Welcome to Issue #15 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.

Three Benefits Changes Small Employers Need to Act On Before Year-End

Several 2026 benefits changes have payroll and plan administration implications that are easy to miss.

The IRS raised the ACA affordability percentage to 10.22% for 2026 plan years — the threshold that determines whether your health coverage counts as affordable under the employer mandate. If you offer coverage to full-time employees, confirm your contribution levels still pass this test. Getting it wrong can trigger shared responsibility penalties.

The dependent care FSA limit increased to $7,500. If your payroll system or plan documents haven't been updated, employees may be missing out — and you may have an administrative error to fix.

Employer-provided student loan repayment assistance is now permanently tax-free up to $5,250 per year. Previously temporary, it's now a viable long-term benefit worth considering if you're looking for affordable ways to attract and retain staff.

Action step: Run these three items past your benefits broker or payroll provider before Q4.

1. The DOL Recovered $2.48 Million in Two Enforcement Actions

The Wage and Hour Division recovered $1.73M in back wages for 1,666 workers after a contractor failed to pay proper overtime, and separately secured a $750K settlement for restaurant workers in Washington. Both involved basic timekeeping failures — the kind that compound quietly until an investigator arrives.

2. Three State Law Changes Effective This Month

Louisiana added workplace violence protections for retail and hospitality workers (August 1). Minnesota's new disability rights law and updated sick leave guidance also took effect August 1. San Francisco's fair chance ordinance amendments take effect August 10, tightening criminal history use and adverse-action timelines. Check your policies if you operate in any of these locations.

3. EEOC Files Pregnancy Discrimination Lawsuit Against Home Creations

A reminder that pregnancy accommodation obligations apply at every employer size. If a pregnant employee requests an adjustment, the safe first move is a good-faith discussion — not an outright denial.

✅ Confirm your ACA affordability calculation uses the updated 10.22% threshold

✅ Check whether dependent care FSA plan documents reflect the new $7,500 cap

✅ Ask your benefits broker about permanent student loan repayment assistance ($5,250/year tax-free)

✅ If you operate in Louisiana, Minnesota, or San Francisco, review policies for August effective date changes

The IRS ACA Information Center for Employers has current affordability percentages and shared responsibility guidance: irs.gov/affordable-care-act/employers

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.