Federal Updates

• Preparedness for Audits and Site Visits: Compliance obligations affect all stages of the employment cycle, from before an employee’s first day up to beyond their last. In light of the upcoming change in federal government leadership, employers should consider reviewing their compliance programs for employer-sponsored nonimmigrant and immigrant processes.
• Workplace Laws Taking Effect Jan. 1: Federal Contractor Executive Order 13658: Minimum wage for workers on federal contracts increases to $13.30 per hour ($9.30 for tipped employees) on January 1. Federal Contractor Executive Order 14026: Minimum wage for workers on federal contracts increases to $17.75 per hour on January 1, despite a federal appeals court ruling the underlying executive order unlawful.
• OSHA Holiday Safety: OSHA is calling attention to its webpage featuring links to important safety topics for holiday-centric workers, including employees in retail and warehousing.
• DHS Strengthens H-1B Program: The Department of Homeland Security has introduced new rules to modernize the H-1B visa program, making it easier for U.S. employers to fill critical jobs. The changes include streamlining the approval process and increasing flexibility for employers and workers.
• Department of State Shifts Policy for J-1 Visa Skills List: The U.S. Department of State has updated the J-1 Visa Skills List, removing the two-year home residency requirement for J-1 visa holders from 34 countries, including China and India. This change aims to retain top foreign talent in the U.S..
• U.S. House AI Report: The U.S. House Bipartisan Task Force on Artificial Intelligence has released a comprehensive report outlining recommendations for AI policy. The report emphasizes the need for responsible AI innovation and includes guidelines for various sectors.
• EEOC on Wearable Technologies: The EEOC has highlighted potential employment discrimination issues related to the use of wearable technologies in the workplace. Employers must ensure that the use of wearables complies with federal anti-discrimination laws and provides reasonable accommodations.
• Wage and Hour Concerns During Inclement Weather: Employers face specific wage and hour issues during inclement weather. Under the Fair Labor Standards Act (FLSA), exempt employees must be paid their guaranteed salary during business closures caused by weather. Nonexempt employees are only required to be paid for hours worked, and employers may need to implement policies for remote work and connectivity issues.

State and Local Updates

• State Wage Increases for 2025: On January 1, 2025, minimum wage rates increased in 21 states, including California, Connecticut, and New York. These increases are part of ongoing efforts to align wages with the cost of living and ensure economic fairness for workers.
• Arizona’s Minimum Wage Increase: Arizona's minimum wage will increase to $14.70 per hour starting January 1, 2025, reflecting a 2.4% cost of living adjustment.
• California Employee Handbook Updates for 2025: California employers need to update their employee handbooks to comply with new laws effective January 1, 2025. Key updates include restrictions on driver's license requirements for job postings, bans on mandatory "captive audience" meetings, protections for freelance workers, and adjustments to paid family and sick leave policies.
• Connecticut Workers' Comp Rates: The Connecticut Insurance Department has approved an annual workers’ compensation rate filing for 2025 with a decrease of 6.1% to the voluntary market loss costs and a decrease of 6.2% in assigned risk plan rates. This becomes the eleventh consecutive year that the Connecticut Insurance Department has approved rate decreases for workers’ compensation insurance, resulting in significant cost savings for employers. The trend reflects a continued decline in workplace injuries and filed claims.
• Connecticut Paid Sick Leave Law: Connecticut has issued new guidance on its paid sick leave law, which will require employers with 25 or more employees to provide up to 40 hours of paid sick leave per year starting January 1, 2025.
• Illinois Employment Laws: Illinois employers with 15 or more employees must include salary ranges and benefits in job postings for covered positions, effective January 1, 2025, under H.B. 3129. The Illinois Human Rights Act will provide protection based on two new categories, "Family Responsibilities" and "Reproductive Health Decisions," and will have a longer statute of limitations, effective January 1, 2025.The Personnel Records Review Act has been amended to expand the categories of documents that employees may inspect, including pay stubs, employee benefits, handbooks, policies, procedures, and agreements.
• Illinois Employment Law Changes: As of January 1, 2025, Illinois employers must comply with changes to various employment laws, including the Illinois Human Rights Act, Illinois Equal Pay Act, Worker Freedom of Speech Act, Whistleblower Act, Child Labor Law, Personnel Records Review Act, Wage Payment and Collection Act, and Right to Privacy in the Workplace Act.
• Massachusetts Paid Family and Medical Leave: The Massachusetts Paid Family and Medical Leave (MA PFML) law will undergo changes effective January 1, 2025, with employers required to notify current employees by December 2, 2024. Maximum weekly benefits under MA PFML will increase to $1,170.64, while contribution rates will remain the same. The Department of Family and Medical Leave (DFML) has revised its stance on topping off PFML leave, allowing employers to determine their own policies as long as they do not discriminate against employees exercising their PFML rights.
• Michigan’s Earned Sick Time Act: Starting February 21, 2025, Michigan's Earned Sick Time Act will require employers to provide paid sick leave to employees. Employees will accrue one hour of sick time for every 30 hours worked, with a maximum of 72 hours per year for larger employers and 40 hours for smaller employers.
• Missouri’s Paid Sick Leave Law: Missouri's new paid sick leave law, approved by voters through Proposition A, will take effect on May 1, 2025, and applies to all private employers in the state, excluding certain employees. Eligible employees will accrue at least one hour of paid sick leave for every 30 hours worked, with employers allowed to limit annual use to 56 hours for employers with 15+ employees and 40 hours for others.
• Missouri Workers' Comp Rates: The Missouri Department of Commerce and Insurance (DCI) announces a proposed 5.3% decrease in workers' compensation loss costs for 2025, marking the fourth consecutive year of rate reductions. The decrease is driven by declining average indemnity and medical costs per lost time claim, and employers are encouraged to shop around for the best rates using DCI's online rate checker.
• New Jersey Minimum Wage Increase: New Jersey's minimum wage will increase to $15.49 per hour for most employees starting January 1, 2025. This increase is part of a gradual rise to ensure fair wages for workers, with different rates for small businesses, seasonal workers, and agricultural employees.
• New York Paid Prenatal Leave: New York introduces paid prenatal leave, offering 20 hours of paid leave per year for pregnant employees to attend prenatal medical appointments.
• New York DOL Guidance on Extreme Cold: The New York Department of Labor has issued new guidance to protect outdoor workers from extreme cold. The guidance includes recommendations for limiting outdoor work, providing frequent breaks in warm areas, and ensuring access to clean drinking water. Employers are also advised to develop emergency preparedness plans and train workers on recognizing cold-related illnesses.
• Oklahoma Workers' Compensation Reduction: The Oklahoma Insurance Department has approved a 9.2% decrease in workers' compensation insurance loss costs for 2025. This reduction will lower premiums for many Oklahoma businesses, making it more affordable for employers to operate in the state.
• Seattle App-Based Worker Protections: Starting January 1, 2025, Seattle's new ordinance provides additional protections for app-based workers, including deactivation rights. The ordinance requires network companies to follow specific procedures and provide 14 days' notice before deactivating a worker from the platform.
• Washington Workers' Comp Rates: The average cost of workers' compensation insurance in Washington will increase by 3.8% in 2025, according to the Washington State Department of Labor & Industries (L&I). Employers and workers will pay, on average, about a dollar a week more for each full-time position, with workers paying about a quarter of the premium.
• Washington Paid Family and Medical Leave: The Washington Employment Security Department has announced the 2025 premium rates and weekly benefit maximums for the Paid Family and Medical Leave Program. The total premium rate will increase to 0.92% from 0.74% starting January 1, 2025, with employers paying at least 28.48% and employees paying 71.52% for employers with 50 or more employees.
• Washington State Employment Laws 2024 + 2025: Washington state has introduced several new employment laws for 2025, including a minimum wage increase to $16.66 per hour, expanded paid sick leave, and higher salary thresholds for overtime-exempt workers.