Compliance Corner: 2025 Mid-Year Employment Legal Updates

HR professionals can expect to stay busy through the remainder of the year—significant changes are ahead on the compliance front. State legislatures continue to pass major employment laws and introduce new regulatory requirements. Staying up to date with these mid-year developments can be challenging, and we’re here to help ensure you remain compliant throughout the shifting landscape.

Looking at the second half of the year, key trends are expected to focus on the following areas:

• Artificial intelligence (AI) regulation

• The enactment and expansion of state-paid leave programs

• Non-compete restrictions

• Pay transparency requirements

• Wage equity initiatives

• Workplace safety standards

Here is what employers can expect:

Federal Updates

The 2024 EEO-1 data collection period, the time frame when employers need to submit workforce demographic data, opened on May 20, 2025, and closed on June 24, 2025.

Key updates include:

• Federal Contractor Status Requirement

  
  Employers must now indicate their federal contractor status. Additionally, federal contractors with

  50 or more employees

  (but fewer than 100) are now required to file EEO-1 reports.

• Removal of Non-Binary Reporting Option

  
  The revised reporting guidelines have eliminated the option to report non-binary gender identities.,

State Updates

Jury Duty Pay

New York increased the daily jury duty rate for employers with 11 or more employees from $40 to $72.

State Leave Programs

Maryland – FAMLI Program Delayed
Maryland has postponed the implementation of its Family and Medical Leave Insurance (FAMLI) program. The new effective date is January 2027.

Alaska – Paid Sick Leave Effective
As of July 1, 2025, Alaska’s Paid Sick Leave law is in effect. Employers must provide one hour of sick leave for every 30 hours worked, up to a maximum of 40 hours.

Colorado – FAMLI Leave Amendment
Effective July 1, 2025, Colorado has amended its FAMLI program to require that job protection applies only when an employee has been employed for at least 180 days prior to the start of leave.

Philadelphia – POWER Act Impacts Sick Leave
The Philadelphia Protect Our Workers, Enforce Rights (POWER) Act has introduced several changes to the Promoting Healthy Families and Workplaces Ordinance, including:

• Mandatory paid sick leave for collective bargaining agreement (CBA)-covered probationary employees

• Changes to how tipped employee pay rates are calculated

• Extended recordkeeping requirements from two to three years

Michigan – New Paid Sick Leave for Small Employers
Starting October 1, 2025, Michigan employers with 10 or fewer employees must allow workers to accrue one hour of paid sick leave for every 30 hours worked.

Nebraska – Paid Sick Leave Law Takes Effect
Nebraska’s paid sick leave law will go into effect on October 1, 2025. Employers must notify employees by September 15, and employees will accrue one hour of leave for every 30 hours worked.

Chicago – Paid Leave Payout Requirement
As of July 1, 2025, employers in Chicago with 51 or more employees are required to pay out all unused, accrued paid leave upon termination of employment.

New York – COVID-19 Leave Requirement Ends
Beginning July 31, 2025, New York employers will no longer be required to provide separate leave for COVID-19 quarantine or isolation periods.

Workplace Violence

Virginia – Workplace Violence Prevention Requirement

Starting in July, healthcare employers must implement workplace violence prevention plans or establish reporting systems to bolster employee safety.

New York – Retail Worker Safety Act

The Retail Worker Safety Act took effect in June and will require employers with ten or more retail employees to adopt a written workplace violence prevention policy and provide employee training.

New Mexico – Heat Illness and Injury Prevention Plan (HIIP)

New Mexico employers will need to implement methods under a HIIP for indoor and outdoor places of employment where the heat index is at or above 80 degrees. These methods include access to water, shade and rest breaks.

Pay Transparency and Wage Reporting

New Jersey – Job Posting Requirements

Employers are now required to include compensation and benefits information in all job postings. Additionally, they must inform current employees of promotion opportunities.

Vermont– Pay Disclosure in Advertisements

Vermont employers with five or more employees, including at least one working in Vermont, must include compensation information in every job posting.

Massachusetts– Pay Range Disclosures and Wage Reporting

Beginning October 30, 2025, Massachusetts employers must comply with the following requirements:

• Employers with 25 or more employees must disclose pay ranges in job postings

• Employers with 100 or more employees must conduct wage reporting, as defined by state guidelines

Employee Retirement Programs

Nevada enacted the Nevada Employee Savings Trust program, establishing a state-run payroll deduction individual retirement account (IRA) program for eligible private sector employees who do not have access to a qualified employer-sponsored retirement plan.

Colorado Privacy Act

Employers will be required as of July 1^st to obtain consent from employees and applicants before collecting biometric data.

Restrictive Covenants

Wyoming banned most non-compete agreements signed after July 1^st.

It’s safe to assume that the employment law landscape will continue to shift under new executive orders, court rulings, changing agency authorities and the passing of major federal legislation. HR leaders should prioritize regular policy reviews, compliance training and consult with legal counsel when encountering gray areas.

Stay informed, connected and compliant and discover how isolved HR Services can assist.