJ program may be more effective. It allows whistleblowers to report companies for immigration violations even when those claims don’t involve direct government payments.

In addition, federal criminal laws—like making false statements or committing fraud—can apply to visa filings. These charges are harder to defend and carry more serious consequences.

What employers should do now:

• Include immigration compliance in your company’s internal audits and investigations.
• Make sure your visa filings are accurate and truthful.
• Create secure channels for employees to report concerns without fear of retaliation.
• Train HR, legal, and hiring teams on visa rules and immigration compliance.
• Take all whistleblower reports seriously and respond promptly.

Bottom line: Immigration compliance is now a key area of corporate risk. With greater enforcement and more ways for whistleblowers to report, employers must act now to ensure their practices are fully compliant.

Prestige PEO is here to support you—if you have any compliance questions, please reach out to your HRBP for assistance.

The U.S. Department of Labor (DOL) announced in May 2025 that it will not enforce the 2024 independent contractor rule in agency investigations for the time being. Instead, the DOL has directed investigators to revert to prior guidance, including a 2008 fact sheet and a 2019 opinion letter, while it evaluates the potential rescission of the 2024 rule altogether.

This change does not indicate that the 2024 rule has been withdrawn. It still applies in private litigation, and businesses must continue to comply with it when assessing worker classification under the Fair Labor Standards Act (FLSA). However, the DOL’s enforcement stance has shifted to rely on the pre-2024 guidance, which many employers and courts find to be more objective and predictable.

The 2024 rule expanded the criteria for employee status by requiring a totality-of-the-circumstances analysis of six economic reality factors, without prioritizing any single factor. By returning to previous guidance, the DOL signals a more cautious approach to enforcement.

Businesses should note that several states maintain stricter standards than the federal test, including California, New Jersey, Massachusetts, and Illinois, which utilize variations of the ABC test. Additionally, other states, such as New York, Oregon, and Colorado, implement their multifactor frameworks, which diverge from federal law and can be more restrictive in practice.

Employers who engage independent contractors should regularly review their classifications to ensure compliance with both federal and state laws, especially when state standards impose stricter tests.

PrestigePEO is here to help. Please contact your HR Business Partner with any questions.

In Louisiana v. EEOC, the states of Louisiana, Mississippi, and other plaintiffs challenged EEOC guidance for abortion accommodations under the Pregnant Workers Fairness Act (PWFA). The EEOC’s guidance specifically considered an elective abortion to be a “related medical condition” to pregnancy and childbirth. It required employers to provide accommodations to employees seeking these elective abortions.

The court ruled that abortion is not considered a pregnancy-related condition requiring accommodation under this the PWFA. This ruling currently applies nationwide. However, other related cases are still pending in other federal courts which could change this outcome long-term.

As a reminder, the PWFA went into effect in 2023 and requires employers to provide pregnant workers with accommodations related to pregnancy and childbirth as long as they do not cause undo hardship. Employers should keep in mind that a variety of laws protect pregnant employees. Employers should be careful about denying pregnancy-related accommodation requests.

Prestige PEO is here to support you—if you have any compliance questions, please reach out to your HRBP for assistance.

The “One Big Beautiful Bill Act” passed the House on May 22, 2025, but is not yet law. If enacted, two key provisions would let employees exclude certain tip income and overtime pay from their federal taxable income for 2025–2028. While this lightens the tax burden on tipped and hourly-plus-overtime workers, employers’ core payroll duties remain largely the same.

If the “One Big Beautiful Bill Act” becomes law, employers will see the following changes:

No Tax on Tips

What changes:

• Employees may deduct all “qualified tip income” on their federal returns.
• Gross tip earnings drop out of taxable income at filing.

What stays the same:

• Employers must continue withholding federal income tax, Social Security, and Medicare on every dollar of tip income.
• State and local tax withholding rules remain in force.
• Payroll systems must be updated to capture tips separately for a new W-2 box labeled “Total Qualified Tips.”

“No Tax on Overtime”

What changes:

• Non-highly compensated employees can deduct “FLSA-eligible overtime pay” on their 2025–2028 federal returns.
• Overtime earnings no longer count toward federal taxable income at filing.

What stays the same:

• Employers must continue withholding federal income tax and FICA on all overtime wages.
• State and local withholding rules remain unchanged.
• Payroll platforms need configuration to tag FLSA-eligible overtime and populate a new W-2 box labeled “Total FLSA-Eligible Overtime Wages.”

Preparing for Compliance

Because the Act is not yet final, employers should begin reviewing payroll practices now. Key steps include auditing software configurations, validating year-end reporting, and training HR and payroll teams on the definitions of “qualified tips” and “qualified overtime.” Clear employee communications will also be essential: staff should understand that their take-home pay remains the same until tax filing, when they can claim the new deductions.

Prestige PEO is here to help—please contact your HRBP with any compliance questions.

Earlier this month, the Supreme Court released it opinion in the case of Ames v. Ohio Dep’t of Youth Servs. The case involved a heterosexual woman who was demoted and replaced by homosexual individual. She then applied for a management role, but another homosexual employee received that role. She claimed discrimination for being heterosexual, a historically majority group.

The Sixth, Seventh, Eighth, Tenth, and District of Columbia Circuits have previously held that majority group plaintiffs must meet a higher standard to establish their prima facie case. The other circuit courts have ruled that plaintiffs from historically majority groups do not have a different standard other than the prima facie case under Title VII for discrimination.

This case settles the circuit court split decision on this issue by holding that a majority plaintiff is held to the same standard as minority employees. The Supreme Court held that Title VII prohibits discrimination against any protected class whether that individual is part of a minority or majority group. This may mean an increase in litigation in the circuits have traditionally required the higher standard. It does provide clarity though that Title VII is designed to protect all employees.

PrestigePEO is here to help.  For guidance on this new regulation or any other questions, please contact your HRBP for help.

For decades, employers across the country have been impacted by the ability of federal judges to issue nationwide injunctions, or court orders, that although stem from a specific case, function to cease federal policy nationwide.  This may all change when the Supreme Court releases its decision on a set of Trump administration lawsuits that seek to challenge three federal judges’ abilities to issue nationwide injunctions that block one of President Trump’s recent executive orders.  Oral arguments were heard on May 15, 2025, and the opinion is expected to be released by the Court this summer.

Traditionally, nationwide injunctions have provided a blanket method for judicial ruling on matters that, despite involving a single group of litigants, have widespread policy implications.  Recent injunctions have had significant employment related impacts on matters such as overtime rules and salary threshold increases, COVID-19 vaccine mandates, Joint Employer standards, EEO-1 Component reporting, Union elections rules, the FTC non-compete ban, and Title IX regulations, among others. The use of nationwide injunctions has provided multistate employers with predictability and certainty as to the application of various federal policies.

Critics agree that the elimination of the ability for federal judges to issue nationwide injunctions would halt broad-based, nationwide policy decisions that stem from issues between litigants of one particular lawsuit and erroneously put a freeze on policy before an appellate court has the opportunity to weigh in on the matter.

Proponents of nationwide injunctions disagree and suggest that if the Court decides to end federal judges’ ability to issue them, the judicial capacity to provide relief in matters that may present issues of widespread policy misuse would be gutted.  Others argue that these types of injunctions are critical as a facet of the checks and balances system of our democracy and keep governmental bad actors in check.

As we wait for the Court to weigh-in on this matter, employers should be aware that to end the capacity to issue nationwide injunctions will foster less predictability in the application of federal policies resulting in an increased patchwork of regional compliance requirements that differ by federal circuit. It is also predicted to increase executive agencies’ ability to implement drastic policy shifts, despite localized legal challenges and to increase use of the class action method of litigation to impose broad injunctive relief.

PrestigePEO is here to help and will continue to monitor this matter. Please contact your Human Resources Business Partner with any questions.

Alaska’s Ballot Measure 1 introduces significant changes for employers, including new minimum wage requirements, paid sick leave rules, and restrictions on workplace communications.

Beginning July 1, 2025, the state minimum wage will rise annually over three years:

• $13.00/hour in 2025
• $14.00/hour in 2026
• $15.00/hour in 2027

After that, it will be tied to inflation (CPI). If the federal minimum wage increases, Alaska’s minimum wage must remain $2.00 above it.

The measure also raises the salary threshold for exempt employees. To qualify as exempt, employees must not only meet the federal job duties test but also earn a weekly salary of:

• $1,040 by July 1, 2025
• $1,120 by July 1, 2026
• $1,200 by July 1, 2027

Another major change is the introduction of statewide paid sick leave requirements. All Alaska employers must now provide sick leave that accrues at a rate of 1 hour per 30 hours worked. This leave can be used for illness, caregiving, or recovering from domestic violence. Employees may roll over unused sick leave each year. The annual accrual caps are:

• 40 hours for employers with fewer than 15 employees
• 56 hours for employers with 15 or more employees

Sick leave applies to part-time and salaried employees, and must be accrued based on a maximum 40-hour workweek unless their actual schedule is less. Employers cannot require shift coverage, deny valid use, or request proof unless the absence exceeds three days. Employees aren’t required to disclose medical details, and any used leave must be paid at the employee’s regular rate.

If your company already offers a PTO plan that accrues at the same rate and can be used for illness or injury, you’re considered compliant. No additional sick leave is required, even if employees use their PTO for vacation.

Employers are not required to pay out unused sick leave at termination. However, if an employee is rehired within six months, their previous sick leave balance must be restored. Cashing out unused sick time is optional but cannot be required.

Employers must also notify all employees in writing about their sick leave rights, accrual rules, and protections against retaliation. This must be done at hire or no later than July 31, 2025, for current staff. Alaska has not provided a template, so each employer must create their own.

Lastly, the measure prohibits mandatory workplace meetings about political or religious beliefs, reinforcing employee protections in these areas.

To ensure full compliance with Ballot Measure 1, employers should begin reviewing and updating their policies now—particularly around pay, leave, and workplace communications. Clear employee notices and proper training will be essential.

Prestige PEO is here to support you—if you have any compliance questions, please reach out to your HRBP for assistance.

California’s consumer privacy agency recently fined a national clothing retailer over $345,000 for making it overly difficult for website visitors to opt out of having their data sold or shared. The company also requested excessive personal information, including a photo and government ID, to process a basic privacy request. Regulators stated this violated the California Consumer Privacy Act (CCPA), despite there being no data breach.

This case demonstrates that enforcement is no longer solely about hacking or security failures. Regulators are concentrating on whether businesses have practical tools and fair processes in place for managing personal information online, particularly from users, customers, and anyone visiting a business’s website.

While this enforcement happened in California, similar privacy laws are already in effect in several other states, including Colorado, Virginia, Connecticut, and Utah, with more on the way. These laws give individuals the right to access the data a business has collected, to opt out of its sale or sharing, and to request that it be deleted. Businesses that don’t make it easy for website users to exercise those rights are increasingly at risk of being fined.

This case serves as a reminder that data privacy is a crucial component of conducting business. If your company collects personal information through a website, email list, or marketing tool—especially if you have customers or users in California or other states with privacy laws—it’s time to take a fresh look at your practices. Include what data you collect from website visitors or customers, how you use it, and how people can contact you to make a request. Ensure your “opt out” process works, that your privacy policy is clear and current, and that your vendors handle data responsibly.

PrestigePEO is here to help. Please contact your HRBP with any questions or if you need support in reviewing your privacy practices.

On June 4, 2025, The City of Chicago’s Mayor and Department of Business Affairs and Consumer Protection (BACP) announced updates to local labor laws that strengthen worker protections and increase minimum wage, effective July 1, 2025.

Minimum wage in the City of Chicago is scheduled to increase on July 1 of every year.  The percentage increase is based on the Consumer Price Index or 2.5%, whichever is lower.  As of July 1, 2025, the minimum wage will be $16.60 per hour.  Subsidized youth employment programs and subsidized transitional employment programs have a slightly lower minimum wage of $16.50 per hour.  The One Fair Wage Ordinance governs the wages of tipped workers such as restaurant servers, bartenders, bussers, and restaurant runners who earn a subminimum wage. Under this ordinance the subminimum wage will increase annually as well on July 1 by 8% per year, until July 1, 2028. This year increase will be to $12.62 per hour.

Employers are also reminded of Chicago’s Paid Leave and Paid Sick and Safe Leave Ordinance, which went into effect last July 2024 and guarantees eligible workers of up to 40 hours of Paid Leave and up to 40 hours of Paid Sick Leave in a 12-month period, with specified carryover provisions as well.  The City’s recent measures strengthen enforcement mechanisms for violations found against employers, with respect to Paid Leave or Paid Sick Leave laws.

Lastly, the Fair Workweek Ordinance compensation threshold will increase on July 1, 2025, and will apply to those workers who make $62,561.90 or less (salary per year) or $32.60 or less (hourly) and work for employers with at least 100 employees globally, or if operating a restaurant, 250 employees and 30 locations.  This ordinance mandates that employers provide employees with predictable work schedules and payment for schedules changes.  Specific provisions require employers to provide employees with their notice of work schedules at least 14 days in advance, allow employees the right to decline previously unscheduled hours, provide 1 hour of “Predictability Pay” for any shift change within 14 days, and the right for employees to rest by declining work hours that occur less than 10 hours after the end of a previous shift.  Chicago’s BACP Office of Labor Standards enforce all worker protections and labor laws within the city.

PrestigePEO is here to help. For guidance on these new regulations or any other questions, please contact your Human Resources Business partner for help.

On May 15, 2025, a federal court ruled that the EEOC (Equal Employment Opportunity Commission) went too far in its 2024 guidance on gender identity under Title VII of the Civil Rights Act. This means employers are no longer required under federal law to accommodate certain gender identity-related practices, like using preferred pronouns or providing restroom access based on gender identity.

Here’s what employers need to know:

What was struck down?

• The EEOC’s expanded definition of “sex” to include gender identity and sexual orientation.
• Requirements to use employees’ preferred pronouns.
• Mandates for bathroom access and dress codes aligned with gender identity.

What is still required under federal law?

• Preventing sex-based harassment (like slurs or threats).
• Complying with Title VII’s original language, which does not explicitly include gender identity or orientation.

What is NOT required under federal law now?

• Using pronouns that match an employee’s gender identity.
• Allowing bathroom or dress code access based on gender identity.
• Changing internal policies to define “sex” as gender identity.

Important: State and local laws still apply.
Some states like New York, New Jersey, Illinois, and California—and cities like NYC and Chicago—do require accommodations for gender identity. Employers must follow these laws, even if federal law doesn’t require it.

What should employers do now?

1. Review policies to reflect current law.
2. Train managers and HR staff on the updated legal landscape.
3. Consult legal counsel to avoid missteps with overlapping laws.
4. Communicate clearly with employees about any policy changes.
5. Monitor local laws that may still enforce gender identity protections.

While the EEOC’s guidance was narrowed, inclusion and compliance remain vital. Understand what’s required federally and adapt to local expectations.

Navigating ADA and Title VII compliance can be challenging, especially as legal interpretations continue to evolve. Prestige PEO is here to help. If you have any questions, reach out to your HRBP for guidance.

As we first reported last December 2024, Missouri voters approved Proposition A, a ballot initiative targeted towards increases to the state’s minimum wage that went into effect on January 1, 2025, and providing Missouri workers with paid sick leave as of May 1, 2025.

As of May 1, 2025, all employers, with very limited exceptions, are now required to provide workers with paid sick leave at the rate of one hour of leave for every 30 hours worked. Employers with less than 15 employees must provide up to 40 hours of earned paid sick leave per year and employers with 15 or more employees must provide up to 56 hours of earned paid sick leave per year. Employees will be permitted to use paid sick leave as it accrues.  As an alternative, employers may provide all of the required hours of paid sick leave utilizing a front-loaded method, on an annual basis.

At the end of the designated benefits year, the employer is required to allow employees to carry over up to 80 hours of accrued but unused paid sick time.  Employers maintain the option to utilize the front-loading method as well as the option to payout accrued, unused time at the end of the benefits year and frontload all necessary hours at the beginning of the subsequent benefits year. While employers are not required to pay out accrued, unused sick leave at the time of separation from employment, this accrued, unused sick leave must be reinstated if the employee is rehired within nine months of separation.

If an employer has an existing sick leave policy that meets or exceeds these requirements, based on employer size, then that policy may already satisfy these new requirements. Employers must provide written notice of the paid sick leave policy to all existing employees and all new hires within 14 days of their start date.  This notice must include all of the rights provided to the employee by this new regulation including accrual rates, protection from discrimination and retaliation, and procedures for reporting violations. Discrimination and retaliation against employees who use the leave time is prohibited. Employers are required to maintain documentation of both hours worked and earned paid sick leave time taken by employees for at least three years.

Employees will be required to give advance notice when the need for leave is foreseeable, or as soon as possible if it is not, without any obligation that the employee be required to identify a fill-in worker.  Employers will be required to provide the leave as soon as it is accrued, even if this precedes the available use of other benefits.

Reasons for using paid sick leave can be for the employee to manage either their own or a family member’s mental or physical illness.  Additional reasons for leave include closure of the workplace or family member’s school or site of care due to public health emergency or for purposes of obtaining services related to domestic violence issues.  Employers may request reasonable documentation for the use of sick leave time that exceeds three or more consecutive days.

Proposition A was a voter referendum that changed state law, but did not change the state’s constitution.  For this reason, lawmakers have made efforts to overturn these new requirements. On May 15, 2025, the state senate repealed these new requirements resulting in the passage of House Bill 567 which is currently sitting on the governor’s desk awaiting signature.  If signed, the bill will repeal paid sick leave requirements and future (after January 2026) cost of living adjustments to the minimum wage, effective August 28, 2025.   In light of these recent changes, employers are encouraged to continue providing all required leave unless and until state law changes.

PrestigePEO is here to help.  If you have questions about the new Paid Sick Leave requirements or your sick leave existing policy, please contact your HRBP for assistance.

New Jersey’s new pay transparency law is now in effect.  Starting June 1, 2025, many employers, including some based outside of the state, are required to include compensation and benefits details in job postings and internal promotion announcements. If your business has not started preparing, now is the time.

What’s Changing?

Until now, employers in New Jersey were not legally obligated to share pay or benefit details in job ads. Under the newly enacted New Jersey Pay and Benefit Transparency Act (NJPBTA), employers must now include the salary or wage range and a general overview of benefits in job postings for both external and internal opportunities, including promotions and transfers.

The law does not just apply to full-time roles or large corporations. It covers any business with 10 or more employees over 20 weeks a year that does business, hires, or accepts job applications in New Jersey. That includes out-of-state companies recruiting for remote or hybrid roles connected to New Jersey.

Promotions Must Be Shared Too

Beyond job ads, employers must make a real effort to notify current employees in affected departments about promotion opportunities, unless those promotions are based on seniority or performance. Quiet promotions without notice could now lead to penalties.

What Employers Should Do

This law is more than a compliance box to check, but rather part of a national movement toward transparency and fairness at work. Employers should start by reviewing and updating job posting templates, establishing clear salary ranges, and training HR teams on how to present this information.

Failing to comply can result in fines: $300 for a first violation, $600 for each one after. While there is no private right to sue under the law, enforcement will come from the New Jersey Department of Labor.

Final Thought

As New Jersey joins a growing number of states adopting pay-transparency standards, employers have a prime opportunity not only to avoid penalties but also to build trust with current and prospective employees. Transparency is no longer optional, it is expected. Prestige PEO is here to support you; if you have any compliance questions, please reach out to your HRBP.

At the federal level, recent changes made by the U.S. Department of Labor have relaxed the criteria for determining whether a worker is classified as an employee or an independent contractor under the Fair Labor Standards Act. In contrast, New Jersey continues to apply the “ABC test,” a legal standard that presumes workers are employees unless the employer can prove otherwise. The New Jersey Department of Labor and Workforce Development (NJDOL) is now proposing new regulations to clarify how it applies this test.

On May 5, 2025, the NJDOL published proposed regulations that formalize its interpretation of the ABC test for classifying independent contractors. Under current New Jersey law, a worker is presumed to be an employee unless the employer can definitively demonstrate that all three criteria of the ABC test are met:

• The individual has been and will continue to be free from control or direction over the performance of work performed, both under contract of service and in fact; and
• The work is either outside the usual course of the business for which such service is performed, or the work is performed outside of all the places of business of the enterprise for which such service is performed; and
• The individual is customarily engaged in an independently established trade, occupation, profession or business.

The proposed rules aim to provide employers and workers with clear and consistent guidance on how the Department evaluates each component of the test during audits and investigations. For instance, maintaining the right to control a worker’s performance, even if that control is not exercised, may lead a company to fail Prong A. Core business functions, even when conducted remotely, may not meet the requirements of Prong B. Prong C necessitates more than mere formalities such as registering an LLC or obtaining insurance; the individual must operate a business that is viable on its own, with multiple clients or a demonstrated market presence.

At the same time, federal enforcement is moving in a different direction. The U.S. Department of Labor recently paused enforcement of the 2024 independent contractor rule under the FLSA. It returned to its earlier guidance, applying a multifactor “economic reality” test that considers the totality of the circumstances. That standard is generally viewed as more objective and predictable, but unlike New Jersey’s ABC test, it does not presume employee status.

New Jersey employers should not assume that complying with federal contractor classification rules is sufficient. Worker classification must be assessed separately under state law. The proposed rules confirm that New Jersey will continue to enforce one of the strictest classification standards in the nation.

PrestigePEO is here to help. Please contact your HR Business Partner with any questions.

In May, New York’s Governor Hochul signed legislation as a part of Fiscal Year 2026 Enacted Budget that will increase future provisions of unemployment benefits to workers and decrease overall employer contribution rates.  This new legislation works to use the state budget to pay down the Federal Unemployment Trust Fund debt caused by the COVID-19 pandemic, which required the state to take a loan from the Federal government to continue making unemployment benefit payments.  As a result of the debt, employer contribution rates have increased each year in an attempt to pay down the loan.  As of May 2025, the debt was estimated at 5.7 billion and because of this signed legislation, will be paid in full by the FY26 state budget. The solvency created by the Budget will decrease employer contribution rates and increase the taxable wage base, allowing the state to build up reserves for a more stable UI Trust Fund in the future.   Employers are expected to see an average savings of $100 per employee in 2026 and $250 per employee in 2027, according to the State’s website.

The FY26 Budget also includes legislation to increase the maximum weekly unemployment benefit rate for unemployed workers from the current $504 per week to $869 per week, bringing the weekly benefit cap in line with other states, by October 2025.

PrestigePEO is here to help.  If you have questions about these changes, please contact you Human Resources Business Partner for assistance.

New York State employers face a busy compliance season this June, with three new workplace laws that introduce significant new obligations for retail, warehouse, and fashion-related businesses. Each law focuses on a distinct area of employee protection, encompassing safety and ergonomics, as well as transparency and fair treatment.

Retail Worker Safety Act

Retail businesses with 10 or more employees at a New York location must now comply with the Retail Worker Safety Act (RWSA). The law introduces two primary requirements to prevent workplace violence and enhance employee protection in retail environments: first, adopt a written workplace violence prevention policy, and second, provide employees with training on safety measures.

With the law now in effect, the New York State Department of Labor (NYSDOL) has published its official model policy and training resources, which can be adopted or adjusted to suit your worksite’s specific operations and safety requirements.

The policy must outline risk factors such as working alone, handling cash, or operating during late-night hours, and describe the steps the employer will take to mitigate those risks. It must also include a clear statement that prohibits retaliation against employees who report violence or participate in investigations, as well as information about the legal protections available to workers. The policy must be distributed upon hiring and annually, and it must be available in the employee’s primary language when the state provides translations.

Training must take place during paid working hours and must include personal safety strategies, de-escalation and emergency response techniques, as well as site-specific protocols. Smaller employers with fewer than 50 retail employees in the state may train their employees every two years, rather than annually. Written training materials must be provided to employees at the time of training.

Looking ahead, by January 1, 2027, employers with 500 or more retail employees throughout New York State will be required to install either silent panic buttons or provide mobile communication devices that enable staff to discreetly alert management or security personnel in the event of a violent incident.

We first discussed this topic in our October 2024 Insights article and webinar when the effective date was still anticipated to be March. Now that the NYSDOL has finalized and released the model resources, employers are encouraged to proceed with adopting and implementing them. While these state-issued materials provide a helpful starting point, the final version of each plan should reflect the specific hazards and procedures unique to the employer’s retail location.

Warehouse Worker Injury Reduction and Transparency Rules

Warehousing operations with 100 or more employees at a single distribution center, or 1,000 or more across multiple centers in the state of New York, will be subject to new injury prevention and transparency requirements under the Warehouse Worker Protection Act.

Employers must now implement an Injury Reduction Program to assess and mitigate musculoskeletal risks in the workplace. Initial worksite evaluations, performed by certified ergonomists, must take place no later than June 19, 2025. Employers are also required to involve workers in the process and provide training on safer material handling techniques.

Additionally, warehouse employers should improve transparency regarding quotas. Workers must be informed of productivity expectations and cannot be disciplined for failing to meet undisclosed or unsafe quotas.

Fashion Workers Act

Model management companies (MMCs) and businesses that engage models in New York will soon be governed by the Fashion Workers Act, which introduces a registration requirement for MMCs and new protections for models.

By June 19, 2026, MMCs must register with the Department of Labor, provide business disclosures, and, if applicable, secure a surety bond. The law imposes a fiduciary duty on management companies, requiring clear and timely contracts, transparency regarding financial interests, and written consent for using digital replicas of a model’s image.

Companies that hire models must confirm that they are working with registered MMCs and comply with compensation, breaks, and other worker protections.

Three New Laws Taking Effect This Month for New York Employers

These three laws reflect New York State’s increasing emphasis on workplace fairness, safety, and accountability, particularly in sectors that face heightened risks or have historically been subject to limited oversight. Employers are encouraged to adopt a proactive approach, assess their exposure, and update their policies, training, and operations as needed.

PrestigePEO is here to help. Please contact your HR Business Partner (HRBP) with any questions regarding these regulations and their potential impact on your organization.

After years of legal confusion and costly lawsuits, New York has amended its labor law to limit the damages employers face when they pay manual workers on a biweekly schedule instead of weekly. The new rule, signed by Governor Hochul on May 9, 2025, helps businesses avoid large penalties for technical violations, especially when employees were otherwise paid in full and on time. The law takes effect immediately and applies to both pending and future cases.

Pursuant to New York labor law, manual workers must be paid weekly. But since 2019, lawsuits exploded after a court ruled that workers could sue if paid biweekly, even if they received full pay. These lawsuits sought “liquidated damages” often equal to a week’s wages, just for being paid late.

In response, the new amendment makes it clear that employers who pay manual workers at least twice a month on a regular schedule will not owe those hefty penalties for a first-time mistake. Instead, they will only be responsible for a small amount of interest on the delayed pay.

Examples:

• Before the change: A worker earning $1,000/week, paid biweekly, could sue for $1,000 in damages per pay period.
• Now: That same worker may only receive about $3 in interest per pay period if it’s a first violation and they were paid semi-monthly.

Takeaways for Employers:

• Lower risk for first-time violations: No more major damages if you pay at least semi-monthly and stay consistent.
• Repeat violations still costly: If you’ve had past violations and continue to pay late, full liquidated damages may apply.
• Uncertainty remains: Courts haven’t resolved whether employees can sue—this is still pending with New York’s top court.
• Action required: Review your workforce. If anyone qualifies as a “manual worker” (does physical labor more than 25% of the time), consider switching them to weekly pay or apply for an exemption from the state.

This change provides much-needed relief for employers, making now the perfect time to audit your pay practices and shield your business from future risks.

Prestige PEO is here to support you. Please contact to your HRBP with any questions or compliance assistance.

Signed into law on May 28, 2025, and effective immediately, Philadelphia’s new Protect Our Workers, Enforce Rights Act (POWER Act) strengthens the enforcement power of the Philadelphia Department of Labor (“DoL”), while providing employees greater employment protections.  It is a first of its kind legislation in the country and will impact approximately 750,000 workers in the city of Philadelphia and applies to all employers operating within the city limits.

Key takeaways from the regulation include strengthening of the Department of Labor’s Office of Worker Protections’ (“OWP”) investigative and enforcement powers regarding worker protection rules such as complaints of wage theft, violations of the City’s Sick Leave protections, and claims of retaliation by employees for engaging in protected activity.  There are additional provisions that afford immigrant worker protections and increases to specifical classifications of tipped workers’ hourly rate for sick pay to an average of the employee’s hourly wage, under the current Paid Sick Leave ordinance.

Retaliation by an employer against an employee for exercising rights under the new regulation is also prohibited. There is a rebuttable presumption that an employer has unlawfully retaliated against an employee if adverse employment action such as termination, demotion, or any form of discrimination is taken within 90 days of alleged protected activity, such as filing a complaint, cooperating with a formal investigation, opposing or disagreeing with any employment practice that is unlawful under the new law, or even educating other employees about these rights.

The Philadelphia DoL has also been granted authority to conduct more comprehensive and proactive on-site workplace investigations.  Should worker protection violations be determined by the department, the DoL now has the authority to impose liquidated damages and civil fines on employers.  Furthermore, the City is now permitted to publicly list, on both a website and in a City Council report, employers who have three or more violations or have failed to comply with required violation remedies.  The City can also suspend or revoke business licenses and city procurement contracts for repeat violations.  The new regulations also increase protections for domestic workers and strengthen the 2020 Domestive Worker Bill of Rights.

Employers are encouraged to become familiar with the new standards set forth in the POWER Act and review their own policies to ensure consistency with these regulations.  Due to expanded enforcement mechanisms, employers are also encouraged to audit existing employment and timekeeping records for compliance and continue to maintain accuracy in the future.

PrestigePEO is here to help.  For guidance on this new regulation or any other questions, please contact your Human Resources Business Partner for help