Welcome to your July 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:
Federal Law Alert: Fringe and Account-Based Benefits Plan Updates for 2026
VA Requires Pay Ranges in Job Postings and Prohibits Salary Inquiries
Once you've completed your review, email customerservice@dominionpayroll.com with your findings, and we'll work with you to ensure everything is configured correctly for 2026 reporting requirements.
Across the country, more states are implementing retirement savings mandates, and many employers are finding themselves covered sooner than expected. Even if you’re not currently required to offer a plan, that may change as legislation continues to evolve.
This shift is also creating opportunity. Many employers are using this moment to establish retirement benefits that help attract and retain talent, take advantage of potential SECURE 2.0 tax credits, and stay ahead of compliance requirements before mandates take effect.
Join Our Upcoming Webinar to Stay in Compliance →
Provisions from the budget reconciliation bill (HR 1: One Big Beautiful Bill Act), affecting benefits provisions in 2026, are described below:
Bicycle Commuter Reimbursement Exclusion
Tax-free reimbursements to employees for qualified commuting expenses for bicycles, previously excluded for tax years 2018 through 2025, is indefinitely excluded. As a result, employers can’t reinstate bicycle commuter expenses as a tax-free benefit again in 2026 and need to amend their fringe benefits documents if they included the previous temporary exclusion dates.
Dependent Care Flexible Spending Account Limit
The dependent care flexible sending account (DCFSA) annual contribution limit will increase to $7,500 for plan years beginning in 2026.
Increasing the limit is optional for employers; however, employers offering a DCFSA that want to take advantage of the increase should update their cafeteria and benefits plan documents and notify employees prior to the start of their 2026 plan year.
Direct Primary Care Service Arrangements
Beginning January 1, 2026, certain direct primary care service arrangements (a contract between an individual and primary care physicians for care for a monthly fee) will not prohibit an employee from contributing to a health savings account (HSA). Employees may use their HSA to pay the monthly cost of direct primary care service arrangements that meet certain qualifications (e.g., a monthly fee of $150 or less for one person).
HR 1 was signed by the President on July 4, 2025.
Form 300A Workplace Posting Begins February 1
Covered employers that had 11 or more employees in the entire company at any point in 2025 are required to post the Occupational Safety and Health Administration (OSHA) Form 300A, Summary of Work-Related Injury and Illnesses, from February 1 through April 30. This requirement applies even if the company didn’t have any recordable incidents in 2025.
OSHA Form 300A must be certified by a company executive and posted in each establishment in a conspicuous location where notices to employees are customarily posted.
Certain establishments are partially exempt from OSHA’s routine record keeping requirements, if they have 10 or fewer employees or if their primary business activity is classified as low hazard according to OSHA’s guidelines. A full list of exempt low-hazard industries, ordered by North American Industry Classification System (NAICS) codes, can be found here. (The exemption is “partial” because all employers must notify OSHA when an employee is killed on the job or suffers a work-related hospitalization, amputation, or loss of an eye.)
Form 300A Electronic Submission Due by March 2
Covered establishments that had 250 or more employees in the prior calendar year, or 20–249 employees if they’re in certain high-risk industries, must submit their 2025 Form 300A data electronically using OSHA’s online Injury Tracking Application (ITA). The deadline to submit the report is March 2, 2026. These requirements are based on the size of each “establishment” (how many employees there are at a given physical location), not how many employees are in the entire company. Most employers that are covered by a State Plan must also use the ITA to send data electronically.
Employers that meet any of the following criteria DO NOT have to send Form 300A information to OSHA:
Additional information, FAQs, and the ITA can be found on OSHA’s ITA page.
Form 300 and Form 301 Electronic Submission Required by March 2
Covered establishments in designated high-hazard industries that had 100 or more employees in the prior calendar year will need to electronically submit information from their Form 300, Log of Work-Related Injuries and Illnesses, and Form 301, Injury and Illness Incident Report, through OSHA’s ITA. This is in addition to submitting information from their Form 300A.
Help Determining Coverage
Employers can use the ITA Coverage Application to determine if they’re required to electronically submit their injury and illness information and whether they should review an applicable State Plan to determine reporting requirements.
Miss the filing deadline for this year? DP Boost can help you stay on top of these requirements and help navigate any issues with late filing.
Virginia employers are approaching a major new compliance requirement with the upcoming state Paid Family and Medical Leave (PFML) program. While benefits won’t begin until December 1, 2028, payroll contributions and key administrative requirements will start earlier, making early preparation essential.
The program will provide eligible employees with up to 12 weeks of paid, job-protected leave for qualifying family, medical, military, and safety-related reasons, and will introduce new payroll, policy, and compliance considerations for employers of all sizes.
From eligibility and funding details to how PFML interacts with existing leave laws like FMLA, there are important steps employers can begin taking now to prepare for implementation.
Staring July 1, 2027, Virginia will have a new paid sick leave (PSL) law. Employers will need to begin providing sick leave by the following dates, based on their sizes:
Below are the law's key provisions:
Covered Employees
All employees are covered by the law, with the exception of certain healthcare workers (such as home healthcare workers that were already covered by their own paid sick leave law)
Accrual, Carryover, and Front Loading
Use
Employees can use PSL as soon as it’s accrued for the following reasons:
Employees can use PSL in increments of one hour (or less if the employer allows it)
Employers can cap PSL use at 40 hours per year. Additionally, employers can require that employees give notice of their PSL use, but only if they provide employees with a written policy that outlines the notice procedures
Documentation
Notice and Posting
Record Keeping
Employers also need to keep records of employees’ PSL use and accrual for three years, and keep employees’ sensitive information, such as protected health information, confidential. Again, the law doesn’t provide specifics but the state is expected to release more details before the effective date
Payout at Termination
Employers aren’t required to pay out unused PSL at termination. However, if an employee is rehired within 12 months, previously accrued but unused PSL needs to be reinstated and made available for immediate use, unless it was paid out at termination
Paid Leave Policies
Employers can use a paid leave policy, such as a PTO policy, to meet the requirements of PSL so long as it meets or exceeds the requirements of the PSL law
What Does this Mean for You
Identify employee head count to confirm which deadline applies
Review your current PTO policy, if it does not meet the requirements of PSL, a Sick Leave Policy must be created
Communicate the availability of PSL to all employees as your established deadline approaches
Beginning July 1, 2026, Virginia employers of all sizes will be required to include pay ranges in job postings. Additionally, employers will be prohibited from inquiring about an applicant’s pay history.
What does this mean to you?
Starting July 1, 2026, Virginia noncompete agreements won’t be enforceable against employees who are fired without cause, unless the employer provides severance benefits or other monetary payment. Employers are required to disclose these benefits before the noncompete agreement is finalized. However, what constitutes a termination “for cause” is not defined in the law.
Beginning July 1, 2026, Virginia’s employment discrimination law will apply to employers with five or more employees. The current law generally applies to employers with 15 or more employees.
What does this mean to you?
Compliance isn't a one-time task, it's an ongoing responsibility. With DP Boost HR, you gain access to HR professionals who monitor changing laws and regulations while helping you manage employee handbooks, workplace policies, hiring, performance, employee relations, compliance questions, and other everyday HR challenges.
Let our experts handle the complexities so you can stay compliant and focused on growing your business.
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.