December 17, 2024
HR

2025 Compliance Updates Every Employer Needs to Know

Explore the 2025 federal, state, and local compliance requirements employers need to know.
2025 Compliance Updates Employers need to know

As 2025 begins, employers across the U.S. face various new federal, state, and local compliance requirements. From updates to health care and privacy laws to changes in minimum wage and employee classification, staying informed and proactive is critical. This guide provides an overview of key changes effective January 1, 2025, and actionable steps to ensure compliance.

Federal Compliance Updates

  1. Mental Health Parity Final Rules – Starting January 1, 2025, the Department of Labor, Health and Human Services, and the IRS will enforce new rules to ensure equitable coverage of mental health services under employer health plans.
  2. HIPAA Privacy Rule Amendments – Effective December 23, 2024, the HIPAA Privacy Rule prohibits the disclosure of reproductive healthcare-related Protected Health Information (PHI), enhancing employee privacy rights.

State-Specific Compliance Updates

The table below outlines state-specific compliance changes effective January 1, 2025:

State Compliance Area Legal Development
California Employee Classification Minimum salary increases to $1,320 per week.
Independent Contractors Freelance Worker Protection Act and sunset of exemptions for certain workers.
Privacy Amendments to Consumer Privacy Act, expanding opt-out rights.
Paid Family & Medical Leave Increases to benefits and expanded protections for agricultural workers.
Digital Replica Restrictions Prohibits digital replica usage in employment agreements.
Discrimination Prohibits intersectional and hairstyle-based discrimination.
New York Employee Classification Minimum salaries for exempt employees increase to $1,161.65–$1,237.50 per week.
Paid Sick Leave Expanded to include prenatal leave.
Colorado Employee Classification Minimum salary for exempt employees increases to $1,086.25 per week.
Workplace Safety Stricter rules for mobile device usage while driving.
Illinois Pay Transparency Pay transparency law and expanded pay statement requirements.
Discrimination Protections against family responsibility and reproductive health discrimination.
Military Leave Protections extended to U.S. Space Force members.
Personnel Records Updates to the Personnel Record Review Act.
Oregon Overtime Agricultural employees are eligible for overtime after 48 hours.
Paid Family & Medical Leave Adds new qualifying reasons for leave.
Workplace Safety The Warehouse Worker Protection Law takes effect.
Alaska Employee Classification Minimum salary for exempt employees increases to $952.80 per week.
Minnesota Pay Transparency Requires job postings to include pay information.
Wage Theft Wage theft ordinance in St. Paul.
Nevada Minimum Wage Limits subminimum wages for job and day-training service providers.
Delaware Privacy Delaware Personal Data Privacy Act takes effect.
Iowa Privacy Iowa Consumer Data Protection Act takes effect.
Nebraska Privacy Nebraska Data Privacy Act takes effect.
New Hampshire Privacy New Hampshire Consumer Data Privacy Law takes effect.

 

Download our 2025 compliance guide

Actionable Steps for Employers

To navigate these compliance updates effectively:

  1. Assess – Pull an employee census file to thoroughly audit your workforce across all jurisdictions to identify applicable compliance changes.
  2. Update Policies – Revise employee handbooks and employment agreements to reflect new wage requirements, leave, and privacy requirements.
  3. Train Your Team – Ensure HR personnel, managers, and relevant teams are trained on implementing these updates.
  4. Stay Informed – Establish ongoing practices to monitor proposed and upcoming labor law changes.

Get started with PEO 360 

With over 140 compliance changes—including 60+ minimum wage increases—taking effect on January 1, 2025, proactive planning is essential. Understanding these updates and implementing necessary changes can protect your organization from penalties and foster a compliant, employee-friendly workplace.

For personalized assistance navigating these changes, connect with our team to learn more about our HR services. 

 

Book a Strategy Call

More Articles

Year-End HR Checklist & Reminders: 10 Steps for Success

Year-End HR Checklist & Reminders: 10 Steps for Success

As we approach the end of 2024, many of us are turning our thoughts to holiday plans, New Year’s resolutions, and wrapping up Q4 initiatives. For business leaders, however, this season comes with its own set of tasks to ensure a smooth transition into 2025. Our team...

read more
Navigating the Maze of Voting Leave Rules for Employers

Navigating the Maze of Voting Leave Rules for Employers

Election Day is fast approaching, and for employers, this period can be as daunting as it is significant. Ensuring employees can exercise their right to vote without hindrance is crucial, and understanding the patchwork of state regulations surrounding time off to...

read more

Let's take your business to the next level!