To help keep you informed of the latest employment law developments, we’re providing this special HR update highlighting the state and local minimum wage increases that take effect today, July 1.

Click here or on the images below to view the complete minimum wage update, including the full summary of new rates and effective dates.

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.

On May 29, 2026, the Department of Labor (DOL) issued four opinion letters to help employers understand several federal labor laws:

• DOL Addresses Compensability of Meal Periods When Employees Voluntarily Leave Worksite
• DOL Addresses Overtime Implications for Exempt Employees Performing Additional Hourly Work
• DOL Clarifies Overtime Requirements for Quarterly Bonus Pools
• DOL Clarifies Preshift Activities, Waiting Time, De Minimis Doctrine and Rounding Practices in Hospital Settings

Question: What should I do if one of my employees got married 2 months ago and is asking to change their benefit plan enrollment now?

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.