In the workplace, staying updated on employment law changes is essential. January 1, 2025, marks major updates employers need to know. From federal updates to state wage hikes, paid leave changes, and more, the guide below will help you prepare for a strong start to 2025.
FEDERAL EMPLOYMENT LAW UPDATES FOR 2025
Federal changes shape employment laws nationwide. Key updates include:
IRS Mileage Reimbursement Rate
Starting January 1, 2025, the rate increases to 70 cents per mile (up from 67 cents in 2024) for all vehicle types used for work-related travel.
Federal Contractor Minimum Wage
New minimum wages apply:
EO 13658: $13.30/hour ($9.30/hour for tipped workers).
EO 14026: $17.75/hour.
Ensure payroll compliance for these rates.
STATE MINIMUM WAGE CHANGES FOR 2025
Many states are raising minimum wages to help workers meet rising costs. Businesses must adjust accordingly.
Arizona: $14.70/hour statewide (Flagstaff: $17.85/hour)
Alaska: $11.91/hour for all workers.
California: $16.50/hour statewide, with higher rates in cities like Mountain View ($19.20/hour) and Sunnyvale ($19/hour).
Colorado: $14.81/hour statewide; Denver: $18.81/hour.
Connecticut: $16.35/hour statewide.
Delaware: $15/hour statewide.
Illinois: $15/hour ($9/hour for tipped workers).
Maine: $14.65/hour statewide; Portland: $15.50/hour.
Michigan: $10.56/hour on January 1, increasing to $12.48/hour on February 21.
Minnesota: $11.13/hour statewide; Minneapolis and St. Paul: $15.97/hour.
Missouri: $13.75/hour ($6.88/hour for tipped workers).
Montana: $10.55/hour statewide.
Nebraska: $13.50/hour statewide.
New Jersey: $15.49/hour statewide; sector-specific rates include $18.49/hour for long-term care employees.
New York: $16.50/hour in NYC, Suffolk, Nassau, and Westchester Counties; $15.50/hour elsewhere.
Ohio: $10.70/hour ($5.35/hour for tipped workers).
Rhode Island: $15/hour statewide.
South Dakota: $11.50/hour ($5.75/hour for tipped workers).
Vermont: $14.01/hour ($7.01/hour for tipped workers).
Virginia: $12.41/hour statewide.
Paid Leave Updates by State
States are expanding leave policies to support workplace flexibility and employee responsibilities:
Oregon: Paid Leave Oregon now includes foster and adoption placements.
Maine: Paid Family and Medical Leave begins payroll contributions January 1, 2025. Leave available May 2026.
Delaware: Payroll contributions for Paid Leave also begin January 1, 2025.
Rhode Island: Temporary Caregiver Insurance increases to 7 weeks per year.
Miscellaneous State Changes
Other state changes include pay transparency rules and expanded protections:
Illinois
Job postings must disclose pay scales and benefits.
EEO policies now include reproductive health decisions and family responsibilities.
Detailed pay stubs are required.
New York
Pregnant employees receive 20 hours of paid prenatal leave annually.
California
Strengthened victim protection laws.
Expanded sick leave for jury duty and victim-related leave.
Driver’s license requirements prohibited unless job-essential.
Minnesota
Job postings must include pay ranges and benefits.
How to Prepare for 2025 Employment Law Changes
Employment law updates are opportunities to enhance policies and show commitment to employees:
Audit Policies: Update handbooks, payroll, and job postings to ensure compliance.
Train Teams: Educate HR and management to avoid compliance errors.
Communicate Early: Inform employees of changes to reduce confusion.
Build Better Workplaces in 2025
These updates offer a chance to improve workplace policies. Focus on fair pay, flexibility, and protections to positively impact your team. Start with a clear, updated employee handbook to prevent compliance issues and foster trust.
Questions
If you have any questions about these new laws and how it might impact your workplace, or need help with our new portal, please feel free to reach out to TrueBlaze Advisors.
2025 Employment Law Updates courtesy of our partnership with Whirks.