Employment Laws on the Horizon 2025 Edition
2 | EMPLOYMENT LAWS ON THE HORIZON
2025 Employment Laws on the Horizon As of December 2024 This Report captures employment and labor laws that take effect in 2025 and beyond. If you’d like to learn about newly enacted employment or labor laws, regulations, and noteworthy case law on an ongoing basis throughout the year, speak to your Seyfarth attorney about signing up for the monthly Employment Law Report. © Seyfarth Shaw LLP 2025 Employment Laws on the Horizon | 1 Workplace Laws, Regulations, Rules, and Policies AI CA (Eff. 1/1/25) – CA’s digital replica law makes agreements related to the performance of personal or professional services on or after January 1, 2025 unenforceable if (1) it allows for the creation and use of a digital replica of the individual’s voice or likeness in place of work otherwise performed in person by the individual (with limited exceptions) and (2) the person is unrepresented by legal counsel or a labor union. (A.B. 2602) NY (Eff. 1/1/25) – NY requires contracts involving the creation and use of digital replicas, applicable to contracts entered into or modified on or after January 1, 2025. (A. 8138 / S. 7676) IL (Eff. 1/1/26) – It is a civil rights violation to use AI with respect to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment that has the effect of discriminating on the basis of a protected class or to use zip codes as a proxy for protected classes. Employers must provide employees with notice if it uses AI for a reason noted above. (H.B. 3773; Seyfarth Post) CO (Eff. 2/1/26) – CO’s AI bill requires private sector employers that use a high-risk AI system to (1) take reasonable care to protect consumers from algorithmic discrimination; (2) implement and regularly review a risk management policy and program that meets specified criteria; (3) complete an annual impact assessment; (4) include a statement on its website summarizing its use; and (5) notify consumers if AI is used to make, or is a substantial factor in making, consequential decisions, including providing a purpose statement and an option to opt out of its use. If AI’s use results in an adverse decision, employers must provide additional information to the consumer, an opportunity to correct incorrect data, and an appeals process. Employers may be exempt from certain requirements if it has fewer than 50 full-time employees, the AI is trained using outside data, and it discloses certain information to consumers. The bill has a broad definition of
2 | 2025 Employment Laws on the Horizon © Seyfarth Shaw LLP Workplace Laws, Regulations, Rules, and Policies “consequential decisions” that may open the door to a range of employment claims. (S.B. 205; Seyfarth Post) Background Checks IL (Eff. 1/1/25) – IL’s Health Care Worker Background Check Act expands to allow health care employers to cover comprehensive community mental health centers, requiring background checks for all employees, volunteers, interns, unpaid personnel, and agents. (S.B. 3661) MO (Eff. 1/1/25) – With limited exceptions, applicants may answer “no” to an employer’s inquiry regarding past arrests, charges, or crime convictions that have been expunged. (S.B. 754) NY (Eff. 3/22/25) – It is an unlawful discriminatory practice to require an individual to provide a copy of their criminal history record obtained from the Div. of Criminal Justice Services, because such record contains “unsuppressed” confidential information. (A. 6637 / S. 940) Biometric Data CO (Eff. 7/1/25) – CO protects biometric data (e.g., fingerprints, voiceprints, eye retina/iris scans, and facial maps, but excludes photographs and voice recordings). Employers may require employees and applicants, as a condition of employment, to consent to the collection of biometric identifiers for limited articulated uses (e.g., recording the beginning and end of a day, meal and rest breaks in excess of 30 minutes, access to a secure locations, and certain electronic hardware or software). To collect biometric identifiers for reasons not listed within the statute, employers must have voluntary consent. (H.B. 1130) Cannabis KY (Eff. 1/1/25) – Medical marijuana legalized. Employers do not have to accommodate the use or possession of medical marijuana and may implement policies that restrict its use and the use of certain equipment by qualified patients. (S.B. 47) RI (Eff. 2/1/25) – RI adopts the federal schedule of controlled substances published in the CFR. (S. 2820) NE (Pending Litigation) – Medical marijuana legalized via a voter initiative, but the effective date is unknown. Employers are not required to accommodate its use in the workplace. (Announcement; Proclamations) CROWN Act CA (Eff. 1/1/25) – The list of protected classes under the Unruh Civil Rights Act and the CA Fair Employment and Housing Act now define “race” as inclusive of traits associated with race, including, but not limited to, hair texture and protective hairstyles. “Protective hairstyles” include, but is not limited to, hairstyles such as braids, locs, and twists. Also, the definition of “race” in the Gov’t Code expands, no longer requiring traits to be “historically” associate with race. (A.B. 1815) Gwinnett Cnty., GA (Eff. 1/1/25) – Gwinnett County code amended it’s definition of “race” to include traits associated with race and national origin, including, but not limited to hair texture, hair types, and protective hairstyles, such as braids, locs, Bantu knots, Afros, and twists unless the hairstyle restricts the person’s ability to safely engage in a particular job or interferes with the performance of their essential job functions. (Ord. 2024-0456) EEO Laws: Discrimination CA (Eff. 1/1/25) – The CA Fair Employment and Housing Act now provides protection from discrimination on the basis of intersectionality
© Seyfarth Shaw LLP 2025 Employment Laws on the Horizon | 3 Workplace Laws, Regulations, Rules, and Policies – i.e., prohibits discrimination based on a combination of two or more protected classes. (S.B. 1137) IL (Eff. 1/1/25) – “Family responsibilities” added to the list of protected classes. “Family responsibilities” are an employee’s actual or perceived provision of personal care to a family member. Definitions of “personal care” and “family member” are tied to the Employee Sick Leave Act. (H.B. 2161) IL (Eff. 1/1/25) – It is unlawful to discriminate against an individual based on their reproductive health decisions. (H.B. 4867) WA (Eff. 7/1/25) – “Protected class,” in the WA Equal Pay and Opportunities Act, includes a person’s age, sex, marital status, sexual orientation, race, creed, color, national origin, citizenship or immigration status, honorably discharged veteran or military status, or the presence of any sensory, mental, or physical disability or the use of a trained dog guide or service animal by a person with a disability. Also, WA released preliminary rule language that defines “applicant” as an individual, including existing employees, who submit a job application in good faith with the intent of gaining employment. (H.B. 1905; Preproposed Statement; Preliminary Rule; Seyfarth Post RE: Needed Clarity) E-Verify IL (Eff. 1/1/25) – IL prohibits employers from imposing work authorization verification greater than those required under federal law. If there is a discrepancy in an employee’s E-verify or I-9 information, the employer must provide the employee with known information related to the deficiency (e.g., original notice); instructions on correcting insufficient information or the time frame for contesting the determination; and a notice of certain rights. If a federal or state agency notifies an employer of a work authorization discrepancy, employers have 5 days to provide the worker with a notice containing specified information and may not take an adverse employment action based on that information. Also, employers must display a poster produced by the state in both English and Spanish. FAQs clarify that private employers may choose to use E-Verify. (S.B. 508; Posters; FAQs; Seyfarth Post) AZ (TBD) – AZ makes it a crime to knowingly provide an employer with false information or document to evade detection of employment eligibility via an E-verify program. (H.C.R. 2060; Proposition 314) Firearms NH (Eff. 1/1/25) – Employers who receive state or federal funding may not ban employees from storing firearms or ammunition in a locked vehicle. No employer may inquire or search a locked vehicle for firearms or ammunition. (H.B. 1336) Lactation/Nursing Accommodations New York City, NY (Eff. 5/8/25) – The New York City Council amended its lactation accommodation policy requirement. Employers must (1) distribute the written policy at the commencement of employment; (2) display the policy in the workplace and on its intranet, if one exists; and (3) state that the employer will provide a 30 minute paid break and further allow employees to extend other paid break and meal times to express milk. A model policy is forthcoming. (Int. 08922024) NH (Eff. 7/1/25) – NH’s lactation accommodations law takes effect, which requires employers with 6 or more employees in NH to have a
4 | 2025 Employment Laws on the Horizon © Seyfarth Shaw LLP Workplace Laws, Regulations, Rules, and Policies lactation policy; provide nursing employees a “reasonable break period” to pump for 30 minutes every 3 hours; and provide a reasonable, sufficient space that is not a bathroom, is clean, shielded from view and free from intrusion, and ideally includes an electrical outlet and chair for 1 year after the child’s birth, unless the break or space accommodation causes an undue hardship. (One-time civil penalty effective July 1, 2026.) (H.B. 358) Sexual Harassment Prevention Policy & Training Requirements WA (Eff. 1/1/25 and 1/2/25) – WA requires adult entertainment establishments to provide a third-party training to all non-entertainer employees by March 1, 2025 that covers preventing sexual harassment, sexual discrimination, and assault in the workplace, among other topics. Employees must complete the training at least every 2 years. Covered employers must have a written policy addressing the statute requirements, which must include a process for employees and entertainers to record allegations involving a customer. The final rules take effect on January 2, 2025. (S.B. 6105; Proposed Rules; Adopted Language – Labor Rule and Safety Rule) Speech CA (Eff. 1/1/25) – CA’s captive audience law prohibits employers from taking an adverse employment action against an employee because the employee declines to attend an employer-sponsored meeting or affirmatively declines to participate in, receive, or listen to any communications with the employer or its agents or representatives that communicate the employer’s opinion about religious or political matters. There is a $500 civil penalty per employee, per violation. (S.B. 399) IL (Eff. 1/1/25) – IL’s captive audience law prohibits employers and their agents from discharging, disciplining, penalizing, threatening, or otherwise taking an adverse employment action against an employee for declining to attend or participate in an employer-sponsored meeting or receive or listen to employer communications regarding the employer’s opinion about religious or political matters. Within 30 days of the law taking effect (est. 1/31/25), employers must post and keep posted a notice of employee’s rights. (S.B. 3649) AK (Eff. 7/1/25) – AK’s captive audience law prohibits employers from requiring employees to attend an employer-sponsored meeting or listen to communications that’s primary purpose communicates the employer’s opinion on religious or political matters. (Letter; Ballot Initiative) Leaves of Absence Bereavement Leave CA (Eff. 1/1/25) – The small employer family leave mediation program for employers with between 5 and 19 employees is now permanent and includes reproductive loss leave. (A.B. 2011) New Orleans, LA (Eff. 1/1/25) – New Orleans voters approved an amendment to the New Orleans Bill of Rights to include the right to paid bereavement leave. The Bill of Rights, however, does not create any enforceable rights, duties, obligations, or causes of actions beyond those guaranteed by the state and federal constitutions. (Ordinance) Domestic Violence Leave CA (Eff. 1/1/25) – The domestic violence leave law is expanded beyond domestic violence, sexual assault, and stalking to include
© Seyfarth Shaw LLP 2025 Employment Laws on the Horizon | 5 Leaves of Absence “qualifying acts of violence” and to provide leave and reasonable accommodations not only to employees who are victims but also to employees whose covered family members are victims if the employer has 25 or more employees; allows an employee to use paid sick leave to cover qualifying act of violence leave; and creates a notice requirement applicable to all employers. (A.B. 2499; Seyfarth Post) MO (Eff. 5/1/25) – The earned paid sick time law takes effect, which provides leave for domestic violence. (Petition No. 2024-38) MN (Eff. 7/1/25) – MN’s FML insurance program provides MN workers with up to 12 weeks of paid leave, including safe leave for domestic violence victims. Paid benefits begin January 1, 2026. (H.F. 2) Family Medical Leave OR (Operative 7/1/24 (OFLA) & 1/1/25 (PLO)) – OR amended its unpaid Family Leave Act and Paid FML Insurance laws. It recategorizes what purposes of leave fall under FLA vs. PFMLI and added the legal process for adopting or fostering a child; prohibits FLA and PFMLI leave from running concurrently; removes the 4 weeks of unpaid family leave previously provided; entitles employees to use other accrued leaves in addition to receiving PFMLI benefits, to a combined total not to exceed an employee’s full wages; caps bereavement at 4 weeks per year; amends when an employee may take leave without prior notice; and amends when an employer may request a medical verification. (S.B. 1515) CA (Eff. 1/1/25) – Employers now are prohibited from requiring employees use up to 2 weeks of accrued, unused vacation time or PTO before they are eligible to receive CA paid family leave partial wage replacement benefits. (A.B. 2123) CO (Eff. 1/1/25) – The 2025 CO Family-Leave Insurance Premium Rate remain at 0.9%. The maximum family-leave premium, which is based on the federal Social Security wage base ($176,100 for 2025), increase to $792.45 for both employers and employees. (Newsletter) DE (Eff. 1/1/25) – Contributions begin for DE’s paid FMLA (Healthy DE Families Act). The law applies to employers with 10+ DE employees with limited requirements for employers with 10-24 employees. The regulations explain how to calculate an employer’s size and how a private plan is approved (due 9/1/24 – 12/1/24). Benefits are available beginning January 1, 2026. (Regulations) New Orleans, LA (Eff. 1/1/25) – The New Orleans Bill of Rights now includes the right to paid leave for medical and family purposes. It does not, however, create any enforceable rights, duties, obligations, or causes of actions beyond those guaranteed by the state and federal constitutions. (Ordinance) RI (Eff. 1/1/25 and 1/1/26) – Temporary disability insurance benefits gradually expand: beginning January 1, 2025, the maximum temporary caregiver benefits expands from 6 to 7 weeks and then on January 1, 2026, expands to 8 weeks. (H. 7171 / S. 2121) MA (Eff. 1/1/25) – The updated PFML contribution rates remain at 0.88% for employers with 25 or more covered employees and 0.46% for employers with fewer than 25 covered employees. The max. weekly PFML benefit increased to $1,170.64 per week. The new rates must be annually distributed to employees. (Announcement; Poster & Notices; Seyfarth Post; Seyfarth Post RE: Updated Notices)
6 | 2025 Employment Laws on the Horizon © Seyfarth Shaw LLP Leaves of Absence ME (Eff. 1/1/25 and 1/1/26) – Contributions to ME’s paid FML program begin; benefits begin on May 1, 2026. Employees are entitled to up to 12 weeks of family leave and 12 weeks of medical leave, with a combined max. of 16 weeks of leave. Reasons for leave include sickness, safety, birth, bonding, adoption, organ donation, military family, and bereavement of state service members. Businesses with 15 or more employees will split wage contributions. There is a posting and notice requirement. (L.D. 1964; L.D. 258; Proposed Regulations; Revised Proposed Regulations; Poster (10/24)) NY (Eff. 1/1/25) – The 2025 NY Paid Family Leave law contribution rates increase to 0.388% of an employee’s gross wages with a max. contribution of $354.53 per pay period. The max. weekly benefit amount increases to $1,177.32 per week. (Announcement) WA (Eff. 1/1/25) – The PFML premium rates increase to 0.92% of each employee’s gross wages, not including tips, up to the Social Security cap of $176,100. Employers with 50+ employees must pay 28.48% of the total premium. The max. weekly PFML benefit increases to $1,542.00 per week. (Announcement) DC (Eff. 2/25) – The updated paid family leave poster must be posted. (Poster) MN (Eff. 7/1/25 & 11/1/25) – MN enacted a FML insurance program, funded through a payroll tax, that provides all workers in MN with up to 12 weeks of paid leave for sickness, pregnancy, bonding time, domestic violence victim leave, and military family leave. If leave is needed for more than 1 covered reason, an additional 8 week is provided. There is a notice requirement that takes effect November 1, 2025. Leave is available starting January 1, 2026. (H.F. 2; FAQs). Jury Duty Leave CA (Eff. 1/1/25) – Paid sick leave may be used to cover otherwise unpaid time off while serving on jury duty. (A.B. 2499; Seyfarth Post) Military, Military Leave, & Veteran Posters IL (Eff. 1/1/25) – The definition of “armed forces” and “uniform services” expanded to include the Space Force. (H.B. 5640) RI (Eff. 1/1/25) – Every employer in RI with more than 50 full-time equivalent employees must conspicuously display a veterans benefits poster in the workplace. (H. 7058 / S. 2128) MN (Eff. 7/1/25) – MN’s FML insurance program takes effect; paid benefits begin January 1, 2026 . MN workers may take up to 12 weeks of paid leave including qualifying exigencies: needs arising out of a military member’s active duty including caring for dependents, attending events, spending time with family during a rest and recuperation leave or following return from deployment, and making arrangements following the death of a military member. (H.F. 2) Organ Donor, Wellness, & Misc. Medical Leave ME (Eff. 1/1/25) – ME created a paid FML program that includes leave for organ donation. See Family and Medical Leave Section. Pregnancy, Childbirth, & Bonding Leave DE (Eff. 1/1/25) – The Healthy DE Families Act, which requires employers with 10-24 employees to provide parental leave, begin contributions on January 1, 2025; benefits on January 1, 2026. (Regulations) NY (Eff. 1/1/25) – Employers must provide employees with 20 hours of paid prenatal leave per 52-week period, separate and in addition to sick leave. Personal prenatal leave can be used to receive health care
© Seyfarth Shaw LLP 2025 Employment Laws on the Horizon | 7 Leaves of Absence services related to pregnancy (e.g., appointments, tests, etc.) and may be taken in one hour increments. (A. 8805; Website; FAQs; Seyfarth Post; Seyfarth Post RE: website) RI (Eff. 1/1/25) – RI expands temporary disability insurance benefits for temporary caregivers. See Family Medical Leave section. (H. 7171 / S. 2121) Sick & Safe Leave MN (Eff. 1/1/25) – Provisions regarding the impact of more generous Sick & Safe Time policies take effect. (H.F. 5247, Art. 11) CA (Eff. 1/1/25) – Paid sick leave expanded to cover qualifying agriculture employees who work outside and request sick leave to avoid smoke, heat, and flooding conditions created by a local or state emergency. Also, the law expands to allow employees to use paid sick leave (1) for certain covered reasons if either they or their covered family members are a victim of a qualifying act of violence; and (2) for otherwise unpaid jury or witness duty leave. (S.B. 1105; A.B. 2499; FAQs, Seyfarth Post) CT (Eff. 1/1/25, 1/1/26, & 1/1/27) – Beginning January 1, 2025, CT’s sick leave mandate will apply to any employer with 25 or more employees. On January 1, 2026 the threshold will reduce to employers with 11 or more employees. Finally, on January 1, 2027 it will cover employers with 1 or more employees in CT. Also, the definition of “employee” expands; eligibility no longer require a person be a “service worker” nor be paid hourly or be non-exempt; the accrual rate changed to one hour of paid sick leave for every 30 hours worked; a new written notice requirement; and frontloading leave relieves employers of carryover requirements. (H.B. 5005; Seyfarth Post; Notice Prototype; Poster; FAQs) WA (Eff. 1/1/25) – WA’s sick leave law, expands (1) the definition family member to include any person that regularly resides with the employee and there is an expectation of care and (2) coverage to include when a child’s school or place of care is closed after the federal, state, or local governments declare an emergency. (S.B. 5793; Regulations; Draft Questions; FAQs) MI (Eff. 2/21/25) – The Earned Sick Time Act applies to all employers with one employee; covers school meetings; “family member” includes a person related by blood or affinity; employees accrue 1 hour of paid sick leave per 30 hours worked; has higher usage caps (72 hours) depending if the employer is a small business; requires earned time to carry over, but does not include an accrual cap or carryover limit; has a written notice requirement; 3 year recordkeeping mandate; has a retaliation provision; and creates a civil cause of action. (Mothering Justice v. Attorney General; Seyfarth Post; Updated Poster (8/22/24); FAQs; Seyfarth Post RE: FAQs) MO (Eff. 4/15/25 & 5/1/25) – By April 15, 2025, employers must provide employees with a written notice and display a poster created by the state regarding forthcoming earned paid sick leave. Employees begin accruing earned paid sick on May 1, 2025. Employees earn 1 hour of paid sick leave for every 30 hours worked. Employers with fewer than 15 employees may cap use to 40 hours per year; larger employers may cap use at 56 hours per year. Up to 80 hours carryover. Leave covers sick leave, sick leave to care for a family member, certain closures, and domestic violence. (Petition No. 2024-38; Seyfarth Post)
8 | 2025 Employment Laws on the Horizon © Seyfarth Shaw LLP Leaves of Absence AK (Eff. 6/1/25 & 7/1/25) – By June 1, 2025, employers must provide employees with written notice of AK’s forthcoming paid sick leave taking effect. Accrual begins on July 1, 2025. Employees accrue 1 hr. of paid sick leave for every 30 hrs. worked with a yearly accrual and usage cap of 56 hrs. per year, unless than employer has less than 15 employees (capped at 40 hrs. per year). Employees are entitled to use leave as it accrues for (a) their own mental or physical illness, (b) to care for a covered family member’s mental or physical illness, and (c) leave necessitated for themselves or a family member because of domestic violence, sexual assault, or stalking. Unused, accrued leave carries over. The law is silent on frontloading. The AK Wage and Hour posting requirement, which is provided by the state, will be expanded to include paid sick leave. (Letter; Ballot Initiative; Seyfarth Post) NE (Eff. 9/15/25 and 10/01/25) – By September 15, 2025, employers must provide employees with written notice of the forthcoming paid sick leave law and display a poster. Beginning October 1, 2025, employees who work at least 80 hours a year in NE will earn 1 hr. of paid sick leave per 30 hrs. worked. Employees will be entitled to use 40 hrs. of paid sick leave per year if an employee of a small business (i.e., has less than 20 employees) or 56 hrs. of per year for larger employers for (a) their own mental or physical illness, (b) caring for a covered family member’s mental or physical illness (including certain school meetings), and (c) public health emergency closures. Unused, accrued leave will carryover if not paid out at the end of the year. (Petition; Seyfarth Post) Small Necessity Leave MI (Eff. 2/21/25) – Beginning February 21, 2025, earned sick time will cover leave to attend school and places of care meetings related a child’s health, disability, and the effect of domestic violence or sexual assault on the child. (Mothering Justice v. Attorney General; Original Law) NE (Eff. 10/1/25) – Paid sick leave provides leave to attend a meeting at a covered’ child’s school or place of care that is necessitated by the child’s mental or physical illness, injury, or health condition. (Petition) Pay Equity & Wage Transparency Compensation Disclosure IL (Eff. 1/1/25) – Employers with 15+ employees must include a pay scale for wages or salaries and a general description of the benefits and other compensation the employer reasonably expect to offer in a job posting. The same day the job is externally posted, employers must notify current employees of the opportunity for promotion. There is also a 5-year recordkeeping requirement and a posting requirement. (H.B. 3129; Seyfarth Post; Poster; Seyfarth Post RE: FAQs) MN (Eff. 1/1/25) – Employers with 30 or more employees at one or more sites in MN must include the salary range or fixed pay rate, a general description of all benefits, and other compensation in job postings. (S.F. 3852; Seyfarth Post) NJ (Eff. 6/1/25) – Employers with 10 or more employees must include the hourly wage or salary/range, benefits, and other eligible compensation in new jobs and transfer opportunities posted both internally and externally. Registered temporary help service and consulting firms are excluded but must provide this information in the interview or at time of hire. Employers
© Seyfarth Shaw LLP 2025 Employment Laws on the Horizon | 9 Pay Equity & Wage Transparency must make a “reasonable effort” to make promotion opportunities known to employees in the affected department before a promotion decision is made. (S. 2310; Seyfarth Post; Seyfarth Update) VT (Eff. 7/1/25) – Employers with 5 or more employees must disclose pay ranges in written advertisements for VT job openings, including the pay range, unless it is paid on commission or tips, which must be included in the posting. (H. 704) Equal Pay Laws New Orleans, LA (Eff. 1/1/25) - New Orleans Bill of Rights now includes the right to receive fair living wages for their labor and equal pay. The Bill of Rights, however, does not create any enforceable rights, duties, obligations, or causes of actions beyond those guaranteed by the state and federal constitutions. (Ordinance) Hours of Work Child Labor CA (Eff. 1/1/25) – An employer who voluntarily subjects itself to a social compliance audit, whether the audit is conducted in part, or in whole, to determine if child labor is involved in the employer’s operations or practices, must post a clear and conspicuous link on its internet website to a report detailing the findings of its compliance with child labor laws. (A.B. 3234) CO (Eff. 1/1/25) – CO’s child labor law prohibits retaliation against minors who report illegal work conditions and makes final child labor violations orders public. Penalties may be reduced or declined if the minor intentionally misled the employer about their age or if the employer used a reliable third party to verify the minors age. (H.B. 1095) IL (Eff. 1/1/25) – IL’s child labor law prohibits employing minors 13 years of age or younger and requires 14 or 15 year old to have a work permit. Minors are restricted from working in numerous positions and industries with certain exceptions receiving extensive guidance (e.g., child performers, vloggers (effective 7/1/24), etc). Minors cannot work more than 18 hours per week during the school year and no more than 40 hours per week when school is not in session. The law places guardrails on the number of hours a minor can work per day based on several factors. Minors may not work after 7 pm from Labor Day to June 1st or after 9 pm from June 1st to Labor Day. Minors must be supervised by a person, onsite, who is 21 years of age or older. Minors that work 5 continuous hours must take a 30 minute meal break. Employers must maintain 3 years of records and comply with a notice requirement. Retaliation is prohibited. (S.B. 3646) IN (Eff. 1/1/25) – IN amended its child labor laws, allowing certain 14-16 year olds to work who have met certain education thresholds, have a child to support, or have been expelled from school; redefines child labor exceptions for actors and performers; and repeals numerous sections limiting the number of hours a minor can work on both school and nonschool days. (H.B. 1093; Poster) Meal & Rest Periods CO (Eff. 1/1/25) – CO Wage & Hour Rights and Responsibilities poster must be posted, which includes information on meal and rest periods. (Poster) Scheduling Los Angeles County, CA (Eff. 7/1/25) – Los Angeles County’s Fair Workweek ordinance, applicable to the unincorporated areas of LA
10 | 2025 Employment Laws on the Horizon © Seyfarth Shaw LLP Hours of Work County, imposes various requirements on covered Retail Employers with 300 or more employees globally, as follows: (1) before hiring a person for a position that will qualify the person as a Retail Employee, as defined in the Ordinance, provide a written, good faith estimate of the work schedule in the person’s primary language that includes the Notice of Retail Employee’s Workweek Rights; (2) upon a current Retail Employee’s request, provide a good faith estimate of work in their primary language within 10 days of the request; (3) provide Retail Employees with notice of their work schedule at least 14 days before the start of the work period by posting the schedule in a conspicuous and accessible location or transmitting it electronically, with Retail Employees having a right to decline any hours, shift, or work location changes not included in the work schedule; (4) have documented consent from the impacted Retail Employees if the employer changes the work schedule after the 14-day period; (5) pay consenting Retail Employees 1 additional hour of pay at their regular rate of pay for each change to a scheduled date, time, or location that results in no lost time or results in additional work time that exceeds 15 minutes; (6) pay Retail Employees one-half of their regular rate of pay for the time the employee does not work when the employer (a) changes the start or end time of a shift resulting in a loss of more than 15 minutes; (b) subtracts time from a shift before or after the employee reports to work; (c) changes the date of a shift; (d) cancels a shift; or (e) schedules the employee for an on-call shift and the employee is not called in (subject to limited exceptions when the pay is not required); (7) before hiring a new Retail Employee or using a contractor, temporary service, or staffing agency to perform work, first offering the work to current Retail Employees if (a) one or more of the current Retail Employees is qualified to do the work; and (b) the additional work hours would not result in the payment of overtime; (8) post a notice; and (9) keep specific records. (Ordinance; Seyfarth Post) Wage & Expense, etc. Earned Wage Access Services CA (Eff. 2/25) – Income-based advances (i.e., EWA) treated as loans and are subject to the CA Fair Lending law. By February 15, 2025, EWA providers must register and obtain a license to offer such services. Unlike the proposed CFPB regulations, the rule does not require companies to provide CA users with an APR. (Announcement; Final Text) Overtime & Premium Pay MN (Eff/ 1/1/25) – MN published a template that may be used to comply with the new nursing home holiday pay notice requirement. (Posting) WA (Eff. 1/1/25) – Beginning January 1, 2025, for purposes of mandatory overtime, the definition of health care facility “employee” is broadened to include any person employed by a health care facility that is involved in direct patient care activities or clinical services and receives an hourly wage or is covered by a CBA. (H.B. 2061) Pay Statements CO (Eff. 1/1/25 & 2/1/25) – Delivery network companies (Eff. 1/1/25) and transportation network companies (Eff. 2/1/25) required to provide drivers with electronic payment disclosures after completing a transportation task. (H.B. 24-1129 and S.B. 24-75) IL (Eff. 6/1/25) – Employers must maintain pay stub records for 3 years. For employers who provide electronic pay stubs that employees cannot access for a year following their separation, they must offer to provide,
© Seyfarth Shaw LLP 2025 Employment Laws on the Horizon | 11 Wage & Expense, etc. upon an employee’s separation of employment, a record of all pay stubs for the past year. Employers must document this offer in writing, noting (1)the date the offer was made; and (2) the employee’s response. (S.B. 3208) Tip Credit Chicago, IL (Eff. 7/1/24 with Rolling Deadlines) – Chicago is phasing out the tip minimum wage, annually reducing the percentage of an employees pay that comes from tips over 5 years. Until July 1, 2024, tips may not account for more than 40% of an employee’s pay. Each year after, the tips may not account for more than 32%, 24%, 16%, and 8% of their pay. On and after July 1, 2028, employers may not account for tips when calculating employee pay and must pay each covered employee the applicable minimum wage. (Ord. SO2023-2995) MI (Eff. 2/21/25 with Rolling Deadlines) – Beginning February 21, 2025, MI will annually increase the tip minimum wage until it is fully phased out. On February 21, 2025, the tipped minimum wage will be $5.99 (48% of min. wage). On February 21st of each year thereafter, the tip min. wage will increase based on a percentage of min. wage: $7.97 (60%) in 2026, $9.91 (70%) in 2027, $11.97 (80%) in 2028, and 90% of the TBD min. wage in 2029. Beginning February 21, 2030, the tip minimum wage will no longer exist. (Mothering Justice v. Attorney General) ME (Eff. 1/1/25) – An employee must customarily and regularly receive more than $185 per month in tips (up from $179) to qualify as a service employee. (Announcement) Flagstaff, AZ (Eff. 1/1/26) – The tipped minimum will be phased out and minimum wage will be based on the Consumer Price Index. (Rates) Wage Deductions CO (Eff. 1/1/25) – The CO Wage & Hour Rights and Responsibilities poster must be posted, which includes information on wage deductions. (Poster) Wage Theft CA (Eff. 1/1/25) – The Freelance Workers Protection Act requires freelance workers to be paid on or before the agreed upon date, or if no date is provided then 30 days after the completion of the work. (S.B. 988) Minimum Wage, Tip Credit, and Minimum Earnings for Exempt Status Revisions Effective January 1, 2025 unless otherwise noted; Most jurisdictions publish an updated poster not linked below. Jurisdiction See counsel for coverage exceptions Gen. Min. Wage Min. Cash Wage Max. Tip Credit Min. Earnings for Exempt Status Federal $7.25 $2.13 $5.12 $684/week or $35,568/year Alaska Effective 7/1/25 $11.91 N/A $0 $952.80/week or $49,545.60/year $1,040/week or $54,080/year Arizona Flagstaff Tucson $14.70 $17.85 $15.00 $11.70 $16.85 $12.00 $3 $1 $3 N/A
12 | 2025 Employment Laws on the Horizon © Seyfarth Shaw LLP Jurisdiction See counsel for coverage exceptions Gen. Min. Wage Min. Cash Wage Max. Tip Credit Min. Earnings for Exempt Status California Belmont Burlingame Cupertino Daly City East Palo Alto El Cerrito Foster City Half Moon Bay Hayward (26+) Los Altos Menlo Park Mountain View Novato (100+) Oakland (w/ health ben.) Oakland (w/o health ben.) Palo Alto Petaluma Redwood City Richmond San Carlos San Diego San Jose San Leandro San Mateo San Mateo Cnty Santa Clara Santa Rosa Sonoma (26+) South San Fran Sunnyvale West Hollywood $16.50 $18.30 $17.43 $18.20 $17.07 $17.45 $18.34 $17.39 $17.47 $17.36 $18.20 $17.10 $19.20 $17.27 $18.36 $24.48 $18.20 $17.97 $18.20 $17.77 $17.32 $17.25 $17.95 $16.50 $17.95 $17.46 $18.20 $17.87 $18.02 $17.70 $19.00 $19.65 N/A $0 $1,320/week or $68,640/year Qualified Computer: $118,657.43/year, $9,888.13/mo, or $56.97/hour Physicians or surgeons: $103.75/hour Colorado Boulder Boulder Cnty. Denver Edgewater $14.81 $15.57 $16.57 $18.81 $16.52 $11.79 $12.55 $13.55 $15.79 $13.50 $3.02 $1,086.25/week or $56,485/year Highly compensated employee: $127,091/year Qualified Computer: $34.07/hour or EAP Connecticut Non-Bartender Bartender $16.35 $6.38 $8.23 $9.97 $8.12 N/A Delaware $15.00 $2.23 $12.77 N/A Illinois Cook Cnty. Chicago $15.00 $15.00 $9.00 $9.00 $6.00 $6.00 N/A Maine Portland Rockland $14.65 $15.50 $15.50 $7.33 $7.75 $7.75 $7.32 $7.75 $7.75 $845.21/week or $43,951/year
© Seyfarth Shaw LLP 2025 Employment Laws on the Horizon | 13 Jurisdiction See counsel for coverage exceptions Gen. Min. Wage Min. Cash Wage Max. Tip Credit Min. Earnings for Exempt Status Maryland Howard Cnty. $16.00 $3.63 $12.37 N/A Michigan Effective 2/21/24 $10.56 $12.48 $4.01 $5.99 $8.98 $6.49 N/A Minnesota Minneapolis* St. Paul (large -er) *Same min. wage for small and large employers. (S.F. 3852) $11.13 $15.97 $15.97 N/A $0 N/A Missouri $13.75 $6.875 $6.875 N/A Montana $10.55 N/A $0 N/A Nebraska $13.50 $2.13 $11.37 N/A New Jersey (large -er) $15.49 $5.62 $9.87 N/A New Mexico Las Cruces Santa Fe (Eff. 3/1/25) $12.65 $14.60 $5.06 $7.59 N/A New York NYC, Long Island and Westchester - Food Service - Other Rest of New York -Food Service - Other $16.50 $15.50 $11.00 $13.75 $10.35 $12.90 $5.50 $2.75 $5.15 $2.60 New York City, Long Island, and Westchester: $1,237.50/week or $64,350/year Rest of New York: $1,161.65/week or $60,405.80/year Ohio $10.70 $5.35 $5.35 N/A Rhode Island $15.00 $3.89 $11.11 N/A South Dakota $11.50 $5.75 $5.75 N/A Vermont $14.01 $7.01 $7.00 N/A Virginia $12.41 $2.13 $10.28 N/A Washington Bellingham Bellingham (Eff. 5/1/25) Burien (500+) King Cnty (500+) Renton (501+) Seattle Tukwila (501+) $16.66 $17.66 $18.66 $21.16 $20.29 $20.90 $20.76 $21.10 N/A $0 Large employers 51+ $1,499.40/week or $77,968.80/year Employers with 50 or fewer employees $1,332.80/week or $69,305.60/year Arbitration and Termination of Employment Arbitration Agreements CA (Eff. 1/1/25 with provisions applying 6/19/24) – PAGA reform takes effect, including requiring the employee to personally experience the alleged violation; capping penalties for employers who quickly fix policies and practices; expanding which labor codes can be cured to reduce the need for litigation; and allowing courts to provide injunctive relief to compel
14 | 2025 Employment Laws on the Horizon © Seyfarth Shaw LLP Arbitration and Termination of Employment employers to make changes. (21-0027A1; Announcement; Seyfarth Post RE: Agreement; A.B. 2288; S.B. 92; Seyfarth Post RE: New Legislation) Termination Notices CO (Eff. 1/1/25 & 6/1/25) – Two laws require delivery network companies (DNC) and transportation network companies (TNC) to notify drivers when their accounts have been deactivated: (1) beginning January 1, 2025, DNC’s must provide written notice of deactivation and (2) beginning June 1, 2025, within 24 hours of suspending a driver, the TNC must send a written disclosure to the driver in their preferred language. (H.B. 24-1129 and S.B. 24-75) Seattle, WA (Eff. 1/1/25) – The City of Seattle requires network employers with 250 or more app-based workers worldwide to notify workers 14 days prior to deactivating the worker from the company’s worker platform. The ordinance has been challenged. (Ord. 126878; Seyfarth Post) Workforce Management Independent Contractors/Gig Workers/Contingent Workers CA (Eff. 1/1/25) – CA extended its exemptions from the “ABC” test, which determines who is an independent contractor, for newspaper distributors working under a contract with a newspaper publisher and newspaper carriers until January 1, 2030. (A.B. 224) CA (Eff. 1/1/25) – The Freelance Workers Protection Act requires contracts for $250 or more to be in writing. The hiring party must retain a copy of the contract for no less than 4 years. (S.B. 988) Non-Competes CO (Eff. 1/1/25) – The highly compensated employee threshold is updated: non-competes may only be entered into with employees earning $127,091+ and covenants not to solicit customers may only be entered into with an employee earning approx. $76,254.60. (7 CCR 1103-14) IL (Eff. 1/1/25) – Non-compete and non-solicitation provisions entered into after January 1, 2025 are unenforceable if the provision is likely to result in an increase in cost or difficulty for any veteran or first responder seeking mental health services from a mental health professional licensed in IL. (S.B. 2737) IL (Eff. 1/1/25) – IL makes non-competes and non-solicitation agreement with a person employed in construction void and illegal, regardless of a CBA. (S.B. 2770) LA (Eff. 1/1/25) – LA restricts non-compete agreements with physicians that limit their ability to practice medicine, excluding certain physicians in rural hospitals or under federal contracts. Non-competes with (a) primary care physicians may not exceed 3 years or (b) 5 years for all other physicians, beginning from the effective date of the initial contract. Agreements must include qualified parish-specific geographic limitations and subsequent agreements may not contain a non-compete provision. (S.B. 165) PA (Eff. 1/1/25) – Noncompetes with a health care practitioner entered into after January 1, 2025 are prohibited. Noncompete covenants are agreements between employers and health care practitioners that have the effect of impeding the health care practitioners ability to continue treating patients or accepting new patients, either independently or with a competing employer. Patients with an ongoing relationship with the practitioner of 2 or more years must be notified of their departure within 30 days. (H.B. 1633)
© Seyfarth Shaw LLP 2025 Employment Laws on the Horizon | 15 Workforce Management WA (Eff. 1/1/25) – The non-compete threshold for 2025 is $123,394.17 and $308,485.43 for independent contractors. (Announcement; Seyfarth Post) Labor Law State Labor Laws New Orleans, LA (Eff. 1/1/25) - New Orleans Bill of Rights now includes the right to organize and to associate freely in pursuit of workplace and economic justice. The Bill of Rights, however, does not create any enforceable rights, duties, obligations, or causes of actions beyond those guaranteed by the state and federal constitutions. (Ordinance) WA (Eff. 1/1/25) – WA establishes a health benefits exchange for workers who lose employer-provided health care coverage as a result of a strike, lockout, or other labor dispute. The exchange may require an employer, labor organization, or other appropriate representative to provide information to determine the status of a strike, lockout, or labor dispute, its impact to coverage, and any other information deemed necessary to conduct outreach and determine eligibility. (S.B. 5632) Other Developments CA Driver’s License Requirement (Eff. 1/1/25) – Employers prohibited from including statements about the need for a driver’s license in job advertisements, postings, applications, and similar employment material, unless there is a reasonable expectation that the position requires driving and an alternative form of transportation would not be comparable in travel time or cost. (S.B. 1100) Court Attendance/Witness Leave (Eff. 1/1/25) – Unpaid leave and accommodation provisions for those complying with a subpoena or court order to be a witness are relocated from the Labor Code to the Government Code and, in particular, the California Fair Employment and Housing Act. These provisions are recast as grounds for unlawful employment practices under the FEHA, placing them under the California Civil Rights Department’s (CRD) enforcement authority. (A.B. 2499; Seyfarth Post) Workplace Violence – TRO (Eff. 1/1/25) – Employers may seek a temporary restraining order and an injunction on behalf of an employee who has suffered unlawful violence or a credible threat of violence that can reasonably be construed to be or was carried out in the workplace. (S.B. 428) CO Civil Protection Orders (Eff. 1/1/25) – A civil protection order may be issued in the name of a business to protect an employee if there is a risk or threat of physical harm or the threat of psychological or emotional harm exists. (H.B. 24-1122) IL Personnel Records (Eff. 1/1/25) – Under the Personnel Record Review Act, upon an employee’s written request (e.g., an email or text), employers must provide copies of specific personnel records at no cost to the employee and allow them to inspect specified documents. The Amendment expands the types of records an employee may request. (H.B. 3736)
16 | 2025 Employment Laws on the Horizon © Seyfarth Shaw LLP Other Developments LA New Orleans, LA (Eff. 1/1/25) - New Orleans amended its Bill of Rights to include the right to comprehensive healthcare coverage and paid vacation time. The Bill of Rights does not create any enforceable rights, duties, obligations, or causes of actions beyond those guaranteed by the state and federal constitutions. (Ordinance) NY Workplace Violence Prevention (Est. 3/4/25) – NY mandates that retail employers with at least 10 retail employees establish a workplace violence prevention policy (the state will provide a model policy) and provide annual workplace violence training to covered employees. Employers with 500 or more retail employees nationwide must install panic buttons in the workplace (effective 1/1/27). Also, there is a notice requirement. (A.B. A8947 / S. 8358; Seyfarth Post; Seyfarth Post after enactment) New York, NY (Eff. 5/3/25) – The New York City Council approved an ordinance requiring hotel operators to provide continuous coverage of the front desk and for larger hotels, schedule a security guard; provide panic buttons to core employees that enter guest rooms; provide human trafficking training to core employees at hotels with 100 or more rooms within 60 days of employment; and prohibits large hotels from contracting with 3rd parties for core employees. Civil penalties for violations range from $500 - $5,000. (Ord. 0991-2024; Seyfarth Post) OR Quotas (Eff. 1/1/25) – Employers with 100 or more employees at a warehouse distribution center or 1K or more employees at warehouse distribution centers across the state must provide a written summary of any quota the employee is subject, including potential consequences that an employee may face if failing to meet the quota. (H.B. 4127) US Monthly Employment Utilization Report (Eff. 4/15/25) – The OFCCP announced that it will begin requiring federal contractors with a contract valued at $10,000 or more to submit a monthly report. The CC-257 report includes information on employee work hours and count by race/ethnicity, gender, and trade. The first report will cover the full calendar month of March 2025 and will be due by April 15, 2025. Each report must cover a full calendar year and is due by the 15th of each month. (Announcement)
© Seyfarth Shaw LLP 2025 Employment Laws on the Horizon | 17 Jurisdictional Index Alaska .........................................................4, 8, 11 Arizona ........................................................... 3, 11 California . 1, 2, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15 Colorado .....................1, 2, 5, 9, 10, 11, 12, 14, 15 Connecticut ..................................................... 7, 12 Delaware ....................................................5, 6, 12 District of Columbia .............................................. 6 Georgia ................................................................. 2 Illinois............. 1, 2, 3, 4, 6, 8, 9, 10, 11, 12, 14, 15 Indiana .................................................................. 9 Kentucky ............................................................... 2 Louisiana ....................................4, 5, 9, 14, 15, 16 Maine ........................................................6, 11, 12 Maryland ............................................................. 13 Massachuetts ....................................................... 5 Michigan ...............................................7, 8, 11, 13 Minnesota .....................................5, 6, 7, 8, 10, 13 Missouri .................................................. 2, 5, 7, 13 Montana ............................................................. 13 Nebraska .................................................... 2, 8, 13 New Hampshire.................................................... 3 New Jersey..................................................... 8, 13 New Mexico........................................................ 13 New York...................................... 1, 2, 3, 6, 13, 16 Ohio .................................................................... 13 Oregon ........................................................... 5, 16 Pennsylvania ...................................................... 14 Rhode Island ...................................... 2, 5, 6, 7, 13 South Dakota...................................................... 13 United States...................................................... 16 Vermont .......................................................... 9, 13 Virginia ............................................................... 13 Washington ...................... 3, 4, 6, 7, 10, 13, 14, 15 Copyright 2024 by Seyfarth Shaw LLP ("Firm"). Please note that the Firm is not authorized to provide legal advice through this document (the “Document”), and no attorney-client relationship is or shall be created between the user and the Firm. The Document presents a summary of information believed to be accurate as of its publication date, but it does not include a comprehensive or real-time review of all laws or all potentially applicable regulatory, case law, or other guidance interpreting the referenced authority. The information in this Document excludes prevailing wage law changes, unemployment benefits, benefit laws, insurance policy laws, whistleblower acts, workplace safety/OSHA-related requirements, and laws or regulations under appeal or otherwise not yet finalized. Additionally, the information in the Document may not reflect industry-specific or other exceptions. Accordingly, the Firm does not and cannot warrant that the Document (or any information contained therein) is accurate, complete, or current or that it represents or indicates a legal standard, either generally or as may be determined by any judicial, professional, or administrative body. The Firm expressly disclaims any and all warranties with respect to the Document. Users should consult with legal counsel before developing policies or procedures based on any materials contained in the Document, and before applying information contained in the Document to specific facts, circumstances, or issues.
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