New Employment Laws Taking Effect in July: What Employers Need to Know

LP’s 2026 Employment Law Checklist helped employers prepare for a broad range of new laws taking effect this year. Now it’s time for a mid-year check-in. Read on to learn about employment laws going into effect soon across the country, and what employers can do to ensure compliance.

Indiana

Indiana’s new employer work-authorization law takes effect July 1, 2026.  Under this law, it will be unlawful to knowingly or intentionally recruit, hire, or employ an unauthorized worker in Indiana.  Employers will have a defense under the statute if they can show reasonable diligence (such as E-Verify or use industry-standard best practices) to confirm authorization to work.

• Employer Takeaway: Audit I-9/E-Verify processes, train hiring teams, document work-authorization diligence, and consider implementing E-Verify for Indiana hires.

Maine

Maine’s new pay transparency law takes effect on July 29, 2026. Employers with 10+ employees must include pay ranges in job postings.  The law also includes employee-request and recordkeeping obligations.

• Employer Takeaway: If you aren’t already doing so, make sure that Maine job postings include compensation information, and that compensation records and internal request-response processes are in place before late July.

Virginia

Virginia is further limiting noncompetes. New standards effective July 1^st prohibit non-competes and non-solicits for certain low wage and non-exempt workers and limit enforcement where an employee is discharged without cause and severance or other monetary payment was not disclosed at the time the agreement was signed.

• Employer Takeaway: Review restrictive covenant templates and severance/ noncompete strategy to determine if changes need to be made for agreements entered, amended, or renewed after July 1.

Virginia (part 2)

Virginia’s new pay transparency and salary history restrictions also take effect July 1, 2026, requiring employers to include wage/salary (or the expected range) in internal and external postings and prohibiting employers from seeking or relying on a prospective employees’ salary history.

• Employer Takeaway: Update job posting templates to add salary ranges, and application forms to remove requests for salary history.  Also make sure to train interviewers and others applicants may interact with not to ask about salary history and revise compensation guidelines to remove references to existing salary.

Colorado

Colorado’s AI compliance landscape shifted significantly in May 2026. The state’s original framework, SB 24-205, was a first-in-the-nation law regulating high-risk AI systems used in consequential decisions, including employment. It was scheduled to take effect on June 30, 2026, but was repealed and replaced by SB 26-189, signed by Governor Polis on May 14, 2026. The new law takes a more streamlined approach to automated decision-making, transparency, and disclosure, with requirements now delayed until January 1, 2027.

• Employer Takeaway: While the effective date is 6 months away, there’s still a lot for employers to do to prepare.  Employers using AI/automated tools for hiring, promotion, or other consequential decisions should inventory tools, assess notice/assessment obligations, and monitor AG rulemaking.  We will provide more information regarding these new requirements as part of our annual webinar in September.

Minimum Wage Increases.  In addition to the changes discussed above, many jurisdictions have higher minimum wage rates taking effect July 1^st, including the City of Chicago ($16.20), Alaska ($14), the District of Columbia ($18.40), and Oregon ($15.55, or $16.80 in Portland area).

The volume of new employment requirements can feel overwhelming, but employers and human resources departments don’t have to go it alone. If your team is facing questions about family leave laws or other new employment regulations, please reach out to Laura Friedel, Deja Davis, or another member of LP’s Employment & Executive Compensation Group.