1. Stay Ahead of New Poster Requirements
2025 will see the expansion of labor law posters in several states. For example, effective January 1, 2025, California employers will have a new posting requirement advising employees of their rights under workers’ compensation laws and that, in most instances, attorney’s fees will be paid from the injured employee’s recovery.
Tip: Stay proactive. Watch out for new state-specific labor law poster requirements in all the jurisdictions where you have locations.
2. Be Ready for Even More Pay Transparency
Pay transparency will remain a hot topic in 2025, with more states and cities adopting laws that require employers to disclose salary ranges in job postings or upon request. In addition to the 14 states with pay transparency laws in 2024, there are many more states, counties, and cities with pending legislation going into 2025. Will your locations be affected? Also, be on the lookout for the potential of pay transparency laws at the federal level as more states implement their own legislation.
Tip: Take the time to research new state pay transparency laws and anticipate the possibility of broader regulation at the federal level.
3. Keep an Eye on Emerging Paid Leave Laws
The trend of paid leave expansion will continue in 2025, with more states adding paid family medical leave laws and additional sick leave requirements. These expansions might be new or planned. For example, Oregon’s paid family and medical leave program began in 2023, with additional changes to eligibility and employer contribution requirements expected in 2025. There are also new paid leave laws coming into effect in 2025 for Maryland, Maine, Delaware, and Michigan.
Tip: Keep an eye on new and planned paid leave laws, particularly in the Northeast and Midwest, both regions that are expected to continue introducing progressive laws in 2025.
4. Plan for Big Minimum Wage Hikes
There are record-breaking minimum wage increases in several states and cities in 2025, owing largely to rising living costs. California’s minimum wage is set to surpass $16 an hour statewide, with cities like San Francisco and Los Angeles continuing to hit even higher local rates. Additionally, Washington state will likely continue its reign as the state with the highest minimum wage as its wage rate increases based on cost-of-living-adjustments, with cities like Seattle seeing the highest rates in the country.
Tip: Many cities in California, New York, and Washington are expected to see significant wage increases. Prepare your payroll system for state and local changes.
5. Create Clear Policies for AI in the Workplace
A major trend for 2025 will be the intersection of artificial intelligence (AI) and employment law compliance. Several states, including Colorado and Illinois, have recently rolled out regulations that govern the use of AI in recruitment, employee monitoring, and personal data management. Also consider implementing new policies that regulate the use of AI in the workplace, especially when it comes to making hiring decisions.
Tip: Develop a policy for AI tools if you haven’t already and communicate how your AI systems make decisions and use employee data. Transparency can help build trust and ensure compliance with new AI laws.