- On December 10, 2024
Staying on top of compliance requirements throughout the year can be challenging. As you and your clients prepare for the New Year, reviewing and updating your policies and procedures to ensure they align with the latest regulations is essential.
Employers saw a number of “hot button” topics in 2024 and will continue to see them in 2025, including overtime thresholds, employee protections, paid sick leave, non-competes, and pay transparency legislation.
The DOL issued a final rule back in April that mandated weekly overtime salaries to increase to $844 by July 1, 2024, and to $1,128 by January 1, 2025, but a Texas Court blocked this on November 15, 2024. As a result, the minimum salary requirement for executive, administrative, and professional exemptions is now back to $864 per week at a federal level (different states like Alaska, California, Colorado, Maine, New York, and Washington have higher exempt salary requirements than what’s required under federal law).
Another notable ruling that affects employers with 15 or more employees is the Pregnant Workers Fairness Act (PWFA), which went into effect June 27, 2023. Then, the EEOC issued its final regulation on June 18, 2024, to carry out the law. The PWFA requires employers to provide reasonable accommodations for workers affected by pregnancy, childbirth, or related medical conditions. PWFA generally requires fewer formalities in the accommodation process compared to the Americans with Disability Act (ADA). For example, employers are often discouraged from requesting medical documentation for common pregnancy-related accommodations, such as more frequent breaks or help with lifting.
While the federal minimum wage for the public has not increased, the minimum federal contractor wage will increase to $17.75 effective January 1, 2025. More than 20 states increased their minimum wage laws throughout 2024, and more than 20 will do so again in 2025. In addition, more states are adding paid sick leave laws, such as Alaska, Nebraska, and Missouri, which are introducing legislation in 2025 that will require accrual of paid sick leave.
In 2024, California, Colorado, Connecticut, DC, Hawaii, Maryland, Nevada, New York, Rhode Island, and Washington had pay transparency laws that generally mandated employers provide pay ranges on job postings or, upon request, prevented them from inquiring about salary history from applicants. Joining them in 2025 are Massachusetts, Minnesota, Illinois, and Vermont, amongst other state-specific local jurisdictions.
This is not an exhaustive list of all the changes that took place in 2024 or the ones to come. Navigating HR compliance can feel like finding your way through a complex maze. Rest assured, our team of expert HR Consultants is here to provide guidance and support all year round.
ExpressLink Broker Partners have access to a team of HR Consulting professionals. Designed to deliver additional value to your clients, consider leveraging HR Consulting’s full range of tactical and strategic services. If your clients are interested in having conversations or receiving more support about this topic, contact your ExpressLink representative.