Labor & Employment (Labor Standards)

SB 245, titled "Tip pooling," authorizes restaurants and hospitality businesses to group customer tips for distribution among eligible staff under specific, defined circumstances. The bill directly affects tipped workers (like servers and bartenders) and their employers by establishing clear rules for how tips can be shared. It passed the House unanimously (44-1) on January 22, 2026, and now moves to the next legislative stage, with no further details provided on the exact conditions for pooling.

Provides that, under certain circumstances, an employer who takes an adverse action against an employee commits an infraction. Specifies that, under certain circumstances, an adverse employment action is prima facie evidence of an unlawful retaliation. Provides that, under certain circumstances, an employer who knowingly or intentionally fails to pay an employee or former employee commits an infraction. Increases the amount of worker's compensation and worker's occupational diseases compensation benefits available for injuries and disablements: (1) in fiscal year 2027; (2) in fiscal year 2028; (3) in fiscal year 2029; (4) in fiscal year 2030; (5) in fiscal year 2031; and (6) in fiscal year 2032 and thereafter. Amends the definition of "wage credits". Specifies the rate for unemployment insurance benefits for initial claims filed by an individual who is totally unemployed for any week beginning after June 30, 2026. Specifies, for initial claims filed for any week beginning after June 30, 2026: (1) the maximum weekly benefit amount; and (2) an additional weekly benefit for eligible and qualified individuals with dependents.

Updates or amends certain portions of the definition of "employee". Provides that an employer who knowingly sells merchandise or supplies to an employee for higher than the market price commits a Class C infraction. Provides that an employer must pay each employee at least semimonthly or biweekly the amount due the employee. (Current law gives the employee the choice.) Provides that a wage assignment: (1) is not required to have a revocation provision on or after July 1, 2026; and (2) may benefit the employer under certain circumstances. Specifies that an employee may bring an action under certain wage provisions if an employer makes an improper wage deduction. Reorganizes certain minimum wage and wage claim provisions. Changes the statute of limitations with respect to certain minimum wage and wage claim provisions. Makes technical and conforming changes.

Prohibits an employer from: (1) relying exclusively on an automated decision system in making an employment related decision with respect to a covered individual; (2) using an automated decision system output in making an employment related decision with respect to a covered individual unless certain conditions are met; and (3) discriminating or retaliating against a covered individual for exercising rights under these provisions. Sets forth disclosure requirements for an employer that uses or intends to use an automated decision system output in making an employment related decision. Allows the department of labor to take certain enforcement actions. Allows a covered individual or labor organization to bring a civil action for a violation.

SB 132 prohibits employers from requiring noncompete agreements with employees whose annual compensation is below $150,000. This directly affects lower- and middle-wage workers who might otherwise face restrictions on changing jobs. The key provision bans such agreements for these employees, removing a common tool used by employers to limit workforce mobility. The bill aims to make it easier for these workers to seek new employment without legal constraints.