Millions of private-sector workers still lack access to retirement plans through their jobs, especially those employed at small businesses. In response, a growing number of states are stepping in with legislation that requires the workplace to offer savings programs, gov-sponsored or otherwise. 

Employees will have the option to opt out, adjust their contributions, or cash out in case of emergencies. These efforts won’t fill all the cracks — the financial future for millions of gig workers still needs to be addressed — but the following 13 states now have laws on the books that mandate small employers provide retirement plans. 

More are on their way, so we’ll keep you posted.

California

For employers with a staff of five or more who cannot provide retirement plans, they must register workers in .  

• Deadlines 

  • for 100+ employees: Sept 30, 2020 (already passed)

  • for 50–99 employees: June 30, 2021 (already passed)

  • for 5–49 employees: June 30, 2022 (already passed)

  • for 1 or more employees: December 31, 2025

Colorado

Employers with at least five employees, have been operating for two years, and do not offer a qualified retirement plan are required to enroll in the state’s . The state will then assist their workers with automatic payroll contributions to their Roth IRAs. 

• Contribution default: 5% of wages, with optional annual auto-escalation

• State began enforcing compliance in early 2024

Connecticut

Employers with five or more workers who don’t provide retirement plans are required to enroll their employees in the .

• Eligible employees must be at least 19 years old, have earned income and have been employed with the company in Connecticut for at least 120 days.

• Initial rollout launched in 2022, with a March 30, 2023, registration deadline

Delaware

Businesses with at least five employees and no tax-qualified retirement plan in place must enroll their workers in .

• The program launched in 2022, and implementation begins in 2025

• Employees will be auto-enrolled into a Roth IRA with contribution flexibility 

Illinois 

The requires businesses with at least five employees (and two years in operation) enroll their workers if they don’t already provide a retirement option.  

• Contribution defaults: 5% payroll deduction into a Roth IRA

• Noncompliance may lead to fines of $250 per employee per year

Maine 

The requires employers who do not offer a retirement plan and with at least five employees to register workers in the state-run program. 

• Auto-enrolls employees into a Roth IRA with contribution customization

• Launching in early 2025, currently under administrative development 

Maryland

The mandates that two-year-old businesses with at least one employee over 18 must enroll if they do not offer a retirement plan. ​

• Employees contribute via automatic payroll deductions to IRAs

• Employers compliant with MarylandSaves may receive waived $300 annual business filing fee

Nevada

Employers with at least five workers and that have been operating for three years are required to enroll in the for a state-facilitated IRA.

• Went into effect on July 1, 2025

• Automatically enrolls workers into an IRA, with opt-out provisions 

New Jersey

mandates employers who do not offer a qualified retirement plan register with the state-run program. 

• Applies to businesses with 25+ employees

• Employees contribute to a state-facilitated IRA

Oregon

requires all employers that do not offer a retirement plan to facilitate the state-run program.

• The first in the nation to launch this model in 2017

• No minimum employee requirement; sole proprietors and self-employed can participate

Vermont

is set to launch in 2025 for businesses with at least five employees.

• Voluntary during initial rollout; expected to become mandatory in phases

• Default contribution rate is automatically set at 5% if you do nothing after enrollment

Virginia

Businesses without a qualified retirement plan but with at least 25 employees and have been in business for two years are required to offer the state-run .

• Employers must register and facilitate payroll deductions

• Employees are auto-enrolled at 5% with ability to modify

Washington

Businesses are required to enroll in if they do not offer retirement plans and have been operating for at least two years and whose employees have worked a combined 10,400 hours in the previous year.

• Currently in development; full launch expected in the next 1–2 years

• Eligibility criteria tied to total hours worked rather than number of employees