By Sorren Human Capital Advisory | July 2026 Edition · 3-Minute Read
Julie’s Corner
A Note From Julie
Summer is here, and so is a wave of regulatory change. From evolving state leave laws to updated payroll filing requirements, the compliance calendar is anything but quiet. At Sorren Human Capital Advisory, our mission remains constant: to cut through the noise and deliver the clarity your leadership team needs to act with confidence.
This month’s HCA Brief covers New Jersey’s expanded leave provisions, federal minimum wage conversations, PFML updates across key states, and a timely Form 941 reminder for Q2. Our team is here — reach out anytime.
— Julie Cummings, National HCA Managing Partner
HR Headlines
What’s Moving in Employment Law
The regulatory landscape continues to shift rapidly. Here are the five most critical updates your HR team needs to track this month.
Minimum Wage Updates — Multi-State Action
Several states and localities raised minimum wages effective July 1, 2025. California tipped provisions, Illinois’s increase to $15.40/hour, and NYC’s indexing adjustments all warrant immediate payroll audits.
1PFML Updates — Paid Family & Medical Leave Expansions
CT, MA, and OR issued updated PFML guidance for H2 2025. MA raised its maximum weekly benefit, and OR clarified intermittent leave tracking; review payroll deductions and employee notices now.
2New Jersey Leave Law Changes — Expanded Protections
New Jersey has updated NJFLA and NJTDL guidance, broadening “family member” definitions, extending intermittent leave protections, and strengthening anti-retaliation rules. NJ employers with 30+ employees must update policies and manager training before Q3 closes.
Form 941 for Q2 2025 (April–June) is due July 31, 2025. Report wages, federal withholding, and employee/employer Social Security and Medicare taxes; reconcile to payroll records before filing.
After the Fifth Circuit vacated the Biden-era threshold increase, the DOL is expected to issue revised rulemaking late 2025. For now, the pre-2024 threshold of $684/week ($35,568/year) remains in effect; monitor exempt classifications and avoid reclassifying yet.
Use this checklist to confirm your organization is current on critical July obligations.
File IRS Form 941 for Q2 2025 by July 31
Audit payroll rates for all applicable minimum wage changes
Review and update PFML payroll deduction configurations
Update New Jersey leave policies and employee handbooks
Confirm FLSA exempt employee salary classifications under current threshold
Distribute updated benefits open enrollment communications (if applicable)
Complete mid-year performance review documentation and storage compliance
Verify I-9 re-verification requirements for expiring documents
Confirm OSHA recordkeeping is current through June 30
Schedule Q3 manager training: leave law updates and anti-retaliation policies
Practical HR Tip
This Month’s HR Insight
💡 Turn Compliance Into Culture
Most organizations communicate policy changes as legal notices — dense, jargon-heavy documents that employees don’t read. This month, try a different approach: when you notify your team about the New Jersey leave law updates or PFML changes, frame the communication around what’s in it for them. Use plain language, highlight the employee benefit, and follow up with a brief FAQ document.
This shift from “here’s what the law requires” to “here’s how this protects you” builds trust, reduces HR inquiries, and creates a compliance culture where employees feel supported rather than policed. A 5-minute manager huddle script can make this effortless to cascade through leadership.
— HCA team
Workplace Trend
Data Worth Noting
67%
of HR leaders
report that multi-state compliance complexity is their top operational challenge in 2025, surpassing talent acquisition for the first time. — SHRM 2025 State of the Workplace Report
4.2x
more likely
Organizations with a dedicated HR advisory partner are 4.2 times more likely to identify and remediate compliance gaps before they become costly violations.
Compliance is growing more complex and a specialized advisor helps manage the risk.
Upcoming Webinars
Sorren HCA Learning Events
Join our expert advisors for focused, actionable sessions designed specifically for HR professionals and people-ops leaders. All sessions are complimentary.
July 23, 2026 · 12:00 PM (Noon) CDT
Webinar: Top Financial Planning & Tax Strategies for Dental Practices
Align your practice goals with your personal financial future. This webinar gives you the tools to take control of your profitability and long-term wealth.
Whether planning to buy or sell a business, preparing for ownership transition, navigating estate planning, or facing litigation, understanding the factors affecting business value is essential. This session covers the financial, operational, and strategic drivers of value and offers practical insights to identify opportunities to strengthen it over time.
❓ “We have remote employees in three states. Do we need separate employee handbooks for each?”
Great question — and one we hear often.
The short answer is: not necessarily separate handbooks, but definitely state-specific addenda. A master handbook covers company-wide policies like at-will employment, anti-harassment, PTO philosophy, and code of conduct.
But state laws — like New Jersey’s expanded leave protections, California final pay and meal break rules, and Illinois’s CROWN Act — require jurisdiction-specific language. Best practice is a modular handbook architecture: one universal document plus state addenda that is legally defensible, easier to maintain, and scalable as you grow.
Sorren HCA offers handbook audits and multi-state addenda drafting as a core advisory service. For more questions around handbooks, contact us at HCA@sorren.com
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