Welcome to Issue #11 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.

Two More States Just Changed the Rules on Hiring and Employment Agreements

If you have employees in Tennessee or Maine, July brought changes you may have missed.

Tennessee now bans non-compete agreements for workers earning under $70,000 per year, effective July 1. This applies to agreements entered into, renewed, or amended on or after that date — so existing agreements aren't automatically voided, but any renewals or amendments must now comply.

Maine's pay transparency law takes effect July 29, requiring employers to disclose pay ranges in job postings — including remote roles where the employee is based in Maine.

Both changes reflect a broader trend: employment agreements and hiring practices that were standard a few years ago are increasingly regulated at the state level with little federal fanfare.

Action step: If you have Tennessee employees earning under $70K, audit your non-compete agreements now. If you're hiring in Maine, update job posting templates before July 29.

1. An IHOP Franchisee Just Paid $95,000 in Back Wages

The DOL recovered $95,095 from an IHOP franchisee for overtime and recordkeeping violations affecting 33 workers. Timekeeping errors and misclassification — the kind of payroll mistakes that go unnoticed until an investigation lands. If you run a franchise or manage hourly staff, a quick audit of overtime calculations and time records is worth doing now.

2. The EEOC May Rescind Its English-Only Workplace Guidance

The EEOC's updated regulatory agenda signals it may withdraw its guidance on English-only workplace rules — the roadmap employers have relied on to justify requiring English on the job. If it's pulled, the underlying legal obligations don't disappear. Review any English-only policies in your handbook now for clear, documented business justification.

3. Washington Expanded Fair-Chance Hiring Rules

Washington added new fair-chance hiring requirements, including notice obligations for employers with 15 or more employees. If you hire in Washington, check whether the new notice requirements apply to your application and interview process.

✅ Tennessee employers: audit non-compete agreements for workers earning under $70K

✅ Maine hiring: update job posting templates to include pay ranges before July 29

✅ Audit overtime calculations and timekeeping records — basic payroll errors drive most DOL investigations

✅ Review English-only handbook policies for documented business justification

The DOL's PAID Program lets employers self-report overtime and wage errors voluntarily — often with reduced exposure compared to a formal investigation: dol.gov/agencies/whd/paid

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.