State-mandated legislation
There is a developing trend among states to enact legislation requiring employers without retirement plans to enroll their employees in a payroll deduction individual retirement account (IRA) program run by the state. Employers will be required to automatically enroll their employees in the plan unless they actively opt out.
Select one of the four tabs directly below to locate your state. For all those that have passed legislation, you can click on the state in the map (or in the legend) for details.
Last updated: February 2025
States with Launched Programs
California
CalSavers Program
- September 30, 2020 – Employers with at least 100 employees
- June 30, 2021 – Employers with 50-99 employees
- June 30, 2022 – Employers with 5-49 employees
- December 31, 2025 – Employers with 1 + employees
Automatic enrollment into a Roth IRA
Employers who don’t offer a workplace retirement plan and have one or more California-based employees.
Employers who fail to comply with the CalSavers program could face penalties of $250 per eligible employee after 90 days of being served notice, and up to $500 per eligible employee if non-compliance extends past 180 days.
Source: https://www.calsavers.com
States with Legislation Programs Under Construction
Hawaii
Hawaii Retirement Savings Program
EFFECTIVE DATES
- TBD
WHAT TYPE OF PLAN IS OFFERED?
Employers must offer employees the option to opt into a payroll deduction IRA program.
WHO MUST COMPLY?
Employers who have at least one employee, have been in business for more than two years and who don’t offer a workplace retirement plan.
NON-COMPLIANCE PENALTY
Employers who fail to enroll covered employees can be subject to a penalty of up to $50 per month for each employee and would be liable to the employee for the amount of the contribution that would have been made for that employee plus interest at the annual rate of 6%.
Source: https://www.capitol.hawaii.gov/sessions/session2022/bills/SB3289_.HTM
Legislation has been introduced but has not yet passed in the following states:
- Arizona
- Kansas
- Kentucky
- Louisiana
- Massachusetts
- Michigan
- Mississippi
- Missouri
- Ohio
- Oklahoma
- Pennsylvania
- Texas
Legislation has not recently been considered in the following states:
- Alabama
- Alaska
- Arkansas
- Florida
- Georgia
- Idaho
- Indiana
- Iowa
- Montana
- Nebraska
- New Hampshire
- New Mexico
- North Carolina
- North Dakota
- South Carolina
- South Dakota
- Tennessee
- Utah
- West Virginia
- Wisconsin
- Wyoming