November Legal Updates

November brought major federal activity — from the temporary E-Verify shutdown to significant EEOC, DOL, and immigration developments — along with notable updates across several states. Below is a consolidated breakdown designed to help employers stay compliant heading into year-end and prepare for 2026.

National Updates

E-Verify Unavailable (and Now Back Online)

E-Verify went offline during the federal government shutdown, halting employer access and preventing employees from resolving Tentative Nonconfirmations. Employers were still required to complete Form I-9s during the outage. The system has since been restored, and operations are resuming.

Government Shutdown: What Federal Contractors Should Do

Federal contractors should prepare for operational and workforce disruption by:

• Communicating with employees about furloughs, PTO, unemployment access, return-to-work processes

• Managing salaried-employee pay obligations

• Planning for benefits continuation during furloughs

• Ensuring state-by-state compliance on PTO, wage payments, and notice requirements

• Preparing for employee attrition and rapid restarts

EEOC: Disparate Impact Enforcement Ending

By September 30, 2025, the EEOC will close all disparate impact-based charges due to a new Executive Order eliminating reliance on the theory. Right-to-sue letters will be issued by October 31.
Implications: Employers using AI tools should be extremely cautious about unintended discriminatory outcomes, which may still be litigated privately even without EEOC involvement.

EEOC Quorum Restored — PWFA Regulations Likely to Change

With a new Commissioner confirmed, the EEOC can now act on regulatory changes. Revisions to the Pregnant Workers Fairness Act are expected — particularly narrowing conditions that qualify for accommodation (e.g., menstruation, menopause, infertility, abortion).

DOL: Overtime & Regular Rate Clarifications

DOL reaffirmed that extra compensation (shift differentials, bonuses, certain premiums) must be included when calculating the regular rate for overtime. Failure to comply can trigger back pay, liquidated damages, and penalties.

DOL: Horizontal Joint Employer Clarification

Separate entities may be “horizontal” joint employers if they coordinate staffing, scheduling, or operations — requiring combined hours for overtime calculations.

Joint Employer Litigation Trends

Courts continue examining functional control (wages, scheduling, HR policies) over formal contracts when determining joint employer status. Several 2024–2025 cases show increasing scrutiny on industries like healthcare, hospitality, and logistics.

USCIS: New $100,000 H-1B Petition Fee

Applies to petitions filed for individuals outside the U.S. requesting consular notification. Not applicable to change-of-status or extension filings. Legal challenges are pending.

State Specific Highlights

California:

• SB 399 – Captive Audience Law Stayed: California’s new law restricting mandatory employer meetings on political or religious matters has been stayed following litigation. Employers may continue required meetings until further order.
• Employee Access to Personnel Files (SB 513) – Expanded: Effective January 1, 2026, employees gain expanded rights to inspect personnel records, now including:
  • Training records,
  • Performance documentation,
  • Certifications and licenses referenced in employment decisions.
• New Mandatory Notice Requirement (SB 294) :Effective February 1, 2026, employers must provide a stand-alone worker rights notice, separate from existing posting requirements.
  • Must be issued annually.
  • Must be provided via electronic and/or paper methods.
  • Applies to all employers covered by the Labor Code.
• SB 642 — Equal Pay Act Updated: Key updates to California’s Equal Pay Act include:
  • Expanded definitions of “wages” and “benefits,”
  • Clarified standards for wage comparison,
  • Strengthened requirements for pay scale availability,
  • Broadened compliance obligations for multi-location employers.

Maine:

• Earned Paid Leave Updates: Up to 40 hours may now roll over.

  • Accrual remains capped at 40 hours per year

• Paid Family & Medical Leave Clarifications: Intermittent leave increments have been updated.

• Reporting Time Pay Changes: Employers must now ensure minimum payments to employees whose shifts are canceled or cut short.

Maryland:

Maryland enacted several key updates:

• Paid Family & Medical Leave Program delayed to 2027.

• Unpaid Parental Leave Act clarifications regarding eligibility and employer obligations.

• Expanded protections for members of the uniformed services, including new reinstatement and anti-retaliation safeguards.

Massachusetts:

• Pay Transparency Act (Effective Oct. 29, 2025): Employers must include salary ranges in:
  • Job postings
  • Promotions
  • Internal transfers
  • Disclosures made upon employee request
• Annual EEO Reporting: Employers with 100+ employees must submit demographic and pay data to the state each year by February 1.

New Jersey: 

• Minimum Wage Increases for 2026: Effective January 1, 2026:
  • Standard minimum wage: + $0.43 increase (exact rate pending CPI finalization).
  • Seasonal and small business employers: $15.23/hr.
  • Tipped workers: $6.05/hr base wage (tip credit remains $9.87).
  • Agricultural workers: $14.20/hr.
  • Long-term care facility staff: $18.92/hr.

New York

• Unemployment Insurance Benefit Increase: The maximum UI benefit increased to $869/week.
• Employer Funding Changes: Starting in 2026, the UI wage base will be tied to 18% of the statewide average annual wage, creating automatic annual adjustments.
• Interest Assessment Surcharge (IAS) Eliminated: New York has paid off its federal UI loan balance, ending the IAS for employers.
• Expanded Eligibility for Partial Benefits: Workers with reduced hours or part-time schedules may now qualify for unemployment benefits that were previously unavailable under older earnings thresholds.

What Employers Should Do Now

• Verify that overtime calculations include all required premium payments and bonuses.

• Update job posting processes for MA and CA pay transparency changes.

• Prepare for NY UI contribution shifts and benefit increases.

• Train HR teams on joint employer risks — especially in scheduling, payroll, or shared service models.

• Review California notice, personnel file, and emergency contact requirements ahead of 2026 deadlines.

• Ensure I-9 compliance during and after the E-Verify outage.

• Reevaluate AI or automated hiring tools for potential disparate impact.