Compliance Corner: What’s Changing and What You Need to Know, August 2026

Welcome to your August 2026 Compliance Corner, a quick snapshot of important payroll, HR, and employment law updates.

This page highlights select compliance items you should be aware of, so you can stay informed on key changes, reminders, and emerging requirements that may impact your business.

Please note: This is not a comprehensive list of every employment law or compliance update. Regulations are constantly evolving at the federal, state, and local levels. For ongoing compliance guidance, proactive alerts, and expert HR support tailored to your business, learn more about DP Boost HR.

What's highlighted: 

• Virginia Law Alert: VA Enacts Criminal History Record Protections 

• Colorado Law Alert: Colorado Restricts Employer Retention of Employee IDs

• Maryland Law Alert: Local Minimum Wage Increased on July 1

• Minnesota Law Alert: St. Paul Minimum Wages Increased on July 1

Virginia Law Alert: VA Enacts Criminal History Record Protections

As of July 1, 2026, employers of all sizes generally can’t require applicants to disclose sealed arrests, charges, or convictions at any point during the hiring process, including on employment applications or during interviews. Additionally, when responding to employer questions about arrests, charges, or convictions, applicants don’t have to reference or provide information about their sealed arrests, charges, or convictions.

The law contains several exceptions to this restriction, for example, when the position involves law enforcement or national security. Employers should review the exceptions, available on the Virginia Applicant and Employee Screening laws page, to determine if any apply to their specific circumstances.

Applicant Notice
If a job application includes any questions about prior arrests, charges, or convictions, the employer must notify the applicant—either in the application or in a separate notice—that sealed records don’t have to be disclosed.

Action Items

• Update job applications and hiring materials as needed.
• If your application includes criminal history questions, add the required notice either directly in the application or as a separate document provided to applicants.
  

CO Law Alert – Colorado Restricts Employer Retention of Employee IDs

Colorado recently enacted a law that prohibits employers of all sizes from taking, keeping, or otherwise requiring applicants or employees to surrender their government-issued ID. The law was signed by the governor on June 3, 2026, and became effective immediately.

Employers can hold an employee’s ID during the Form I-9 process, but only for as long as it takes to verify their employment eligibility and make a copy of the ID, and for no longer than 10 hours.

Notice Requirement
When verifying employment eligibility, employers need to give employees written notice about how their ID can be held and used. The notice needs to be provided in English and in the individual’s primary language (if the employer knows it isn’t English). Employers need to get an acknowledgment from the employee confirming that they received the notice and keep a record of both the notice and the acknowledgment.

The law doesn’t say whether a template notice will be provided or how long employers need to retain notice and acknowledgment records. We recommend keeping them for at least as long as you retain other employment records.

Action Items

• Begin providing written notice and collecting acknowledgments as required.
• Ensure that those verifying employment eligibility are aware that they need to be returning documents promptly.

Maryland Law Alert – Local Minimum Wage Increased on July 1

On July 1, 2026, the following local minimum wages increased.

Howard County
The minimum wage in Howard County increased to $16 per hour for employers with 14 or fewer employees as well as certain charitable organizations, home health service providers, and food service facilities, bringing them in line with larger employers that are already subject to this rate. The minimum base wage for tipped employees remains at $3.63 per hour.

More information can be found here.

Montgomery County
The hourly minimum wage in Montgomery County increased as follows:

• Employers with 1–10 employees: $15.95
• Employers with 11–50 employees: $16.50
• Employers with 51 or more employees: $18
• Employers with 11 or more employees and the employer is tax exempt under § 501(c)(3): $16.50
• Employers with 11 or more employees, and the employer provides home health services or home or community-based services (as defined by federal law) and receives at least 75% of gross revenues through Medicaid: $16.50

The minimum base wage for tipped employees remains $4 per hour.

More information can be found here.

Minnesota Law Alert – St. Paul Minimum Wages Increased on July 1

Effective July 1, 2026, St. Paul’s minimum wages for small and micro businesses increased as follows:

• $16.37 per hour for small businesses (6–100 employees)
• $14.25 per hour for micro businesses (5 or fewer employees)

The minimum wage for employers with 101 or more employees will remain $16.37 per hour.

Stay Ahead of What's Next

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Disclaimer: The information provided in this Compliance Corner is intended for general informational purposes only and should not be considered legal, tax, or HR advice. Employment laws and regulations are subject to change and may vary by state and local jurisdiction. We encourage you to consult with your legal counsel or HR advisor regarding how these updates may apply to your organization.