Category: Compliance

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Jury duty laws in every US state (2026)

Astronaut on the witness stand

Summary: 

  • Federal law doesn’t require employers to provide employees leave, compensation, or benefits for jury duty-related absences. It is up to states and employers to determine these rules. 

  • There are 10 states (including the District of Columbia) that require employers to pay employees serving mandatory jury duty.

  • 18 states prohibit employers from requiring employees to use paid vacation or any other personal leave due to jury duty obligations.

While jury duty is legally required for those selected, most US citizens view it as not just a responsibility but also as an important civic function. According to Bar Prep Hero’s recent study, 60.2% believe jury duty should be mandatory for all citizens.

Some would rather avoid it if possible. Bar Prep Hero’s survey found that 9.2% admitted that they lied during jury selection in order to get out of jury duty. The biggest reason people want to avoid jury duty is that they see it as a financial inconvenience. 

When employees have to attend court for jury duty, they are unable to go to work for as long as the trial lasts. And even though employees are required by law to fulfill their jury duty if summoned, employers in a majority of states are not obligated to compensate them for working hours missed as a result of jury duty. 

Are you, as an employer, obligated to compensate or grant additional PTO to staff on jury leave? If you’re not sure, we’ve made a complete guide of jury duty laws by state to help you understand your legal obligations. 

How does jury duty work? 

Jury duty is not only a legal obligation but also an opportunity for American citizens to participate in their country’s judicial process firsthand. 

The jury selection process differs slightly depending on the jurisdiction, but it most commonly includes the following steps:

  • Summoning potential jurors: Potential jurors are randomly selected from a pool of eligible individuals. This pool is usually compiled from voter registration lists, driver’s license records, or other sources, depending on the jurisdiction.
  • Questionnaires: Potential jurors must complete questionnaires, answering basic questions about their occupation, educational background, and any potential biases or conflicts of interest. Diversity is an important factor when selecting juries. 
  • Jury panel selection: A group of potential jurors is called to the courtroom, and they are seated in the jury box. The judge and attorneys question potential jurors to determine their suitability for the case. The purpose is to identify any biases, prejudices, or personal experiences that could impact their ability to be impartial.

The judge and attorneys then select the final jurors who will serve on the jury for the trial. Their duty is to follow the trial proceedings — to listen to the evidence presented, witness testimonies, and arguments from both sides. Their duty is complete once the jury deliberates together and reaches a verdict based on the evidence and instructions provided by the judge.

While the length of your jury duty depends on the complexity of the trial, the Commonwealth of Massachusetts claims that most people finish their jury duty in a matter of one to three days in that state. Once a person has served jury duty, they will not be required to do so again for at least another three years. 

What federal laws say about employer responsibilities regarding jury duty 

According to the Fair Labor Standards Act (FLSA), federal law doesn’t require employers to provide employees paid leave for jury duty or with compensation or benefits. 

However, state laws are a different matter. Some states require employers to pay an employee while they are serving jury duty. Many have laws protecting employees from being fired or penalized while serving jury duty. Several have laws requiring employers to allow employees to use their paid time off (PTO) if they wish to do so for jury service. 

Employers also have the ability to create their own jury duty policies for employees. For example, employers in states that don’t require them to compensate employees for jury duty could create their own policy that does offer compensation in order to stand out from competitors in terms of employee benefits. 

Jury duty laws by state

Many employees are not familiar with the laws regarding jury duty in their state. That’s why it’s important for human resources (HR) professionals to have a full understanding of their legal requirements regarding jury duty leave, as well as their company’s specific policies if any exist. 

A total of 10 states (including the District of Columbia) require employers to pay employees who are called to serve mandatory jury duty:

  1. Alabama
  2. Colorado
  3. Connecticut
  4. Florida (Broward County and Miami-Dade County) 
  5. District of Columbia
  6. Louisiana
  7. Massachusetts 
  8. Nebraska
  9. New York
  10. Tennessee 

There are also 18 states that explicitly prohibit employers from requiring employees to use any personal leave to fulfill their jury duty obligations.

  1. Alabama
  2. Arizona
  3. Arkansas
  4. Indiana
  5. Louisiana
  6. Maryland
  7. Massachusetts
  8. Mississippi 
  9. Missouri
  10. Nebraska
  11. Nevada
  12. New Mexico
  13. New York
  14. Ohio
  15. Oklahoma
  16. Oregon
  17. Utah 
  18. Virginia

Even though not every state mandates that employees be paid when serving jury duty, every state has laws against employers discharging or penalizing employers for serving jury duty — or threatening to do so. 

For quick reference, check this table to see if your state mandates employers to pay for employee jury duty absences and if employees are required by law to use personal time off for jury duty. 

State Are employers mandated to pay for jury duty absences? Are employers prohibited from requiring staff to use PTO for jury duty?
Alabama Yes Yes
Alaska No No
Arizona No Yes
Arkansas No Yes
California No No
Colorado Yes – up to $50 per day of jury service for the first three days, unless a higher amount is agreed to between employer and employee No
Connecticut Yes – first five days of jury service No
Delaware No No
D.C.  Yes for jury service carried out by full-time employees for five days or less, minus the fee received for jury service. Employers with less than 10 staff are not required to pay compensation for employees who serve as jurors. No
Florida Yes in certain counties. In Broward, employers must provide compensation to full-time employees for up to five days of jury service. In Miami-Dade, employees are entitled to pay when specific conditions are met. No
Georgia No No
Hawaii No No
Idaho No No
Illinois No No
Indiana No Yes
Iowa No No
Kansas No No
Kentucky No No
Louisiana Yes, but only up to a single day of service.  Yes
Maine No No
Maryland No Yes
Massachusetts  Yes, but only for the first three days of jury duty.  Yes
Michigan  No No
Minnesota No No
Mississippi No Yes
Missouri No Yes
Montana No No
Nebraska Yes, but their pay may be reduced by the fees paid by the court. Yes
Nevada No Yes
New Hampshire No No
New Jersey  No No
New Mexico No Yes
New York Yes Yes
North Carolina No No
North Dakota No No
Ohio No Yes
Oklahoma No Yes
Oregon No Yes
Pennsylvania No Yes
Rhode Island No, unless required by contract or collective bargaining agreement. No
South Carolina No No
South Dakota No No
Tennessee Yes  No
Texas No No
Utah No Yes
Vermont No No
Virginia No Yes
Washington No No
West Virginia No No
Wisconsin No No
Wyoming No No

Here’s a more in-depth look at some states that have more specific jury duty laws:

Alabama

Alabama state law requires employers to grant paid leave for jury duty to full-time employees. To be eligible for paid leave, the employee must show their employer the jury summons on the next workday after receiving it. 

If a company has five or fewer full-time employees, only one employee can serve jury duty at a time. The court will automatically postpone or reschedule jury duty if a second employee is summoned during the same time. 

Colorado

Colorado laws require employers to pay employees up to $50 per day for the first three trial days of jury duty unless the employer has a policy in which they are obligated to pay more. This law includes not just full-time salaried employees but also part-time, temporary, and casual employees. 

Connecticut

Connecticut laws stipulate that employers must pay full-time employees regular wages for the first five days of jury service. The only way employers can be excused from paying is by submitting an application to the Chief Court Administrator with proof of sufficient financial hardship. 

Florida

There is no state law in Florida that requires employers to pay employees for jury duty. However, there are several county ordinances that do. In Broward County, employees must be paid a regular salary for up to five days of jury duty-related leave, provided that the employee gives a copy of the summons to their immediate supervisor at least five days before the first day of scheduled jury duty. 

In Miami-Dade County, employers must pay employees for jury service if: 

  • The employee has a regularly scheduled workweek of at least 35 hours.
  • The employee provides a copy of the summons at least five working days prior. 
  • The employee is serving their jury duty in Miami-Dade County.
  • The employer has 10 or more full-time employees.
  • The employer has offices or does business in Miami-Dade County.

Georgia

Although Georgia law does not expressly require employers to provide paid leave for jury service, a 1989 Attorney General opinion addressed employer obligations under the state’s jury duty statute. The statute itself does not clearly state that private employers must provide paid jury duty leave.

Massachusetts

In Massachusetts, employers must pay employees at the regular rate for the first three days of jury duty. This includes part-time, temporary, and casual employees.

Nevada

In Nevada, employers are not required to pay any wages for time spent serving on a jury. However, they can’t require staff to work within eight hours of the time they’re supposed to serve. 

Also, on the day of jury duty, employees can’t be required to work between 5:00 p.m. and 3:00 a.m.

New York

According to New York State laws, employers with ten or more employees must pay the first $72 of the employee’s regular daily wages for the first three days of jury duty. 

Oregon

In Oregon, it’s common for employers to have internal policies that mandate regular pay for employees on jury duty; however, it is not legally required by the state. Employers are, however, prohibited from requiring staff to take personal leave for jury duty service. 

Tennessee

Tennessee laws mandate that employers who have five or more employees must pay for time spent serving jury duty as long as the employee has been with the company for at least six months. 

Create your own jury duty policies

All employers have the ability to create their own jury duty compensation policies regardless of what state laws mandate.

If you’re looking to develop your own employer policy, here are a few key areas to consider: 

  • Legal obligations: Familiarize yourself with the state laws and regulations pertaining to jury duty. Understand the rights of employees and any legal obligations you have as an employer to accommodate them.
  • Criteria to qualify: Establish a process to verify employee eligibility for jury duty. Typically, employees may be required to provide a copy of their jury duty summons or a letter from the court confirming their selection. 
  • Leave policies: Outline the specific time-off policies for employees serving on jury duty very clearly. For example, if you give them paid days off, determine whether jury duty days count against their PTO total. 
  • Compensation: Decide how you will handle compensation. Determine whether employees will continue to receive their regular salary or another fixed amount per day. 

Once created, focus on clearly communicating your policy to employees. Ensure they understand their rights and responsibilities related to jury duty and how the company will support them during their absence.

Consider expressing support and encouragement to employees who are serving on juries. Acknowledging the importance of their participation in the legal system will help foster a positive work environment that values civic engagement.

Manage jury duty absences easily with Workforce.com

Once you have developed your jury duty policy, it’s important to maintain accurate records of employees’ jury duty absences, leave taken, and any related compensation or benefits provided to help ensure compliance with legal requirements and facilitate fair treatment across the company.

Contact us today to learn how Workforce.com can help you easily comply with your state’s jury duty leave policies.

This information is for general purposes only and should not be considered legal advice. While we strive to keep it updated, labor laws and regulations can change at any time. It’s always a good idea to consult with a legal professional or relevant authorities to comply with the most current standards.

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Minimum Wage by State (2026)

Staff Cooking in Restaurant

Summary

  • More than 20 states are raising their minimum wages in 2026, with many increases taking effect on January 1, 2026 and some scheduled later in the year as well.

  • The federal minimum wage has stayed at $7.25/hour since 2009, but 30+ states and Washington, D.C. have minimum wages above the federal floor as of 2026.

  • Because minimum wage rules vary by location and change over time, a reliable payroll system helps ensure accurate pay and compliance.

Employers in the United States are bound by different laws when it comes to minimum wage rates, depending on the state or even the city they’re in. The federal minimum wage rate is a fixed national rate set by the Fair Labor Standards Act (FLSA) and enforced by the U.S. Department of Labor (DOL).

As of 2026, the federal minimum wage remains $7.25 per hour, a rate that was last revised in 2009. At the same time, many states and local governments set minimum wages above the federal floor, meaning employers often need to follow state or city rules instead of the federal minimum.

When multiple minimum wage laws apply (for example, federal, state, and local), employers are generally required to pay the rate that provides the greatest benefit to the employee. In other words, the highest applicable minimum wage.

Several jurisdictions now have minimum wage rates far above the federal floor. As of January 1, 2026, Washington, D.C. has the highest rate in the country at $17.95 per hour. Washington State follows with a statewide minimum wage of $17.13 per hour, and New York’s Downstate regions (New York City, Long Island, and Westchester) have a minimum wage of $17.00 per hour, with the rest of New York at $16.00 per hour. Other states with relatively high rates include Connecticut at $16.94, California at $16.90, Hawaii at $16.00, and Maine at $15.10—all above the federal minimum of $7.25.

As an employer, it’s important to understand and stay current on all the laws and regulations regarding minimum wage increases or decreases. Using the right time tracking and payroll software ensures that you remain compliant with little effort.

Whitepaper: Complete Guide to Wage & Hour Compliance

State Minimum Wage Rates in 2026

Effective January 1, more than 19 states raised their minimum wage rates in response to inflation or according to previously enacted legislation. Four additional states are set to increase their minimum wage later in the year. 

Overall, 30 states, as well as DC, Puerto Rico, Guam, and the Virgin Islands, have a minimum wage higher than the federal rate. Fifteen states, as well as the Northern Mariana Islands, use the federal minimum wage rate of $7.25 per hour. Five states have not adopted their own minimum wage rate law and, therefore, default to the federal rate of $7.25.

View all state minimum wages in the table below.

Note: states that raised their minimum wage in 2026 are denoted by an asterisk (*)

States with MW greater than federal

States with MW equal to federal ($7.25)

States that have not adopted a state MW law
*Alaska $13. (from $11.91)
set to increase on July 1, 2026 to $14		 Northern Mariana Islands Alabama
Arkansas $11.00 Georgia Louisiana
*Arizona $15.15 (from $14.70) Iowa Mississippi
*California $16.90 (From $16.50) Idaho South Carolina
*Colorado $15.16 (from $14.81) Indiana Tennessee
*Connecticut $16.94 (from $16.35) Kansas  
*District of Columbia $17.95 (from $17.50) Kentucky  
Delaware $15 North Carolina  
Florida $14 North Dakota  
*Hawaii $16 (from $14) New Hampshire  
Illinois $15.00 Oklahoma  
*Maine $15.10 (from $14.65) Pennsylvania  
Maryland $15 Texas  
Massachusetts $15 Utah  
*Michigan $13.73 (from $12.48) Wisconsin  
*Minnesota $11.41 (from $11.13) Wyoming  
*Missouri $15 (from $13.75)    
*Montana $10.85 (from $10.55)    
*Nebraska $15 (from $13.50)    
Nevada $12    
*New Jersey $15.92 (from $15.49)    
New Mexico $12.00    
*New York $17 for New York City, Long Island, and Westchester County and $16 for the remainder of New York State    
*Ohio $11 (from $10.70)    
*Oregon $15.05 ($16.30 in Portland Metro Area and $14.05 in non-urban counties)    
*Rhode Island $16 (from $15)    
*South Dakota  $11.85 (from $11.50)    
*Vermont $14.42 (from $14.01)    
*Virginia $12.77 (from $12.41)    
*Washington $17.13 (from $16.66)    
West Virginia $8.75    
Virgin Islands $10.50    
Guam $9.25    
Puerto Rico $10.50    

As of January 1, 2026, D.C. has one of the highest minimum wage rates in the country at $17.95 per hour, with a further increase scheduled for July 1, 2026.. 

State minimum wage laws often include exemptions or special wage categories for certain jobs or sectors. These may apply to roles such as tipped workers, agricultural employees, seasonal workers, or employees of small employers. For example, New Jersey’s 2026 minimum wage rules differentiate between large and small or seasonal employers and set separate requirements for tipped and agricultural workers under state law.

Some states set subminimum rates for minors, students, or trainees. For example, in Rhode Island (standard minimum wage of $16.00 in 2026), full-time students under 19 working for certain nonprofit organizations may be paid 90% of the minimum wage, which is $14.40 per hour.

Minimum Wage in New York

New York’s minimum wage has increased steadily since the state began a multi-year phase-in process in 2016. As of January 1, 2026, minimum wage rates in New York vary by region rather than employer size or industry. The minimum wage is $17.00 per hour in New York City, Long Island (Nassau and Suffolk counties), and Westchester County, and $16.00 per hour in the remainder of New York State.

Under current state law, scheduled increases apply through 2026. Beginning in 2027, New York’s minimum wage will increase annually based on the three-year moving average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region, subject to statutory conditions that allow the state to pause increases under certain economic circumstances.

In earlier years of the phase-in, minimum wage increases applied at different rates depending on employer size and location. By 2026, however, the primary distinction is geographic. New York also maintains separate wage rules for tipped workers, allowing employers in certain industries to apply a limited tip credit toward the minimum wage when specific legal requirements are met. These rules vary by occupation and work conditions and are governed by state labor regulations.

Minimum Wage in California

As of January 1, 2026, the statewide minimum wage in California is $16.90 per hour, which is significantly higher than the federal minimum of $7.25.

After reaching $15 through a phase-in process that began in 2017, California’s minimum wage is now adjusted annually based on inflation as measured by the Consumer Price Index.

California has enacted industry-specific minimum wage requirements for certain sectors. One notable example applies to quick-service (fast food) restaurants with at least 60 locations nationwide, which must pay a minimum wage of $20.00 per hour under state law.

Minimum Wage in Illinois

The minimum wage for the state of Illinois increased by $1 from $14 to $15 on January 1, 2025, which means it finally reached the threshold following a series of increases that began in 2019. 

Employers may pay tipped employees in Illinois a cash wage equal to 60% of the applicable minimum wage. Employees must still earn at least the full minimum wage after tips, and employers are required to make up any difference.

Rates are higher in Chicago, where the minimum wage is currently $16.60 per hour for employers with four or more employees. 

Chicago tipped workers have a minimum wage of $12.62. Similar to the state minimum wage conditions, employers must cover the difference for tipped workers if their wages plus tips do not equal at least the full minimum wage.

Minimum Wage in Florida

Effective September 30, 2025, Florida’s minimum wage is $14 per hour. This is part of a gradual increase of $1 per year that will lead to a $15 minimum wage rate in September 2026.

Minimum Wage in Texas

The state minimum wage in Texas is $7.25, equal to the federal rate. This has been in effect since January 24, 2009.

Employers can count tips, meals, and lodging toward the minimum wage with specified restrictions on how much can be allocated to them. 

State and federal law also allow subminimum wages or exemptions for certain categories of workers, including some agricultural, seasonal, domestic, and nonprofit employees, depending on the circumstances.

Coverage depends on both state and federal law, and employers must evaluate which rules apply to their workforce.

Minimum Wage in Nevada

Previously, Nevada had two minimum wage rates. In this two-tier system, employees who receive qualifying health insurance have a minimum wage rate of $10.25. However, if they do not receive qualifying health insurance, the minimum wage rate is $1 higher, at $11.25 per hour.

This long-standing two-tier system was eliminated in July 2024, where Nevada increased its minimum wage rate to $12.00 across the board for all employers, regardless of whether or not they offer health insurance. As of 2026, Nevada’s minimum wage remains $12.00 per hour, according to the U.S. Department of Labor.

Staying on top of minimum wage laws as an employer

With so many differences and exemptions that affect different states and even different cities within those states, it can be tricky for an employer to remain compliant with the law. 

Industries where workers earn tips can be particularly tricky, according to Workforce.com’s chief strategy officer Josh Cameron, “In hospitality or anything where you earn tips, you can pay the staff a minimum wage much lower than the normal one. So it would be $7.50 an hour if they’re not tipped, but it’s $2.50 if it’s tipped. As long as they get enough tips to get them over that—it’s called the tip credit—then they can receive the lower $2.50 per hour from their employer.”

Apart from the legal implications and the hefty fines, underpaying employees can be a PR nightmare for your business. Andrew Stirling, Workforce.com’s head of product compliance, argues, “An underpayment scandal can bring companies to their knees. Customers can decide to take their business elsewhere. People are less likely to visit a restaurant or shop that has been reported for underpaying their people.”

Workforce management software like Workforce.com takes state and local laws into account. Workforce’s labor compliance software allows you to pay your staff in accordance with federal, state, and regional wage laws. This includes exemptions and special situations, including tipped employees. 

The system remains up to date as laws change, and it also undergoes regular audits, ensuring you remain compliant and avoid unnecessary penalties.

Simplify compliance with Workforce.com

Workforce.com offers HR and payroll software that give you the resources you need to calculate pay and remain up to date in the ever-changing minimum wage landscape. You can apply new compliance rules to the system as new minimum wage rates are put in place and new legislation is passed.  

The system calculates correct pay for all your employees based on minimum wage, hours worked, and overtime, automatically creating highly accurate electronic timesheets. These timesheets can then be exported directly into your payroll system for processing. 

To learn more about how Workforce.com stays on top of minimum wages and pays staff accurately, book a call or start a free trial today. 

 

This information is for general purposes only and should not be considered legal advice. While we strive to keep it updated, labor laws and regulations can change at any time. It’s always a good idea to consult with a legal professional or relevant authorities to comply with the most current standards.

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Overtime Pay Laws | States + Federal (2026 Update)

Summary 

  • Federal overtime laws require that employers provide overtime pay to those who work over 40 hours per workweek.

  • Many states have their own overtime laws. States that do not have their own overtime rules default to the federal law. 

  • Many employers opt to use specialized payroll platforms that can automate overtime calculations and payments. 

If you are in charge of hourly employees, it’s likely that there will be days, weeks, or even months when your staff needs to work extra hours. Whether that’s over a typical eight-hour workday or a 40-hour workweek, the federal government has made it mandatory to compensate all non-exempt employees. This is important as it protects workers and rewards them for the additional time they spend supporting your business. 

Some states have their own overtime laws, while others do not. It’s crucial to stay informed on the current overtime regulations in your state. In fact, if an employer willfully or repeatedly violates overtime requirements, they will be subject to a civil money penalty of up to $1,000 for each violation. 

Luckily, the laws themselves are relatively straightforward. Below we’ve compiled the federal laws along with a table outlining the overtime laws by state. 

Jump to overtime law table

Federal overtime laws 

According to the US Department of Labor, federal laws on overtime pay are determined by the Fair Labor Standards Act (FLSA). The FLSA states that all non-exempt employees are entitled to overtime pay for working over 40 hours in a workweek. If an employee has exempt status, such as a salaried employee, you are not required to provide overtime. 

The rate of overtime pay must be no less than time and a half their usual hourly rate of pay (or 1.5 times the regular rate of pay). Additionally, there is no limit to the number of hours an employee can work in any workweek. 

A “workweek” is seven consecutive days or a fixed set of 168 hours. These seven days do not need to align with a typical calendar week or job starting time. As long as a fixed and regularly recurring schedule is established, employees should receive the overtime rate owed to them. Typically, overtime pay is included with the wages earned in a regular payday or pay period. 

Forced overtime work

In most states, workers can be “forced” to work overtime by their company. Employers can schedule workers for any shift length or consecutive work days. Additionally, federal law does not require breaks to be provided to the employee. However, many states have mandatory breaks and paid rest periods. If a worker refuses to work overtime, the employer has a legal right to terminate the employee. 

Salaried employees and other overtime exemptions 

Various occupations and job duties are exempt from overtime pay. The standard salary level that currently exempts executive, administrative, and professional (EAP) employees is at $684 per week ($35,568 annually). 

In April 2024, the U.S. Department of Labor issued a final rule that would have raised the salary threshold to $844 per week ($43,888 annually) effective July 1, 2024, with a further increase to $1,128 per week ($58,656 annually) scheduled for January 1, 2025. However, on November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated that final rule nationwide. As a result, the 2019 salary thresholds are currently being enforced.

Examples of some exempt roles include (subject to FLSA conditions): 

A state-by-state breakdown of overtime laws

If a state does not have its own overtime laws, it must default to the federal law. However, if a state has its own overtime laws, the state law is added on top of the federal law. In other words, employers need to abide by whichever law is more generous and provides their staff with the highest earnings. 

When it comes to remote workers who work in different states, the labor laws of the state in which they are physically located and perform work apply. This is true regardless of where the company is located. So if your company is based in New York, but your employee is working from California, you would follow California’s overtime laws for that employee. 

A look at overtime laws by state

Column two denotes whether or not a state has a law establishing a daily overtime threshold and the rate at which these hours are paid. The dashes indicate that the state does not have any laws pertaining to daily overtime. 

Column three lists each state’s weekly overtime threshold as well as the rate at which overtime is paid. States with notable exceptions or unique labor laws have links to their respective Department of Labor pages. 

StateDaily OT thresholdWeekly OT threshold 
Alabama–40 hours (1.5x)
Alaska8 hours (1.5x)40 hours (1.5x)
Arizona–40 hours (1.5x)
Arkansas–40 hours (1.5x)
California8 hours (1.5x) / 12 hours (2x)40 hours (1.5x)
Colorado12 hours (1.5x)40 hours (1.5x)
Connecticut–40 hours (1.5x)
Delaware–40 hours (1.5x)
D.C. –40 hours (1.5x)
Florida–40 hours (1.5x)
Georgia–40 hours (1.5x)
Hawaii–
(except public works: OT after 8 hours/day; all Sat/Sun/state holidays)		40 hours (1.5x)
Idaho–40 hours (1.5x)
Illinois–40 hours (1.5x)
Indiana–40 hours (1.5x)
Iowa–40 hours (1.5x)
Kansas–40 hours (1.5x)

FLSA applies to most employers; otherwise 46 hours under state law
Kentucky–40 hours (1.5x)

7th consecutive day: all hrs at 1.5×
Louisiana–40 hours (1.5x)
Maine–40 hours (1.5x)
Maryland–40 hours (1.5x)

Agricultural workers: 60 hours
Massachusetts –40 hours (1.5x)
Michigan –40 hours (1.5x)
Minnesota–48 hours (1.5x)
Mississippi–40 hours (1.5x)
Missouri–40 hours (1.5x)
Montana–40 hours (1.5x)
Nebraska–40 hours (1.5x)
Nevada8 hours (1.5x)40 hours (1.5x)
New Hampshire–40 hours (1.5x)
New Jersey –40 hours (1.5x)
New Mexico–40 hours (1.5x)
New York–40 hours (1.5x)

Certain residential employees: 44+ hours
North Carolina–40 hours (1.5x)
North Dakota–40 hours (1.5x)
Ohio–40 hours (1.5x)
Oklahoma–40 hours (1.5x)
Oregon–40 hours (1.5x)
Pennsylvania–40 hours (1.5x)
Rhode Island–40 hours (1.5x)
South Carolina–40 hours (1.5x)
South Dakota–40 hours (1.5x)
Tennessee–40 hours (1.5x)
Texas–40 hours (1.5x)
Utah–40 hours (1.5x)
Vermont–40 hours (1.5x)
Virginia–40 hours (1.5x)
Washington–40 hours (1.5x)
West Virginia–40 hours (1.5x)
Wisconsin–40 hours (1.5x)
Wyoming–40 hours (1.5x)

As you can see from the table above, the majority of states base overtime pay on a 40-hour workweek, defaulting to the federal law. However, some states require overtime pay based on the hours worked in a single workday or other unique exceptions. Below we’ve delved into a few examples of state-by-state exceptions. For other exceptions, click through the links in the table above. 

California 

In California, employers are required by law to provide 1.5x pay for every hour an employee works beyond: 

  • 40 hours in a workweek
  • 8 hours in a workday 
  • 6 days in a workweek  

Moreover, California also has a law in which an employer must pay 2x an employee’s regular hourly rate, also known as double time pay, if they work over:  

  • 12 hours in a workday 
  • 8 hours on the seventh consecutive day of work in a workweek

Alaska

Like California, Alaska’s state overtime law requires that employers pay overtime when a non-exempt employee logs more than 40 hours of work and eight hours in a workday. However, the overtime rules have a number of exemptions related to occupations in agriculture and aquatic work. ‌

Colorado

Colorado’s state overtime law requires overtime pay for hours worked beyond: 

  • 40 hours in a workweek 
  • 12 hours in a workday 
  • 12 consecutive hours, regardless of the start and end time of the workday  

Kansas 

Unlike the conventional 40 hours of most states, Kansas overtime law requires employers to pay overtime when an employee has worked over 46 hours in a workweek. However, because the FLSA requires that overtime is awarded at 40 plus hours, Kansas businesses that are covered by the FLSA must follow the federal law. If not, they must follow Kansas’s overtime rules for non-exempt employees.  

Minnesota 

Minnesota’s state overtime law requires companies to pay overtime for those working over 48 hours in a workweek. Like Kansas, Minnesota businesses covered by FLSA must follow the federal law. 

Stay on Top of Overtime

Overtime is expensive. While necessary at times, ideally, it should never be the norm. If you find yourself consistently paying out overtime hours even in the face of manageable workloads, something is probably wrong. Check out the free webinar below to figure out how to keep your labor costs low by drilling down on where you are overspending on overtime. 

Webinar: How to Lower Your Overtime Hours

For the few times you do need to pay overtime, make sure you are doing it correctly. There are many ways to do this; however, manually tracking and calculating overtime hours is a dangerous game.

Workforce.com’s Payroll platform makes the hassle of recording, calculating, and paying overtime much easier. Through an extensive time clock system, employee overtime hours and pay are automatically compiled on electronic timesheets, helping you improve visibility, reduce errors, and avoid compliance risks. With special tags, you can customize multiple earnings rates to match your state’s specific overtime rules. These rates automatically trigger whenever an employee crosses into overtime. 

To learn more about how Workforce.com can help you manage overtime, book a call today. 

This information is for general purposes only and should not be considered legal advice. While we strive to keep it updated, labor laws and regulations can change at any time. It’s always a good idea to consult with a legal professional or relevant authorities to comply with the most current standards.

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Wage Transparency is Coming to Massachusetts: Is Your Business Ready?

Summary:

  • Starting October 29, 2025, Massachusetts employers with 25 or more employees must include salary ranges in job postings. 
  • Pay transparency laws ensure pay equity and fairness, but compliance can be a challenge without the right system. 
  • Workforce.com helps businesses stay compliant by centralizing pay data, standardizing job postings, and providing tools that simplify workforce reporting across locations.

Massachusetts has officially joined the growing list of states mandating pay transparency. Beginning October 29, 2025, employers with 25 or more employees must include salary ranges in job postings, provide them to applicants, and share them with current employees upon request.

Earlier in the year, beginning February 1, 2025, businesses with 100 or more employees that already file federal EEO-1 reports must also submit those reports to the Commonwealth.

Both measures fall under An Act Relative to Salary Range Transparency signed by Governor Healey on July 31, 2024. 

Also read: A Guide to State and Local Pay Transparency Laws [2025]

What the Wage Transparency Covers

The Wage Transparency Act in Massachusetts focuses on two key areas: pay range disclosure and EEO workforce reporting.  

Pay Range Disclosure Requirements

Starting October 29, 2025, employers with at least 25 employees must disclose pay ranges in job postings and must provide pay information upon request of current employees. The pay range refers to the annual or hourly wage range that an employer reasonably and in good faith expects to pay for such a position at that time. 

Employees and applicants have the right to receive the pay range when applying for a role, being promoted or transferred, or upon request for their current position. Employers are prohibited from retaliating against employees who exercise these rights.

Although the law’s disclosure requirement takes effect in 2025, employers can voluntarily begin complying earlier.

EEO Reporting Requirements

Beginning February 1, 2025, private employers with 100 or more employees that already submit an EEO-1 report to the federal government must also send their most recent report to the Massachusetts Secretary of the Commonwealth each year.

This requirement aims to improve statewide visibility into workforce diversity and pay equity, helping the state identify and address wage disparities across industries.

Practical Ways to Ensure Compliance

Pay transparency laws like Massachusetts’ Wage Transparency Act are changing how businesses handle compensation. While adapting to new regulations can feel complex, the right systems can turn compliance into an advantage. Workforce.com can help you do exactly that. Here are some of the ways: 

Standardize pay ranges in job postings

Every job posting should include a pay range, one that’s consistent with internal pay bands and defensible under the law. 

Workforce.com’s Applicant Tracking System (ATS) allows HR teams to add and display pay ranges directly in job postings, helping organizations comply with wage transparency requirements not only in Massachusetts but also in other states. 

Centralizing pay and job information

Workforce.com is an all-in-one system that houses scheduling, timekeeping, and payroll data in a single platform. With all pay and job information in one platform, HR and hiring teams have a single source of truth for wages across locations and roles. This makes it easier to verify pay range accuracy before posting job vacancies, respond to pay range request inquiries from current employees, and submit consistent payroll reports. 

Conduct regular pay audits

Pay transparency often goes hand in hand with pay equity. Regularly reviewing your compensation data helps ensure fairness and compliance.

Workforce.com provides reporting tools that let you analyze pay distribution across roles and locations, making it simple to track pay rates, identify discrepancies, and stay aligned with both state and federal reporting requirements.

Pay transparency laws are changing the way businesses talk about compensation. For employers, it’s an opportunity to build trust and demonstrate fairness, not just another compliance box to tick. 

With Workforce.com, businesses can manage pay ranges, job data, and workforce reports in one place, making it easier to stay consistent and confident as new laws take effect.

Discover how Workforce.com can help your business comply with labor laws, such as pay transparency rules, with an all-in-one platform. Book a call today.

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Tax Resolution Excellence: Workforce.com vs. Industry Standard

Case Study 1: Mid-Quarter Provider Transition

Challenge: Customer switched to Workforce.com mid-quarter with incomplete returns from previous provider.

Industry Standard: Most providers would require the client to resolve issues with their previous provider or charge significant fees for manual corrections.

Workforce.com Approach: Submitted manual corrections free of charge, saving the client time, stress, and potential penalties.

Implications of Workforce.com Approach: Without Workforce.com’s intervention, the employer would face potential IRS penalties for incomplete filings, interest on unpaid taxes, and compliance violations that could trigger audits. The employer would also need to divert staff time to resolve the issue or pay their previous provider additional fees. Workforce.com eliminated these financial risks and administrative burdens completely.

Case Study 2: IRS EIN Merger Complication

Challenge: IRS automatically merged a customer’s two EINs, creating filing discrepancies.

Industry Standard: Typical providers might identify the issue but expect the client to resolve it directly with the IRS.

Workforce.com Approach: Invested hours on calls with the IRS to investigate the root cause, then manually reconciled transcripts with submissions to ensure compliance.

Implications of Workforce.com Approach: The standard approach would leave the employer facing potential IRS notices, penalties for apparent underpayment of taxes, and the need to hire specialized tax consultants to resolve the issue. These discrepancies could lead to incorrect tax assessments costing thousands of dollars and jeopardizing the company’s tax compliance record. By taking ownership of this complex problem, Workforce.com saved the client approximately 15-20 hours of specialized accounting work (valued at $3,000-5,000) and prevented potential penalties that could have exceeded $10,000.

Case Study 3: Late Discovery of Missing Payroll Data

Challenge: Client forgot to share January payruns during February implementation, only revealing this two weeks before federal filing deadlines the following January.

Industry Standard: Most providers would either charge rush fees, delay corrections until after deadlines, or require the client to file amendments themselves.

Workforce.com Approach: Rapidly produced corrected W-2s and completed all federal and state filings within just three business days.

Implications of Workforce.com Approach: The standard industry response would likely result in missed filing deadlines, triggering automatic IRS penalties (starting at $50 per W-2 and increasing to $260 for extended delays), plus separate state penalties. Employees would receive incorrect W-2s, potentially delaying their personal tax filings or requiring them to file amendments. The employer would face not only financial penalties but also diminished employee trust. Workforce.com’s rapid response prevented additional penalties and preserved the employer’s reputation with employees. Additionally, this quick resolution allowed employees to file their personal taxes on time without complications.

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A Guide to State and Local Pay Transparency Laws [2025]

Summary

  • Pay transparency laws help promote pay equity and transparency by requiring employers to disclose information, such as wage information and benefits, in job postings.
  • There is no federal law on pay transparency, but several states have implemented their own regulations.
  • Payroll software can help standardize pay rates and ensure compliance, especially for businesses operating across state lines.

To bridge the pay equity gap, several states and localities in the United States have enacted pay transparency laws. These laws have helped promote openness around hiring processes and compensation, but they’ve also introduced challenges for HR and payroll teams.

What does pay transparency mean?

Pay transparency refers to the practice of disclosing compensation-related information to employees, job applicants, or the public. This can include salary ranges, benefits, wage changes due to promotions, or pay by role or department. The level of disclosure depends on local or state laws. Some jurisdictions require proactive disclosures, while others only mandate sharing this information upon request. Certain regulations also specify whether disclosures must be made internally, externally, or both.

The goal of pay transparency is to ensure employees are paid fairly and to help them assess whether their compensation aligns with their role. When implemented effectively, pay transparency can support talent attraction and retention, enhance employee morale, strengthen employer branding, promote pay equity, and mitigate wage discrimination or unfair labor practices.

However, transparency also puts the responsibility on employers to manage how employees respond, especially when they discover they’re earning at the lower end of a wage range. It also adds compliance complexity, particularly for multi-location businesses navigating a patchwork of state and local laws.

Is there a federal law on pay transparency?

At the federal level, there are currently no federal laws requiring businesses to disclose pay information. In the absence of nationwide regulations, some states have introduced their own pay transparency laws, requiring organizations operating within their borders to meet specific disclosure requirements.

Which states have pay transparency laws?

Currently, 14 states, including D.C., have implemented pay transparency laws at the state level. While Ohio doesn’t have a statewide policy, some of its local jurisdictions have adopted their own rules.Here’s a running list of states and localities with pay transparency laws in place:

California

  • Employers with 15 or more employees must include the pay scale for a position in any job postings, including third-party organizations that are posting job ads on their behalf. 
  • Upon request, employers must provide the pay scale to an employee for the position that they are currently employed.
  • Employers must maintain records on the job title and wage history of each employee for the duration of their employment plus three years after they’re no longer with the company. Records should be open to inspection by the Labor Commissioner. 
  • Employers with 100 or more employees are required to submit an annual report on pay data, which is due every year in May. 

Colorado

Under Colorado’s Equal Pay for Equal Work Act, pay transparency rules require employers with at least one employee in the state to: 

  • Disclose pay and other information in job postings and notices, internally and publicly:
    • Compensation, benefits information, how and when to apply
    • The rate of pay or a range of offered rates (hourly, salary, piece rate)
    • General description of any other compensation (e.g. bonuses, commissions, or tips)
  • Disclose available job opportunities to all employees and also disclose who was selected.
  • Disclose how to advance through career progressions to eligible employees.
  • Keep records of wages and job descriptions.

Connecticut

  • Employers must include the pay range (salary or hourly rate) and a description of benefits to external job ads, internal job postings (promotions or transfers), and remote jobs if an employee would report to someone in Connecticut.
  • Disclosure should be upfront and proactive.

District of Columbia

  • Employers with one or more employees in D.C. must provide the minimum and maximum projected salary or hourly pay in all job listings.
  • Employers must disclose healthcare benefits before the first interview.
  • Employers must post a notice about employee rights under this law in a visible, shared space at work. 

Hawaii

  • Employers with 50 or more employees must include the hourly rate or salary range in job listings.
  • However, the law does not specify the location of the 50 or more employees nor the type of their employment.
  • Unlike other states, Hawaii does not require employers to disclose pay information on internal transfers and promotions. 

Illinois

  • Employers with 15 or more employees (full-time or part-time) must include a pay range and a description of benefits.
  • Employers must inform current employees of job openings.
  • If an employer posts a job posting publicly, they are also required to inform all current employees of the job opportunity within 14 days. 

Maryland

  • Internal and external job postings should include the pay range, a general description of benefits, and other compensation details offered (e.g., overtime, tips, commissions, bonuses, etc.).

Massachusetts

  • Employers with 25 or more employees must disclose the pay range in the job posting for any position.
  • Employees and job applicants have the legal right to know the pay range for a job when they apply, get promoted, transfer, or start a new position with an employer that has 25 or more employees. 
  • Current employees can also ask for the pay range for their current position. 

Minnesota

  • Employers with 30 or more employees are required to disclose the pay range for each job posting.
  • Employers must also provide a general description of benefits and other compensation (e.g. health or retirement benefits).
  • If the employer can’t provide a salary range, they must list a fixed rate.

Nevada

  • Employers must disclose the wage or salary range for a position to applicants after an interview. 
  • Employers must also disclose the wage and salary range for current employees who are seeking a promotion or transfer.

New Jersey

  • Employers with 10 or more employees over 20 calendar weeks must disclose the hourly wage, salary, or pay range in external job postings, internal promotions, or transfer opportunities. They must also provide a description of benefits an employee can expect to receive in the first 12 months.
  • Jersey City: Local rules in Jersey City require employers with five or more employees to disclose the minimum and maximum base salary or hourly wage, as well as the job benefits being offered. 

New York

New York has statewide rules and local regulations in place.

In New York state, employers with 4 or more employees are required to: 

  • Disclose pay ranges for all jobs, promotions, and transfer opportunities. 
  • Disclose compensation basis (e.g. completely commission-based work).
  • Include a job description, except when the job title itself is self-explanatory.

New York City, Ithaca, Albany, and Westchester County have their own pay transparency rules. Their regulations are similar and aligned with state requirements but may have differences in who can file a complaint to the state’s department of labor and the penalties involved. For instance, New York City allows employers a 30-day window to correct their pay information once they receive a notice of violation. The state law doesn’t have this provision.

Rhode Island

Employers are required to disclose the pay range when someone is hired, when an employee moves to a new job within the company, or when an employee requests it.

Vermont (Effective Date: July 1, 2025)

  • Businesses with 5 or more employees, with at least one working in Vermont, must include a minimum and maximum salary range in all job ads, including internal and external postings, promotion opportunities, and transfers. 
  • Employers must clearly state if jobs are commission-based. 
  • Employers must specify a base wage for tipped positions.

Washington

  • Employers with 15 or more employees must include the salary range, general description of all benefits, and other compensation offered in their job postings.
  • Employers must provide the salary range for new positions to employees who are offered a transfer or promotion. 

Ohio

Ohio does not currently have a statewide pay transparency law. However, some local rules are currently in effect. 

  • Cincinnati and Toledo: Employers with 15 or more employees must disclose the salary range upon request after the first interview.
  • Cleveland: Employers with 15 or more employees must include the salary range in job postings. (Effective date: October 27, 2025)

How can businesses adapt to pay transparency laws? 

Pay transparency is gaining momentum, and more states and localities are expected to enact rules in the near future. While these laws aim to close wage gaps, they can present challenges, especially for businesses operating across multiple jurisdictions.

Pay transparency laws often trigger company-wide policy changes. While HR usually leads these updates, payroll teams play a crucial role in ensuring that publicly disclosed pay ranges align with actual employee compensation.

Here are some practical tips to help payroll teams prepare and comply with current wage transparency rules and stay ahead of new laws:

Standardize pay rates across job sites and states

Consistent pay structures are crucial for compliance, particularly when hiring across multiple locations. Job titles and pay ranges should be clearly defined and aligned to meet local disclosure requirements. Inconsistencies can result in compliance risks and employee mistrust.

Post accurate and realistic pay ranges

Job postings must reflect actual compensation, not placeholders. Pay ranges should be based on current pay data and reflect what job candidates can realistically expect to earn. Ranges like “$50,000–$100,000” can signal noncompliance or raise red flags with regulators.

Evaluate internal pay equity across similar roles

Regular pay equity audits can help identify whether employees in similar roles are being paid fairly and equitably. If differences or disparities exist, document whether they are justified by performance, tenure, or other legitimate factors. Transparency laws make it critical to catch and address any unexplained gaps.

Keep organized payroll records

Accurate, centralized payroll records are essential. You’ll need clear documentation connecting job titles, hours worked, and pay rates, especially if employees or regulators request it.

Upgrade your systems to support compliance

Manual processes and outdated tools make compliance more difficult and prone to error. Upgrade your existing systems to centralize all your data and make it easy to track pay rates, monitor pay equity, and stay ahead of legal requirements. 

How Workforce.com helps with pay transparency compliance

Workforce.com combines payroll, time tracking, and scheduling into a single system. You can assign pay rates by role and location, ensure job postings reflect current compensation, and quickly identify any gaps and inconsistencies. With centralized records and reporting, it’s easier to comply with transparency requirements and to build a more consistent payroll process overall.

Discover how Workforce.com can help simplify payroll and compliance with pay transparency rules. Book a demo today.

This information is for general purposes only and should not be considered legal advice. While we strive to keep it updated, labor laws and regulations can change at any time. It’s always a good idea to consult with a legal professional or relevant authorities to comply with the most current standards.

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What New Jersey’s Pay Transparency Law Means for Payroll

Summary

  • New Jersey’s Pay Transparency Act will be in effect by June 1, 2025.
  • Employees will be required to disclose pay ranges and benefits new hires can expect to receive within 12 months of employment..
  • Payroll software is crucial to ensuring that publicized salary ranges match what employees are being paid.

New Jersey joins a growing list of states that have implemented pay transparency laws, including New York, California, and Colorado. Starting June 1, 2025, the Pay Transparency Act will require covered employees to include pay information and benefits data in job postings, both for new roles and internal opportunities.

The act is designed to improve pay equity by making compensation more transparent to job seekers and employees alike. 

Who’s covered?

The law applies to employers who meet the following criteria: 

  • Have 10 or more employees over 20 calendar weeks 
  • Conduct business in New Jersey
  • Employ workers in New Jersey
  • Accepts applications for employment in New Jersey

What must be disclosed? 

Employers must disclose:

  • The hourly wage, salary, or pay range
  • A description of the benefits an employee can expect to receive in the first 12 months

These conditions apply to external job postings, internal promotions, and transfer opportunities. Employers must disclose any opportunities for promotion to all current staff in the affected department. However, promotions resulting from “unforeseen events” or based on years of service or performance are exempt from the notice requirement.

What happens if you don’t comply?

Employers who fail to comply can be subject to a penalty of $300 for first-time violations and up to $600 for subsequent violations.

What the new law means for payroll teams and how New Jersey businesses can adapt

Compliance with this new regulation has a lot to do with policy changes, and it’s easy to think that this is more of HR’s domain. However, once salary bands are made public, payroll teams must ensure that those numbers align with actual compensation data. 

Here are some practical tips to help payroll teams prepare:

Standardize pay rates across locations

If you’re hiring across state lines, you must ensure that each job post meets corresponding pay disclosure requirements in every state. 

Businesses operating in multiple locations often face challenges with standardizing job titles and pay rates. With Workforce.com, you can set pay rates for different roles or locations, which helps avoid any inconsistency between what’s posted on job listings and what’s paid.

Align job postings with actual pay data

To comply with laws like this, job postings must be audited against internal pay data. But this is easier said than done when compensation information is scattered across different spreadsheets or platforms. 

With Workforce.com, all your pay and role information lives in one system, making it easy to review, audit, and generate realistic pay ranges. 

For instance, instead of posting a vague range of $15-$25/hour, Workforce.com can help you determine the median pay rate for the role across locations, which will help you set a more realistic pay band.

In states that already have pay transparency laws, some businesses have received criticism for posting an overly broad range (e.g. $40,000-$120,000), which feels less like transparency and more like an attempt to skirt the law. If you’re serious about compliance and attracting the right people, realistic ranges matter. 

Audit job titles across roles

Payroll teams should look for pay disparities between employees with similar roles. If two people are doing the same work but receiving different pay, it’s important to understand why. 

Again, addressing these gaps is a matter of having the right data. Workforce.com houses employee records and pay rate history, which enables you to quickly identify inconsistencies among job titles and their pay. Managers can filter reports by job title and location to check whether employees with similar roles are paid within the same pay range.

Maintain clean payroll records

Keeping payroll records organized is a huge part of complying with different labor laws, including pay transparency requirements. Workforce.com keeps this information organized because it unifies time tracking, scheduling, and payroll. Ultimately, it creates a clean audit trail that connects job titles, hours worked, and pay rates. Having that information organized can help with compliance, especially if state regulators and employees ask for proof.

Invest in a good payroll system

Payroll is too complex to manage manually or with outdated tools. More than processing paychecks, a good payroll system centralizes your data such as pay rates, job roles, and other relevant information that can be crucial to compliance. 

Workforce.com was built to simplify this. It brings payroll and HR together, giving you a clearer view of your team and helping you stay compliant with new regulations.

Simplify compliance with Workforce.com

Pay transparency is both an HR and payroll challenge. With New Jersey’s law taking effect, it’s high time to ensure job postings align with what employees are actually paid. Workforce.com has the tools to help audit pay data, standardize pay rates across locations, and make payroll reports—all to help you stay compliant. 

See how Workforce.com makes payroll transparency easy for hourly teams. Book a demo today.

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Paycheck Pain: What Employers Need to Know About Student Loan Garnishment

The Trump administration is resuming wage garnishment for defaulted student loans starting May 5, 2025, with employers required to withhold up to 15% of employees’ disposable income. Small and mid-market businesses face significant administrative responsibilities including calculating garnishment amounts, processing deductions, and maintaining documentation, with estimated costs of 1-2 hours of staff time for initial setup and 15-30 minutes per affected employee each pay period.

Unlike most debt collection, federal student loan garnishment requires no court order, making implementation immediate once employers receive notice. Businesses that fail to comply face substantial liability risks, potentially becoming responsible for the employee’s entire debt plus penalties.

The policy affects roughly 5.3 million defaulted borrowers now, with nearly 4 million more at risk of default in coming months.

The Policy Evolution and Current Implementation

The concept of garnishing student loan payments directly from paychecks first emerged in February 2019, when then-Senator Lamar Alexander proposed it as part of reauthorizing the Higher Education Act. That original proposal called for a universal withholding system for all federal student loan borrowers, offering two options: an income-driven plan capping payments at 10% of discretionary income or a standard 10-year repayment plan.

While that proposal never became law, the current Trump administration announced in April 2025 that collection efforts on defaulted federal student loans would resume after a five-year pause that began during the COVID-19 pandemic. This implementation differs significantly from the 2019 proposal:

  • The current policy applies only to defaulted loans (typically 270+ days delinquent)
  • It follows administrative wage garnishment procedures established in the Debt Collection Improvement Act of 1996
  • Collections through the Treasury Offset Program began May 5, 2025
  • Wage garnishment notices will be sent to employers “later this summer”

The Department of Education maintains that resuming collections is not discretionary but required by the Higher Education Act. Education Secretary Linda McMahon stated that “American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies.”

Employer Responsibilities and Implementation Mechanics

When an employer receives a student loan wage garnishment order, they face several mandated responsibilities:

Immediate Responsibilities

  • Process garnishment orders as soon as received (no court order required)
  • Calculate the employee’s “disposable earnings” (gross pay minus legally required deductions like taxes)
  • Withhold up to 15% of disposable income
  • Notify affected employees about the garnishment
  • Begin withholding from the next available pay period
  • Send garnished funds to the agency specified in the order

Ongoing Requirements

  • Continue garnishment until receiving an official release or the debt is paid
  • Recalculate withholding if employee income changes
  • Maintain proper documentation of all garnishment activities
  • Ensure total garnishments don’t exceed legal limits (25% across all garnishments in most cases)
  • Manage priority order if multiple garnishments exist

The process differs from typical debt collection garnishments in critical ways. Most significantly, federal student loan garnishment is an administrative wage garnishment that doesn’t require judicial process. This means employers must implement these orders immediately upon receipt, with no court validation required.

Administrative Burden and Costs for Small/Mid-Market Businesses

Small and mid-market businesses bear disproportionate burdens from wage garnishment requirements due to limited administrative resources and less sophisticated payroll systems.

Time Requirements

The administrative work includes:

  • 1-2 hours of staff time for initial processing of each garnishment order
  • 15-30 minutes per affected employee each pay period for ongoing maintenance
  • Additional time for addressing employee questions and concerns

Small businesses face higher garnishment rates (13%) than large firms (8.7%), according to ADP Research Institute data, meaning they often handle more garnishments with fewer resources.

Financial Costs

While exact costs vary by business size and number of affected employees, expenses typically include:

  • Staff time costs (payroll/HR personnel diverting from core functions)
  • Potential investment in payroll system upgrades
  • Legal consultation expenses
  • Administrative fees (some states allow employers to charge employees $1-10 per payment)
  • Potential liability costs if garnishment orders aren’t processed correctly

For a small business with 25 employees and 3 garnishment orders, this could translate to approximately 6-8 hours of initial setup time plus 1-2 hours per pay period for ongoing maintenance—significant for operations with limited administrative staff.

Compliance Risks

The most severe cost comes from non-compliance. Employers who fail to properly implement garnishment orders can be held liable for the entire amount that should have been withheld, plus potential penalties and interest. For businesses processing multiple student loan garnishments, this represents substantial financial risk.

Timeline and Implementation Challenges

The current timeline creates several challenges for employers:

  • The Treasury Offset Program (seizing tax refunds, certain federal benefits) resumed May 5, 2025
  • Wage garnishment notices will be sent to employers “later this summer”
  • Approximately 5.3 million borrowers are currently in default, with nearly 4 million more at risk
  • Employers may face a sudden influx of garnishment orders with minimal preparation time

This compressed timeline coincides with other significant challenges:

  • The Department of Education is reducing staff by approximately 50%
  • Student loan management is transitioning from the Department of Education to the Small Business Administration
  • Many businesses face other economic pressures from inflation and tariffs

The administration has not announced any implementation assistance programs for affected employers despite the sudden resumption of collections.

Reasoning and Context for the Policy Shift

The Trump administration presents several justifications for resuming wage garnishment:

  • Fiscal responsibility: Officials argue taxpayers should not continue bearing costs of nonrepayment
  • Legal requirement: The administration maintains the Higher Education Act requires them to pursue collections
  • Normalizing operations: Officials frame this as returning to standard practice after an extended pandemic pause
  • Deterrent effect: Research suggests potential garnishment can motivate some borrowers to seek repayment options

Critics counter that the timing is problematic amid economic pressures, and that more effective alternatives exist, such as expanded income-driven repayment options.

Federal vs. Private Student Loan Treatment

The enforcement mechanisms differ significantly between federal and private student loans:

AspectFederal Student LoansPrivate Student Loans
Legal processAdministrative wage garnishment without court orderRequires lawsuit, judgment, and court order
Garnishment limitUp to 15% of disposable incomeUp to 25% of disposable income (varies by state)
Default timeline270 days of missed paymentsOften 90 days of missed payments
Notice requirement30-day notice before garnishmentVaries by state law
Additional collectionTax refund offsets, Social Security reductionLimited to wage garnishment and asset seizure
Protected incomeSome federal benefits partially protectedSocial Security and disability typically fully protected

For employers, the key difference is that federal loan garnishments arrive directly from the Department of Education with no court validation required, while private loan garnishments must first go through judicial process, potentially giving employers more time to prepare.

Precedents for Similar Wage Garnishment Systems

The current policy builds on established legal frameworks:

  • Higher Education Act of 1965 (Section 488A): Authorized garnishment up to 10% of disposable pay for defaulted student loans
  • Debt Collection Improvement Act of 1996: Expanded authority to 15% and standardized administrative wage garnishment procedures
  • Consumer Credit Protection Act: Provides general protections for all wage garnishment (maximum 25% total garnishment, employment protection)

The Department of Education has successfully implemented wage garnishment for student loans for over 20 years. Many of the debt collection mechanisms in current use were modeled after the Department’s existing practices.

Other similar systems include:

  • IRS wage levies for tax debts
  • Child support wage withholding
  • Bankruptcy-related wage earner plans

Expert Opinions on Feasibility and Impact

Experts offer varied perspectives on the policy’s implementation and effects:

On Feasibility

  • Mark Kantrowitz, higher education expert, questions the accelerated timeline: “It sounds like they are not pursuing the normal due diligence schedule for collecting defaulted federal student loans.” (CNBC)

On Economic Impact

  • Pew Research found 79% of borrowers who experienced wage garnishment reported it had a “major” financial impact, more severe than other consequences of default. (Pew Trust)
  • Federal Reserve projections suggest borrowers with delinquencies could see credit scores fall by up to 171 points, affecting their ability to secure housing and transportation. (CNBC)
  • Mike Pierce, executive director of the Student Borrower Protection Center, warns: “This will further fan the flames of economic chaos for working families across this country.” (Student Borrower Protection Center)

On Business Impact

  • Small business advocates note the disproportionate burden on smaller operations without dedicated compliance resources.
  • Scott Buchanan, executive director of the Student Loan Servicing Alliance, emphasizes proactive approaches: “Most borrowers…they’re not in danger of default today, but in five months, they could be. Taking action today is pretty important.” (NEPM)

Conclusion

The resumption of student loan wage garnishment represents a significant administrative challenge for employers, particularly small and mid-market businesses. While the legal framework for these garnishments is well-established, the sudden implementation after a five-year pause creates operational burdens with minimal preparation time. Small businesses face disproportionate impacts due to limited administrative resources, higher garnishment rates, and potential liability risks. For affected employers, developing clear internal processes, ensuring payroll systems can handle garnishment calculations, and documenting all actions will be crucial to navigating this policy shift without incurring significant costs or liability exposure.

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California Minimum Wage by City and County: What Employers Need to Know

Summary

  • Payroll deductions can be more challenging to manage for hourly teams due to different factors such as variable schedules, different pay rates, higher turnover, and location-based compliance rules.
  • Handling payroll deductions for hourly teams goes beyond automation. It requires a system that can adapt to the complexities of hourly work. 
  • Workforce.com’s payroll software simplifies deduction tracking, ensuring accurate wage calculations and compliance on every pay run.

Effective January 1, 2025, the minimum wage in California is at $16.50 per hour. But that’s not the only thing you should know, especially if you have multiple business locations in the state. Many cities and counties in California have their own minimum wage laws, many with rates higher than the state’s. 

Whether you’re operating in one city or twenty, staying compliant means more than being adept at the law; it’s about having the systems in place to implement it.

The minimum wage landscape in California

California’s state minimum wage is currently $16.50, which is well above the federal minimum, with enforcement being overseen by the Department of Industrial Relations. The 2025 increase was deemed necessary because the consumer price index (CPI) grew by 3% over the previous year, as required by state law. 

California also enforces prevailing minimum wage laws specific to certain industries, such as fast food and healthcare.

  • Fast food employees – $20 per hour, effective April 1, 2024 for covered workers
  • Healthcare workers – $18-23 per hour effective October 16. 2024 for covered workers depending on the type of facility

Beyond statewide and industry-specific labor laws, business owners must also monitor local minimum wage rates. Some localities follow the state minimum wage, but other cities and counties impose their own, which is often higher than the state’s. Cost of living, economic conditions, and local policy goals are typically the factors that drive local regulations for setting unique minimum wage rates.

California minimum wage by city or county

Below is a breakdown of cities and counties in California that have their own, many of which have higher minimum wage rates than the state’s.

City/County2025 Minimum Wage
Alameda$17
Belmont$18.30
Berkeley$18.67
Burlingame$17.43
Cupertino$18.20
Daly City$17.07
East Palo Alto$17.45
El Cerrito$18.34
Emeryville$19.36
Foster City$17.39
Fremont$17.30
Half Moon Bay$17.30
Hayward$17.36

*$16.50 or state minimum wage for businesses with 25 or fewer employers
Los Altos$18.20
Los Angeles City$17.28
Los Angeles County (unincorporated)$17.27
Malibu$17.27
Menlo Park$17.27
Milpitas$17.70
Mountain View$19.20
Novato$17
Oakland$16.89
Palo Alto$18.20
Pasadena$17.50
Petaluma$17.97
Redwood City$18.20
Richmond$17.77
San Carlos$17.32
San Diego$17.25
San Francisco$18.67
San Jose$17.95
San Mateo$17.95
San Mateo County (unincorporated)$17.46
Santa Clara$17.27
Santa Rosa$17.87
Sonoma$18.02

$16.96 for employers with 25 or fewer employees
South San Francisco$17.70
Sunnyvale$19.00
West Hollywood

Local minimum wage variations by size

In some cities, local minimum wages include different rates based on employer size. For example, Hayward and Sonoma set lower minimum wage thresholds for small businesses with 25 or fewer employees. 

This adds yet another layer of complexity for business owners, especially when it comes to calculating pay accurately and staying compliant across multiple jurisdictions. 

Understanding unincorporated localities 

Another detail to watch out for is unincorporated areas. These regions are not part of an incorporated city but fall under the direct jurisdiction of the county government. 

Take Los Angeles County, for example. Cities like Los Angeles or Pasadena have their own local governments and wage laws. But places like Hacienda Heights and Walnut Park are unincorporated and are not part of the City of Los Angeles but within Los Angeles County. This means that the county’s minimum wage applies to them, not the city’s.

Challenges for California employers

Handling minimum wage in California presents unique challenges, especially for businesses operating in multiple areas. Here are some challenges business owners typically face and tips on what to watch out for:

Payroll complexities

Managing payroll is never simple, but it becomes more complex when you’re dealing with multiple locations, varying pay rates, and hourly employees working in various roles. Add to that the different local minimum wages across cities and counties. It could be easy to overlook details, such as mistakenly paying an employee in an unincorporated area the city minimum wage rather than the county wage.

Inconsistent labor costs

Multiple minimum wages in California, along with industry-specific wage laws, overtime and meal/rest break laws, and other labor ordinances, can lead to inconsistent labor costs for businesses in the state. This presents a significant challenge to organizations wanting to keep their labor costs leveled and consistent as much as possible. 

Wage compression issues 

Wage compression occurs when the pay gap between entry-level employees and more experienced workers narrows. This often happens when minimum wage increases outpace raises for more seasoned staff, making the difference between the two smaller. 

To further illustrate, here’s an example. Let’s say your business in Los Angeles used to pay entry-level workers $16 and shift supervisors $18. And now, the minimum wage is at $17.28 per hour. Naturally, entry-level pay should follow this new rate to comply with the law. However, your shift supervisors will end up just earning $0.72 more, which may not be reflective of their responsibilities and roles. 

This can result in a drop in morale, and experienced employees may feel undervalued. Raises may also become reactive rather than strategic, creating a ripple effect in your payroll structure.

Best practices for complying with California’s minimum wage laws

California has one of the most complex labor landscapes in the country, including local minimum wage rates and rules. So, how do employers stay on top of compliance?

Automate HR and payroll

Even the most experienced payroll and HR professionals can make mistakes, especially when handling multiple wage rates across cities, industries, and employee roles. That’s why using software to automate processes is vital.

However, not all payroll systems are built the same. If you’re managing something as nuanced as California minimum wage laws, you need a robust and centralized system. This is where Workforce.com comes in, and these are the ways it helps California businesses stay compliant and efficient:

  • Wage and hour automation: Multiple pay rates and minimum wages are the least of your concerns with Workforce.com. The platform automatically applies the minimum wage according to role and location, including cases where employees work multiple roles across different cities. It also accurately calculates overtime.
  • Employee classifications: Another cause of payroll mistakes is misclassifying employees, and that’s one thing that Workforce.com eliminates for employers because all data and information live in one place. This includes employee details, such as their employment status, corresponding pay rates, and bank information. If any employee information gets changed down the line, it’s reflected instantly across schedules and payroll. No need for manual re-entry.
  • Accurate time and attendance tracking: Inaccurate employee time logs can lead to payroll mistakes.. Workforce.com turns employee clock-in and clock-out into timesheets, which managers can easily verify and check.
  • Labor forecasting: California’s ever-changing labor rules can cause inconsistent labor costs. Workforce.com helps stabilize costs by forecasting demand based on relevant factors such as historical sales, upcoming events, booked appointments, foot traffic, and even weather.

    When creating schedules, managers can easily see how much each shift would cost and receive alerts if they schedule someone for overtime or forget to schedule break times. This will help avoid unnecessary labor costs or potential fines for non-compliance. 
  • Real-time alerts: Managers get live updates when employees fail to clock in or out for a shift or break time. They will also get alerts when employees are about to breach overtime, especially if they’re not scheduled for it. This allows teams to fix small issues before they turn into bigger problems.

Conduct regular wage audits

Conducting wage audits in the state of California is essential because it helps employers stay on top of local rate changes. While most cities raise their minimum wages annually, note that they can do so on different schedules. 

Regular wage audits ensure your pay structure reflects the latest local rates. They also help you catch wage compression issues early, keeping your compensation strategy fair and employee morale intact. In case you face a labor board inquiry or employee complaint, having audit records on hand gives you the evidence you need to respond quickly.

Train your managers

Automation is powerful, but it also pays to equip your managers with the right information and training on handling complicated labor rules. 

Regularly train your management team on California’s local wage laws. These rules can change frequently, so ongoing refreshers are vital. Managers should also have tools and resources to help them explain wage-related issues and faqs to employees and recognize compliance gaps in workflows or systems.

California’s minimum wage rules can change quickly. Stay ahead by automating wage rates and catching compliance issues before payroll with Workforce.com. See the platform in action and book a demo today. 

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Paid Sick Leave in Missouri: What Employers Need to Know as Repeal Efforts Loom

Summary

  • Paid sick leave in Missouri will take effect on May 1, 2025. However, some groups and state lawmakers are currently opposing it.
  • Under the law, employees can accrue an hour of paid sick leave for every 30 hours worked.
  • More than a compliance plan, employers need an all-in-one system that adapts as the law evolves.

Paid sick leave in Missouri is set to take effect on May 1, 2025. Proposition A, approved by Missouri voters in November 2024, introduces significant changes to the state’s labor laws, including mandatory paid sick leave for many workers. 

Under the new law, employees will accrue one hour of paid sick leave for every 30 hours worked. Businesses with fewer than 15 employees must offer up to 40 hours of paid sick leave per year, while larger employers must provide up to 56 hours annually. Exceptions apply to certain workers, like government employees and businesses making less than $500,000 in annual revenue. 

In addition to paid sick leave, Proposition A also increases the minimum wage to $15 by January 1, 2026.

Efforts to repeal Proposition A

Proposition A faces pushback from business advocacy groups and state lawmakers who argue the law is flawed and burdensome for employers. 

The Missouri Chamber of Commerce and Industry, the Missouri Grocers Association, the Missouri Restaurant Association, the National Federation of Independent Businesses, and three individuals linked to these organizations have filed a lawsuit challenging Proposition A with the Missouri Supreme Court. 

The plaintiffs claim the ballot summary and fiscal note were misleading and argue that Proposition A violates the state constitution’s single subject rule by combining minimum wage and sick leave provisions into one measure. 

Lawmakers are also moving to repeal Proposition A. House Bill 567 pushes to overturn paid sick leave rules and remove inflation-based minimum wage adjustments. The bill has passed the Missouri House and is currently being considered by the Senate. However, it doesn’t have an emergency clause, which means that even if it’s enacted, it would not become effective until August 28, 2025.

Tips for managing Missouri’s paid sick leave law

Missouri’s new paid sick leave law isn’t just a challenge for policymakers. It also puts employers in a tough spot. Businesses must balance compliance with labor laws while staying agile in case of legal or legislative changes. Here’s how employers can stay ahead. 

Focus on the facts and prepare accordingly

Proposition A will take effect on May 1, 2025. Therefore, employers should be ready to implement paid sick leave policies by that date. 

  • Notify employees in writing about the earned paid sick time policy by April 15, 2025, as mandated by the law. 
  • Ensure payroll and scheduling systems are updated to track sick leave accrual and usage. 
  • Train managers on policy changes to avoid confusion and ensure employee questions can be addressed.

Monitor any legal developments 

Labor laws are constantly changing, and Proposition A remains a pressing issue in Missouri courts and legislature. Rules can change at any time, and employers must always be updated about developments.

Check the Missouri Department of Labor for official updates and guidance, monitor senate discussions, and review bill statutes and amendments to stay on top of changes that could impact compliance.

Be prepared to adjust

Missouri’s paid sick leave laws can change at any time. With lawsuits and legislative challenges underway, they could be amended, repealed, or upheld. A flexible system allows employers to adjust quickly, regardless of the outcome. 

Workforce.com helps organizations stay compliant and adapt to potential changes by:  

  • Automatically tracking sick leave accrual based on hours worked. 
  • Providing employees real-time access to their leave balances via a mobile app. 
  • Calculating accurate sick leave payouts and preventing payroll errors.
  • Employees can check their leave balances anytime through the employee mobile app. 
  • Offering real-time visibility into who’s out sick, helping managers fill vacant shifts with available and qualified staff. 
  • Enabling HR teams to instantly adjust policies and ensure staff have easy access to updated rules. 

Missouri businesses need more than just a plan. They need a system that adapts as Proposition A evolves. A flexible, all-in-one system for time and attendance, employee scheduling, HR, and payroll is vital to keeping up. Workforce.com simplifies compliance and helps you adapt to legislative changes with ease. Book a call to learn how.