Welcome to Issue #1 of The Compliance Brief. Every Tuesday I break down the HR and labor law updates that actually matter to small businesses — in plain English, no legal jargon.

New Paid Leave Laws Are Live — And Small Businesses Are on the Hook

Three more states launched paid family and medical leave programs in 2026: Delaware, Maine, and Minnesota. If you have employees in any of these states you are required to register, withhold contributions from paychecks, and comply with notice requirements. Fines are assessed per employee per quarter.

Action step: If you have staff in Delaware, Maine, or Minnesota — check your state's labor department website this week to confirm your registration status.

1. Tips and overtime — new tax rules, new admin burden

A new tax provision allows workers to deduct qualified tips and overtime on their personal returns — but employers remain responsible for withholding taxes and face new reporting requirements. Talk to your payroll provider now to make sure your system is set up to track and report this correctly.

2. Independent contractor rules are shifting — again

The Department of Labor has signaled potential changes to independent contractor standards. Meanwhile, California has clarified that merely owning a vehicle used for work does not make someone a contractor. If you use contractors, now is a good time to review those relationships.

3. Pay transparency is spreading fast

15 states and seven counties and cities across the US now have pay transparency laws. Most require you to include salary ranges in job postings. If you're hiring in any of these states, check your job postings now — this is one of the easiest violations to avoid.

✅ If you're in Delaware, Maine, or Minnesota — confirm your paid leave registration status this week

✅ Talk to your payroll provider about the new tip and overtime reporting requirements

✅ Review any open job postings — do they include salary ranges where required?

✅ Pull up your contractor list and ask: do any of these people look like employees?

Need to check your state's paid leave requirements? Start here:

dol.gov/agencies/whd/fmla — Federal leave overview

Then search "[your state] paid family leave 2026" for state-specific rules. Takes 5 minutes and could save you thousands.

That's it for this week. Short, actionable, no fluff.

If this was useful, forward it to another small business owner who could use it.

See you next Tuesday.

The Compliance Brief thecompliancebriefhq.com

This is for informational purposes only and does not constitute legal advice.