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Legal Updates: State and Local Updates – April 2025

Workplace laws are always evolving, and staying on top of them is key to protecting your business and employees. With state and local regulations changing regularly, it’s easy to overlook an update that could impact your workplace. That’s where we come in.

We’ve gathered the most important legal updates for you—so you can focus on running your business without the compliance headaches. A few minutes now could save you from costly issues down the road.

Stay informed and stay compliant—check them out here!

State and Local Updates

Alabama

Alabama Governor Signs Binary Gender Bill, Taking Effect in October

On Feb. 13, Alabama Gov. Kay Ivey signed into law Senate Bill 79/Act 2025-3, declaring that there are only two sexes: male and female. Originally introduced on Feb. 4, the legislation amends Alabama Code § 1-1-1, which defines certain words used throughout the Alabama Code. Officially codified as the “‘What Is a Woman?’ Act,” the act carries implications for various aspects of public policy, legal definitions, data collection, and protections of sex-based rights and spaces. Read more here.

California

LA Child Care Providers May Get Disaster Unemployment Assistance

On Feb. 11, California Gov. Gavin Newsom issued an executive order to support child care providers impacted by the recent wildfires in the Los Angeles area. This order ensures that those affected are aware of their eligibility for disaster unemployment assistance and receive the necessary support to apply.

In addition to supporting individual workers, the California Employment Development Department (EDD) offers several disaster-related services to employers affected by emergencies. These services are designed to provide financial relief and support business continuity during challenging times. Read more here.

Key Requirements for Post-Pandemic Workplace Safety Compliance

As of Feb. 3, 2025, most of the California Division of Occupational Safety and Health’s (Cal/OSHA’s) COVID-19 Prevention Non-Emergency Standards have officially come to an end. This marks a significant shift for California employers who have been navigating these regulations and their predecessor emergency temporary standards for the past four years. 

Despite the expiration of most obligations under this standard, employers are required to comply with certain recordkeeping requirements under Title 8, Subsection 3205(j), until Feb. 3, 2026. As a practical matter, what does this require? There is some ambiguity in how the regulation is drafted. Read more here.

California’s Domestic Worker Bill of Rights: An Employer’s Guide

The Domestic Worker Bill of Rights (California Assembly Bill 241 and Senate Bill 1015), enacted in 2013, is a California law that grants overtime pay rights to personal attendants who were not previously entitled to overtime pay under California law. Personal attendants covered by this law are entitled to overtime pay at 1.5 times their regular rate of pay for any hours worked in excess of nine hours in a day or 45 hours in a week. Read more here.

Website Tracking Lawsuit Reminds Businesses About Notice Risks

A federal district court in California recently granted class certification in a lawsuit against a financial services company. The case involves allegations that the company’s website used third-party technology to track users’ activities without their consent, violating the California Invasion of Privacy Act (CIPA). Specifically, the plaintiffs allege that the company along with its third-party marketing software platform, intercepted and recorded visitors’ interactions with the website, creating “session replays,” which are effectively video recordings of the users’ real-time interaction with the website forms. The technology at issue in the suit is routinely utilized by website operators to provide a record of a user’s interactions with a website, in particular web forms and marketing consents. Read more here.

California and New York

New Developments Push Businesses Toward AI Transparency

Artificial intelligence is reshaping the workplace, and two of the nation’s most populous states—California and New York—are making sure businesses take note. California’s attorney general has issued sweeping advisories warning that AI-driven decisions must align with existing laws on consumer protection, discrimination, privacy, and competition. Meanwhile, New York’s governor has announced that New York will become the first state to require businesses to disclose AI-related layoffs, signaling a growing expectation that employers must track and justify AI’s impact on workers. Employers in both states must take immediate steps to ensure compliance, transparency, and workforce readiness. Read more here.

Iowa

Iowa Governor Removes Gender Identity Protection Civil Rights

On Feb. 28, Iowa Gov. Kim Reynolds signed legislation making the state the first to remove anti-discrimination protections for gender identity from its civil rights code.

Senate File 418, which takes effect on July 1, removes “gender identity” as a protected class in the Iowa Civil Rights Act, which prohibits discrimination in employment, wages, public accommodations, housing, education, and credit practices. The new law makes it more difficult for transgender individuals to bring claims alleging discrimination or harassment in state court. Furthermore, the amended law states that “separate accommodations are not inherently unequal.” Read more here.

Michigan

Michigan Accelerates Minimum Wage Increases but Saves Tip Credit

The Michigan Legislature amended the state’s Wage Act on Feb. 20 in a compromise measure that accelerated the schedule of minimum wage increases but staved off a complete phaseout of the tip credit for workers who receive tips. Gov. Gretchen Whitmer signed the legislation, Senate Bill 8, the next day. Read more here.

Missouri

Effective April 15, 2025: Missouri

Paid Sick Leave Employer Notice and Posting Requirements Begin.

Ohio

Effective April 8, 2025: Ohio

Requirements to provide specific information on paystubs go into effect.

Is Your Workplace Ready for ICE?

Employers should be moving from a reactive stance to a proactive one when preparing for immigration worksite enforcement, speakers said during a Feb. 19 SHRM webcast.

Emily M. Dickens, chief of staff and head of public affairs at SHRM, was joined by Bo Cooper and K. Edward Raleigh, partners in immigration law firm Fragomen’s Washington, D.C., office, to discuss best practices for Form I-9 compliance, I-9 audits, and response plans for workplace visits from Immigration and Customs Enforcement (ICE). Read more here.

Judge Blocks Enforcement of DEI Orders as Applied to Companies

A federal district judge in Maryland preliminarily blocked several challenged provisions of President Donald Trump’s executive orders (EOs) on diversity, equity, and inclusion (DEI), including enforcement of provisions applying to private companies. Certification and termination provisions for federal contractors also were paused in the Feb. 21 decision (National Association of Diversity Officers in Higher Education v. Trump, No. 1:25-cv-00333). The ruling is a nationwide injunction. Read more here.

EEOC to Crack Down on Anti-American Employment Bias

The U.S. Equal Employment Opportunity Commission (EEOC) will focus its national-origin bias enforcement on companies found to be showing a preference for hiring immigrant workers over U.S. citizens, the agency recently announced. 

“The EEOC is putting employers and other covered entities on notice: If you are part of the pipeline contributing to our immigration crisis or abusing our legal immigration system via illegal preferences against American workers, you must stop,” said EEOC Acting Chair Andrea Lucas. “The EEOC is here to protect all workers from unlawful national origin discrimination, including American workers.” 

The agency said it will step up investigations, compliance checks, and litigation to achieve this goal. Read more here.

Trump Discusses Regulations, Taxes in Joint Address to Congress

In his joint address to Congress on March 4, President Donald Trump presented several policy proposals that address key issues related to the workforce and the economy. These included a freeze on new federal hires, regulatory expansion, and nonessential foreign aid. Trump also mentioned the 10-for-1 Regulatory Reform Policy, which would require the removal of 10 existing regulations for each new regulation introduced. Federal employees are also expected to return to in-person work. Read more here.

How Will I&D Changes Affect Equity-Focused Family Benefits?

Inclusion and diversity (I&D) has undergone a transformation as of late: President Donald Trump has issued several executive orders trying to limit or restrict diversity, equity, and inclusion (DEI) initiatives, and a number of companies have recently rolled back their I&D programs.

That puts a lot of workplace I&D efforts in the spotlight. But what about equity-focused employee benefits such as fertility coverage, menopause support, and adoption assistance that employers often tout as part of their inclusion efforts? Read more here.

Employer-Employee Friction on Compensation Will Result in ‘Year of Contention’

A push and pull is playing out with compensation due to a shifting labor market and decreased employee satisfaction over pay, causing what researchers say will be a “year of contention.”

Employees continue to have higher expectations for their compensation, thanks in part to more pay transparency and pay fairness initiatives, as well as the high cost of living. Overall, data shows, employees are feeling less positive about their compensation. Read more here.

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