June 2026 Labor Law Updates

The following states have labor law updates scheduled to take effect in June 2026:

• Alaska
• Colorado
• Illinois
• Idaho
• Indiana
• Kentucky
• Oregon
• South Dakota
• Tennessee
• Virginia
• Washington
• West Virginia

There are also federal labor law updates scheduled for June 2026. Lastly, we compiled a list of recent labor law poster updates from May and June.

Alaska Labor Law Updates for June 2026

Alaska employers should be aware of the following updates to compliance requirements as of June 2026:

Alaska Minimum Wage Increases Soon

Employers should start preparing for the next Alaska minimum wage increase, which takes place on July 1st, 2026.

Effective July 1st, Alaska's minimum wage will increase from $13.00 per hour to $14.00 per hour. As a result, Alaska's overtime exempt salary threshold, which is set to twice the amount equivalent to 40 hours paid at minimum wage, will increase to $1,120 per week. 

Colorado Labor Law Updates for June 2026

Colorado employers should be aware of the following updates to compliance requirements as of June 2026:

Artificial Intelligence Compliance Requirements Are Changing Next Year

Colorado Senate Bill 26-189 updates and replaces previous AI regulation laws by creating new rules around the use of automated decision-making technology (ADMT) in high-impact decisions.

The bill applies to systems that use personal data and computational processes to assist or influence decisions involving employment, education, housing, lending, insurance, healthcare, and government services. The bill also establishes several consumer protections and transparency requirements.

Beginning January 1, 2027, developers of these systems must provide deployers with technical documentation about how the technology works, its intended use, training data categories, limitations, and instructions for human oversight.

Both developers and deployers are also required to maintain compliance records for at least three years. Organizations using covered ADMTs must notify individuals when these systems are involved in consequential decisions, especially when an adverse outcome occurs.

Illinois Labor Law Updates for June 2026

Illinois employers should be aware of the following updates to compliance requirements as of June 2026:

NICU Unpaid Leave Has Started

As of June 1st, 2026, Illinois's new Neonatal Intensive Care Leave is in effect.

The new leave law applies to employers with at least 16 employees, and provides a certain amount of unpaid leave to employees when an employee's child is a patient in a neonatal intensive care unit. The amount of leave depends on the size of the employer.

Employers with 16 to 50 employees must provide up to 10 days of unpaid leave, while employers with 51 or more employees must provide up to 20 days of unpaid leave. Leave must be job-protected, meaning employees must be reinstated to the former or a substantially equivalent position held before taking leave, with no loss of benefits.

Idaho Labor Law Updates for June 2026

Idaho employers should be aware of the following updates to compliance requirements as of June 2026:

Public Employee Retirement System of Idaho (PERSI) Rules Amended

Effective July 1st, 2026, Senate Bill 1276 updates Idaho’s rules for retired public employees who return to work for a PERSI-participating employer after retirement.

Under the bill, certain retirees who are at least 55 years old and retired after January 1st, 2026, (originally January 1st, 2022) can continue receiving their retirement benefits while working again, as long as they choose not to earn additional retirement service credit during their reemployment.

The bill also removes the previous expiration date for this option. Originally, the ability for retirees to return to work under these rules was set to end on June 30th, 2026. By eliminating that sunset provision, the bill makes the policy permanent.

Indiana Labor Law Updates for June 2026

Indiana employers should be aware of the following updates to compliance requirements as of June 2026:

Indiana Fairness Act Takes Effect Soon

Effective July 1st, 2026, employers will need to maintain compliance with the Indiana Fairness Act, which prohibits employers from knowingly or intentionally recruiting, hiring, or continuing to employ a worker who is not authorized to work in the United States.

Employers are encouraged to use E-Verify going forward, as the law does provide a safe harbor rule for employers who use it. In other words, an employer will not be penalized if a worker comes back as work-authorized through E-Verify.

This update to Indiana Labor Laws will apply to all employers in the state.

Kentucky Labor Law Updates for June 2026

Kentucky employers should be aware of the following updates to compliance requirements as of June 2026:

Data Protection Impact Assessments Now Required

As of June 1st, 2026, organizations that process personal data must begin conducting and documenting Data Protection Impact Assessments (DPIA) for certain high-risk data processing activities under the Kentucky Consumer Data Protection Act (KCDPA). While the law originally went into effect on January 1st, 2026, the requirement to conduct these data protection assessments applies only to processing activities created or initiated on or after June 1, 2026.

These activities include:

• Processing for targeted advertising 
• Selling personal data
• Profiling that could reasonably lead to harms such as:
  • Unfair or discriminatory treatment
  • Financial or reputational injury,
  • Intrusive violations of privacy
• Processing sensitive data or any other activity that presents a heightened risk of harm to consumers

The law also establishes oversight and confidentiality rules. 

Oregon Labor Law Updates for June 2026

Oregon employers should be aware of the following updates to compliance requirements as of June 2026:

Oregon Minimum Wage Increases Soon

Employers should start preparing for the next Oregon minimum wage increase, which takes place on July 1st, 2026.

Effective July 1st, Oregon's minimum wage rates will increase as follows:

•  Standard Minimum Wage: $15.55 per hour
• Portland Metro Minimum Wage: $16.80 per hour
• Non-Urban Minimum Wage: $14.55 per hour

New Employee Protections

A new addition to Oregon Labor Laws is House Bill 4111. Among other requirements unrelated to the workplace, this new bill adds workplace protections for employees whose work authorization status changes legally, effective June 5th, 2026.

Employers are prohibited from retaliating against, disciplining, or otherwise taking adverse action against an employee for updating personal or employment records after a lawful change in immigration or work authorization documentation.

This means workers cannot be punished for correcting their records to reflect their current legal status.

South Dakota Labor Law Updates for June 2026

South Dakota employers should be aware of the following updates to compliance requirements as of June 2026:

Updates Coming to Non-Compete Agreements

House Bill 1180 implements new requirements regarding non-compete agreements during the sale or transfer of ownership of a business, effective July 1st, 2026. In this scenario, a non-compete agreement is regarded as "engaging directly or indirectly in the same or similar type of business conducted by the entity during the previous owner's period of ownership".

Such an agreement is permissible if the restrictions are limited to:

• Only within the geographic area where the business operates under the new owner, and;
• The agreement lasts no more than three years after the ownership transfer

In simpler terms, once an employer sells a business, the employer may not engage in a similar business within the geographic area of the sold business for at most three years. Any agreement lasting longer than three years will be voided by the state.

Tennessee Labor Law Updates for June 2026

Tennessee employers should be aware of the following updates to compliance requirements as of June 2026:

New Regulations Coming Regarding Minor Content Creators

Effective July 1st, 2026, Senate Bill 1469 will go into effect. This bill rolls out a long list of new regulations regarding minors under the age of 18 who are content creators under Tennessee Labor Laws. 

A content creator is defined by the law as someone who meets one of the following criteria in a 12-month period:

• At least 30% of a content creator's video content produced within a 30-day period included the likeness, name, or photograph of the minor, and the content is compensated
• The content performance meets the host platform's requirements for generating compensation of at least 1 cent per view
• The content creator receives actual compensation for video content of at least 1 cent per view

Some key provisions to be aware of include:

• Age restrictions for engaging in the work of content creation
• Regulations around compensation
• Exemptions
• Recordkeeping Requirements
• Creation of Trust Accounts for minors
• Penalties for violations

Virginia Labor Law Updates for June 2026

Virginia employers should be aware of the following updates to compliance requirements as of June 2026:

Updates Coming to Non-Compete Agreements

Effective July 1st, 2026, Senate Bill 170 will update regulations around non-compete agreements. 

Specifically, a non-compete agreement between an employer and employee cannot be enforced if the employer terminates the employee and does not provide severance pay or another agreed-upon monetary payment that was clearly disclosed when the non-compete was signed.

However, this protection does not apply if the employee is fired for cause, meaning reasons such as misconduct or poor performance.

Washington Labor Law Updates for June 2026

Washington employers should be aware of the following updates to compliance requirements as of June 2026:

New Requirements Regarding Form I-9 Inspections

House Bill 2105, which will go into effect June 11th, 2026 (with additional requirements coming Oct. 1st, 2026), focuses on protecting immigrant workers during federal workplace immigration enforcement actions, particularly those involving Form I-9 inspections and related audits.

This new update to Washington Labor Laws requires employers to provide prompt notice to workers when they receive a federal Notice of Inspection for I-9 employment eligibility forms, and again when they receive the results of that inspection.

The law also establishes limits and protections around employer cooperation with immigration enforcement. This includes guidance on access to nonpublic workplace areas and employee records, which emphasizes that such access generally requires proper legal authority, such as a subpoena or judicial warrant.

New Employee Protections Regarding Microchips

House Bill 2303 creates new employee protections regarding microchips, effective June 11th, 2026. 

Specifically, the bill makes it illegal for an employer to require, request, or coerce an employee or job applicant to have a microchip implanted in their body. The bill defines a “microchip” as a subcutaneous implanted device (such as an RFID chip) that contains a unique identifier or personal information that can be read electronically. It explicitly distinguishes these from medical implants used for legitimate healthcare purposes.

Employees have the right to sue if an employer violates these regulations, and courts may award remedies including injunctive relief (to stop the practice), actual damages, punitive damages, and reimbursement of attorney fees.

West Virginia Labor Law Updates for June 2026

West Virginia employers should be aware of the following updates to compliance requirements as of June 2026:

2026 Income Tax Rate Cut

Senate Bill 392 goes into effect June 12th, 2026, and will create a 5% income tax cut, retroactive to January 1, 2026, for all West Virginia residents.

As such, the employer withholding tax tables have been updated for the 2026 tax year.

Federal Labor Law Updates for June 2026

All employers should be aware of the following updates to compliance requirements as of June 2026:

New Joint Employer Status Proposed Rule Comment Window Closing

On April 22, 2026, the U.S. Department of Labor announced a Notice of Proposed Rulemaking to reassess joint employer status under the following labor laws:

• Fair Labor Standards Act (FLSA)
• Family and Medical Leave Act (FMLA)
• Migrant and Seasonal Agricultural Worker Protection Act (MSPA)

Employers are encouraged to submit comments on the proposal, and have until June 22nd, 2026, to do so.

Updates for Posting & Notice Requirements

The following chart breaks down recent labor law poster and notice updates by state. Employers in these states need to check and ensure their posters are up-to-date. 

See here if you need help getting updated posters or notices.

Looking for more updates? View Last Month's Compliance Update Here.