Indiana employers should be aware of significant changes to the state's immigration enforcement landscape that may increase scrutiny of hiring and employment verification practices beginning July 1, 2026. Recent statements from Indiana Attorney General Todd Rokita indicate that employer compliance with federal work authorization requirements will be a key enforcement priority.

Under Indiana's newly enacted FAIRNESS Act, employers may face state-level penalties if they knowingly hire or continue to employ individuals who are not authorized to work in the United States. The law grants the Attorney General authority to investigate alleged violations and seek civil penalties and other remedies through the courts.

While federal Form I-9 completion remains mandatory for all employers, Indiana's new law places additional emphasis on demonstrating good-faith efforts to verify employment eligibility.

State officials have identified the federal E-Verify program as one method employers can use to help establish due diligence in their hiring practices. For clients utilizing C2 Essentials' onboarding services, all newly hired employees are processed through E-Verify as part of our standard new-hire compliance procedures. This provides an additional layer of verification and helps support compliance with federal employment eligibility requirements.

We are writing to remind you of the upcoming Patient-Centered Outcomes Research Institute (PCORI) fee filing requirement, which applies to certain group health plans. The PCORI fee is a federally mandated annual fee that helps fund clinical effectiveness research and is reported to the IRS using Form 720. 

For the 2026 filing cycle, the PCORI fee is due by July 31, 2026 and generally applies to plan years ending in 2025.  Responsibility for filing and payment depends on your plan funding type:

• Fully Insured Plans: The insurance carrier is responsible for filing and paying the PCORI fee on your behalf. No action is required from the employer. 

• Self-Funded Plans: The employer/plan sponsor is responsible for calculating, filing, and paying the PCORI fee directly to the IRS. 

• Level-Funded Plans: The employer/plan sponsor is responsible for calculating, filing, and paying the PCORI fee directly to the IRS.

The amount of the PCORI fee is equal to the average number of lives covered during the policy year or plan year multiplied by the applicable dollar amount for the year.  

•  For policy and plan years ending after Sept. 30, 2025, and before Oct. 1, 2026, the applicable dollar amount is $3.84

• For policy and plan years ending after Sept. 30, 2024, and before Oct. 1, 2025, the applicable dollar amount is $3.47

How C2 Essentials Supports You 

C2 Essentials will assist clients with calculating the PCORI fee amount due, including determining the average covered lives using an approved methodology.  If you receive a notice about PCORI, please forward it to your C2 HR Team immediately where it will be reviewed for eligibility.

If you have any questions regarding your specific plan or the PCORI fee, please do not hesitate to contact us at 703-444-0096.  

California has issued a new executive order directing State agencies to assess how artificial intelligence (AI) may be impacting employment trends, including job displacement, workforce transitions, and reskilling needs. While this directive applies primarily to state agencies, it reflects a broader policy focus that may eventually shape future labor regulations affecting private employers with California-based employees. 

At this time, there are no new compliance obligations for private employers. However, the order is an important indicator that California is actively evaluating whether existing labor laws are sufficient to address AI-related workforce disruption, including potential changes to layoff notification and reporting requirements. 

What the Executive Order Directs State Agencies to Do 

The executive order directs California state agencies to begin preparing for potential AI-driven workforce disruption. Key actions include: 

• Tracking AI’s impact on employment through new reporting tools, including a statewide dashboard, labor market analysis, and a report identifying early warning signs of job displacement. Agencies are also asked to evaluate possible updates to California’s WARN Act.  

• Supporting workers in an AI economy by expanding job training, exploring employee ownership and wealth-building models, and helping small businesses adopt new technologies.  

• Strengthening workforce safety nets by reviewing unemployment insurance, severance practices, and retraining programs, and improving access to public benefits and job transition services.  

Overview of the Federal WARN Act 

The federal Worker Adjustment and Retraining Notification (WARN) Act requires covered employers to provide advance notice before certain mass layoffs or plant closures. Under federal WARN: 

• Covered employers generally include those with 100 or more full-time employees  

• Employers must provide 60 days’ written notice in advance of:  

  • Plant closings affecting 50 or more employees at a single site, or  

  • Mass layoffs affecting 500 or more employees, or  

  • Smaller layoffs involving at least 50 employees if they represent 33% of the workforce at a site  

Notice must be provided to affected employees, state dislocated worker units, and local government officials  

California maintains its own version of WARN that is generally broader and more employee-protective than federal requirements. Key differences under Cal-WARN include: 

• Applies to employers with 75 or more employees, including part-time workers  

• Requires 60 days’ notice, similar to federal WARN  

• Covers:  

  • Plant closures  

  • Mass layoffs affecting 50 or more employees (regardless of percentage of workforce)  

  • Relocations of an employer’s operations that affect employee roles within California  

While the executive order does not change existing WARN requirements, it signals that California is increasing its focus on AI-driven workforce disruption and evaluating whether current notices—particularly layoff notice requirements and transition protections are sufficient in an AI-driven economy. 

As summer temperatures increase across California, employers should revisit workplace heat safety procedures and ensure compliance with the state’s heat illness prevention requirements. California continues to maintain some of the nation’s most comprehensive workplace heat regulations covering both outdoor and indoor work environments.

California’s outdoor heat illness prevention standard technically applies to all outdoor workplaces at all times, but certain requirements are triggered at specific temperature thresholds. Key thresholds include:

• 80°F — Employers must have shade present and available when temperatures exceed 80°F. If temperatures are below 80°F, shade still must be available upon request.

• 95°F — Additional “high-heat” procedures apply in certain industries, including construction, agriculture, landscaping, oil and gas extraction, and certain transportation/delivery operations. These procedures may include closer employee observation, enhanced communication, and mandatory monitoring practices.

  
  

Employers must provide employees with access to fresh drinking water, shaded or cool-down recovery areas, emergency response procedures, and employee/supervisor training on recognizing heat illness symptoms.

Employers should also remember that California’s indoor heat illness prevention standard, which became effective in 2024, remains fully enforceable in 2026. The indoor standard generally applies when indoor temperatures reach 82°F and may require additional monitoring and control measures at higher temperature thresholds or in environments involving radiant heat or heat-retaining protective clothing. Compliance areas employers may want to review include:

• Employee and supervisor heat illness training

• Availability of drinking water and cool-down areas

• Temperature monitoring practices

• Emergency response procedures

• Acclimatization procedures for new or returning employees

Additional Resources:

· California Division of Occupational Safety and Health (Cal/OSHA): https://www.dir.ca.gov/dosh/

· Cal/OSHA Heat Illness Prevention Resources: https://www.dir.ca.gov/dosh/heatillnessinfo.html

Maine has enacted a new pay transparency law requiring employers with 10 or more employees to disclose compensation ranges in job postings beginning July 29, 2026. The law applies to postings for specific available positions and requires employers to provide a prospective pay range the employer anticipates relying upon when setting compensation.

Unlike some other state laws, Maine’s statute also requires employers to disclose pay ranges to current employees upon request and mandates that employers maintain records of employee positions and pay histories throughout employment and for three years after separation.

Positions compensated solely through commission are exempt from the range disclosure requirement, though postings must clearly indicate the role is commission-based.

Employers operating in Maine should review hiring procedures in advance of the law’s effective date.

Virginia employers should prepare now for new pay transparency requirements that take effect July 1, 2026. Under newly enacted legislation, employers will be required to include a good-faith wage or salary range in both public and internal job postings for positions, promotions, transfers, and other employment opportunities. The law also prohibits employers from requesting or relying upon an applicant’s salary history during the hiring process.

The law defines a “wage or salary range” as the minimum and maximum compensation an employer reasonably expects to pay for the role, based on factors such as internal pay scales, existing employee compensation, or budgeted amounts.

Employers may still consider salary expectations voluntarily disclosed by candidates, but retaliation or adverse action related to compensation discussions is prohibited.

Virginia’s law applies broadly and includes potential civil penalties and private causes of action for violations. Employers should begin reviewing recruiting practices, job posting templates and hiring manager training to ensure compliance before the July 1 effective date.

C2 Essentials is providing this compliance update to highlight key New Jersey employment law developments impacting employers in 2026. While some of these laws are newly effective and others are entering active enforcement phases, all present meaningful compliance risks that employers should address proactively.

Proposed Restrictions on Non-Compete Agreements Pending Legislation

New Jersey continues to consider legislation that would significantly restrict or effectively prohibit most non-compete agreements. The proposal includes requirements such as advance notice, compensation during restricted periods (“garden leave”), and limitations based on employee earnings. Certain workers may be excluded entirely from non-compete enforcement. While no effective date is in place, the legislative direction is clear and consistent with broader national trends. Employers relying on non-competes face forward-looking risk, as existing agreements may become unenforceable or require significant revision if the law is enacted. Employers may need to shift away from traditional non-compete agreements toward alternative protections such as non-solicitation and confidentiality agreements.

Pay Transparency Requirements Effective: June 1, 2025 (Now in Active Enforcement Phase)

New Jersey’s pay transparency law is now in its first full year of enforcement. Although not new in 2026, enforcement and regulatory scrutiny are increasing. Employers without clearly defined and documented compensation structures face heightened risk, particularly where pay ranges are inconsistent across similar roles or lack supportable methodology. Employers must include a good-faith salary or hourly wage range, along with a general description of benefits and other compensation, in job postings. Employers should develop and document formal compensation ranges and review job postings for compliance.

Expansion of the New Jersey Family Leave Act (NJFLA) Effective: July 17, 2026

New Jersey has enacted significant changes to the NJFLA that expand both employer coverage and employee eligibility. The changes lower the employer threshold from 30 to 15 employees and reduce employee eligibility requirements to 3 months of service and 250 hours worked during the previous 12 months (down from 12 months / 1,000 hours worked). More employees will now be entitled to job-protected leave under NJFLA.

NJFLA provides up to 12 weeks of job-protected family leave in a 24-month period. Employees may take this leave continuously, intermittently, or on a reduced schedule, but the total protection is capped at 12 workweeks. NJFLA provides job protection for qualifying family leave events. In most cases, NJFLA runs together with New Jersey Temporary Disability Insurance (TDI) and New Jersey Family Leave Insurance (FLI)—both state programs that provide partial wage replacement to employees--but all are separate programs with different eligibility rules and administration.

· New Jersey Family Leave Act (NJFLA) provides unpaid job-protected leave for family-related reasons.

• Bonding with a newborn, adopted, or foster child

• Caring for a family member with serious health condition

• Does not cover an employee’s illness recovering from surgery, taking disability leave for their own medical issue or being unable to work due to their personal health condition

• Covered Employers must provide eligible employees with job-protected family leave, maintain their benefits during leave, and reinstate the employee to the same or equivalent position upon return. At the time leave is requested Employers provide notice of employee rights and responsibilities, certify employee-provided documentation centered on the family member or bonding event, and designate if the leave as NJFLA-qualifying.

· New Jersey Temporary Disability Insurance (TDI)

• Pays partial wages when an employee is unable to work due to their own non-work-related medical condition (e.g., illness, surgery, pregnancy recovery)

• Does not require employers to hold a job open or prohibit termination while someone is on TDI

• Employers cannot discriminate or retaliate against employees due to a disability or medical condition as TDI may create indirect job protection depending on facts (e.g., reasonable accommodation requirements)

• Employees file TDI claims directly with the State of New Jersey

• Employees qualify if they cannot work due to a non-work-related medical condition, have sufficient recent earnings in covered employment, and provide medical certification. The State determines eligibility and pays benefits. Employers only verify employment and wage information when requested.

· New Jersey Family Leave Insurance (FLI) provides wage replacement when an employee is out of work for qualifying family-related reasons.

• Bonding with a newborn, adopted, or foster child

• Caring for a family member with serious health condition

• Military family leave (qualifying exigency related to a family member’s deployment)

• Does not guarantee job protection nor require employers to reinstate employees

• Employees file FLI claims with the State of New Jersey

• Employees qualify for FLI if they have sufficient recent wages in covered employment and are taking leave for an approved family reasons. The State determines eligibility and pays benefits; employers only verify employment and wage information when requested.

New Jersey Temporary Disability Insurance covers employees when they cannot work due to their own medical condition, while Family Leave Insurance covers family-related leave such as bonding or caregiving. They don’t apply for the same reason for absence, but they may be used sequentially during events like childbirth where TDI covers recovery and FLI covers bonding. Your HR team will review employee handbooks and advise if any changes are needed.

If you have any questions or would like assistance in reviewing your policies, please contact your HR team.

Georgia has enacted significant changes to its medical cannabis law through Senate Bill 220, the “Putting Georgia’s Patients First Act,” signed by Governor Brian Kemp on May 13, 2026.

The legislation expands access to medical cannabis products for qualified patients while preserving important employer rights regarding workplace drug policies, drug testing, and workplace safety. Employers with employees in Georgia should review their workplace drug and alcohol policies, supervisor training programs, and reasonable suspicion procedures to ensure continued compliance.

Georgia’s expanded medical cannabis law increases lawful patient access to THC-based products but does not eliminate employer authority to maintain safe, drug-free workplaces. Employers—particularly federal contractors and safety-sensitive organizations—may generally continue enforcing drug testing programs

Key Changes Under Georgia’s New Law

Importantly, recreational marijuana remains illegal in Georgia. Smoking or burning cannabis products also remains prohibited under Georgia law. The new legislation expands Georgia’s existing medical cannabis framework by:

• Removing the previous 5% THC potency cap for authorized medical cannabis products

• Expanding allowable forms of medical cannabis to edibles, gummies and vaporized flower products

• Increasing possession allowances for registered patients

• Expanding qualifying medical conditions to include Lupus, Autism, Severe Alzheimer’s disease, Stage III HIV, and Inflammatory bowel disease

• Extending registration validity periods and easing renewal requirements for certain chronic conditions

Georgia’s medical cannabis law does not prohibit employers from asking whether an employee is authorized to use medical cannabis or from requesting documentation related to a positive marijuana test result as part of an interactive review process. Employers may generally request proof of a valid medical cannabis registration card, documentation supporting lawful medical authorization when necessary to evaluate workplace safety concerns. Employers should maintain confidentiality of medical information and limit inquiries to job-related and business necessity purposes.

Employer Rights Remain Intact

Despite the expansion of medical cannabis access, Georgia employers generally retain broad authority to maintain drug-free workplace policies. Georgia law does not require employers to:

• Permit employees to use or possess cannabis at work

• Allow employees to work while impaired or under the influence

• Accommodate on-duty impairment or safety risks

• Eliminate pre-employment, random, post-accident, or reasonable suspicion drug testing programs

Employers may continue enforcing policies prohibiting working under the influence of drugs or alcohol, possession of controlled substances in the workplace, impairment during work hours and/or violations of safety-sensitive work rules.

Medical cannabis is currently not protected under the federal Americans with Disabilities Act (ADA) because marijuana is classified as a Schedule I substance under the Controlled Substances Act.

The ADA excludes from its protection any employee or applicant currently engaging in the illegal use of drugs, a definition that includes medical marijuana, regardless of state legalization.

Courts have consistently held that employers are not required to provide reasonable accommodations for the use of medical marijuana at work, nor are they required to overlook a positive drug test for THC, even if the employee is registered and using it under a doctor's supervision.

Federal Law Considerations

Cannabis remains classified as a Schedule I controlled substance under the federal Controlled Substances Act, regardless of state legalization efforts. This distinction is particularly important for:

• Federal contractors

• Employers subject to the Drug-Free Workplace Act of 1988

• Employers regulated by the U.S. Department of Transportation

• Safety-sensitive industries

Federal contractors and covered employers may still be required to maintain drug-free workplace programs and may prohibit marijuana use even where state law permits medical cannabis use. Additionally, DOT-regulated employees remain subject to federal drug testing rules that prohibit marijuana use, including medical marijuana, for covered positions such as commercial drivers and certain transportation workers.

Reasonable Suspicion and Positive Test Result Considerations

Employers should continue following established reasonable suspicion procedures when there is a good-faith belief that an employee may be impaired while working. Supervisors should be trained to identify and document objective indicators of possible impairment, which may include slurred speech, impaired coordination, erratic behavior, unsafe conduct, odor of marijuana or cannabis products or observable impairment impacting job performance or safety. When reasonable suspicion exists, employers should:

1. Remove the employee from safety-sensitive duties, if applicable

2. Document contemporaneous observations by management witnesses

3. Follow established drug and alcohol testing procedures

4. Arrange safe transportation if the employee appears impaired

5. Apply policies consistently across similarly situated employees

Because cannabis metabolites may remain detectable long after impairment subsides, employers should avoid relying solely on a positive marijuana test result as proof of current impairment unless permitted under applicable law and company policy. Instead, employers should combine testing results with documented workplace observations and policy violations.

We want to make you aware of a recent phishing trend circulating on Instagram and other platforms involving fake CAPTCHA verification screens. These scams are designed to appear like legitimate “I’m not a robot” checks but instead prompt users to follow unusual steps—such as pressing keyboard shortcuts or pasting commands into a system window. These actions can silently install malware (including credential-stealing programs) and compromise sensitive information like saved passwords, banking details, and cryptocurrency wallets.

CAPTCHA screens are simple security checks used by websites to confirm that a user is a real person and not an automated bot. You’ve likely seen CAPTCHA in forms like checking a box (“I’m not a robot”), selecting images (e.g., traffic lights or crosswalks), or typing distorted letters and numbers. Please be aware that legitimate CAPTCHA tools—such as those used by Google on trusted sites—will never ask you to run commands, paste code, or use system-level shortcuts.

Red flags include:

• unexpected pop-ups

• instructions beyond simply clicking images or a checkbox

• unfamiliar or suspicious website URLs

If you encounter any CAPTCHA prompt that behaves this way, close the page immediately and do not interact further. To protect yourself, avoid pasting commands into your device, use a password manager when possible, and ensure your system security tools are up to date. If you believe you may have engaged with a suspicious prompt, disconnect from the internet, run a malware scan, and update your passwords from a separate, secure device.