Chicago Revises Rules for Paid Leave and Paid Sick and Safe Leave – The Chicago Dept. of Business Affairs and Consumer Protection has revised the rules for the city’s Paid Leave and Paid Sick and Safe Leave ordinance. The changes take effect June 1.
The federal Family and Medical Leave Act (FMLA) provides eligible employees of covered employers with job-protected leave for qualifying family and medical reasons. It requires continuation of their group health benefits under the same conditions as if they had not taken leave. FMLA leave may be unpaid or used at the same time as employer-provided paid leave.
Federal law requires employers to hire only individuals who may legally work in the United States—either U.S. citizens or authorized foreign nationals. To comply with the law, employers must verify the identity and employment authorization of each individual they hire by completing and retaining the Employment Eligibility Verification form (Form I-9). Employers must have a completed Form I-9 for every employee hired after Nov. 6, 1986.
High turnover has long been treated as an unavoidable cost of doing business in industries such as retail, food service, hospitality, manufacturing, and other frontline operations. For roles with frequent turnover in any industry, organizations often hesitate to invest in training, questioning the value of developing employees who may not stay long. Yet this assumption is increasingly being challenged by workers themselves, who consistently say that access to training and skills development is a key factor in whether they stay, engage, and perform well at work. As the gap widens between what employees expect and what employers deliver, underinvestment in learning can quietly become a driver of the very turnover organizations are trying to manage.
Nebraska Enacts Mini-WARN Act – On April 14, 2026, Nebraska enacted the Nebraska Worker Adjustment and Retraining Notification Act (Act), which requires covered employers to give 90 days’ advance notice prior to a mass layoff or business closing. The Act takes effect on July 18, 2026.
On April 13, 2026, the U.S. Department of the Treasury (Treasury) and IRS issued final regulations on the “No Tax on Tips” provision enacted under the One Big Beautiful Bill Act (OBBBA). The final regulations are effective on June 12, 2026.
Background – On July 4, 2025, President Donald Trump signed a tax and spending bill, commonly referred to as the OBBBA, into law. Among other provisions, the OBBBA allows certain workers an above-the-line deduction for “qualified tips” and “qualified overtime compensation” for taxable years beginning after Dec. 31, 2024, and ending for taxable years beginning after Dec. 31, 2028. Individuals must earn $150,000 or less ($300,000 if married filing jointly) in 2025 to be eligible for the tip deduction. The maximum deduction for tip income is capped at $25,000 per year, and the deduction applies only to cash tips, which include tips that are charged and tips received under a tip-sharing agreement.
The U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) is tasked with enforcing federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act (FLSA), as well as the Family and Medical Leave Act (FMLA) and a number of other employment standards and worker protections.
Generally, the WHD will initiate an investigation after a current or former employee files a complaint. In addition to complaints, the WHD selects certain businesses and industries for investigation. Occasionally, several organizations in a specific geographic area will be examined.