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January Legal Update: Laws That Go Into Effect in January 2025

New Year, New Laws!

2025 is just around the corner, and with it comes a fresh batch of legal updates that employers need to know. From minimum wage bumps to expanded leave benefits, the changes touch every corner of the country (and your compliance checklist!). So, grab your coffee and take a quick dive into the most notable updates taking effect this January. Whether you’re in Alaska, California, or somewhere in between, there’s something here that might just affect your workplace!

 

ALASKA
ARIZONA
CALIFORNIA
COLORADO
CONNECTICUT
DELAWARE
ILLINOIS
INDIANA
IOWA
KENTUCKY
LOUISIANA
MAINE
MARYLAND
MICHIGAN
MINNESOTA
MISSOURI
MONTANA
NEBRASKA
NEVADA
NEW HAMPSHIRE
NEW JERSEY
NEW YORK
OHIO
OKLAHOMA
OREGON
PENNSYLVANIA
RHODE ISLAND
SOUTH DAKOTA
VERMONT
VIRGINIA
WASHINGTON

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|  Power Hour Training  |

Join us for a FREE Power Hour Training: Legal Updates for 2025!

Is your business ready to hit the ground running in 2025? Not sure what legal updates you need to prepare for? Don’t worry – we’ve got you covered.

This time, we’re teaming up with Attorney Andrea Paris from Andrea Paris Law to break down the Federal and California employment law changes going into effect on January 1, 2025.

In this fun, easy-to-digest session, we’ll cover everything you need to know – no fluff, just the facts that matter. And because we focus on employment law and HR updates, you won’t hear a peep about taxes. (That’s not our lane 😉).

Plus, if you attend the live session, you’ll get access to a follow-up video and a complete list of legal changes happening across the country, so you’re fully equipped for the new year.

Make sure your business stays ahead of the curve and compliant in 2025 – Sign up below and join us for this must-attend session!

Date and Time: Tuesday, December 11, 2024, at 12:00 PM PST.

Duration: 1 hour.

Location: The training will be hosted LIVE online, allowing for convenient participation from anywhere.

 

   *Click here to register!*  


Effective January 2025

ALASKA

Alaska Workers’ Compensation Re-Employment Benefits Amendment Takes Effect

Effective January 1, 2025, an employee may be eligible for workers’ compensation re-employment benefits if they are unable to return to work for 25 consecutive days. Previously, employees had to be out of work for 45 consecutive days. +2023 Bill Text AK S.B. 147.

Alaska Minimum Wage Increases to $11.91

Effective January 1, 2025, the minimum wage in Alaska increases from $11.73 per hour to $11.91 per hour under an annual inflation adjustment required by the state statute. +Alaska Stat. § 23.10.065. The adjustment is based on the change in the Consumer Price Index for All Urban Consumers for the Anchorage area during the 2024 calendar year.

Alaska Minimum Salary for Executive, Administrative and Professional Employees Increases to $952.80 per Week

Effective January 1, 2025, the minimum weekly salary for overtime-exempt executive, administrative or professional employees in Alaska increases from $938.40 to $952.80 under an annual inflation adjustment required by the state statute. +Alaska Stat. § 23.10.055(b).

ARIZONA

Flagstaff, Arizona, Minimum Wage Is Adjusted for Inflation

Effective January 1, 2025, the minimum wage in Flagstaff, Arizona, is adjusted for inflation, as required by the city code. The adjustment is based on the percentage increase as of August 2024 over the level as of August 2023 of the Consumer Price Index (All Urban Consumers, US City Average for All Items).

The maximum tip credit decreases from $1.50 to $1.00; as a result, the minimum direct cash wage is $1.00 less than the 2025 Arizona statewide minimum wage or $1.50 less than the 2025 Flagstaff minimum wage, whichever is higher.

Flagstaff, Arizona Code of Ordinances Section 15-03, as amended by Ordinance No. 2017-08.

Tucson, Arizona, Minimum Wage Increases to $15.00

Effective January 1, 2025, the minimum wage in Tucson, Arizona, increases from $14.25 per hour to $15.00 per hour. Tucson, Arizona Code of Ordinances Chapter 17, Article X, as enacted by Tucson, Arizona, Minimum Wage Act (Proposition 206).

Arizona Minimum Wage Increases to $14.70

Effective January 1, 2025, the minimum wage in Arizona increases from $14.35 per hour to $14.70 per hour under an annual inflation adjustment required by the state statute. The adjustment is based on the change in the Consumer Price Index for All Urban Consumers from August 2023 to August 2024, rounded to the nearest five cents.

The minimum direct cash wage for tipped employees increases from $11.35 per hour to $11.70 per hour.

+A.R.S. § 23-363.

CALIFORNIA

Santa Clara, California, Minimum Wage Is Adjusted for Inflation

Effective January 1, 2025, the minimum wage in the city of Santa Clara, California, is increased by an amount equal to the increase, if any, in the Bay Area Consumer Price Index (Urban Wage Earners and Clerical Workers, San Francisco-Oakland-San Jose, CA for All Items) between August 2023 and August 2024, rounded to the nearest five cents and not exceeding 5%. Santa Clara, California Code of Ordinances Chapter 3.20.

Burlingame, California, Minimum Wage Is Adjusted for Inflation

Effective January 1, 2025, the minimum wage in Burlingame, California, is increased by the rate of change in the Consumer Price Index (CPI) for San Francisco-Oakland-San Jose from August 2023 to August 2024. A decrease in the CPI will not result in a decrease in the minimum wage. Burlingame, California, Code of Ordinances Chapter 6.10.

California Sunsets Independent Contractor Exemptions for Certain Workers

UPDATE: Amendments to California’s independent contractor test passed on September 30, 2021, and effective January 1, 2022, extend the exemptions from January 1, 2022, to January 1, 2025.

Effective January 1, 2025, the exemptions from California’s statutory ‘ABC test’ for independent contractor classification no longer apply to:

*Newspaper distributors working under contract with a newspaper publisher;

*Newspaper carriers working under contract with either a newspaper publisher or a newspaper distributor;

*Licensed manicurists; and

*Certain subcontractors providing construction trucking services.

+Cal Lab Code § 2778, +Cal Lab Code § 2781, +Cal Lab Code § 2782 and +Cal Lab Code § 2783, as amended by +2021 Bill Text CA A.B. 1506 and +2021 Bill Text CA A.B. 1561.”]

California Paid Family Leave Benefits Increase

Effective January 1, 2025, benefit amounts increase to 70 percent (from 60 percent) of average weekly earnings, or 90 percent (from 70 percent) for employees earning under a certain income level, for employees receiving paid family leave benefits through the Family Temporary Disability Insurance (FTDI) program.

+2021 Bill Text CA S.B. 951.

California Repeals Subminimum Wages for Workers With Disabilities

Effective January 1, 2025, or when the California State Council on Developmental Disabilities releases a plan required by +Cal Lab Code § 1191 § C, whichever is later, the subminimum wage for individuals with mental and/or physical disabilities is repealed. Individuals with mental and/or physical disabilities must be paid no less than the state minimum wage or the applicable local minimum wage, whichever is higher. +Cal Lab Code § 1191, as amended by +2021 Bill Text CA S.B. 639.

The section of the Labor Code allowing nonprofit organizations – such as sheltered workshops or rehabilitation facilities – to employ individuals with mental and/or physical disabilities at a subminimum wage also is repealed. +Cal Lab Code § 1191.5, as repealed by +2021 Bill Text CA S.B. 639.

Redwood City, California, Minimum Wage Is Adjusted for Inflation

Effective January 1, 2025, the minimum wage in Redwood City, California, increases by an amount corresponding to the 2024 increase, if any, in the cost of living as measured by the percentage increase in the Consumer Price Index for San Francisco-Oakland-San Jose (CPI), capped at 5% and rounded to the nearest 5 cents. If the actual CPI exceeds 5%, the percentage amount in excess of the 5% cap is applied to the 2026 cost-of-living increase. Redwood City, California Code of Ordinances Sec. 46.030, as amended by Redwood, California, Ordinance 2513.

California Amends Workplace Violence Restraining Order Law

Effective January 1, 2025, California amends its workplace violence restraining order law to:

*Protect against harassment,

*Protect concerted activities protected by the National Labor Relations Act (NLRA) and California law,

*Allow a collective bargaining representative to petition for a restraining order, and

*Allow employees for whom a restraining order is sought to remain anonymous.

+2023 Bill Text CA S.B. 553 and +2023 Bill Text CA S.B. 428, amending +Cal Code Civ Proc § 527.8.

California Minimum Pay for Overtime-Exempt Computer Professionals and Physicians and Surgeons Paid an Hourly Rate Is Adjusted for Inflation

Effective January 1, 2025, the minimum pay for overtime-exempt computer professionals and physicians and surgeons paid an hourly rate in California increases under an annual inflation adjustment required by the state statute. +Cal Lab Code § 515.5, +Cal Lab Code § 515.6.

*The minimum annual salary for computer professionals paid on a salary basis increases from $115,763.35 to $118,657.43.

*The minimum monthly salary for computer professionals paid on a salary basis increases from $9,646.96 to $9,888.13.

*The minimum hourly rate of pay for computer professionals paid an hourly rate increases from $55.58 to $56.97.

*The minimum hourly rate of pay for physicians and surgeons paid an hourly rate increases from $101.22 to $103.75.

California Repeals Family Leave Mediation Pilot Program

Effective January 1, 2025, California repeals the mediation pilot program under the California Family Rights Act (CFRA). Prior to this date, upon receipt of a right-to-sue letter for alleged violations of the CFRA, an employer with between five and 19 employees may have requested that all parties participate in the program.

The mediation pilot program began January 1, 2021.

+Cal Gov Code § 12945.21.”

California Minimum Wage Increases to $16.50

Effective January 1, 2025, the minimum wage in California increases from $16.00 per hour to $16.50 per hour under an annual inflation adjustment required by the state labor code.

 Every January 1, the state minimum wage is increased by either 3.5% or by the rate of change in the US Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), with the result rounded to the nearest 10 cents. Because the CPI-W for the 12-month period from July 1, 2023, to June 30, 2024, increased by 3.18% compared to the 12-month period from July 1, 2022, to June 30, 2023, the California Department of Finance increases the state minimum wage by 3.18% to $16.50 per hour.  

 +Cal Lab Code § 1182.12.

California Allows Alternate Whistleblower Notice to Be Posted

Effective January 1, 2025, California employers that display the model list developed by the labor commissioner of employees’ whistleblower rights and responsibilities are deemed to be in compliance with the whistleblower law posting requirement.

+2023 Bill Text CA A.B. 2299, amending +Cal Lab Code § 1102.8.

California Requires Employers to Disclose Findings of Any Voluntary Child Labor Audits

Effective January 1, 2025, California requires employers that have voluntarily subjected themselves to an audit to determine if child labor is involved in any of their operations or practices to publicly report the findings of their compliance with child labor laws.

+2023 Bill Text CA A.B. 3234, adding Cal Lab Code § 1251.

California Amends Leave Protections for Crime Victims

Effective January 1, 2025, California amends the Healthy Workplaces, Healthy Families Act (HWHFA) to expand qualifying reasons for safe leave and the definition of a victim.

In addition, amendments to the domestic violence and crime victim leave law impact the following provisions:

*Duration of leave;

* Covered family members;

* Benefits during leave;

* Confidentiality requirements; and

* Employer notice requirements.

The amendments also move the domestic violence and crime victim leave protections to a new Government Code section under the state’s Fair Employment and Housing Act (FEHA), which is enforced by the Department of Civil Rights.

 

Additional site updates regarding this development are forthcoming.

+2023 Bill Text CA AB 2499, amending +Cal. Lab. Code § 246.5, +Cal. Lab. Code § 230.1, et seq.

California Amends Paid Family Leave Benefits Requirements

Effective January 1, 2025, under amendments to the paid family leave (PFL) law, employers can no longer require that employees use vacation or paid time off (PTO) before receiving PFL benefits.

+2023 Bill Text CA AB 2123, amending +Cal Unemp Ins Code § 3303.1.”

California Prohibits Intersectional Discrimination

Effective January 1, 2025, the California Fair Employment and Housing Act (FEHA) is amended to prohibit discrimination and harassment based on any combination of two or more protected characteristics. The amendments also prohibit discrimination based on a perception that a person:

Has any particular combination of protected characteristics; or

Is associated with a person who has, or is perceived to have, any combination of protected characteristics.

+2023 Bill Text CA S.B. 1137, amending +Cal Gov Code § 12926.

California Expands Paid Sick Leave Reasons for Agricultural Employees

Effective January 1, 2025, amendments to the Healthy Workplaces, Healthy Families Act (HWHFA) allow agricultural employees who work outside to use paid sick leave to avoid smoke, heat or flooding conditions created by a local or state emergency.

Amendments also affect California’s kin care leave law, which incorporates qualifying reasons from the HWHFA.

+2023 Bill Text CA S.B. 1105.

California Anti-Preemption Law Takes Effect

Effective January 1, 2025, the California Fair Employment and Housing Act (FEHA) is amended to specify that cities, counties and other political subdivisions of the state are not preempted from enforcing local laws that prohibit employment discrimination on the basis of a protected characteristic under FEHA, as long as the enforcement meets certain requirements.

+2023 CA Bill Text S.B. 1340, amending +Cal Gov Code § 12993.

California Amends Hairstyle Discrimination Law

Effective January 1, 2025, the definition of race under the California Fair Employment and Housing Act (FEHA) and the Unruh Civil Rights Act is amended to apply to traits associated with race, including hair texture and protective hairstyles. The prior definition covered traits “”historically associated”” with race.

+2023 Bill Text CA A.B. 1815 and +2023 Bill Text CA S.B. 1137, amending +Cal Gov Code § 12926 and +Cal Civ Code § 51.

 

California Expands Fair Employment and Housing Act to Include Jury Duty Leave Protections

Effective January 1, 2025, Assembly Bill 2499 (AB 2499) moves jury duty leave protections from the California Labor Code to the Fair Employment and Housing Act (FEHA).

As amended, FEHA prohibits an employer from terminating or discriminating against an employee for taking time off to serve on a jury if the employee gives prior reasonable notice to the employer that they are required to serve. AB 2499 does not substantively change these protections; but placing them within FEHA places enforcement authority with the California Civil Rights Department. The new section of FEHA also includes employer notice requirements.  

+2023 Bill Text CA A.B. 2499, repealing +Cal. Lab. Code § 230, adding Cal Gov Code § 12945.8.

California Employee Protections Against Captive Audience Meetings Take Effect

Effective January 1, 2025, the California Worker Freedom From Employer Intimidation Act prohibits employers from discharging, disciplining or otherwise penalizing (or threatening such actions), or taking any adverse employment action for refusing to attend or take part in an employer-sponsored meeting or receive any communication intended to convey the employer’s opinions about political matters.

The law defines political matters to include anything related to the decision to join or support a labor organization.

+2023 Bill Text CA S.B. 399.

California Restricts Driver’s License Requirements

Effective January 1, 2025, a California employer may not require a job applicant to have a driver’s license unless:

The employer reasonably expects driving to be one of the job functions for the position; and

Use of an alternate form of transportation would not be comparable in travel time or cost to the employer.

+2023 Bill Text CA S.B. 1100, amending +Cal Gov Code § 12940.

California Amends Law to Permit Association Health Plans

Effective January 1, 2025, California law allows an association of employers to offer a large group health care service plan to small group employer members of the association consistent with ERISA when specified conditions are met.

+2023 Bill Text CA A.B. 2434, enacting Cal. Health & Safety Code § 1357.505.

California Amends Protections for Crime Victims

Effective January 1, 2025, amendments broadening protections for crime victims affect multiple employment laws.

Amendments to the Healthy Workplaces, Healthy Families Act (HWHFA) expand qualifying reasons for safe leave and the definition of a victim. The HWHFA amendments also affect the kin care leave law, which incorporates qualifying reasons from the HWHFA.

Amendments to the domestic violence and crime victim leave law impact the following provisions:

* Qualifying reasons for leave;

* Duration of leave;

* Covered family members;

* Benefits during leave;

* Confidentiality requirements; and

* Employer notice requirements.

* Under both the domestic violence and crime victim leave law and the antidiscrimination law, employers must provide safety-related reasonable accommodations upon request to employees who are victims of qualifying acts of violence, or whose family members are victims.

Also, amendments to the law requiring leave for crime victims to attend judicial proceedings modify the definition of a victim and the law’s interaction with other types of available leave.

+2023 Bill Text CA AB 2499, amending +Cal. Lab. Code § 246.5, +Cal. Lab. Code § 230, +Cal. Lab. Code § 230.1.

California Amends Definition of Sensitive Personal Information Under Consumer Privacy Act

Effective January 1, 2025, the definition of sensitive personal information under the California Consumer Privacy Act (CCPA) is amended to include neural data.

The CCPA defines neural data as information generated by measuring the activity of a consumer’s central or peripheral nervous system, and that is not inferred from nonneural information.

+2023 Bill Text CA S.B. 1223, amending +Cal Civ Code § 1798.140.

California Prohibits Digital Replica Usage in Employment Agreements

Effective January 1, 2025, state labor law makes any provision in a personal or professional services agreement unenforceable if it allows the creation and use of a digital replica of an individual’s voice or likeness in place of work the individual would otherwise have performed in person.

Digital replica means a computer-generated, highly realistic electronic representation that is readily identifiable as the voice or visual likeness of an individual that is embodied in a sound recording, image, audiovisual work or transmission in which the actual individual did not actually perform or appear.

+2023 Bill Text CA A.B. 2602″

California Expands Opt-Out Rights Under Consumer Privacy Act

Effective January 1, 2025, the California Consumer Privacy Act (CCPA) is amended to require successor businesses to comply with consumer opt-out directions.

Under the CCPA, consumers have the right to direct a business not to sell or share their personal information to third parties (referred to as the right to opt out of sale or sharing). 

A.B. 1824 requires a business to which another business transfers consumer personal information as an asset, as part of a transaction like a merger or acquisition, to comply with a consumer’s opt-out direction to the transferring business.

+2023 Bill Text CA A.B. 1824, amending +Cal Civ Code § 1798.120.

 

California Amends Consumer Privacy Act to Clarify Definition of Personal Information

Effective January 1, 2025, the California Consumer Privacy Act (CCPA) is amended to clarify the definition of personal information, including the formats in which it can exist.  

+2023 Bill Text CA A.B. 1008, amending +Cal Civ Code § 1798.140.

California Extends ABC Test Exemption for Newspaper Distributors and Carriers

Effective January 1, 2025, California extends from January 1, 2025, to January 1, 2030, the expiration date of the “”ABC test”” exemptions for newspaper distributors working under contract with a newspaper publisher and for newspaper carriers.

2023 Bill Text CA A.B. 224, amending Cal Lab Code § 2783.

 

California Discrimination, Harassment and Retaliation Prevention Handbook Statement [5+ Employees]

About This Resource

Jurisdiction: California

Status: This resource is kept under review and updated in line with developments.

Updates: Under review in relation to amendments to the Fair Employment and Housing Act, effective January 1, 2025.

Key Requirements for Employers

  1. Threshold for Coverage:
    • Applies to employers with 5+ employees, including part-time, temporary, and those located outside California (if discriminatory conduct relates to California).
    • Independent contractors performing services are also counted.
  2. Mandatory Policies:
    • Employers must have written discrimination, harassment, and retaliation prevention policies.
    • Policies must prohibit discrimination based on protected characteristics (e.g., race, sex, age, disability, sexual orientation, gender identity, military status).
    • Policies should include definitions and examples of prohibited conduct, including sexual harassment.
  3. Distribution of Policies:
    • Employers must distribute policies via printed copies, email, intranet posting, or new hire orientations.
    • Acknowledgment forms are recommended for tracking receipt.
  4. Training Requirements:
    • Supervisors: 2 hours of sexual harassment prevention training every 2 years.
    • Nonsupervisory employees: 1 hour every 2 years.
    • Training must occur within 6 months of hire or promotion for new employees/supervisors.
    • Temporary or seasonal employees: Training within 30 days of hire or 100 hours worked.
  5. Complaint Procedures:
    • Employers must provide multiple avenues for employees to file complaints (e.g., HR representative, hotline).
    • Policies must ensure confidentiality (as much as legally possible), timely investigations, and documentation.
    • Employers are required to prevent retaliation against employees who file complaints or participate in investigations.
  6. Prohibited Practices:
    • Employers cannot require employees to waive rights under FEHA as a condition of employment.
    • Cannot inquire about salary history during the hiring process or use prior salary to justify pay disparities.
  7. Equal Pay Laws:
    • Employers must ensure equal pay for employees performing substantially similar work, regardless of sex, race, or ethnicity, unless justified by factors like seniority or merit.
    • Employees must be allowed to discuss and disclose wages freely without retaliation.
  8. Additional Requirements:
    • Employers must respect employee self-identification of gender, name, and pronouns.
    • Single-user restrooms must be designated as all-gender.
    • Policies and posters (e.g., harassment prevention, transgender rights) must be accessible in languages spoken by at least 10% of the workforce.

Resources to Share:

  • Posters: California Discrimination and Harassment in Employment Are Prohibited, California Transgender Rights in the Workplace.
  • Training Links: Employers should provide employees with access to required harassment prevention training.

Best Practices:

  • Regularly review and update handbook policies for compliance with state and local laws.
  • Train managers and supervisors on anti-discrimination and harassment policies, reporting procedures, and retaliation prevention.
  • Implement robust internal complaint and investigation procedures.
  • Monitor workplace culture to ensure consistent enforcement of policies.

California Paid Sick Leave Handbook Statement [Accrual Method]

About This Resource

Jurisdiction: California

Status: This resource is kept under review and updated in line with developments.

Updates: Under review in relation to amendments to the Healthy Workplaces, Healthy Families Act, effective January 1, 2025.

Key Points

  1. Eligibility:
    • Applies to all employees working in California, including part-time, temporary, and seasonal workers who work 30+ days in a year.
  2. Accrual Method:
    • Employees accrue 1 hour of sick leave per 30 hours worked.
    • Sick leave can be capped at 80 hours or 10 workdays, and unused time can carry over.
    • Accrual begins on the first day of employment, but usage can be restricted until the 90th day.
  3. Usage Limits:
    • Employees may use up to 40 hours or 5 days of accrued sick leave annually.
    • Sick leave can be used in increments of 2 hours or more.
  4. Covered Reasons for Leave:
    • Employee or family member’s medical needs, including preventive care.
    • Time off related to domestic violence, sexual assault, or stalking.
    • Care for a designated person (if included in your policy).
  5. Notice & Verification:
    • Foreseeable leave: Employees must provide advance notice.
    • For absences of 3+ days, employers may request documentation but must maintain confidentiality.
  6. Anti-Retaliation:
    • Employers cannot discipline or retaliate against employees for using sick leave, filing a complaint, or participating in investigations.
  7. Recordkeeping:
    • Maintain records of hours worked, sick leave accrued, and used for 3 years.
    • Sick leave balances must be noted on paystubs or a separate document provided during each pay period.
  8. Rate of Pay:
    • Sick leave pay must reflect the employee’s regular rate of pay, calculated according to state guidelines.
  9. Separation & Rehire:
    • Unused sick leave is not paid out upon termination but must be reinstated if the employee is rehired within 1 year.
  10. Poster Requirement:
    • Display the California Paid Sick Leave Poster prominently at your workplace.

Best Practices for Compliance

  • Train managers and HR on sick leave policies to prevent mismanagement or retaliation.
  • Update payroll systems to track accruals and ensure compliance with state laws.
  • Consult legal counsel if operating in localities with additional sick leave ordinances to avoid conflicts.

This ensures your policies meet state requirements while fostering a fair and supportive work environment.

California Health Care Worker Minimum Wage Takes Effect at $18.00-$23.00 Effective October 15, 2024 (if state revenue between July 2024 and September 2024 is at least 3% higher than expected under current projections) or January 1, 2025, if state revenue does not rise to that level, covered health care facilities must pay covered health care employees a minimum wage according to the following schedule:

* Large Facilities and Integrated Systems – $23.00

* Hospitals – $18.00

* Clinics and All Other Health Care Facilities – $21.00

Covered health care employees who are compensated on a salary basis must be paid a monthly salary equivalent to no less than 150 percent of the health care worker minimum wage or the standard 200 percent of the minimum wage, whichever is greater.

This development originally was scheduled to take effect on June 1, 2024. However, on May 31, 2024, a bill was enacted that postponed the implementation date to July 1, 2024. Then on June 29, 2024, another bill was enacted that further postponed the implementation date to October 15, 2024, or January 1, 2025, and made other changes.

+2023 Bill Text CA S.B. 129, amending +Cal Lab Code § 1182.14 and +Cal Lab Code § 1182.15, and adding +Cal Lab Code § 1182.16.

COLORADO

Colorado Lowers Overtime Threshold for Non-Highly Seasonal Agricultural Employees

Effective January 1, 2025, the weekly overtime threshold for agricultural employees are lowered from 54 hours to 48 hours for Non-Highly Seasonal Employers.

The overtime threshold remains 56 hours for up to 22 peak workweeks and 48 hours otherwise for Highly Seasonal Employers.

There is no longer a separate rule for Small Employers; Small Employers should apply the thresholds for Highly Seasonal Employers or Non-Highly Seasonal Employers.

+7 CCR 1103-1.

Edgewater, Colorado, Minimum Wage Increases to $16.52

Effective January 1, 2025, the minimum wage in Edgewater, Colorado, increases from $15.02 per hour to $16.52 per hour. The minimum direct cash wage for tipped employees increases from $12.00 per hour to $13.50 per hour. Edgewater, Colorado Code of Ordinances Sec. 6-18-40, as added by Edgewater, Colorado, Ord. No. 2023-07.

Boulder County, Colorado, Minimum Wage Increases to $16.57

Effective January 1, 2025, the minimum wage in Boulder County, Colorado, increases from $15.69 per hour to $16.57 per hour.

The minimum direct cash wage for tipped employees increases from $12.67 per hour to $13.55 per hour.

Boulder County, Colorado, Minimum Wage Ordinance 2023-4.

Colorado Amends Prohibited Uses of Mobile Devices While Driving

Effective January 1, 2025, Colorado amends its distracted driving law to permit the use of a mobile electronic device while driving if the driver uses a hands-free accessory to access the device’s features.

The amendment also defines several important terms, including mobile electronic device, hands-free accessory and use, and outlines situations that are considered exceptions to the prohibition on using a mobile electronic device while driving.

+2024 Bill Text CO S.B. 65, amending +C.R.S. 42-4-239.

Colorado Minimum Wage Increases to $14.81

Effective January 1, 2025, the minimum wage in Colorado increases from $14.42 per hour to $14.81 per hour under an annual inflation adjustment required by the state constitution. +Colo. Const. Art. XVIII, Section 15. The adjustment is based on the change in the Consumer Price Index for All Urban Consumers (CPI-U), All Items, for the Denver-Boulder-Greeley combined metropolitan statistical area from the first half of 2023 to the first half of 2024.

The minimum direct cash wage for tipped employees increases from $11.40 to $11.79.

Colorado Minimum Salary for Executive, Administrative and Professional Employees Increases to $1,086.25 per Week

Effective January 1, 2025, the minimum salary for executive / supervisory employees, administrative employees, professional employees and other employees exempt from the minimum wage and overtime provisions of the Colorado Overtime and Minimum Pay Standards (COMPS) Order increases from $1,057.69 per week to $1,086.25 per week.

The minimum hourly wage for computer employees increases from $33.17 to $34.07 and the minimum annual salary for highly compensated employees increases from $123,750 to $127,091.

+7 CCR 1103-1(2.5).

CONNECTICUT

Connecticut Expands Paid Sick Leave Law

Effective January 1, 2025, Connecticut’s paid sick leave law applies to employers with 25 or more employees in the state (expanded from 50 or more employees in the state).

In addition, the amendments broaden:

*The definition of eligible employee;

*The definition of family member; and

*Qualifying reasons for paid sick leave.

The amendments also modify:

*The accrual rate;

*Documentation requirements; and

*Employer notice requirements.

The paid sick leave law applies to employers with 11 or more employees in the state starting on January 1, 2026, and employers with one or more employees in the state starting on January 1, 2027.

Additional site updates regarding this development are forthcoming.

+2024 Bill Text CT H.B. 5005.

Connecticut Minimum Wage Increases to $16.35

Effective January 1, 2025, the minimum wage in Connecticut increases from $15.69 per hour to $16.35 per hour under an annual inflation adjustment required by the state statute.

The adjustment is based on the rate of inflation, as measured by the percentage change in the US Department of Labor Employment Cost Index for wages and salaries for all civilian workers from June 30, 2023, through June 30, 2024, rounded to the nearest cent.

The maximum tip credit increases from $9.31 to $9.97 for service employees and from $7.46 to $8.12 for bartenders.

+Conn. Gen. Stat. § 31-58 and +Conn. Gen. Stat. § 31-60.

 

DELAWARE

Delaware Paid Family and Medical Leave Contributions Begin “Beginning January 1, 2025, covered employers and employees must make contributions to fund paid family and medical leave (PFML) benefits provided for under the Healthy Delaware Families Act. Employers must withhold employee contributions by payroll deduction and remit both the employee and employer shares on a quarterly basis.

Employees may access PFML benefits beginning January 1, 2026.

+2021 Bill Text DE S.B. 1.

Delaware Personal Data Privacy Act Takes Effect

Effective January 1, 2025, the Delaware Personal Data Privacy Act  (DPDPA) gives Delaware consumers privacy rights with respect to their personal data and establishes certain requirements and limitations for covered businesses.

The DPDPA’s protections do not apply to individuals acting in an employment context or to employment-related data.

+2023 Bill Text DE H.B. 154, codified as 6 Del. C. § 12D-101 et seq.

Delaware Minimum Wage Increases to $15.00

Effective January 1, 2025, the minimum wage in Delaware increases from $13.25 per hour to $15.00 per hour. The maximum tip credit increases from $11.02 per hour to $12.77 per hour. +19 Del. Code § 902, as amended by +2021 Bill Text DE S.B. 15.

Illinois

Illinois Minimum Wage Increases to $15.00

Effective January 1, 2025, the minimum wage in Illinois increases from $14.00 per hour to $15.00 per hour.

The maximum tip credit increases from $5.60 per hour to $6.00 per hour.

The subminimum wage for minors increases from $12.00 per hour to $13.00 per hour.

820 ILCS 105/4, as amended by 2019 Bill Text IL S.B. 1.

Illinois Enacts Pay Transparency Law

Effective January 1, 2025, the Illinois Equal Pay Act is amended to require Illinois employers with 15 or more employees to include the pay scale and a benefits description in any job posting for a specific position and to inform current employees of promotion opportunities within 14 days of advertising the position externally. The amendments also include anti-retaliation and recordkeeping requirements.

+2023 Bill Text IL H.B. 3129, amending +20 ILCS 112/5 et seq.

Illinois Increases Supplemental Wages Withholding Rate by 3.25%

The supplemental wages withholding rate will increase to 3.25%, effective January 1, 2025.

Illinois Amends Secure Choice Savings Program

Effective January 1, 2025, the Illinois Secure Choice Savings Program is amended, no longer requiring, but now permitting, employers to designate an open enrollment period. 

Employers are also required to allow employees who initially opted out to enroll in the Program at any time, in lieu of only doing so during the designated open enrollment period.

+2023 Bill Text IL H.B. 4719.

Illinois Employee Protections Against Captive Audience Meetings Take Effect Effective January 1, 2025, Illinois’s Worker Freedom of Speech Act prohibits employers from discharging, disciplining or otherwise penalizing (or threatening such actions) an employee or taking any adverse employment action against an employee for refusing to attend or take part in an employer-sponsored meeting or to receive any communication intended to convey the employer’s opinions about political matters.

The law defines political matters to include anything related to the decision to join or support a labor organization

Additional site updates regarding this development are forthcoming.

+2023 Bill Text IL S.B. 3649

Amendments to Illinois Human Rights Act Remedies Take Effect

Effective January 1, 2025, the remedies and penalties under the Illinois Human Rights Act (IHRA) are amended to:

Allow courts to award restitution to an aggrieved party whose injury resulting from a pattern or practice of discrimination is not covered by other sources;

Clarify that civil penalties under the IHRA apply on a per-violation basis; and

Increase the maximum civil penalties under the IHRA.

+2023 Bill Text IL H.B. 5371, amending +775 ILCS 5/10-104.

Illinois Prohibits Discrimination Based on Reproductive Health Decisions

Effective January 1, 2025, the Illinois Human Rights Act (IHRA) is amended to prohibit discrimination based on a person’s reproductive health decisions.

+2023 Bill Text IL H.B. 4867, amending +775 ILCS 5/1-102 and +775 ILCS 5/1-103.

Illinois Amends Law Regarding Use of Electronic Employment Verification Systems

Effective January 1, 2025, Illinois amends its Right to Privacy in the Workplace Act (Privacy Act) to modify the requirements for employers pertaining to the use of electronic employment verification systems, such as E-Verify.

The amendments revise the parameters under which an employer may use electronic employment verification systems and impose notice requirements for employers when handling employment verification discrepancies and verification inspections.

+2023 Bill Text IL S.B. 508, amending +820 ILCS 55/12, +820 ILCS 55/13 and +820 ILCS 55/15.

Illinois Amends the Personnel Record Review Act

Effective January 1, 2025, Illinois amends the Personnel Record Review Act (the Act) to:

*Expand the documents that employees may inspect and copy;

*Change the procedure for submitting and responding to requests;

*Exclude certain expenses from duplication fees that an employer can charge; and

*Change the enforcement provisions of the Act.

+2023 Bill Text IL H.B. 3763, amending +820 ILCS 40/2, +820 ILCS 40/9, +820 ILCS 40/10 and +820 ILCS 40/12.

Illinois Human Rights Act Statute of Limitations Extended

Effective January 1, 2025, the statute of limitations under the Illinois Human Rights Act (IHRA) is extended from 300 days to two years.

+2023 Bill Text IL S.B. 3320, amending +775 ILCS 5/7A-102.

Illinois Prohibits Family Responsibility Discrimination

Effective January 1, 2025, the Illinois Human Rights Act (IHRA) is amended to prohibit discrimination and harassment based on a person’s family responsibilities. Family responsibilities means an employee’s actual or perceived provision of personal care to a family member.

+2023 Bill Text IL H.B. 2161, amending +775 ILCS 5/2-101], [LexisNexis: “”775 ILCS 5/2-102, +775 ILCS 5/2-104 and +775 ILCS 5/6-101.

Illinois Significantly Expands Pay Statement Requirements

Effective January 1, 2025, pay statement requirements are significantly expanded. A pay statement must be an itemized statement that shows an employee’s:

 *Hours worked;

*Overtime hours worked;

*Rate(s) of pay;

*Overtime pay;

*Gross wages earned;

*Deductions from the employee’s wages;

*Yearly total of wages to date; and

*Yearly total of deductions to date.

Additional amendments add significant requirements regarding recordkeeping, employee requests for additional pay statements and penalties.

+2023 Bill Text IL S.B. 3208.

Illinois Child Labor Law of 2024 Takes Effect

Effective January 1, 2025, the Illinois Child Labor Law, 820 ILCS 205/1 et seq., is repealed and replaced with the Child Labor Law of 2024, which establishes requirements for minors under the age of 16 involving:

*Prohibited occupations;

*Hours of work;

*Break periods; and

*Employment certificate / work permits.

In addition, employers must ensure that all minors are supervised by an adult 21 years of age or older, on site, at all times while the minor is working.

+Child Labor Law of 2024., 2023 Bill Text IL S.B. 3646.

 Illinois Amendment Extends Military Leave Protections to US Space Force

Effective January 1, 2025, members of the US Space Force are covered under the Illinois Service Member Employment and Reemployment Rights Act (ISERRA).

ISERRA covers employees in military service, which is defined to include service in the Armed Forces of the United States.  HB 5640 expands references in Illinois law to the armed forces of the United States to include the United States Space Force.

+2023 Bill Text IL H.B. 5640, adding 5 ILCS 70/1.45.

INDIANA

Indiana Child Labor Amendments Take Effect

Effective January 1, 2025, Iowa’s child labor laws are amended to: 

*Repeal hours of work restrictions for minors over the age of 16;

*Add exemptions for:

-Certain actor or performers;

-Newspaper carriers ; or

-Homeworkers who make evergreen wreaths; and

*Amend the employment certificates / work permit requirements to:

-Require that employers report certain new or changed information at least twice a month; and

-Specify that the minor’s date of hire is the first date on which the minor performs work for the employer.

+2024 Bill Text IN H.B. 1093, amending +Ind. Code 22-2-18.1-16, +Ind. Code 22-2-18.1-17, +Ind. Code 22-2-18.1-22 and +Ind. Code 22-2-18.1-23 and repealing several sections. +2024 Bill Text IN S.B. 146, amending +Ind. Code 22-2-18.1-2 and +Ind. Code 22-2-18.1-26.

IOWA

Iowa Consumer Data Protection Act Takes Effect

Effective January 1, 2025, the Iowa Consumer Data Protection Act (ICDPA) gives Iowa consumers privacy rights with respect to their personal data and establishes certain requirements and limitations for covered businesses.

The ICDPA’s protections do not apply to individuals acting in an employment context or to employment-related data.

+2023 Bill Text IA S.B. 262, codified as Iowa Code § 715D.1 et seq.

Iowa Amends Health Insurance Requirements Related to Breast Exams and Biomarker Testing

Employer-sponsored group health plans issued or renewed on or after January 1, 2025, are required to cover the following:

Supplemental or diagnostic breast examinations, e.g., magnetic resonance imaging (MRI), ultrasound or contrast-enhanced mammography.

Biomarker testing for the purposes of diagnosing, treating, appropriately managing or monitoring a disease or condition.

+2023 Bill Text IA H.B. 2489 and +2023 Bill Text IA H.B. 2668.

KENTUCKY

Kentucky Legalizes Medical Marijuana

Effective January 1, 2025, Kentucky legalizes the medical use of cannabis by qualified patients with specified medical conditions who register to become cardholders authorized to purchase and use cannabis.

Employers remain able to establish policies and procedures to limit the use of cannabis in the workplace. The law contains extensive employer protections.

Additionally, the law does not require a private workers’ compensation carrier or self-funded employer providing workers’ compensation benefits to reimburse a person for costs associated with the use of medicinal cannabis.

+2023 Bill Text KY S.B. 47.

LOUISIANA

Louisiana Reduces Unemployment Benefits

Effective January 1, 2025, Louisiana reduces the maximum unemployment benefits that may be received in a benefit year from 26 weeks to 20 weeks. The number of weeks may be further reduced depending on the state unemployment rate.

+2024 Bill Text LA H.B. 119, amending +La. Rev. Stat. § 23:1595.

MAINE

Maine Paid Family and Medical Leave Contributions Begin

Starting January 1, 2025, covered Maine employers are required to make quarterly payroll contributions to fund paid family and medical leave (PFML) benefits. The maximum total contribution is 1% of wages, up to the Social Security taxable wage base in effect. Premium shares depend on whether an employer has 15 or more employees or fewer than 15 employees. PFML benefit availability for covered employees begins May 1, 2026.

2023 Maine L.D. 1964.

Maine Minimum Wage Increases to $14.65

Effective January 1, 2025, the minimum wage in Maine increases from $14.15 per hour to $14.65 per hour under an annual inflation adjustment required by the state statute. +26 M.R.S. 664. The adjustment is based on the 3.6% change in the Consumer Price Index for All Urban Wage Earners and Clerical Workers for the Northeast Region (CPI-Northeast) from August 2023 to August 2024, rounded to the nearest five cents.

The maximum tip credit increases from $7.07 per hour to $7.33 per hour.

The amount of tips that an employee must receive each month in order to qualify as a service employee for whom an employer may claim a tip credit increases from $179 to $185.

+26 M.R.S. 663.

Maine Minimum Salary for Executive, Administrative and Professional Employees Increases to $845.19 per Week

Effective January 1, 2025, the minimum salary for executive, administrative and professional employees exempt from Maine’s minimum wage and overtime requirements increases from $816.34 per week to $845.19 per week. +26 M.R.S 663(3)(K).

MARYLAND

Maryland Minimum Wage Increases to $15.00 ($14.00 for Small Employers)

UPDATE: On April 11, 2023, the increases to Maryland’s minimum wage scheduled for January 1, 2025, were repealed. +2023 Bill Text MD S.B. 555.

Effective January 1, 2025, the minimum wage in Maryland increases from $14.00 to $15.00 for large employers with 15 or more employees and from $13.40 to $14.00 for small employers with 14 or fewer employees.

The maximum tip credit increases from $10.37 to $11.37 for large employers with 15 or more employees and from $9.77 to $10.37 for small employers with 14 or fewer employees.

+Md. LABOR AND EMPLOYMENT Code Ann. § 3-413, as amended by +2019 Bill Text MD S.B. 280.

Howard County, Maryland, Minimum Wage Increases to $16.00 ($14.75 for Small Employers)

NOTE: Effective January 1, 2024, the Maryland state minimum wage is $15.00.

 Effective January 1, 2025, the minimum wage in Howard County, Maryland, increases to:

*$14.75 for small employers with 14 or fewer employees (and certain other qualifying employers); and

*$16.00 for large employers with 15 or more employees.

The minimum direct cash wage for tipped employees increases to:

*$11.12 for small employers with 14 or fewer employees (and certain other qualifying employers); and

*$12.37 for large employers with 15 or more employees.

Howard County, Maryland, Code of Ordinances Title 12, Subtitle 22, as enacted by Howard County, Maryland, Council Bill 82-2021.

Maryland Paid Family and Medical Leave Benefits Take Effect

Implementation Date: January 1, 2025

Maryland’s Time to Care Act of 2022 (the Act) provides employees with paid family and medical leave (PFML) benefits funded by employer and employee contributions. Employees may access paid leave benefits beginning January 1, 2025.

Under the Act, an employee may qualify for a maximum of 12 weeks of benefits in a 12-month period for the following qualifying reasons:

* To care for a child during the first year after birth or placement for adoption, foster care or kinship care;

* To care for a family member with a serious health condition;

* The employee’s own serious health condition;

* To care for a next-of-kin military service member with a serious health condition; or

* A qualifying exigency arising out of a military service member’s deployment.

An employee may qualify for an additional 12 weeks of benefits if leave for their own serious health condition either precedes or follows, within the same 12-month period, leave taken to care for a child after birth or placement.

Covered employers, employees and participating self-employed individuals are required to make contributions to fund the benefits beginning October 1, 2023.

Anti-retaliation and notice provisions are effective January 1, 2023. +2022 Bill Text MD S.B. 275.

MICHIGAN

Michigan Minimum Wage Increases to $10.56

Effective January 1, 2025, the minimum wage in Michigan increases to $10.56 per hour under the Improved Workforce Opportunity Wage Act (IWOWA). The minimum direct cash wage for tipped employees increases to $4.01, meaning the maximum tip credit an employer may claim is $6.55.

If the unemployment rate in Michigan, as determined by the federal Bureau of Labor Statistics, is 8.5% or greater for the preceding calendar year, the scheduled minimum wage rate increase will not take effect until the first calendar year after the unemployment rate is again lower than 8.5%.

 +MCLS § 408.414; Mothering Just. v. AG, +2024 Mich. LEXIS 1454 (Mich. 2024); see also Michigan Department of Labor & Economic Opportunity October 1, 2024, press release Michigan Minimum Wage Rate 2025 Increase Schedule.

MINNESOTA

St. Paul, Minnesota, Minimum Wage for Macro Employers and Large Employers Is Adjusted for Inflation “Effective January 1, 2025, the minimum wage in St. Paul, Minnesota, for macro employers that employ 10,001 or more persons and for large employers that employ between 101 and 10,000 persons is adjusted for inflation. It is increased by the percentage increase calculated by the state labor department for purposes of the state minimum wage rounded to the nearest cent.

The minimum wage remains unchanged at:

$14.00 per hour for small employers that employ between six and 100 persons; and

$12.25 per hour for micro employers that employ five or fewer persons.

St. Paul, Minnesota Code of Ordinances Sec. 224.01, as created by Ordinance 18-54

St. Paul, Minnesota, Minimum Wage for Macro Employers and Large Employers Is Adjusted for Inflation

Effective January 1, 2025, the minimum wage in St. Paul, Minnesota, for macro employers that employ 10,001 or more persons and for large employers that employ between 101 and 10,000 persons is adjusted for inflation. It is increased by the percentage increase calculated by the state labor department for purposes of the state minimum wage rounded to the nearest cent.

The minimum wage remains unchanged at:

*$14.00 per hour for small employers that employ between six and 100 persons; and

*$12.25 per hour for micro employers that employ five or fewer persons.

St. Paul, Minnesota Code of Ordinances Sec. 224.01, as created by Ordinance 18-54.

Minnesota Launches Mandatory Retirement Savings Program

Beginning January 1, 2025, covered Minnesota employers with five or more covered employees must participate in the Minnesota Secure Choice Retirement Program, a mandatory state-run retirement savings program.

The program establishes individual retirement accounts (IRAs) into which covered employees may make payroll-deduction contributions withheld by their employer on an after-tax or pretax basis. Program implementation is in phases over a maximum period of two years.

+2023 Bill Text MN H.B. 782, enacting +Minn. Stat. § 187.01, et seq.

Minnesota Amends Paid Sick and Safe Leave Provision Regarding Employer Policies

Effective January 1, 2025, the paid sick and safe leave law is amended regarding the law’s interaction with employer policies.

+2023 Bill Text MN H.B. 5247, Sec. 15.

 

Minnesota Requires Pay Information in Job Postings

Effective January 1, 2025, employers that have 30 or more employees located in Minnesota must include a starting salary range and general description of benefits and other compensation in any job posting.

+2023 Bill Text MN S.B. 3852, adding +Minn. Stat. § 181.173.

Minnesota Minimum Wage Increases to $11.13

Effective January 1, 2025, Minnesota’s minimum wage increases from $8.85 (for small employers) and $10.85 (for large employers) to $11.13 per hour for all employers, regardless of size.

The subminimum wage for trainees increases from $8.85 per hour to $9.08 per hour.

The increases are made under an annual inflation adjustment required by the state statute, under which the minimum wage and subminimum wage for trainees are increased by the lesser of:

* 5 percent, rounded to the nearest cent; or

* The percentage increase in the rate of inflation, as measured by the implicit price deflator, national data for personal consumption expenditures as determined by the United States Department of Commerce, Bureau of Economic Analysis during the 12-month period from August 31, 2023, to August 31, 2024, rounded to the nearest cent.

Amendments to Minnesota’s minimum wage law enacted May 17, 2024, raised the default annual inflation adjustment from 2.5 percent to 5 percent and repealed:

*A lower minimum wage for small employers with an annual gross volume of sales made or business done under $500,000;

*Subminimum wages for youths and summer work travel exchange visitor program participants; and

*A provision allowing the Commissioner of the Minnesota Department of Labor and Industry to suspend the increase if projections indicate the potential for a substantial downturn in the state’s economy.

MISSOURI

Missouri Minimum Wage Increases to $13.75

NOTE: This Legal Timetable entry is based on unofficial results from the November 5, 2024, election.

Effective January 1, 2025, the minimum wage in Missouri increases from $12.30 per hour to $13.75 per hour. The maximum tip credit increases from $6.15 per hour to $6.875 per hour. +Mo. Rev. Stat. § 290.502, as amended by Proposition A.

MONTANA

Montana Minimum Wage Increases to $10.55

Effective January 1, 2025, the minimum wage in Montana increases from $10.30 per hour to $10.55 per hour under an annual inflation adjustment required by the state statute.  +Mont. Code Anno., § 39-3-409. The adjustment is based on the change in the Consumer Price Index for All Urban Consumers between August 2023 and August 2024, rounded to the nearest five cents.

NEBRASKA

Nebraska Minimum Wage Increases to $13.50

Effective January 1, 2025, the minimum wage in Nebraska increases from $12.00 to $13.50. +R.R.S. Neb. § 48-1203, as amended by Initiative Measure 433.

Nebraska Amends Nonresident Compensation Sourcing Rules

Effective January 1, 2025, Nebraska amends it’s personal income tax sourcing rules for compensation paid to nonresidents. In general, the amendments:

*Codify an existing rule on compensation paid to nonresidents for services they perform outside the state for their own convenience;

*Provide exceptions for compensation paid to nonresidents who are in the state for a conference, training or board of director meeting; and

*Provide relief from withholding penalties and interest to employers that source compensation based on a time and attendance system or other records.

2024 Bill Text NB L.B. 1023, amending +R.R.S. Neb. § 77-2733 and +Nebraska Admin. Code Title 316, Ch. 22, REG-22-003.01C.

NEVADA

Nevada Limits Subminimum Wages for Providers of Jobs and Day-Training Services

Effective January 1, 2025, providers of jobs and day-training services are prohibited from entering into a contract that provides for a subminimum wage in Nevada. +Nev. Rev. Stat. § 435.305 and +Nev. Rev. Stat. § 435.310, as amended by +2023 Bill Text NV A.B. 259.

NEW HAMPSHERE

New Hampshire Consumer Data Privacy Law Takes Effect

Effective January 1, 2025, New Hampshire’s consumer data privacy law (SB 255) gives New Hampshire residents privacy rights with respect to their personal data and establishes certain requirements and limitations for covered businesses.

Protections under SB 255 do not apply to individuals acting in an employment context or to employment-related data.

SB 255, codified as RSA 507-H:1 et seq.

New Hampshire Regulates Storage of Firearms in Employee Vehicles

Effective January 1, 2025, New Hampshire amends its storage of firearms law to regulate the storage of firearms in employees’ vehicles on employer property. Under the amended law, employers are prohibited from:

*Requiring an employee to disclose whether they are storing a firearm or ammunition in their vehicle; or

Searching an employee’s vehicle for a firearm or ammunition.

*Additional rules apply to employers that receive public funds from the federal or state government.

+2023 Bill Text NH H.B. 1336, adding +N.H. Rev. Stat. Ann. §159:27.

NEW JERSEY

New Jersey Minimum Wage for Large Employers Is Adjusted for Inflation, Increases to $14.30 for Small and Seasonal Employers

Effective January 1, 2025, the minimum wage for large employers in New Jersey is increased by any increase in the federal Consumer Price Index for Urban Wage Earners and Clerical Workers for the 12 months from September 30, 2023, to September 30, 2024.

The minimum wage for small employers and seasonal employers increases from $13.50 to $14.30.

The tip credit remains $9.87.

+N.J. Stat. § 34:11-56a4, as amended by +2018 Bill Text NJ A.B. 15.

New Jersey Minimum Wage Increases to $15.49 ($14.53 for Small and Seasonal Employers)

Effective January 1, 2025, the minimum wage in New Jersey increases from $15.13 to $15.49 for large employers and from $13.73 to $14.53 for small employers and seasonal employers. The adjustment is based on the increase in the federal Consumer Price Index for Urban Wage Earners and Clerical Workers for the 12 months from September 30, 2023, to September 30, 2024.

The tip credit remains $9.87. The minimum direct cash wage increases from $5.26 per hour to $5.62 per hour. 

 

New Jersey Consumer Data Privacy Law Takes Effect

Effective January 15, 2025, Senate Bill 332 gives New Jersey residents privacy rights with respect to their personal data and establishes certain requirements and limitations for covered businesses. The law does not apply to individuals acting in an employment context. Additional site updates regarding this development are forthcoming.

+2022 Bill Text NJ S.B. 332 (PL. 2023, c.266).

NEW YORK

New York Minimum Wage Increases to $16.50 ($15.50 for Upstate)

Effective January 1, 2025, the New York State minimum wage increases:

*From $16.00 to $16.50 for employees working in New York City, Nassau County, Suffolk County and Westchester County; and

*From $15.00 to $15.50 for non-fast food employees working in the remainder of the state (i.e., anywhere but New York City, Nassau County, Suffolk County and Westchester County).

+NY CLS Labor § 652, as amended by +2023 Bill Text NY A.B. 3006.

New York Minimum Salaries for Executive and Administrative Employees Increase to $1,161.65 – $1,237.50 per Week

Effective January 1, 2025, the minimum salaries for executive and administrative employees exempt from New York’s minimum wage and overtime requirements increase:

 *From $1,200.00 per week to $1,237.50 per week for employers in New York City, Nassau County, Suffolk County and Westchester County; and

*From $1,124.20 per week to $1,161.65 per week for employers in the remainder of New York.

+NY CLS Labor § 652(2); see, e.g., +12 NYCRR § 142-2.14(c)(4).

New York Amends Paid Sick Leave Law to Include Prenatal Leave

Effective January 1, 2025, New York requires covered employers to provide paid leave for health care services related to an employee’s pregnancy. In addition to the existing sick leave entitlement, an employee can use up to 20 hours of paid prenatal leave per year.

+2023 Bill Text NY A.B. 8805, Part M.

OHIO

Ohio Minimum Wage Increases to $10.70

Effective January 1, 2025, the minimum wage in Ohio increases from $10.45 per hour to $10.70 per hour under an annual inflation adjustment required by the state constitution. +Oh. Const. Art. II, § 34a. The adjustment is based on the 2.4% change in the Consumer Price Index for Urban Wage Earners and Clerical Workers between September 2023 and September 2024, rounded to the nearest five cents.

The minimum direct cash wage for tipped employees increases from $5.25 per hour to $5.35 per hour.

The minimum annual gross receipts threshold above which employers are subject to Ohio’s minimum wage law increases from $385,000 per year to $394,000 per year.]

OKLAHOMA

Oklahoma Amends Unemployment Benefits Maximum Duration Calculation Effective January 1, 2025, the maximum duration of unemployment benefits is between 16 to 26 weeks, depending on Oklahoma’s average number of unemployment insurance claims.

+2021 Bill Text OK H.B. 1933, amending +40 Okl. St. § 2-106 and adding +40 Okl. St. § 1-230.

Oklahoma Provides Tax Credit for Paid Poll Worker Leave

Starting with tax year 2025, an employer that chooses to provide a paid leave of absence for an employee to volunteer as a poll worker with a county election board is eligible for an income tax credit.

Although the tax credit does not apply to employers until January 1, 2025, the law was passed with an effective date of November 1, 2024.

+2023 Bill Text OK S.B. 1452, Sec. 1(A)(12).

OREGON

Oregon Requires Overtime for Agricultural Employees Who Work More Than 48 Hours

Effective January 1, 2025, nonexempt agricultural workers must be paid one and one-half times their regular rate of pay for each overtime hour or portion of an hour that they work in excess of 48 hours in one workweek. +2022 Bill Text OR H.B. 4002.

Oregon Adds Qualifying Reason for Paid Family and Medical Leave

Effective January 1, 2025, Oregon’s paid family and medical leave law is amended to allow eligible employees to take leave to effectuate the legal process required for foster child placement or child adoption.

Although the Oregon Sick Time Law (OSTL) incorporates qualifying reasons from the paid family and medical leave law, state guidance is expected regarding whether employees can also take leave for this purpose under the OSTL.

+2024 Bill Text OR S.B. 1515.

Oregon Increases Creditor Garnishment Limits

Effective January 1, 2025, the maximum amount that can be garnished from an employee for a creditor garnishment is the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed:

* $305 (up from $254) for any pay period of one week;

* $611 (up from $509) for pay periods longer than one week;

* $655 (up from $545) for semimonthly pay periods; or

* $1,309 (up from $1,090) for monthly pay periods.

The limits increase again on July 1, 2025, and July 1, 2026. Starting July 1, 2027, increases will be calculated based on the state minimum wage rate in effect.

+2024 Bill Text OR S.B. 1595, amending +Or. Rev. Stat. § 18.385.

Oregon Warehouse Worker Protection Law Takes Effect

Effective January 1, 2025, Oregon imposes transparency requirements on production quotas for warehouse workers. Employers with 100 or more employees at a single warehouse distribution center or 1,000 or more employees at one or more warehouse distribution centers in the state are required to provide:

*Written documentation to each employee summarizing any quotas to which they are subject, beginning January 31, 2025; and

*Records related to quotas to a current or former employee upon their request.

+2024 Bill Text OR H.B. 4127.

PENNSYLVANIA

Pennsylvania Bans Noncompete Agreements for Health Care Practitioners

Effective January 1, 2025, Pennsylvania makes void and unenforceable any noncompete agreement that impedes the ability of health care practitioners to treat or accept new patients. Noncompete agreements limited to one year or less are exempt if a health practitioner voluntarily ends employment. The ban applies to medical doctors, osteopaths, physician assistants, and certified registered nurse anesthetists, and nurse practitioners

+2023 Bill Text PA H.B. 1633

RHODE ISLAND

Rhode Island Increases Dependents Allowance

Beginning January 1, 2025, the temporary disability insurance dependents allowance increases to the greater of $20 (increased from $10) or seven percent of the individual’s weekly benefit rate.

+2023 Bill Text RI H.B. 7171.

Rhode Island Requires Veterans’ Benefits and Services Poster

Effective January 1, 2025, employers with more than 50 full-time employees must post a benefits and services poster pertaining to veterans.

+2023 Bill Text RI H.B. 7058.

Rhode Island Extends Paid Family Leave Period

Effective January 1, 2025, Rhode Island’s paid family leave law, also known as temporary caregiver insurance (TCI), extends the wage replacement benefit period from six weeks to seven weeks.

+2023 Bill Text R.I. H.B. 7171, amending +R.I. Gen. Laws § 28-41-35.

SOUTH DAKOTA

South Dakota Minimum Wage Increases to $11.50

Effective January 1, 2025, the minimum wage in South Dakota increases from $11.20 per hour to $11.50 per hour under an annual inflation adjustment required by the state statute. The adjustment is based on the increase in the Consumer Price Index for All Urban Consumers between August 2023 and August 2024, rounded to the nearest five cents.

The maximum tip credit increases from $5.60 per hour to $5.75 per hour.  

+S.D. Codified Laws § 60-11-3, +S.D. Codified Laws § 60-11-3.2.

VERMONT

Vermont Minimum Wage Increases to $14.01

Effective January 1, 2025, the minimum wage in Vermont increases from $13.67 per hour to $14.01 per hour under an annual inflation adjustment required by the state statute. +21 V.S.A. § 384. The minimum direct wage for tipped employees increases from $6.84 per hour to $7.01 per hour and the maximum tip credit increases from $6.83 per hour to $7.00 per hour.

VIRGINIA

Virginia Minimum Wage Increases to $13.50

Effective January 1, 2025, the minimum wage in Virginia increases from $12.00 to $13.50.

The maximum tip credit increases from $9.87 to $11.37.

Note: This increase does not take effect unless reenacted by a regular or special session of the Virginia General Assembly prior to July 1, 2024. If the General Assembly does not reenact the 2025 increase, the minimum wage will increase by an amount equal to the percentage by which the United States Average Consumer Price Index for All Items, All Urban Consumers (CPI-U) increased during the most recent calendar year for which such information is available. It will not decrease if the CPI-U is negative.

Virginia Minimum Wage Increases to $13.50

Effective January 1, 2025, the minimum wage in Virginia increases from $12.00 to $13.50.

The maximum tip credit increases from $9.87 to $11.37.

Note: This increase does not take effect unless reenacted by a regular or special session of the Virginia General Assembly prior to July 1, 2024. If the General Assembly does not reenact the 2025 increase, the minimum wage will increase by an amount equal to the percentage by which the United States Average Consumer Price Index for All Items, All Urban Consumers (CPI-U) increased during the most recent calendar year for which such information is available. It will not decrease if the CPI-U is negative.

+Va. Code Ann. § 40.1-28.10, as amended by +2020 Bill Text VA H.B. 395.

Virginia Minimum Wage Increases to $12.41

Effective January 1, 2025, the minimum wage in Virginia increases from $12.00 per hour to $12.41 per hour under an annual inflation adjustment required by state law. It is increased by 3.4%, an amount equal to the percentage by which the United States Average Consumer Price Index for All Items, All Urban Consumers (CPI-U) increased during the 2023 calendar year.

The maximum tip credit increases from $9.87 to $10.28.

Previously, Virginia’s minimum wage law had scheduled the minimum wage to increase to $13.50, effective January 1, 2025; however, this scheduled increase will not take effect because it was not reenacted by a regular or special session of the Virginia General Assembly prior to July 1, 2024, as required by +2020 Bill Text VA H.B. 395 § 3.

+Va. Code Ann. § 40.1-28.10, as amended by +2020 Bill Text VA H.B. 395.

WASHINGTON

Washington Minimum Salary for Overtime-Exempt Employees Is Adjusted for Inflation

Effective January 1, 2025, the minimum salary for most overtime-exempt employees in Washington increases to 80 × the inflation-adjusted minimum wage for 2025 for small employers and 90 × the inflation-adjusted minimum wage for 2025 for large employers.

The minimum wage for computer professionals paid on an hourly basis increases to 3.5 × the inflation-adjusted minimum wage for 2025.

+WAC § 296-128-545.

King County, Washington, Minimum Wage Takes Effect

NOTE: The following information is based on HR & Compliance Center’s analysis of the King County minimum wage ordinance. The city government has not responded to requests to clarify potential ambiguities in the ordinance.

 Effective January 1, 2025, the minimum wage in King County, Washington, takes effect at:

*$20.29 plus an inflation adjustment for Large Employers;

*$18.29 plus an inflation adjustment for Mid-Sized Employers; and

*$17.29 plus an inflation adjustment for Small Employers.

King County, Washington Municipal Code Title 12, as added by Ordinance 19762-1.

Renton, Washington, Minimum Wage Is Adjusted for Inflation

Effective January 1, 2025, the minimum wage in Renton, Washington, for Large Employers with 501 or more employees is adjusted for inflation.

It increases by 100 percent of the annual average growth rate of the bi-monthly Seattle-Tacoma-Bellevue Area Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the 12-month period from August 2023 to August 2024.

Renton’s minimum wage ordinance does not specify whether the minimum wage rates for Mid-Sized Employers with 15 to 500 employees remains $18.29 or if it increases to be $2.00 less than 2025 Large Employer rate. HR & Compliance Center asked the City of Renton for clarification. The City does not plan to interpret the text of the ordinance.

Renton, Washington Municipal Code Sec. 5-28-3 and Renton, Washington Municipal Code Sec. 5-28-4, as added by Initiative Measure No. 23-02, Voter Initiative to Establish Labor Standards.

Washington Amends Paid Sick Leave Law

Effective January 1, 2025, amendments to  Washington’s paid sick leave law expand qualifying reasons for leave and the definition of family member.

+2023 Bill Text WA S.B. 5793.

Washington Minimum Salary for Overtime-Exempt Employees Increases to $1,499.40 per Week ($1,332.80 per Week for Small Employers)

Effective January 1, 2025, the minimum salary for most overtime-exempt employees in Washington increases to $1,332.80 (80 × the inflation-adjusted minimum wage for 2025) for small employers and to $1,499.40 (90 × the inflation-adjusted minimum wage for 2025) for large employers.

The minimum wage for computer professionals paid on an hourly basis increases to $58.31 (3.5 × the inflation-adjusted minimum wage for 2025).

+WAC § 296-128-545.

Washington Minimum Wage Increases to $16.66

Effective January 1, 2025, the minimum wage in Washington increases from $16.28 per hour to $16.66 per hour under an annual inflation adjustment required by the state statute.  +Rev. Code Wash. § 49.46.020. The adjustment is based on the 2.35% change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from August 2023 to August 2024, rounded to the nearest five cents.

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