Unless you’re paying close attention, you won’t hear about small changes that create larger risks.

These risks could include a shifting interpretation of workplace harassment rules, a wage penalty cap that disappears from state law, or a hiring policy that unexpectedly falls out of compliance as a law’s coverage expands. None of these make the news, and none are overly complicated on their own, but if missed in the day to day, they can add up.

As fractional General Counsel, we keep an eye on these shifts so you don’t have to. This issue walks through six risks, from a hiring law that now reaches more employers to a new rounding rule triggered by the end of the penny, each paired with a clear next step, some worth acting on now, some worth simply keeping in view.

If any of it connects to a challenge you’re working through, we are always available to talk it through. Feel free to share this update with colleagues as well.

If you are curious how our General Counsel Service (GCS) could support your business, reply to this email or book some time to chat. 

Stay curious and stay connected,
Michelle & Pamela  

TRENDING

Rise in CIPA Demand Letters Over Website Tracking

Website owners across the country, including many with no operations in California, are increasingly receiving demand letters alleging non-compliance with the California Invasion of Privacy Act (CIPA). Written more than 30 years ago for landline eavesdropping, the statute is being reinterpreted to reach websites that use third party tracking without visitor consent. These demands often seek thousands of dollars, and any website drawing California traffic is a potential target regardless of where the business is located. The law itself has not changed, but the enforcement trend has, and it is worth addressing before a letter arrives.

ACTION: If your website loads third party tracking tools and can be reached by California visitors, work through this checklist:

       • Inventory every third party tracking technology running on the site
       • Remove any trackers that are not actually in use, since they create risk with no business benefit
       • Add a consent solution so that trackers load only after a visitor opts in
       • Test afterward to confirm that nothing fires before consent, and troubleshoot if it does

FEDERAL

EEOC Rescinds 2024 Workplace Harassment Guidance

On January 22, 2026, the EEOC voted to rescind its 2024 Enforcement Guidance on Harassment in the Workplace, finding that the guidance had exceeded the authority granted under Title VII. The rescission changed how the EEOC interprets the law, not what the law requires, and harassment remains unlawful under Title VII, the Americans with Disabilities Act, and other federal statutes. The practical change involves gender identity, because the rescinded guidance had treated an employer’s failure to accommodate an employee’s pronouns, facility access, and dress or grooming preferences as discriminatory harassment.

Consistent with Executive Order 14168, the EEOC now treats “sex” under Title VII as the biological binary, so those failures are no longer presumptively unlawful under federal law. State law may still reach them, and the Washington Law Against Discrimination expressly protects gender identity and expression.

ACTION: Employers should maintain clear written harassment policies, train managers on how to recognize and respond to complaints, and document their response in every case. Because state and local protections may be broader than the current federal framework, employers should confirm their obligations in each state where they have workers before changing any policy.

OREGON

Partial Non-Payment Now Criminal, License Fraud Now a Felony

Effective January 1, 2027, House Bill 4089 reaches two groups, businesses that pay for services and the contractors who perform them. The theft of services statute now covers partial non-payment, not just complete failure to pay, applying to anyone who receives services and knowingly avoids paying the full agreed amount with intent to defraud. The law also raises two contractor license violations from Class A misdemeanors to Class C felonies, intentionally using another contractor’s license number without authorization and intentionally using any license number with intent to deceive. Criminal prosecution does not prevent a separate civil claim for wages or damages.

ACTION: Contractors should invoice their work clearly and confirm that the correct, properly issued license number appears on every contract, bid, and permit, and because permission from a license holder is not the same as authorization, the safer practice is never to use another party’s number at all. Businesses that hire contractors should pay in full according to agreed terms, since partial non-payment intended to avoid full payment now carries criminal exposure.

WASHINGTON

Wage Violation Penalties Are No Longer Capped

Effective June 11, 2026, House Bill 2479 substantially increases the consequences of wage violations in Washington. The prior $20,000 cap on civil penalties for willful violations has been replaced with a $1,500 minimum penalty per employee, per violation, so total exposure is no longer capped and now scales directly with headcount. The law also deems an employer willful automatically once it has settled more than one wage complaint in 12 months or three in 24 months, and it lets the Department of Labor & Industries expand a single complaint into a company wide investigation wherever it finds common issues across employees.

ACTION: Employers should audit their wage and hour practices before a complaint arrives, confirming that overtime, piece rate, tip, and commission structures are calculated correctly, that meal and rest breaks are documented and actually being taken, and that all wage deductions are lawful. With class actions on the rise, as covered in our Q1 2026 update, and settled complaints now triggering automatic willful findings, early resolution matters more than it used to.

Fair Chance Act Expansion: Criminal History Restrictions for Employers

Washington’s Fair Chance Act has now phased in its next round of restrictions on how employers can use criminal history in hiring, building on the law we covered in Navigating Washington’s Fair Chance Act: What Employers Need to Know.

Beginning July 1, 2026, the restrictions apply to employers with 15 or more employees, and beginning January 1, 2027, they extend to every employer in the state regardless of size. Employers may not ask about criminal history until after a conditional job offer has been made, and job postings may no longer include categorical exclusions such as “no felons” or “clean record required.”

ACTION: With the July 1, 2026 effective date already here, employers with 15 or more employees should confirm that job postings and application materials no longer screen for criminal history before a conditional offer, and that hiring workflows delay background checks until after an offer is extended. Smaller employers should use the runway before January 1, 2027 to make the same changes. If this review has not yet been done, treat it as a priority, since the restrictions are already in effect for covered employers. Refer back to our original post for full details on the law’s requirements and phased implementation.

Cash Transaction Rounding: Penny Elimination

Now that the federal government has stopped minting pennies, House Bill 2334 sets new rounding rules for cash transactions in Washington. Totals ending in 1 or 2 cents round down to 0 cents, totals ending in 3, 4, 6, or 7 cents round to 5 cents, and totals ending in 8 or 9 cents round up to the nearest 10 cents. The rule applies only to cash payments; electronic payments, credit charges, and debit charges continue to be processed to the exact cent. The law also directs state agencies to issue guidance for transactions that combine cash with other payment methods.

ACTION: Update point of sale systems and cash registers to apply the new rounding rule to cash only transactions, and confirm that electronic payment processing remains unchanged. Train front line staff and cashiers on the new rounding scale so they can explain any discrepancy to customers who pay in cash. Watch for the forthcoming state agency guidance on mixed cash and non-cash transactions, and update internal policies once it is released.