Welcome to Issue #28 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.

EEOC Plans to Narrow Its Pregnancy Accommodation Rules This Month

The EEOC has told the Office of Management and Budget that it plans to revise its regulations under the Pregnant Workers Fairness Act, with a proposal expected sometime in November. The agency has not said what the changes will be.

The focus is how the rule defines “pregnancy, childbirth or related medical conditions.” EEOC Chair Andrea Lucas has criticized the current rule for reaching conditions such as infertility, menstruation, and menopause. A public comment period is expected to run through January.

Nothing has changed yet. The law still requires employers with 15 or more employees to provide reasonable accommodations for known limitations related to pregnancy and childbirth unless doing so would cause undue hardship, and the current rule stays in force until a final one replaces it.

Action step: Keep treating every request individually. Respond promptly, document the conversation, and avoid pushing an employee onto unpaid leave when a workplace adjustment would work.

1. DOL Recovers About $604,000 After a Bonus Was Left Out of Overtime

The DOL found that Toa (USA), an Indiana auto supplier, did not include a non-discretionary attendance bonus when calculating overtime for 829 hourly workers. Bonuses tied to attendance or production generally belong in the overtime rate. Ask your payroll provider how bonuses, shift differentials, and commissions are handled.

2. California’s Minimum Wage Rises to $17.40 on January 1

The increase lifts the minimum salary for exempt California employees to $72,384 a year. Check every exempt employee’s pay now, and move anyone below the line to hourly pay with overtime tracking before the first payroll of 2027.

3. Creditable Drug Coverage Standard Rises to 73% for 2027

For plan years beginning in 2027, the simplified method for deciding whether prescription coverage is creditable rises from 60 to 73 percent. A plan that qualified this year may not next year, and Medicare-eligible employees who delay Part D could face permanent late-enrollment penalties. Ask your broker or carrier to confirm each plan’s status.

✅ Keep documenting every pregnancy accommodation request and your response

✅ Ask payroll how bonuses and differentials are included in overtime pay

✅ Compare California exempt salaries against the new $72,384 floor

✅ Get written confirmation of each plan’s 2027 creditable-coverage status

The DOL’s fact sheet on the regular rate of pay explains which payments must be included in overtime calculations: dol.gov

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

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See you next Tuesday.

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