October Legal Updates

Employers across the country continue to face fast-moving developments in employment law. This month’s updates cover federal agency actions, state-level leave laws, court rulings, and regulatory proposals that impact compliance obligations for organizations nationwide.

National Highlights

DOJ Investigates DEI Practices
The Department of Justice (DOJ) is stepping up enforcement under its Civil Rights Fraud Initiative. Federal contractors and grant recipients are now receiving Civil Investigative Demands (CIDs) requesting information on diversity, equity, and inclusion (DEI) programs. The focus: whether organizations are falsely certifying compliance with federal anti-discrimination laws. Employers should immediately review DEI programs and consult counsel if a CID is received.

CFAA Narrowed by Third Circuit
The U.S. Court of Appeals for the Third Circuit ruled employees cannot be criminally prosecuted under the Computer Fraud and Abuse Act (CFAA) for violating workplace computer-use policies if they had authorized access. The decision reinforces that internal violations may create civil, not criminal, liability.

FTC Targets Noncompetes in Healthcare
The Federal Trade Commission (FTC) issued warning letters to healthcare employers and staffing companies about overly broad noncompetes, particularly those that limit job mobility for medical professionals. Narrowly tailored agreements may survive, but broad restrictions are at risk of enforcement.

EEOC Retains Post-Lawsuit Authority
The Second Circuit reaffirmed that the EEOC can continue investigations into discrimination claims even after an individual has filed a private lawsuit. Employers should anticipate parallel investigations and litigation risk.

Proposed Changes to FLSA Guidance
The Department of Labor (DOL) is moving more than 450 interpretive regulations out of the Code of Federal Regulations and into the Field Operations Handbook. This shift won’t immediately change obligations but signals future updates to outdated wage and hour provisions.

Employee Political Speech Reminder
Employers can discipline employees for inflammatory or offensive social media posts unrelated to protected workplace activity. But be cautious—speech related to wages, discrimination, or concerted activity may be legally protected.

Other National Items to Watch:

• EEOC pregnancy discrimination enforcement is increasing under the Pregnant Workers Fairness Act.

• OSHA is proposing revisions to over 40 safety standards.

• Remote work rulings are clarifying when work time begins and ends for call center employees.

• Franchise employers may gain clarity under the proposed American Franchise Act.

State-Specific Highlights

Oregon:
Starting January 1, 2026, paid sick leave can be used for blood donation. Only donations through American Association of Blood Banks or Red Cross programs qualify.

Illinois:

• NICU Leave Law (NICLA): Provides 10–20 days of unpaid leave for parents with a child in neonatal intensive care. Employers must reinstate employees and may not retaliate against leave takers.

• Expanded Waivers & Employee Protections: Effective January 1, 2026, employers must revise employment and separation agreements. Overly broad waivers of rights are prohibited, and separation agreements now carry strict compliance requirements.

New Jersey:

• Expanded Worker Freedom Act (effective December 2, 2025): Employees cannot be forced to attend employer meetings on political or religious views, including union-related topics. Employers must post a rights notice once available.

Colorado:

• AI Act Effective Date Delayed: Colorado’s comprehensive AI law now takes effect June 30, 2026.

• Wage Claim Limitations: Colorado Supreme Court confirmed a two-year statute of limitations for wage claims.

• SecureSavings Enforcement: Employers must offer retirement plans or register for SecureSavings by 2026, with fines for noncompliance.

North Carolina:

• Expanded Workplace Violence Prevention Act now covers mass picketing and obstruction of workplaces. Employers can seek civil no-contact orders to protect operations.

California:

• Noncompete enforcement limits reaffirmed through Eleventh Circuit case. California law remains broadly hostile to noncompetes, even those signed in other states.

What Employers Should Do Now

• Audit DEI programs if receiving federal funds.

• Review noncompete agreements—especially in healthcare and California.

• Update policies for Oregon and Illinois leave expansions.

• Prepare for Colorado’s delayed but still sweeping AI compliance requirements.

• Post employee rights notices in New Jersey once issued.

We’ll continue to track these developments to help employers stay compliant.