State L&E Fall Updates: CA, CO, NE, OH, OR, & WA

Aug 22, 2025 | Blog
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California: AI Use & Automated Decision-Making

The California Civil Rights Department has passed regulations that govern an employer’s use of artificial intelligence (AI) and other “automated-decision systems” in employment decision-making. The final regulations clarify that it is unlawful for an employer to use an “automated-decision system” that discriminates against applicants or employees on a protected basis (as defined by California or federal law).

“Automated decision-making” has a fairly broad definition. It comprises any computational process that makes a decision or facilitates decision-making, including processes created by artificial intelligence, artificial intelligence itself, algorithms, statistics, or other data-processing techniques.

The regulations cover uses by both the employer or a third-party employment/hiring company acting on the employer’s behalf. It goes into effect on October 1, 2025.

Colorado: Restrictive Covenants in Healthcare

Colorado’s Governor Jared Polis signed Senate Bill 83, a law narrowing the specified conditions under which certain highly compensated healthcare provider employees may be subject to a restrictive covenant not allowing them to compete (i.e., noncompete agreement).

Effective August 6, 2025, Colorado prohibits restrictive covenants that prevent or materially restrict departing healthcare providers from disclosing to their current patients the following information:

  • the provider’s continuing practice of medicine;
  • the provider’s new professional contact information; and
  • the patient’s right to choose a healthcare provider.

It’s important to note that the health care provider must have been already consulting for or treating the patient prior to the provider’s departure. The law applies specifically to licensed medical practitioners, certified midwifery practitioners, dental practitioners, and advanced practice registered nurses.

Nebraska: Paid Sick Leave

Nebraska passed the Nebraska Healthy Families and Workplaces Act earlier this year, a paid sick leave law that is going into effect October 1, 2025. The Act requires employers to provide notice of the new paid sick leave law to employees by September 15, 2025.

Small businesses (i.e., those with 11 to 19 employees) are required to provide up to 40 hours of paid sick leave annually. Larger businesses (with 20 or more employees) are required to provide up to 56 hours of paid sick leave annually.

The minimum required accrual rate remains 1 hour of paid sick leave per 30 hours worked. Accrual begins after an employee has achieved 80 hours of consecutive employment, meaning that new hires will not begin to accrue until they have hit the 80-hour threshold. If an employer has a previously existing paid time off or sick leave policy that complies with the requirements under the law, they do not have to make any changes.

Ohio: Worker Adjustment and Retraining Notification (WARN)

Ohio Governor Mike DeWine signed House Bill No. 96 into law, which includes a mini-WARN (Worker Adjustment and Retraining Notification) law imposing new obligations on Ohio employers, effective September 29, 2025.

A WARN triggering event occurs when a mass layoff or plant closing is expected to result in employment losses of:

  • 50 or more employees, if the employees comprise at least 33 percent of the full-time workforce, OR
  • 500 or more employees

Under the new law, Ohio employers (with 100 or more employees) that experience a triggering event under WARN must send WARN notices to additional recipients and include additional content in their WARN notices. The notices must be provided at least 60 days in advance of the mass layoff/closing.

In addition to sending notices to the recipients that the federal WARN Act requires, the Ohio mini-WARN law requires covered employers to notify both the chief elected official of the municipal corporation where the covered plant closing or mass layoff will occur and the chief elected official of the county where the covered plant closing or mass layoff will occur.

Oregon: Restriction on Employee Age Inquiries

Effective September 25, 2025, employers in Oregon cannot make inquiries into a job applicant’s age before their initial interview occurs or a conditional offer of employment has been made. Specifically, employers (or third-party employment agencies) cannot request:

  • the applicant’s age
  • the applicant’s date of birth
  • the dates of attendance or graduation from an educational institute

If an applicant provides this information of their own volition (not at the request of the employer) on a resume, there is no violation. The only exceptions contemplated by the law are bona fide occupational qualifications (e.g., if a role involves driving or alcohol sales) or if the disclosure of the information is required by state, local, or federal law.

Employers need to immediately review their current application process (or the process of any third-party vendor that is used) to ensure that this information is not on an application or otherwise requested by the employer before the initial interview occurs. If BOLI (Bureau of Labor and Industries) finds an employer engaged in unlawful practices, they may impose a civil penalty up to $1,000 for each violation.

Washington: Limits on Driver’s License Requirements

Effective July 27, 2025, employers in Washington cannot:

  • require applicants to provide a valid driver’s license as a condition of employment
  • include in any job posting that the applicant must have a valid driver’s license

The only exceptions contemplated by the law are for positions in which driving is considered an essential function of the position, or if the employer can otherwise prove a legitimate business need.

Employers need to immediately review their current application process (or the process of any third-party vendor that is used) to ensure that they do not make this request at any point during the application process, unless they can prove an exception under the law. Violations may result in statutory damages of $5,000 or actual damages, plus interest and attorneys’ fees.

If you have any further questions regarding state employment updates, please contact a member of Barton’s Labor & Employment team.

Barton LLP
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