Welcome to Issue #14 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.

The EEOC Just Rolled Back Harassment Protections for LGBTQ Workers

The EEOC voted 2-1 to rescind its 2024 guidance strengthening harassment protections for LGBTQ workers and women who seek abortions — a significant policy shift affecting every employer's harassment policy.

The underlying laws haven't changed. Title VII still prohibits sex-based harassment, and the Supreme Court's 2020 Bostock decision extending protections to LGBTQ workers remains in effect. What's gone is the agency's detailed interpretive roadmap on how those protections apply in specific situations.

The practical risk: a policy vacuum. Courts can still find liability even where the EEOC no longer provides guidance — meaning your internal procedures matter more now, not less.

Action step: Review your harassment policy to make sure it stands on its own. It should clearly prohibit harassment based on all protected characteristics, outline the complaint process, and commit to investigation and non-retaliation — without relying on guidance that no longer exists.

1. Two New Hiring-Process Rules

New York now bans using credit history in hiring decisions. Florida expanded its E-Verify mandate to cover more employers. If you hire in either state, check whether these rules apply to your current process.

2. Two State Leave Expansions This Month

New Jersey reduced its family leave coverage threshold effective July 17 — smaller employers now fall under the law. Delaware added paid parental and medical leave requirements for covered employers in 2026. If you have employees in either state, confirm your policies are current.

3. FLSA Penalty Rates Just Increased

The DOL raised penalty rates for wage-and-hour violations including overtime, minimum wage, and child labor infractions. Enforcement mistakes are getting more expensive — a timekeeping error that cost $1,000 in penalties a few years ago can now cost significantly more.

✅ Review your harassment policy — confirm it covers all protected characteristics and doesn't rely on now-rescinded EEOC guidance

✅ If you hire in New York, check your process for credit history use in background checks

✅ If you hire in Florida, confirm E-Verify enrollment and compliance

✅ If you have New Jersey or Delaware employees, verify leave policies match current thresholds

The EEOC's Small Business Task Force has plain-language guides on harassment, accommodation, and discrimination that don't rely on the rescinded guidance: eeoc.gov/small-business

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.