August Compliance: Updates Employers Need to Know
News July 30, 2025
August HR Compliance Highlights
Stay ahead of this month’s most important HR compliance updates with these quick highlights for August:
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PFML Updates: New employer portal features and August 31 private plan reporting deadline.
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Federal Changes: OSHA launches opinion letter program and updates penalties to support small businesses.
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Budget Bill Impact: New tax breaks on OT and tips, HSA expansions, Medicaid work rules, and increased ICE enforcement.
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VETS-4212: Filing season for federal contractors runs Aug. 1–Sept. 30.
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Announcements of New PFML Features
NEW: More Detailed Access to PFML Application Information and Ability to Download Data for Leave Administrators: Our newest enhancement to the PFML employer portal surfaces key information for leave administrators. These updates provide an easy way to view, understand, and interact with the most relevant data on employee leave applications. When you log in to your leave administrator account, you can now find:
- A timeline of milestone dates
- A ‘to do’ column for action items
- Access to an employee’s individual average weekly wage and weekly benefit amount for easier calculation of top-off payments
- An option to download a CSV file of leave data
Important Reminders for Employers and Leave Administrators
Reminder: Exempt Private Plan Employer Reporting for the 2025 Fiscal Year: Each year, DFML collects data on private plans to evaluate PFML program goals and promote the integrity of private family and medical leave plans. Self-Insured Employers, Third Party Administrators of Private Plans, or Private Plan Insurance Carriers are responsible for reporting requested data by August 31st, 2025. Learn more, including submission template and instructions.
For Review: Updated Tax Guidance: The IRS has issued guidance with respect to the tax consequences associated with PFML contributions and benefits. Please review the IRS guidance to understand the impact on Massachusetts employers. Click here to see the IRS guidance.
U.S. DOL Announced The Launch of Opinion Letter Program
The U.S. Department of Labor has launched a new opinion letter program across five key agencies, including the Wage and Hour Division and OSHA. This program provides official written guidance on how federal labor laws apply to specific workplace situations, helping employers and HR professionals ensure compliance. Massachusetts employers can use the new dol.gov/opinion-letters portal to review past guidance or request interpretations to address complex HR and compliance questions. Learn more here from the U.S. Department of Labor.
In this article from Fisher Phillips, the firm outlines key workplace provisions in the new federal budget bill signed on July 4, 2025, that HR professionals and employers need to know:
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No Federal Tax on Overtime and Tips: For 2025–2028, eligible tipped and hourly employees can deduct portions of OT and tip income, which could boost hiring and retention in hospitality. Employers will need to update payroll systems to track and report these amounts.
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Medicaid Work Requirements: New rules require many adults to work or engage in qualifying activities at least 80 hours per month to maintain Medicaid eligibility, which could affect employee health coverage and increase HR’s role in verifying hours.
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HSA Expansions: Permanent telehealth coverage before deductibles and the ability to use HSA funds for direct primary care starting in 2026 make benefits packages more flexible and attractive.
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Dependent Care FSA Increase: The contribution limit rises from $5,000 to $7,500 in 2026, requiring plan amendments and careful nondiscrimination testing.
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Increased ICE Enforcement: A significant budget boost to ICE means employers should prepare for more audits and inspections by reviewing I-9 compliance and workplace procedures.
DUA Call Center Hours Changing Temporarily Starting August 1
Beginning Friday, August 1, 2025, the DUA Call Center will be open Monday through Thursday, from 8:30 a.m. to 4:30 p.m. (ET). On Fridays, DUA staff will focus on processing open claims and responding to outstanding customer requests.
This temporary change is part of a three-month pilot program to help:
- Deliver benefits to eligible customers faster
- Reduce call center wait times by completing more claims behind the scenes
This change will not affect your ability to file a claim or request weekly benefits. You can still access all self-service features in Unemployment Services for Workers.
The easiest way to certify for benefits is online. If you prefer to use the phone, the automated TeleCert Line (617-626-6338) will remain available on Fridays.
The Boston Re-Employment Center will keep its current hours for in-person customer service by appointment only, including on Fridays.
VETS-4212 Report Filing
Federal contractors and subcontractors may need to file the annual VETS-4212 report (open Aug. 1 – deadline Sept. 30) documenting efforts to employ protected veterans; the DOL’s VETS-4212 Report Advisor helps determine filing requirements and steps – learn more here.
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