Quarterly HR Update – December 2025
We’re wrapping up 2025 and getting ready for 2026. As usual, the end of the year has proven to be an active time for new laws to be passed, many with a January 1st effective date. To help you prepare for what is coming in the new year, our December Update focuses on various items to be aware of in 2026.
Please reach out with any questions – we’ve included a lot of resource material, and we are also happy to assist your company with further understanding or implementing items if needed.
We wish everyone a safe and festive end to their year and best wishes for 2026!
Please note this is a summary of upcoming changes and not an all-inclusive overview.
Legal Updates & Info
Under Federal Law…
2026 IRS Limits Finalized: We wanted to share this very helpful and comprehensive list of Retirement Plan and Health Plan limits for 2026 prepared by Fisher Phillips. It’s a wonderful resource for this information! 2026 Benefits Limits – Finalized.
Qualified Tips & Qualified Overtime: One of the many inclusions to the OBBBA involved tax implications for qualifying overtime and qualifying tips. We reported on this back in September and July . Since then, the IRS has provided guidance for taxpayers to claim deductions on those qualifying items. Littler’s recent article provides a very nice overview of what you need to know.
2026 W-4: Friendly reminder to update new employee orientation materials with the 2026 Form W-4. A pdf copy is also attached to this email.
Under Washington Law…
Workplace Violence Prevention – Healthcare: Effective January 1, 2026, per Washington House Bill 1162, healthcare employers will be required to develop and implement a workplace violence prevention plan that “outlines strategies aimed at addressing security considerations and factors that may contribute to or prevent the risk of violence.” This encompasses many specific areas, as outlined in HB 1162 which mentions security systems, alarms, emergency response and security personnel, staffing, job design, emergency procedures, reporting violent acts, employee education/training, security risks, and processes/interventions to assist employees affected by a violent act. There are additional requirements for investigating incidents and submitting information. The full legislation can be found here.
Meal Period Waiver – Healthcare: Effective January 1, 2026, HB 1879, will allow Washington healthcare employers and employees the right to agree to waive “the meal period, if any, in a work shift of less than eight hours; or the second and/or third meal period in a work shift of eight hours or longer, so long as at least one meal period is provided and taken during the shift.” There are other details that may also be waived, and specific requirements for the waiver itself. For the full requirements, check out the HB 1879, which clarifies “Employer” means hospitals licensed under chapter 70.41 RCW.
Isolated Employees Workplace Standards (HB 1524): Effective January 1, 2026, HB 1524 imposes new requirements for isolated employees in select industries – hotels, motels, retail, security guards, and property services contractors. An isolated employee is a janitor, security guard, or housekeeper/room service attendant who spends 50% or more of their working hours alone or works in areas without immediate emergency response.
Requirements include:
- Panic Buttons: Isolated employee must receive a wearable panic button that is simple to immediately activate and provides location tracking.
- Training and Policy: Employers must implement a sexual harassment policy and provide mandatory training to all managers, supervisors, and isolated employees on harassment prevention and panic button use.
Property services contractors have an additional annual reporting requirement. The full requirements can be found here.
Unemployment Benefits During Strikes: Unemployment benefits have always applied to workers who are not working, if specific eligibility criteria are met. However, someone who is not working due to a strike has not been eligible – that is until SB 5041 showed up. Effective January 1, 2026, SB 5041 will allow employees who voluntarily stop working due to a labor dispute (i.e. striking workers) and employees who are barred from working by their employer due to a labor dispute (i.e. locked-out workers) to apply for unemployment benefits. Striking workers can receive up to six weeks of benefits; locked-out workers can receive up to 26 weeks of benefits.
WA Cares Fund – Long-Term Care Insurance Updates: Back in April 2021, legislation to form the WA Cares Fund was signed into law. In July 2023, the State started collecting premiums. In May 2025, SB 5291 was signed into law and will apply the following changes to the WA Cares Fund:
- As of July 1, 2026, coverage can continue under certain circumstances if someone moves out of state, so long as they’ve contributed for at least three years.
- If someone previously opted out by the January 1, 2023 deadline (by securing their own insurance), they will have the opportunity to rejoin before July 2028.
- Private insurers will be able to offer supplemental benefits to complement WA Cares.
- There are three pathways to qualify for benefits – the “permanent pathway” which provides lifetime access for workers who contribute to the fund will no longer have the requirement of “five consecutive years of contributions” within the ten-year period. In other words, if someone contributes for 10 years, regardless of having a break in service, they are still eligible.
As a reminder, benefits through the WA Cares Fund are expected to be available in July 2026.
2026 Non-Compete & Moonlighting Thresholds: On an annual basis, Washington adjusts the thresholds related to non-compete enforceability and moonlighting restrictions.
- In 2026, for a non-compete to be enforceable, an employee’s total compensation must be at least $126,858.83 (up from $123,394.17 in 2025). For independent contractors, the amount is $317,147.09 in 2026 (up from $308,485.43 in 2025).
- In 2026, for an employer to have the ability to restrict or restrain an employee from having a second job, the employee must make $34.26 per hour (up from $33.32 per hour in 2025).
Overtime & Exempt Salary Threshold Changes: January 1st marks some wage-related changes for Washington employers. We shared details back in October, if you’d like a reminder.
Paid Family Medical Leave (PFML) Act Amendments: Another topic we reported on back in June 2025 outlined the PFML changes that will be effective January 1, 2026. Refer back to our June article if you need a refresher!
Under California Law…
Workplace Know Your Rights Act: SB 294 will require California employers to provide each current employee with a written notice of specific workers’ rights. This is an annual notice requirement with an initial effective date on February 1, 2026. The Labor Commissioner in California is expected to provide a sample notice on it’s website by January 1, 2026.
Training Records & Personnel Files: SB 513 pertains to personnel records – expanding the requirements of what must be contained in an employee personnel record to include “education or training records”. Effective January 1, 2026, the records must include 1) employee name 2) training provider name 3) training duration and date 4) core competencies of the training and 5) resulting certification or qualification.
Cal-WARN Notice: WARN notices are required by federal and California law when an employer experiences a mass layoff. Effective January 1, 2026, SB-617 will require California employers to provide the following information in the notice 1) “whether the employer plans to coordinate services, such as a rapid response orientation, through the local workforce development board, the employer plans to coordinate services through a different entity, or the employer does not plan to coordinate services with any entity”; 2) “a description of the statewide food assistance program known as CalFresh, the CalFresh benefits helpline, and a link to the CalFresh internet website”; and 3) “a functioning email and telephone number of the employer for contact.”
Expanded Employee Pay Data Reporting: California employers with 100+ employees are currently required to submit pay data reporting; for 2026 the report is due by May 13, 2026. Effective for the 2026 reports, as outlined in SB 464: any demographic information used for these reporting purposes must be collected and stored separately from personnel records. There are also additional penalties that may be imposed if an employe fails to file and, in January 2027, employers will be required to report on 23 job categories (up from the current 10.)
Captive Audience Ban Blocked: Last December we reported on the Worker Freedom from Employer Intimidation Act (SB 399) which prevented employers from engaging or threatening to discharge, discriminate, retaliate, or take adverse action against an employee who declines to attend or participate in meetings related to religious or political matters. We reported there was litigation brewing, and on September 30, 2025, a court decision blocked enforcement of SB 399. If you’d like to learn more, this Fisher Phillips article provides a great explanation.
California Privacy Rights Act (CPRA) Updates: Effective January 1, 2026, California will impose more obligations on employers before engaging in activities involving “HR Data”. Once again, we’re relying on an external resource (Littler) to explain the (many) details if you’d like to learn more.
Expanded Use of Paid Sick and Safe Time & Unpaid Leave: Effective January 1, 2026, AB 406 will expand the reasons California employees can take paid sick time, as well as unpaid leave under California’s Victim Leave laws. For both, an employee can take time off because they (or their family member) are a victim of certain crimes and are attending judicial proceedings.
Minimum Wage & Exempt Salary Threshold Changes: Similar to Washington, California has some wage-related changes for 2026. Our Update in September covered those details if you’d like a refresher!
Under Oregon Law…
Expanded Use of Paid Sick Leave: Effective January 1, 2026, SB 1108 will add blood donation (through a program approved or accredited by the American Association of Blood Banks or American Red Cross) to the list of permissible reasons to use Paid Sick Leave.
PLO, Workers’ Comp & Unemployment Benefits: This one seems a bit obvious to us, but nonetheless, SB 858 has clarified that employees are not entitled to benefits through Paid Leave Oregon if they are receiving workers’ compensation time loss benefits or unemployment benefits. This is effective January 1, 2026.
Payroll Process Transparency: Back in July we reported on the new requirement for Oregon employers to provide employees with specific information regarding the details included on their paystubs. Per the Oregon Bureau of Labor & Industries (BOLI), SB 906 “requires that all employers notify all new hires of information about earnings and deductions to help them understand what is contained in the itemized statement. Employers are required to review and update this information by January 1 of each year.” BOLI has also provided sample notices in both English and Spanish.
HRT Northwest: Your Northwest HR Team
Seattle: (253) 642-7372 | info@hrtnorthwest.com
This Update is not a full overview of all recent or upcoming legal changes. HRT Northwest is staffed by professionals in the field of Human Resources and business management. We are glad to help with your HR needs; however, we do not offer legal advice and our services are not a substitute for the help of a qualified attorney.