EMPLOYMENT LAW NEWS
Legislative Scoop: 2026 Midyear Key Employment Law Updates
By Grant Larson, Compliance Paralegal
Employment Law and Compliance
Published July 7, 2026
This month’s Legislative Scoop reviews the status of bills previously highlighted from January through June 2026, tracking which became law in states like Minnesota, Virginia, and New York, and which failed in states like Wisconsin, North Carolina, and Hawaii.
Each month, GovDocs’ Employment Law & Compliance Team provides the scoop on key bills making their way through the legislative process. This month, we will review the legislation highlighted in previous editions of this series to check in on their status, and if they became law.
Key Takeaways
- ✓ Minnesota's unemployment fraud penalty is now law: SB 1832 passed in the 2025 Special Session as Chapter 6, setting the penalty for employers who knowingly help ineligible employees file for unemployment benefits at $500 or 100% of benefits received.
- ✓ Virginia and New York enact new employer requirements: SB 215 added pay transparency and salary history requirements in Virginia; SB 8789 clarified New York's "employer" definition under its credit history ban.
- ✓ Virginia bans non-competes for healthcare workers: SB 128 was signed May 14, 2026, and prohibits enforcement of non-compete agreements for healthcare workers, effective July 1, 2026.
- ✓ Hawaii, Idaho, and West Virginia discrimination and E-Verify bills stall in committee: All three bills failed to advance, so no employer action is required.
- ✓ Albuquerque publishes minimum wage ordinance; Seattle unchanged: Employers in Albuquerque should review the newly published ordinance for compliance; Seattle's Paid Sick and Safe Time update remains unchanged since last covered.
February: Minnesota’s unemployment fraud penalty is now law
✅ Passed – Minnesota SB 1832 – Unemployment Benefits Penalty Increase
❌ Failed – North Carolina SB 257 – Unemployment Insurance Weekly Benefit Increase
❌ Failed – Wisconsin AB 167 – Unemployment Insurance Eligibility
In the February edition, we highlighted three bills that were all signed into law at the time. So, we will start in February with Minnesota’s SB 1832. For a quick refresher, this bill proposed updating the penalty for an employer that knowingly assists an employee in applying for unemployment benefits when they are not eligible to $500 or 100% of the benefits received. This bill passed in the 2025 Minnesota Special Session as Chapter 6 and is now law.
The other two bills featured in this edition of the Legislative Scoop, North Carolina’s SB 257 and Wisconsin’s AB 167, did not get enacted. North Carolina’s SB 257 failed to get out of the conference committee while Wisconsin’s AB 167 was vetoed by the governor.
March: Virginia and New York enact new employer requirements
✅ Passed – Virginia SB 215 – Pay Transparency
✅ Passed – New York SB 8789 – Credit History Bans
❌ Failed – Wisconsin SB 431 – Ban the Box Expansion
In March, we highlighted Virginia SB 215, Wisconsin SB 431, and New York SB 8789. Two of these bills were signed into law after the March Legislative Scoop was released. Two of these bills were signed into law after the March Legislative Scoop was released. First, Virginia SB 215 was signed on April 22, 2026. This bill added pay transparency requirements and a salary history ban to the job recruiting process in the state. Second, New York SB 8789, which clarified the definition of “employer” in a recently enacted credit history ban by adding exceptions for state agencies, was signed on Feb. 13, 2026.
The Wisconsin SB 431 was a “ban the box” piece of legislation that would have added exceptions if the charges were directly related to job duties. But it was ultimately vetoed by the governor on March 27, 2026, and the state legislature could not address the governor’s concerns.
April: Virginia bans non-competes for healthcare workers
✅ Passed – South Dakota HB 1180 – Unlawful Contracts and Non-Competes
✅ Passed – Washington HB 1155 – Narrowing of Non-Competes
✅ Passed – Virginia SB 128 – Pay Transparency
The April edition covered non-compete laws that were enacted or pending. Two bills that we covered were already enacted in South Dakota and Washington. But there was one state that had yet to make a decision, which was Virginia SB 128, a non-compete bill for healthcare workers. SB 128 was signed by the governor on May 14 and prohibits the enforcement of non-compete agreements, effective July 1, 2026.
May: Hawaii, Idaho, and West Virginia discrimination and E-Verify bills stall in committee
❌ Failed – Hawaii HB 1878 – Discrimination
❌ Failed – Idaho SB 1247 – E-Verify
❌ Failed – West Virginia HB 4198 – E-Verify
May’s edition of the Legislative Scoop highlighted various bills regarding discrimination and E-Verify legislation. None of the bills highlighted in May made it out of the conference committee. The bill on discrimination was Hawaii HB 1878, which sought to expand the definition of “discrimination” to include any combination of protected characteristics. The other two bills, Idaho SB 1247 and West Virginia HB 4198, focused ib E-Verify legislation, which would have expanded the use of E-Verify for employers in the state. But since they all failed, no action needs to be taken by employers.
June: Albuquerque publishes minimum wage ordinance; Seattle unchanged
⚠️ Pending – Seattle Paid Sick and Safe Time Ordinance
✅ Passed – Albuquerque Minimum Wage Ordinance
In the June edition of the Legislative Scoop, we highlighted a potential update to Seattle’s Paid Sick and Safe Time ordinance. Since GovDocs last highlighted this, there have been no additional updates.
The final piece of legislation highlighted from June was in Albuquerque, with the passage of a new minimum wage ordinance. Since the last edition, GovDocs has located the published ordinance, which can be found here. We highly recommend that employers in Albuquerque review the ordinance so they can remain compliant with the city’s minimum wage requirements.
Conclusion
Across the United States, legislation can make it through the House and Senate of a state or be passed by the city council, but that does not mean it will become a law.
As shown here, there were many different pieces of legislation highlighted in the first half of 2026 that did not survive the legislative process, despite being well-positioned to do so. This makes it imperative for employers to stay on top of recently enacted legislation, instead of focusing on all the legislation that is close to the finish line.
To stay informed as these developments unfold and to keep track of future updates, subscribe to GovDocs Employment Law News.
This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.
