RKL’s Workforce Strategies team is here to help you navigate the complexities of today's HR environment with the updates, reminders and insights you need to maximize your most important asset — your people. We value your feedback, so let us know what you think of this newsletter!
Managing Payroll Across States with Differing Laws and Minimum Wage Rates
When businesses operate in different cities or states, payroll becomes more complicated. Each jurisdiction may have its own rules for minimum wage, overtime, payroll and tax withholding and reporting.
Minimum wage: States (and some cities) set their own minimum wage laws. For example, in 2025, Delaware’s minimum wage was $15 an hour, but Pennsylvania’s was $7.25.
Overtime regulations: With changes brought on by the One Big Beautiful Bill Act, as well as previous overtime rules that remain intact, properly accounting for overtime hours is complex for employees and employers.
Payroll frequency: States may require different payroll schedules, such as weekly, biweekly or monthly pay. If you operate in other states, you may be keeping multiple payroll schedules.
Tax withholding and reporting: State and local income tax requirements differ, affecting both payroll deduction calculations and tax reporting deadlines.
These challenges often appear from opening day onward and may intensify as you grow and manage a larger workforce. When you navigate these rules manually, the risk of errors increases, and payroll errors can result in fines, employee complaints or audits. The RKL Workforce Strategies team provides you with expert HR and payroll outsourcing, helping ensure accuracy and compliance.
Learn more about transforming how your organization handles HR and payroll.
New Proposed Rule Could Affect PERM and H-1B Wage Calculations
The Department of Labor is proposing changes to how it calculates required wage levels for certain employment-based visas, including PERM, H-1B, H-1B1 and E-3. The goal is to better align those wage levels with what similarly employed U.S. workers are actually paid for the same job and location. The proposed changes are also intended to discourage employers from hiring lower-paid foreign workers instead of U.S. workers and to help protect U.S. wages and working conditions.
The EEOC and OPM have released a new FAQ to help federal agencies address telework accommodations for employees with disabilities as they implement return-to-office directives. The guidance is intended to support agencies in handling these situations in a manner consistent with the Rehabilitation Act. Its release signals that telework accommodation issues remain an active compliance focus as agencies move employees back to in-person work.
Need help evaluating these new guidelines? Reach out to our Workforce Strategies team for guidance on compliance considerations and practical next steps.
If you are on a biweekly payroll schedule in 2026, you may face an extra, 27th pay period, which can create budgeting, communication and compliance challenges if not addressed in advance. You will need to decide whether to spread annual salaries across 27 paychecks or keep pay amounts the same and absorb the additional payroll cost, while also reviewing the impact on deductions, taxes and internal planning. If you would like help evaluating your options and preparing for the 2026 payroll calendar, contact RKL’s Workforce Strategies team.
Can the same position be classified as non-exempt in one state and exempt in another state?
Yes, the same job can be classified as exempt in one state and non-exempt in another because, while the FLSA sets the federal minimum standard, some states impose stricter salary thresholds or duties tests. An employer may always choose to treat an otherwise exempt position as non-exempt, but cannot classify a non-exempt position as exempt to avoid overtime. This type of state-to-state variation can create risks related to pay equity, administration, and employee perception, so our Workforce Strategies team can help you evaluate your approach.
