The Month Ahead - July 2026

Welcome to the July edition of The Month Ahead - your monthly briefing on the workplace, compliance, employment law developments and seasonal issues HR should be watching now.

Mid-year compliance deadlines are stacking up - here's what HR teams need to have in motion now to prepare for July

1. Check for Mid-Year Paid Family and Medical Leave (PFML) Updates
2. Respond to State and Local Minimum Wage Changes
3. Get Ready to File Q2 Federal Form 941
4. Conduct Mid-Year Performance Reviews or Check-Ins
5. Audit Accessibility for Disability Pride Month
6. Prepare for Myriad July State Compliance Changes

July is a busy compliance month. Implementing multiple mid-year legal changes amid summer staffing pressures can strain even well-prepared HR teams. Now is the time to tighten processes, address changes early and avoid preventable missteps.

1. Check for Mid-Year Paid Family and Medical Leave (PFML) Updates

Changes in state PFML contribution rates and benefit amounts often take effect on July 1, making it essential to confirm that mid-year updates are in place ahead of that deadline. The changes may affect premium rates, maximum weekly benefits and requirements regarding notices or forms.

Your July Readiness To-Do List

• Review whether you have employees working in states that have July 1 PFML updates.
• Update payroll deductions and coordinate with your payroll provider or HRIS to ensure system changes take effect by July 1.
• Update notice and form procedures, including any state-mandated workplace posters or employee notices, as needed.
• Notify employees of changes if required by state rules and document the communication.
• Coordinate with leave administrators and benefits teams to align leave-tracking workflows with updated benefit amounts and eligibility rules.

Why this matters: Mid-year PFML changes can affect payroll, employee notices and leave administration all at once. A careful review now helps you avoid deduction errors, outdated forms and last-minute scrambling.

2. Respond to State and Local Minimum Wage Changes

July 1 is one of the busiest dates of the year for state and local minimum wage changes. This year, more than two dozen minimum wage changes kick in around July 1. For HR and payroll teams, it's important to identify affected employees, update pay rates and make sure systems are ready to apply the new amounts on time.

Your July Readiness To-Do List

• Identify employees affected by July 1 wage changes and notify them.
• Update pay rates as needed.
• Assess any pay compression issues.
• Confirm payroll systems or your payroll provider are ready to apply the new amounts correctly by July 1.
• Update job postings in affected jurisdictions to reflect revised pay ranges, especially in those with pay transparency requirements.

Why this matters: Minimum wage changes rarely affect just one number. They can trigger payroll updates, job-posting revisions and employee relations issues if changes are missed or communicated poorly.

3. Get Ready to File Q2 Federal Form 941

The Q2 Form 941, Employer's Quarterly Federal Tax Return, is due to the Internal Revenue Service (IRS) by July 31. Beware that the latest/March 2026 version must be filed and that there are new refund/direct deposit fields and electronic balance-due payment and aggregate-filer (i.e., third-party filer) identification requirements.

Your July Readiness To-Do List

• Reconcile Q2 wages, withholding and deposits before you start the return.
• Use the March 2026 form and complete any new refund or aggregate-filer fields that apply.
• If you use a third-party payroll provider, confirm they are using the updated March 2026 form and have activated the new fields.  Don't assume this is handled automatically.
• Confirm any balance-due payment will be made electronically.
• File by July 31 and retain supporting payroll records.

Why this matters: A late or inaccurate Form 941 can trigger IRS notices, penalties and extra cleanup later. A quick review now helps you file cleanly and move on.

4. Conduct Mid-Year Performance Reviews or Check-Ins

July is a natural midpoint for checking progress, resetting priorities and aligning employees and managers on what a strong second half of the year should look like. For many employers, it's a practical time for mid-year reviews or lighter-touch performance check-ins. It's also an opportunity to adjust or revise goals to remain aligned with any strategic or operational priorities that may have changed.

Your July Readiness To-Do List

• Direct managers to review first-half progress with employees.
• Provide employees with a simple self-review framework ahead of their meeting so they come prepared.
• Equip managers with guidance to prepare for effective discussions.
• Have employees reset or adapt goals and priorities for the rest of the year, if needed.
• Document all discussions, including agreed-upon goals and any performance concerns, to create a clear record for year-end evaluations.
• Use mid-year check-ins to identify flight risks or disengaged employees early - summer is a common time for job searching.
• Follow up on any development plans or training to check whether they've been fulfilled.

Why this matters: Mid-year reviews help keep employees on track with goals. They also give managers a structured chance to address performance, remove roadblocks, provide any needed training or support and refocus employees before small issues become year-end problems.

5. Audit Accessibility for Disability Pride Month

July is Disability Pride Month. That makes it a good time to look beyond awareness messaging and assess whether your workplace is truly accessible and in compliance with the Americans with Disabilities Act (ADA). HR can use July to spotlight inclusion efforts, review barriers and share resources that better support employees with disabilities.

Your July Readiness To-Do List

• Audit digital and physical accessibility barriers.
• Share disability inclusion resources with employees and managers.
• Highlight accessibility improvements and support tools available to employees.
• Flag policy or process gaps for follow-up.
• Review your reasonable accommodation request process to confirm it's interactive, well-documented, timely and ADA-compliant.
• Train managers on how to recognize and properly handle accommodation requests, including how to engage in the interactive process and escalate to HR.

Why this matters: Accessibility work should not be separated from everyday HR operations. Taking time now to identify barriers and reinforce inclusion can improve the employee experience, help attract and retain talented workers, reduce compliance risk and surface issues that deserve longer-term attention.

6. Prepare for Myriad July State Compliance Changes

A high volume of new and amended state laws take effect on July 1 and throughout the rest of the month. HR and payroll teams should confirm what applies, assign ownership and get implementation steps moving now. The following are just a few of the changes.

Indiana Employment Eligibility Verification (Effective July 1, 2026)

Starting July 1, Indiana is tightening the screws on employment eligibility compliance, highlighting the growing focus and attention in the US generally on illegal immigration and enforcement. Employers may not knowingly or intentionally recruit, hire or keep someone on board who is not authorized to work. The law offers some protection for reasonable diligence, but only if you can show you met that standard after getting notice of a violation.

Your July Readiness To-Do List

• Review your hiring and onboarding process for Indiana employees to confirm employment eligibility verification steps are being followed consistently.
• Audit Form I-9 completion and retention practices to spot gaps before July 1.
• Reinforce internal procedures for responding to work authorization issues.
• Train HR staff and hiring managers on the new standard and the importance of reasonable diligence at a minimum.
• Document your verification process so you can show consistent compliance if questions come up later.

Why this matters: Indiana's new law raises the stakes on employment eligibility compliance. If your verification process is loose, inconsistent or poorly documented, you could face legal risk and miss out on the protections available to employers that can show they acted with reasonable diligence.

Oregon Creditor Garnishment Limits (Effective July 1, 2026)

Oregon is raising the maximum amounts that may be withheld from an employee's pay under a creditor garnishment order starting July 1. Although the amounts increased exactly one year ago, payroll teams should once again prepare to adjust pay deduction calculations.

Your July Readiness To-Do List

• Review active Oregon creditor garnishment orders.
• Update payroll calculations for the higher withholding limits.
• Confirm your payroll system or provider is ready by July 1.
• Train payroll staff on the new thresholds and handling rules.

Why this matters: Garnishment orders require immediate action. If your payroll calculations or system settings are wrong on July 1, you risk withholding errors, employee confusion and avoidable compliance trouble.

Tennessee Salary Threshold for Noncompete Agreements (Effective July 1, 2026)

Tennessee employers cannot require, request or enforce noncompete agreements against employees earning less than $70,000 in annualized compensation for agreements entered, renewed or amended after July 1. Because that calculation includes more than base pay, employers should review agreement templates and compensation data before using noncompetes with Tennessee employees.

Your July Readiness To-Do List

• Review Tennessee noncompete templates and onboarding materials.
• Identify employees whose annualized compensation falls below $70,000.
• Verify that calculations of annualized compensation for hourly-paid workers comply with the statutory formula.
• Update recruiting, offer and separation practices that involve noncompete language.
• Train HR and legal teams on when noncompetes can still be used.

Why this matters: A noncompete that is barred by the new law will not help you when you need it. If your templates, compensation checks or approval processes are not updated by July 1, you risk using unenforceable agreements and creating avoidable legal and employee relations issues.

Virginia Pay Transparency and Salary History (Effective July 1, 2026)

Starting July 1, Virginia employers must include wage or salary ranges in public and internal job postings and stop seeking or relying on applicants' pay history when making hiring or pay decisions. That means posting practices and recruiting workflows may need a quick reset.

Your July Readiness To-Do List

• Identify appropriate pay ranges for open roles by reviewing existing pay scales, current employees' pay, budgeted amounts and other relevant information.
• Update internal and external job postings to include required pay ranges.
• Remove salary history questions from applications, interviews and hiring materials.
• Train recruiters and hiring managers on the new rules before July 1.

Why this matters: This law changes what must appear in job postings and what hiring teams can ask or use during the recruiting process. If your postings, interview practices or pay-setting workflows are not updated by July 1, you risk inconsistent hiring practices and avoidable compliance issues.

Washington Child Labor Work Permits and Working Time Restrictions (Effective July 1, 2026)

As of July 1, the Washington Department of Labor and Industries can revoke an employer's minor work permit for at least 12 months after certain safety and health citations or restraining orders. For employers that hire minors, that raises the stakes on youth-employment compliance and workplace safety.

Washington is also allowing 16- and 17-year-olds enrolled in certain career and technical education (CTE) programs to work the same number of hours and days during the school year as would be permitted during school vacations or holidays.

Your July Readiness To-Do List

• Review where your organization employs minors in Washington.
• Confirm that minor work permits, schedules and job duties are compliant.
• If a minor is enrolled in a qualifying CTE program, consider scheduling changes.
• Audit safety practices in locations that employ minors.
• Address any open citations or risk areas before July 1.
• Train managers on the higher stakes of youth-employment violations.

Why this matters: Losing the ability to employ minors for at least 12 months, and especially in the summer, can create real staffing and operational disruption. If safety practices, permits or manager oversight are not in order by July 1, employers risk more than a citation.

Washington Criminal History Law (Effective July 1, 2026)

Effective July 1, Washington employers with at least 15 employees must wait until after making a conditional job offer to ask about criminal history. The amended law also narrows how arrest records, juvenile records and adult conviction records may be used and adds notice and response requirements before final adverse action.

Your July Readiness To-Do List

• Remove criminal history questions from pre-offer applications and screening steps.
• Delay background checks until after a conditional offer for covered positions.
• Review adverse action procedures relating to arrest records, juvenile records and adult convictions.
• Build a process to document legitimate business reasons and provide notice and response time.
• Train recruiters, hiring managers and anyone involved in screening before July 1.
• Audit any third-party background check vendors to confirm their process aligns with the new requirements.

Why this matters: This law changes both when criminal history can be reviewed and how it can be used. If your hiring process, background check timing or adverse action steps are not updated by July 1, you risk inconsistent decisions, documentation gaps and avoidable compliance exposure.

New Jersey Family Leave and Temporary Disability Benefits (Effective July 17, 2026)

As of July 17, New Jersey's state family leave law (NJFLA) will cover more employers and employees. The law will now apply to employers with 15 or more employees instead of 30 or more. And employees will qualify sooner, after just three months of service and 250 base hours in the prior 12 months, instead of 12 months of service and 1,000 base hours.

At the same time, amendments to New Jersey's paid family leave law (PFLL) and temporary disability benefits (TDB) law will strengthen employees' job-reinstatement protections after receiving benefits.

Your July Readiness To-Do List

• Review whether your organization will be subject to the lower 15-employee threshold.
• Identify employees who may now qualify under the shorter service and lower hours requirements.
• Update leave policies, forms and internal guidance to reflect the amended laws and coordinate with appropriate stakeholders (e.g., managers and HR).
• Review how NJFLA leave interacts with the Family and Medical Leave Act, the New Jersey Security and Financial Empowerment Act, PFLL and TDB benefits, and update any concurrent-leave tracking processes.

Why this matters: The amendments expand both employer coverage and employee eligibility under the NJFLA while strengthening job protections for those receiving PFLL and TDB benefits. If your leave policies, manager guidance and request-handling processes are not updated before the laws take effect, you risk missteps in leave administration, inconsistent decisions and avoidable compliance problems.

Maine Employer Surveillance Law (Effective July 29, 2026)

Starting July 29, Maine employers must notify employees before beginning workplace surveillance, provide them with annual notices and disclose surveillance practices during job interviews. The law also restricts audiovisual monitoring in an employee's residence and vehicle unless it is required for the job.

Your July Readiness To-Do List

• Review current surveillance practices and identify any covered monitoring.
• Prepare employee and annual surveillance notices.
• Update interview and recruiting materials to disclose surveillance practices.
• Check whether audiovisual monitoring is used in restricted locations.
• Train HR, recruiters and managers in the new rules before July 29.

Why this matters: This law affects employee notices, recruiting practices and workplace privacy all at once. If your surveillance practices are not documented and communicated clearly by July 29, you risk compliance gaps, inconsistent disclosures and avoidable employee relations issues.