As of the date of this publication, the 2025 EEO-1 Component 1 Report data collection dates have not yet been announced, however if the reporting period aligns with last year’s reporting timeframe, employers have been expecting a May opening date with a June 2026 deadline.

Importantly, as of late last week, the EEOC sent a proposed rule entitled Rescission of EEO-1, EEO-2, EEO-3, EEO-4. EEO-5, And Reporting Requirement Under Title VII, the ADA, GINA, and the PWFA to the Executive Office of the President’s Office of Information and Regulatory Affairs (OIRA), that seeks to end EEO-1 reporting altogether.  The proposed rule is currently in its initial phase and must undergo a thorough review and comment period before the final version outlining any revised obligations will be released.

Therefore, despite the proposed rule and this year’s delay in the EEOC’s official website opening with the new collection timeframe, it is still anticipated that employers will need to file 2025 EEO-1 reports.  Employers are encouraged to prepare now. Those that had at least 100 or more employees and federal contractors with at least 50 employees employed from October through December 2025 are encouraged to prepare to meet the reporting requirements.  Employers are reminded that if the minimum employee threshold count is met at any time during the October through December timeframe, an EEO-1 report is required to reflect the “workforce snapshot period,” for reporting purposes.  Employers are encouraged to ensure HR systems are ready to provide the required data regarding workforce demographics, including race/ethnicity, gender, and job category for each employee. Employers should ensure that demographic information is accurate and reflects voluntary self-identification when available. Reporting will also include both onsite and remote employees.

PrestigePEO helps to support this process by working with clients to ensure the demographic information is complete and updated for reporting purposes.  PrestigePEO will generate and upload the final report to the EEO-1 reporting portal for client review, approval, and to ultimately certify.  Importantly, PrestigePEO is not able to certify a client’s final EEO-1 report. This is a client specific responsibility.

If the portal opens for 2025 EEO-1 reporting and there are no changes to the current reporting requirements as a result of the newly proposed rule, clients who have yet to report with Prestige’s assistance or possibly never filed an EEO-1 report in the past must register with the EEOC and list PrestigePEO as a contact/third party by using the following email address: [email protected].

While the 2025 EEO-1 reporting timeframe is tentative, clients are encouraged to review their EEO-1 reporting obligations and address any outstanding registration requirements soon. We will continue to monitor updates and provide further guidance once the EEOC formally posts the deadline and filing instructions on its site.

PrestigePEO is here to help. If you have any questions regarding EEO-1 reporting requirements or would like to ensure your employee data is updated for reporting purposes, please contact your HRBP for assistance.

Illinois

New Job-Protected Leave for NICU Parents

As we have been reporting, the Family Neonatal Intensive Care Leave Act (NICLA) takes effect June 1, 2026, and provides job-protected, unpaid leave to employees whose child is receiving care in a neonatal intensive care unit (NICU).  NICLA applies to employers with 16 or more employees. Employers with 16 to 50 employees must provide up to 10 days of NICU leave, while employers with 51 or more employees must provide up to 20 days. All employees are eligible regardless of tenure or hours worked. Leave may be taken continuously or intermittently, and employers may not require employees to use accrued paid leave. Reinstatement and anti-retaliation protections apply.  Employers with employees in Illinois should review and update their employment policies to ensure compliance and address any deficiencies.

Oregon:

Immigration Status Retaliation Prohibited

Effective June 5, 2025, Oregon HB 4111 restricts the use of immigration status in civil lawsuits, allowing it only when essential to the case, for use in damages calculation, or employee reinstatement, and requires a confidential motion for its introduction. The law also prohibits employers from discriminating or retaliating against employees for updating, or attempting to update, their personal information due to changes in federal employment authorization documentation. Additionally, HB 4111 includes immigration status as a protected class protected from “profiling” by law enforcement.

Utah:

Legislation Passed to Eliminate Noncompete Clauses for Healthcare Professionals and Veterinarians

The Utah Legislature has passed House Bill 270, which will, upon the Governor’s approval, prohibit noncompete contracts for all healthcare professionals beginning May 6, 2026. From that date forward, any new noncompete agreements will be considered unenforceable. In addition, the law mandates that non-solicitation clauses must allow healthcare workers to notify patients of their employment changes.

Senate Bill 111, also pending the Governor’s signature, will bar noncompete agreements for veterinarians entered into after May 6, 2026.

Washington:

Employee Access to Personnel Files: Effective May 1, 2026, employees now have the right to request and receive their personnel files within 21 calendar days of the request at no cost, including applications, performance evaluations, disciplinary records, leave records, payroll records, and agreements. This law creates a private cause of action including damages and attorneys’ fees for non-compliance.

Employee Microchipping Prohibited: On June 11, 2026, Washington’s law prohibiting employers from requesting, requiring, or coercing workers or job applicants to consent to a subcutaneous microchip implant takes effect. The regulation allows for a private cause of action including attorneys’ fees against employers that violate the law.  Exceptions are made for devices utilized for diagnosis, monitoring, treatment or prevention of a health condition.

PrestigePEO is here to help. If you have any questions about these new regulations, please contact your HRBP for assistance.

In recent years, the growing concerns over data privacy and the increasing reliance on digital platforms have prompted several U.S. states to introduce comprehensive privacy laws. Among these are the Alabama Personal Data Privacy Act (APDPA) and the Oklahoma Consumer Data Protection Act (OCDPA). Both acts represent significant steps by their respective states toward enhancing individual privacy rights and establishing clear guidelines for businesses handling personal information.

Alabama Personal Data Privacy Act (APDPA)

The Alabama Personal Data Privacy Act (APDPA), signed into law in April, with an effective date of May 1, 2027, is designed to give Alabama residents more control over their personal information and create guardrails around how businesses collect and profit from personal consumer data. The act outlines the types of data that are protected, such as names, addresses, social security numbers, and other sensitive personal details that would reasonably identify an individual. Under the APDPA, businesses operating in Alabama are required to implement reasonable security measures for protecting personal data, notify individuals about data collection practices, and obtain consent when collecting or processing certain types of information.

The APDPA’s employment-data provision aligns with other state consumer privacy laws, except California.  The California Consumer Privacy Act is written to include in the broad definition of consumer both current and former employees as well as job applicants, and others.  The APDPA specifically excludes employment and HR data from coverage, provided the controller of the data complies with specifically outlined criteria. Additionally, the APDPA gives consumers the right to access, correct, or delete their personal data held by businesses.

Oklahoma Consumer Data Protection Act (OCDPA)

The Oklahoma Consumer Data Protection Act (OCDPA), signed into law on March 20 with an effective date of January 1, 2027, mirrors many of the protections found in other state privacy laws but is tailored to the specific needs and concerns of Oklahoma residents. The OCDPA grants consumers the right to know what personal data is being collected about them, the purpose for which it is being used, and with whom it is being shared. Like Alabama’s statute, the OCDPA also requires businesses to adopt strong data protection policies and practices.

The law covers any controller or processor doing business in Oklahoma or targeting its residents, if they handle personal data of at least 100,000 consumers, or 25,000 consumers with over 50% of revenue from selling personal data. It does not, however, apply to employer-employee or business-to-business situations and aligns with most other consumer privacy laws.

A key feature of the OCDPA is its emphasis on consumer notice and transparency. Businesses must provide clear notices regarding data collection and usage and provide residents with the right to confirm and access their data, as well as correct, delete, and obtain a copy of their personal data in a portable format. Residents also must be given the option to opt out of the processing of personal data and maintain the right to appeal any use of the data. The OCDPA also establishes enforcement mechanisms, allowing the state attorney general to pursue violations and impose penalties on non-compliant organizations.

Implications for Businesses and Consumers

Both the APDPA and OCDPA demonstrate a growing recognition among state lawmakers of the importance of safeguarding personal data. For businesses, compliance requires adapting to new requirements around transparency, consent, and security measures. For consumers, these laws provide crucial rights and avenues for recourse if their privacy is compromised.

As more states consider similar legislation, the landscape of data privacy in the United States continues to evolve. The Alabama APDPA and Oklahoma OCDPA are prime examples of how state-level initiatives can shape the future of data protection.

PrestigePEO is here to help. If you have questions regarding these new consumer data privacy regulations, please contact your HRBP for assistance.

California’s workplace landscape is poised for significant changes in 2026, as nearly 1,800 bills introduced in the current legislative session address labor, employment, and workplace compliance. Employers should be aware of several proposals that could affect hiring practices, employee benefits, workplace technology, and reporting obligations.

Antidiscrimination Measures

Several bills aim to expand protections for workers. Notably, AB 2095 would extend “Ban-the-Box” rules, limiting the use of criminal history in hiring unless it directly affects the job. AB 1940 would add menopause-related medical conditions to California’s sex-based discrimination protections. Meanwhile, AB 1803 would integrate anti-hate-speech training into existing sexual harassment education programs.

Artificial Intelligence and Workplace Oversight

Employment decisions involving automation and AI are under scrutiny. SB 947, the “No Robo Bosses Act,” would prohibit employers from relying solely on automated systems for major employment actions, such as discipline or termination. SB 951 complements this by requiring advance notice of AI-driven mass layoffs. AB 1898 and AB 1883 focus on transparency and limits on AI use, mandating disclosure of AI tools and restricting surveillance that could violate employee rights under FEHA. Lawmakers are also evaluating how AI may affect overtime exemption criteria.

Employee Leaves and Accommodations

SB 1149 seeks to expand bereavement leave, allowing up to 5 days for the loss of any individual with whom the employee has a close personal connection. These proposals reflect ongoing efforts to provide more comprehensive support for workers’ personal and family needs.

Immigration and Privacy

AB 2495 would strengthen prohibitions on coercive or unfair immigration-related practices and impose substantial fines for violations. In privacy, AB 2021 introduces incentives for whistleblowers to report CCPA violations, while AB 1542 aims to restrict the sale or sharing of sensitive personal information.

Wage and Hour Updates

Several bills address compensation rules. AB 2646 would raise the minimum wage to $19.75 per hour for certain agricultural workers starting in 2027, with cost-of-living adjustments. AB 1550 and SB 984 would allow state-level tax deductions for tips and overtime. SB 921 would offer a tax credit for overtime pay to eligible agricultural employees.

Workplace Safety

AB 1961 seeks to make workplace violence restraining orders easier to obtain for threats affecting groups of employees, without requiring the identification of specific individuals.

Other Notable Measures

New legislation also targets pay transparency (SB 464), limits “stay or pay” training repayment obligations (AB 692) and strengthens annual “Know Your Rights” notifications to employees (SB 294).

California employers should closely monitor these developments. Compliance planning and proactive policy adjustments will be critical as these proposals progress through the legislative process.

PrestigePEO monitors these developments to help keep your business informed and ahead of the curve. Contact your HR Business Partner with any questions.

The New Jersey Department of Labor (NJDOL) finalized regulations on May 5, 2026, clarifying how businesses must apply the ABC test when classifying workers as independent contractors. The rules take effect on October 1, 2026, and apply across New Jersey.

When classifying workers as independent contractors in New Jersey, businesses have the burden of proving all three prongs of the ABC test:

• Prong A – the worker has been and will continue to be free from control or direction over the performance of services, both under the service contract and in reality;
• Prong B – the work performed is either outside the usual course of your business or the work is performed outside of all the enterprise’s places of business; and
• Prong C – the worker is customarily engaged in an independently established trade, occupation, profession or business.

After receiving many comments from the business community, the NJDOL revised and adopted new language to provide detailed regulatory guidance on applying the three prongs.

Prong A  – The rules enumerate nine factors to be considered in the analysis, including:

• Whether the individual is required to work set hours or jobs.
• Whether the putative employer has the right to control the details and means of performance.
• Whether the services must be rendered personally.
• Whether the putative employer negotiates for and acquires the services.
• Whether the individual’s rate of pay is fixed by the putative employer.
• Whether the individual bears any risk of loss.
• Whether the individual is required to be on call or on standby at set times.
• Whether the putative employer limits the individual’s ability to perform services for others.
• Whether the putative employer provides training.

Prong B – To determine whether the individual’s services are outside the putative employer’s “usual course of business,” the rules consider activities that the employer regularly engages in to generate revenue or develop, produce, sell, market, or provide goods or services, and that an entity may have more than one usual course of business. To determine whether the services are performed outside the “places of business” of the enterprise for which it performs, the rules refer to locations where the enterprise has a physical plant or conducts an integral part of its business

Prong C – Under the adopted rules, the analysis focuses on seven nonexhaustive factors, including:

• The duration, strength and viability of the individual’s business, independent of the putative employer.
• The number of customers and volume of business from each.
• The amount of remuneration from the putative employer compared to remuneration from others in the same industry.
• The number of employees of the individual’s business.
• The extent of the individual’s investment in their own tools, equipment, vehicles, buildings, infrastructure and other resources.
• Whether the individual sets their own rate of pay.
• Whether the individual advertises, maintains a visible business location and is available to work in the relevant market.

Virginia’s Governor signed a broad package of employment legislation in April 2026, representing the most significant overhaul of Virginia employment law since 2020. Most of the new laws take effect July 1, 2026, and employers should act now to review and update agreements, policies, and practices before that date.

Pay Transparency and Salary History Ban (SB 215) — Effective July 1, 2026. Employers are prohibited from seeking or relying on a prospective employee’s salary history when making hiring or compensation decisions. All job postings, including internal promotions and transfers, must include a good-faith wage or salary range. Violations can result in statutory damages of up to $10,000 per violation, plus attorneys’ fees.

Expanded Anti-Discrimination Protections (SB 637) — Effective July 1, 2026. The Virginia Human Rights Act will now apply to employers with five (5) or more employees, down from the prior threshold of fifteen (15). The window for employees to file a discrimination complaint is extended from 300 days to two (2) years.

Minimum Wage Increases. Virginia’s minimum wage will increase to $13.75 per hour on January 1, 2027, and to $15.00 per hour on January 1, 2028, with annual CPI-based adjustments beginning January 1, 2029.

Paid Sick Leave — Effective July 1, 2027. Virginia is expanding its paid sick leave mandate to cover all private employers regardless of size. Employees will accrue one hour of paid sick leave for every 30 hours worked, up to 40 hours annually, with carryover permitted.

Paid Family and Medical Leave. Virginia enacted a payroll-funded insurance program providing up to twelve (12) weeks of paid leave for qualifying reasons, including serious health conditions, bonding with a new child, or military exigency. Payroll contributions are slated to begin in 2028, with benefits available starting in December 2028.

PrestigePEO is here to help.  Please contact your HRBP with questions or assistance.

Effective July 1, 2026, Virginia has enacted amendments significantly restricting the enforceability of non-compete agreements. Specifically, the Virginia House of Representatives passed a bill subsequently signed by the governor that will limit an employer’s ability to enforce a non-compete agreement against laid-off or fired employees, unless the termination is for-cause.

SB 170 will void employee non-competes for workers who are laid off without severance or other compensation. These restrictions would apply to all non-compete agreements signed on or after July 1, 2026.

The amount of severance that constitutes adequate consideration is not defined, and it remains to be seen how courts will address that question.  Employers who are concerned about employee competition must therefore weigh the benefits of providing a severance to preserve their rights under a non-compete agreement.

Prior to the effective date, employers should audit all existing restrictive covenant agreements, determine whether updates are necessary, and evaluate whether to roll out new agreements before July 1. Any new or revised agreements should clearly define the severance benefit to be provided and include specific for-cause termination language.

PrestigePEO is here to help. Please contact your HRBP with questions.