Compliance Stuff

Recent legislative developments in multiple states have targeted “ stay-or-pay” clauses—contract terms that obligate employees to repay certain bonuses and educational or training expenses if the employee does not stay for a required period of time. Historically, these provisions were intended to safeguard employer investments in training and onboarding. However, state lawmakers are increasingly viewing them as restrictive and unfair to workers. Employers, particularly those with employees across multiple states, should carefully examine current agreements and prepare for compliance with these evolving state standards to mitigate risk and maintain lawful practices. California Effective January 1, 2026,  California Assembly Bill 692 (AB 692)  prohibits employment contracts that require employees to repay employment related costs upon early separation. If the employer violates the law, they may be exposed to penalties, fees, or costs such as liquidated damages. The California le...

  States and cities are as busy as ever passing new workplace regulations throughout the calendar year. Here is our mid-year report summarizing the notable labor and employment laws that take effect from roughly July through October.  Wyoming Bill / Ordinance / Regulation Main Topic Summary Effective Date Wyoming SB 107   Noncompete Agreements Provides that contractual covenants not to compete, with certain noted exceptions, are void; specifies requirements for covenants not to compete for physicians. 7/1/2025 This article provides a general snapshot of generally applicable labor and employment laws taking effect soon. Please note that while some of the laws listed below are industry-specific, this article is not meant to be all-inclusive. In addition, many state legislatures are still active, so new laws are taking effect on a near-daily basis. Littler monitors federal, state and local legislation, executive orders, and administrative regulations and other agency activit...

  Utah, West Virginia, and Wyoming recently passed laws aligning with recent executive orders issued by President Donald Trump defining sex as binary and immutable. Quick Hits Utah, West Virginia, and Wyoming lawmakers recently enacted state laws recognizing only two genders, male and female. The state legislators acted after President Donald Trump issued an executive order establishing that the federal government’s new policy is to recognize only two sexes, male and female, despite contravening federal law. The three states restrict transgender and nonbinary individuals from using public school bathrooms and locker rooms that align with their gender identity. Utah, West Virginia, and Wyoming joined  Iowa  and other states in passing state laws redefining gender as binary (e.g., male and female only) and immutable, thus attempting to reject governing Supreme Court of the United States case law recognizing gender identity as a protected characteristic under Title VII of t...

Noncompete provisions continue to be governed by a constantly changing patchwork of state level legislation. In general, recent laws tend to limit their use among low wage earners or individuals in certain professions, such as health care workers or veterinarians. In July, amendments to such laws will go into effect in Virginia, Arkansas, and a newly issued statute will go into effect in Wyoming. A summary of each follow. Virginia Effective Date:  July 1. Statute:   SB 1218 . Existing Law:  Pursuant to  § 40.1-28.7:8  of the Virginia Code, low wage employees in Virginia may not be bound by noncompete agreements. Prior to SB 1218, low wage employees included any employee with average weekly earnings that are less than the average weekly wage of the Commonwealth. Key Changes: The new law expands the definition of “low wage workers” who cannot be bound by noncompete agreements to include all employees entitled to overtime pay for working more than 40 hours a w...