HR Compliance Checklist by State

Key requirements for the top 10 states and what software helps you stay compliant

Last updated: February 2026 | 15-minute read

Why State Compliance Matters

Federal employment law is just the baseline. Every state adds its own maze of requirementsβ€”wage laws, leave policies, posting requirements, meal breaks, pay frequency, final paycheck timing, and more.

Violating state labor laws triggers audits, fines, back pay, penalties, and lawsuits. A single misclassified employee in California can cost $25,000+. Forgetting to provide New York's required sick leave? That's a DOL investigation.

This guide covers the 10 states with the most complex HR requirements, what you need to know, and which HR software features help you stay compliant without hiring a compliance team.

⚠️ Disclaimer

This guide provides general information, not legal advice. State laws change constantly. Always consult an employment lawyer or HR compliance expert for your specific situation. Software helps with compliance but doesn't replace professional guidance.

Quick Reference: Complexity by State

State Complexity Level Key Challenges
California Extreme Daily OT, meal breaks, sick leave, PAGA lawsuits, wage statements
New York Very High NYC sick leave, salary thresholds, spread-of-hours pay, notice requirements
Massachusetts Very High Blue laws, earned sick time, predictive scheduling (Boston)
Washington High Paid sick leave, Seattle minimum wage, predictive scheduling
Illinois High Chicago paid sick leave, final pay timing, salary history ban
New Jersey High Earned sick leave, equal pay law, temp worker protections
Oregon Moderate Sick time, predictive scheduling (Portland), final pay rules
Colorado Moderate Paid sick leave, wage transparency, labor peace act
Texas Moderate Final pay timing, at-will employment, payday frequency
Florida Lower Fewer state mandates, follows federal baseline closely
🌴 California
The most employee-protective (and complex) labor law state in the nation
1. Daily Overtime Rules

California requires overtime pay for hours worked over 8 in a single day (not just 40 per week). Double-time kicks in after 12 hours in a day or 8 hours on the 7th consecutive workday.

πŸ’‘ Software that helps: Time tracking with daily OT calculation (QuickBooks Time, Deputy, ADP, UKG). Must track daily hours, not just weekly totals.
2. Meal & Rest Break Requirements

30-minute meal break required before the end of the 5th hour of work. Second meal break after 10 hours. 10-minute paid rest breaks for every 4 hours worked. Violations = 1 hour of pay penalty per missed break.

πŸ’‘ Software that helps: Time clocks that prompt breaks (Deputy, 7shifts, Homebase). Break attestation features prevent class-action lawsuits.
3. Paid Sick Leave (Minimum)

Employees accrue 1 hour of paid sick leave per 30 hours worked (minimum). Must allow at least 3 days (24 hours) of sick leave per year. Can't deny usage for any reason covered by law.

πŸ’‘ Software that helps: HRIS with California-compliant sick leave accrual (Gusto, BambooHR, Rippling, Zenefits). Auto-accrual prevents manual tracking errors.
4. Itemized Wage Statements

Pay stubs must include 9 specific items: dates, hours worked, rates, deductions, net/gross pay, employee info, employer info, and more. Missing items = $50-$4,000 per violation per employee.

πŸ’‘ Software that helps: Payroll systems with California-compliant pay stubs (Gusto, ADP, Paychex, OnPay). Don't try to build these manually.
5. Final Paycheck Timing

Terminated employees must receive final pay immediately at termination. Employees who quit with 72+ hours notice must receive final pay on last day. Less than 72 hours notice = 72 hours to pay. Waiting time penalties accrue daily.

πŸ’‘ Software that helps: Payroll systems with off-cycle payroll capabilities (Gusto, Rippling, ADP). Track termination dates and automate final pay reminders.
6. PAGA (Private Attorneys General Act)

Employees can sue on behalf of the state for labor code violations. Single violations turn into class-actions fast. Meal break violations, wage statement errors, and misclassification are top triggers.

πŸ’‘ Software that helps: Compliance audit tools (Mineral, ComplyRight), time tracking with break attestation, accurate payroll systems. Prevention is everything.
7. Employee Classification (AB5 & ABC Test)

California uses the strict ABC test for independent contractors. Most contractors fail the test and should be W-2 employees. Misclassification penalties are severe.

πŸ’‘ Software that helps: Contractor management with classification guidance (Rippling, Deel, Remote.com). Get legal review before classifying anyone as 1099.
πŸ—½ New York
Complex state + NYC has its own layer of requirements
1. NYC Paid Sick Leave

NYC employers must provide 1 hour of sick leave per 30 hours worked, up to 40-56 hours per year depending on company size. Separate from New York State sick leave (which exists for COVID only currently).

πŸ’‘ Software that helps: HRIS with location-based accrual policies (BambooHR, Namely, Zenefits). Track NYC employees separately from rest of NY.
2. Salary Threshold for Exempt Employees

NY minimum salary for exempt employees varies by location and company size: NYC (11+) = $1,125/week ($58,500/year). Failing to meet thresholds = misclassification and OT back pay.

πŸ’‘ Software that helps: HRIS that flags employees below exemption thresholds (Rippling, Namely). Annual audits prevent misclassification.

3. Spread-of-Hours Pay

Employees working shifts that span more than 10 hours in a single day must receive an extra hour of pay at minimum wage. Common in hospitality and retail.

πŸ’‘ Software that helps: Scheduling software that calculates spread-of-hours (7shifts, Deputy, Homebase). Manual tracking is error-prone.
4. Pay Frequency Requirements

Manual workers must be paid weekly. Clerical/other workers can be paid semi-monthly or monthly. Different rules for different employee types.

πŸ’‘ Software that helps: Payroll software with flexible pay schedules (Gusto, ADP). Track employee types and enforce correct pay frequency.
5. Notice of Pay Requirements

Employers must provide written notice of pay rate, pay schedule, and other terms at hire and whenever anything changes. Specific form required.

πŸ’‘ Software that helps: Onboarding software with state-specific forms (BambooHR, Workbright, Rippling). E-signature tracking proves compliance.
6. Sexual Harassment Training (Annual)

All NY employers must provide annual sexual harassment prevention training. Specific content and duration requirements. Records must be kept.

πŸ’‘ Software that helps: LMS with NY-compliant training courses (TalentLMS, Rippling Learning, Lessonly). Track completion automatically.
πŸ›οΈ Massachusetts
Pro-employee laws + unique "blue laws" restrictions
1. Earned Sick Time Law

Employers with 11+ employees must provide 1 hour of paid sick time per 30 hours worked, up to 40 hours per year. Smaller employers must provide unpaid sick time.

πŸ’‘ Software that helps: HRIS with Massachusetts accrual rules (BambooHR, Namely, Zenefits). Separate tracking for paid vs unpaid based on company size.
2. Blue Laws (Sunday & Holiday Restrictions)

Retail employees working Sundays or certain holidays must receive time-and-a-half pay plus the right to refuse Sunday work. Specific retail industries only.

πŸ’‘ Software that helps: Scheduling + payroll integration that applies Sunday premiums (Deputy, 7shifts β†’ Gusto/ADP). Manual calculation errors are common.
3. Meal Break Requirements

30-minute meal break required for shifts over 6 hours. Break must occur between 3rd and 5th hour of shift.

πŸ’‘ Software that helps: Time clocks with break enforcement (Homebase, Deputy, QuickBooks Time). Alert managers when breaks are overdue.
4. Predictive Scheduling (Boston)

Boston retail/hospitality employers must provide schedules 2 weeks in advance and pay penalties for last-minute changes ("predictability pay").

πŸ’‘ Software that helps: Scheduling with predictability pay calculation (7shifts, Deputy, When I Work). Track schedule changes and owed premiums.
5. Final Pay Timing

Terminated employees must receive final pay on termination day. Employees who quit must receive final pay on next regular payday (or final day if they give 1+ weeks notice).

πŸ’‘ Software that helps: Payroll with off-cycle runs (Gusto, Rippling, ADP). Track termination dates and automate compliance.
🌲 Washington
Progressive labor laws + Seattle has additional requirements
1. Paid Sick Leave

1 hour of paid sick leave per 40 hours worked. No annual cap. Unused time carries over. Very generous compared to other states.

πŸ’‘ Software that helps: HRIS with unlimited carryover (BambooHR, Zenefits). Track accruals that never expire.
2. Seattle Minimum Wage (Tiered)

Seattle minimum wage varies by company size and benefits offered: Large employers (500+) = $19.97/hour. Small employers = lower tiers. Changes annually.

πŸ’‘ Software that helps: Payroll with location-based wage rules (Gusto, Rippling, ADP). Update rates automatically when Seattle publishes changes.
3. Predictive Scheduling (Seattle)

Seattle requires 14 days advance notice for schedules and "predictability pay" for last-minute changes. Applies to retail and food service.

πŸ’‘ Software that helps: Scheduling platforms with Seattle compliance (7shifts, Deputy, Homebase). Calculate owed premiums automatically.
4. Paid Family & Medical Leave

State-run paid leave program funded through payroll tax. Up to 12 weeks for family leave, 12 weeks for medical leave, combined 16-week maximum.

πŸ’‘ Software that helps: Payroll that handles WA PFML deductions (Gusto, ADP, Paychex). Leave management to track state benefits (BambooHR, Namely).
πŸ™οΈ Illinois
Chicago adds significant requirements beyond state law
1. Chicago Paid Sick Leave

1 hour of paid sick leave per 40 hours worked, up to 40 hours per year. Separate from (limited) Illinois state sick leave law.

πŸ’‘ Software that helps: HRIS with city-specific policies (BambooHR, Namely). Track Chicago employees separately from rest of IL.
2. Final Pay Timing

Final pay must be provided by the next regularly scheduled payday. No immediate payout required like California, but must happen on time.

πŸ’‘ Software that helps: Offboarding workflows that trigger final pay (BambooHR, Rippling). Track termination dates and pay schedules.
3. Salary History Ban

Employers cannot ask about or screen applicants based on salary history. Applies to applications, interviews, and background checks.

πŸ’‘ Software that helps: ATS with configurable application forms (Greenhouse, Lever). Remove salary history fields from IL applications.
4. Sexual Harassment Training (Annual)

Employers with 15+ employees must provide annual sexual harassment prevention training. Model training available from IL Dept of Human Rights.

πŸ’‘ Software that helps: LMS with IL-compliant courses (TalentLMS, Rippling). Track annual completion.
πŸ–οΈ New Jersey
Earned sick leave + strong equal pay enforcement
Key Requirements
  • β€’ Earned Sick Leave: 1 hour per 30 hours worked, up to 40 hours/year
  • β€’ Equal Pay Act: Prohibits pay discrimination + salary history ban
  • β€’ Temp Worker Protections: Same pay as permanent employees for same work
  • β€’ Final Pay: Next regular payday for all terminations
πŸ’‘ Software that helps: BambooHR, Zenefits (sick leave); Compensation tools like Pave for pay equity analysis
🌲 Oregon
Sick time + Portland predictive scheduling
Key Requirements
  • β€’ Sick Time: 1 hour per 30 hours (Portland: 1 per 30, up to 48 hours/year)
  • β€’ Predictive Scheduling (Portland): 2 weeks advance notice for retail/food service
  • β€’ Final Pay: Immediate if terminated; next payday if quit (or immediately if 48+ hours notice)
  • β€’ Pay Equity Law: No salary history questions; must provide pay range if requested
πŸ’‘ Software that helps: Scheduling tools (7shifts, Deputy); HRIS with OR sick time (BambooHR, Rippling)
πŸ”οΈ Colorado
Paid sick leave + strict wage transparency
Key Requirements
  • β€’ Paid Sick Leave: 1 hour per 30 hours worked, up to 48 hours/year
  • β€’ Wage Transparency: Must include pay range in all job postings (even remote)
  • β€’ Meal & Rest Breaks: 30-min meal break per 5 hours; 10-min rest per 4 hours
  • β€’ Final Pay: Immediate if terminated; next payday if quit
πŸ’‘ Software that helps: ATS with pay range fields (Greenhouse, Lever); HRIS for sick leave (BambooHR, Rippling)
🀠 Texas
More employer-friendly, but still has requirements
Key Requirements
  • β€’ Final Pay: Next regular payday (6 days if no payday scheduled)
  • β€’ Payday Frequency: Must pay at least monthly; more frequent for hourly
  • β€’ Wage Statements: Must provide on or before payday
  • β€’ At-Will Employment: Default employment relationship (but document everything anyway)
  • β€’ No State Sick Leave: Federal FMLA and local ordinances only
πŸ’‘ Software that helps: Standard payroll (Gusto, ADP) handles Texas requirements easily; less complex than most states
🌴 Florida
Minimal state requirements beyond federal law
Key Requirements
  • β€’ Final Pay: Next regular payday or 2 weeks after, whichever is first
  • β€’ No State Sick Leave: No paid or unpaid sick leave mandate
  • β€’ Minimum Wage: $13/hour (as of 2026); increases annually toward $15
  • β€’ At-Will Employment: Strong at-will protections for employers
  • β€’ Federal Baseline: FLSA, FMLA, ADA are primary compliance concerns
πŸ’‘ Software that helps: Basic HRIS and payroll sufficient (Gusto, BambooHR); focus on federal compliance

Managing Multi-State Compliance

Remote work means your team could be spread across 10+ statesβ€”each with conflicting requirements. Here's how to stay sane:

1. Know Where Your Employees Work

HRIS should track home address, work location, and tax jurisdiction. When someone moves states, trigger a compliance review.

2. Use Location-Based Policy Rules

Modern HRIS platforms (Rippling, Namely, BambooHR) let you set different PTO accrual, sick leave, and overtime rules by state/city.

3. Subscribe to Compliance Updates

State labor laws change constantly. Use tools like Mineral, ComplyRight, or SHRM to get alerts when laws change in states where you have employees.

4. Consider a PEO for Complex States

If you have 1-2 employees in California or New York, a PEO (Justworks, TriNet) can handle compliance for you instead of building internal expertise.

5. Work with Multi-State Payroll Providers

Don't use payroll software that doesn't support all 50 states. Gusto, ADP, Paychex, and Rippling handle multi-state automatically.

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