Federal Update
Department of Labor (DOL)
The DOL has announced a Notice of Proposed Rulemaking to revise its previous analysis and implement a uniform standard for determining joint employer status under the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), and the Migrant and Seasonal Agricultural Worker Protection Act.
The last time the DOL provided guidance on the topic of joint employer status was in 2021, so this proposed rulemaking should help provide clarity and establish uniform application across the three aforementioned laws. The DOL encourages affected individuals or organizations to submit a comment, with the comment period closing at 11:59 pm ET on June 22, 2026.
State Updates
California
The Employment Development Department (EDD) has released the forecasted State Disability Insurance (SDI) contribution rate and maximum weekly benefit for 2027. The contribution rate is forecasted to increase to 1.4% (from 1.3% in 2026) and the maximum weekly benefit amount is also forecasted to increase to $1,791 (from $1,765 in 2026). We will let you know when the rates are finalized in October. You can view the forecasted fund report here.
Connecticut
HB 5003, recently signed into law by Governor Lamont, will require employers to provide written notice of an employee’s right to reasonable accommodation in the workplace for a disability pursuant to the Americans with Disabilities Act (ADA). The law goes into effect October 1, 2026, and employers must provide notice to:
- New employees at the commencement of employment;
- Existing employees within 120 days of October 1, 2026; and
- Any employee who notifies the employer of their disability within ten days of such notification
Employers may comply by displaying the poster that will be created by the Labor Commissioner in a conspicuous place, accessible to employees, at the employer’s place of business. We will let you know when the poster becomes available.
Further, the law requires employers to provide reasonable break times for an employee to breastfeed or express breast milk on site at the workplace in addition to the employee’s regularly scheduled breaks.
Hawaii
Hawaii recently passed Senate Bill 3082, aligning the Hawaii Family Leave Law (HFLL) with the federal FMLA to recognize qualifying military exigencies. As a reminder, the HFLL provides eligible employees with up to 4 weeks of family leave during any calendar year. While the leave reasons now include a qualifying exigency, the birth or adoption of a child or care for a family member with a serious health condition are also covered. Employees who plan to utilize HFLL leave for a qualifying military exigency can be required to provide written certification, and any documentation should include a copy of official military orders. Lastly, when using family leave for a qualifying military exigency under HFLL, the following family members are covered: child, spouse, reciprocal beneficiary, sibling, grandchild, or parent.
This change will come into effect on July 1, 2026, so be sure to update your policies and handbooks if you include Hawaii-specific information.
Illinois
We wanted to provide a quick reminder that the Illinois Family Neonatal Intensive Care Leave Act (IL NICLA) is effective as of June 1, 2026. You can refresh your memory with our previous newsletter, or through the signed House Bill 2978. Be sure to review and update your internal leave policies as needed, if you haven’t already. If Larkin handles your leave administration, we will track your employees’ leave of absence under this law where applicable.
Maryland
With the Maryland Family and Medical Leave Insurance (MD FAMLI) program going live in January 2028, the Department of Labor is hosting a “soft launch” of their registration process, allowing small employers to go through the process before it opens up to all employers. If you are interested in registering with FAMLI and providing your feedback, you can fill out the interest form and the Department will reach out to you between now through June of this year with any next steps.
Bloomington, Minnesota
You may recall that the state of Minnesota introduced a statewide Earned Sick and Safe Time (ESST) law back in 2024 – well, the city of Bloomington has moved forward with repealing their ESST Ordinance, enacted on April 27, 2026. The City Council of Bloomington has said in a recent Council meeting that while having an ESST ordinance was beneficial to the city, now that there is a comprehensive statewide law establishing minimum standards for ESST, maintaining a separate Bloomington ordinance and ensuring a parallel framework hasn’t been found to be meaningful.
This is the second city in Minnesota to repeal its ESST ordinance, following the city of Duluth, so we may see others soon follow suit. Employers that were subject to the (now repealed) city ordinance should review and update their internal paid time off policies to ensure alignment with the state law.
Virginia
On the heels of passing the nation’s latest Paid Family and Medical Leave program (see our previous newsletter for details), Governor Spanberger signed into law SB 199 & HB 5 on May 20, 2026 which expands the state’s paid sick leave law. The state is taking a phased-in approach based on employer size. Employers with at least 50 employees will be required to provide paid sick leave as of July 1, 2027 and those with at least 25 employees will be required to do so as of January 1, 2028. Employers with at least one employee will have until January 1, 2029 before they have to provide paid sick leave. Other details:
- Employees accrue one hour of paid sick leave for every 30 hours worked. Unused leave must carry over to the next year, but employers are not required to allow employees to accrue or use more than 40 hours in a year.
- Employers may frontload the full 40 hours at the beginning of the year in order to meet the accrual requirement.
- Employers with a policy that provides an employee an amount of paid leave sufficient to meet the requirements of the laws and allow for leave for the same purposes and under the same conditions do not have to provide any additional paid sick leave.
- Paid sick leave may be used for the following reasons:
- An employee’s mental or physical illness, injury, or health condition; an employee’s need for medical diagnosis, care, or treatment; or an employee’s need for preventive medical care.
- Care of a family member with a mental or physical illness, injury, or health condition; care of a family member who needs medical diagnosis, care, or treatment; or care of a family member who needs preventative medical care.
- Absence due to domestic violence, sexual assault, or stalking, provided the leave is to allow the employee to seek or obtain medical care, mental health care, counseling, legal services, relocation or securing of an existing home, or other victim services for the employee or the employee’s family member.
- If an employer requires notice of an employee’s need to use paid sick leave, they must provide a written policy that contains procedures for its employees to provide notice.
- As far as documentation, employers may not require disclosure of health information related to domestic violence, sexual assault, or stalking, as a condition of providing paid sick leave. If an employee takes or requests paid sick leave for three or more consecutive workdays, the employer may require reasonable documentation from the employee. For domestic violence, sexual assault, or stalking, examples of reasonable documentation include a police report, a court document indicating the employee is involved in legal action, and documentation from the employee’s attorney or health care provider, or a written statement from the employee.
Employers will be required to notify employees of their rights under the law, both in writing and through required posting. We will keep you posted as to when regulations related to the laws are ready as well as the required poster.
Canada Updates
Manitoba
The Manitoba government has introduced two bills to amend the Employment Standards Code. Bill 10 would add a new leave for adoption and surrogacy, while Bill 11 would impose restrictions on employer sick note requests for an employee’s short-term illness or injury.
Bill 10’s proposed leave of absence would correspond with the upcoming addition to Employment Insurance adoption benefits. An employee’s entitlement to this leave requires that they be employed by their employer for at least 7 consecutive months, and provides up to 16 consecutive weeks of leave for the purpose of placement of a child into an employee’s care, whether through adoption or surrogacy. While the time cannot be taken intermittently, as the employee would forfeit any remaining statutory leave upon their return to work, the leave can begin as early as 6 weeks prior to the expected date of placement. If the actual date of placement happens to occur more than 6 weeks before the estimated date, the leave can begin at that time. On the other hand, if the employee begins their leave and it so happens that the placement will not occur, the leave can continue through 14 days after the date the employee was notified. While on leave, the employee is entitled to job restoration and group health insurance continuation throughout.
Regarding Bill 11’s amendments for sick note restrictions, the bill essentially eliminates the need for sick notes in relation to short-term sick leaves under the Employment Standards Code. As such, a sick note cannot be requested unless the absence is for a period of more than one week, or if the employee, prior to or as a result of the absence, has been absent from work because of an illness or injury for more than 10 scheduled workdays in a calendar year. Partial day absences may count as one day toward the 10 scheduled work days. Further, if an employer does require a sick note where allowed, the employer must reimburse the employee for any reasonable amount that the health care professional may charge the employee for providing the note. The employee would need to provide evidence of their entitlement to reimbursement within 30 days of obtaining the note, and the employer has within 30 days to reimburse the employee once that evidence has been provided.
Further, the Bill also defines the health professionals who can provide a sick note under the ESC, in respect to the illness or injury of the employee’s absence: a physician, physician assistant, or clinical assistant; a registered nurse, nurse practitioner, registered psychiatric nurse, or a licensed practical nurse; a psychologist; a midwife; if outside of Manitoba, a health professional entitled to practice under the laws of another jurisdiction, in a profession equivalent to any of the aforementioned; and lastly, a member of a prescribed class of health professionals (usually added in by regulation).
Bill 10 has passed its 3rd reading, so we may see it receive royal assent soon. Bill 11 has only passed its 2nd reading, with a 3rd to be scheduled. We will keep you updated should these two bills become law.
