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A wave of employment law changes across several U.S. states will take effect starting July 1, 2025. These include increases to minimum wage rates, expanded paid leave requirements, new retirement savings mandates, and broader employee protections. Employers should take note of both the regulatory shifts and the varied implementation timelines based on location and company size.

Staying ahead of these updates isn’t just about compliance—it’s about creating a workplace that adapts, supports, and thrives. Let’s dive in.

State and Local Updates

ARKANSAS

New Poster Requirement for Employers of 50+ Employees: Veterans’ Benefits and Services

Effective August 4, 2025, employers in Arkansas with 50 or more employees must display a new poster outlining Veterans’ Benefits and Services.

CALIFORNIA

California Unveils Landmark AI Policy Blueprint: What Businesses Need to Know (And Do) Now

California just released the most comprehensive, forward-looking AI policy framework we’ve seen from any US jurisdiction to date – and it is expected to lay the groundwork for legislation and regulation we could see emerge in the next year. Even as Congress debates whether to ban state-level AI laws for the next decade, California is charging forward with a detailed blueprint that could also set the tone for AI regulation nationwide. So what does the June 17 California Report on Frontier AI Policy mean for your business? And how should you respond? READ MORE HERE.

California CRD Publishes Notice on Rights for Violence Survivors

On July 1, 2025, the California Civil Rights Department (CRD) released a required notice titled “Survivors of Violence and Family Members of Victims Right to Leave and Accommodations.” It must be provided to employees at hiring, annually, and upon request. An accompanying FAQ is also available on the CRD website. 

🔹Background and Employer Requirements:

• Under AB 2499 (signed Sept. 2024), the CRD was mandated to publish this notice.
• The law allows employees to take protected leave for specific reasons related to their or their family members’ experience with acts of violence—such as attending legal proceedings or caring for injured relatives.
• Employers must handle accommodation requests similarly to disability accommodations (e.g., schedule changes, phone access at work).
• Employers must engage in an interactive process and assess safety risks and undue hardship.

🔹Confidentiality Obligations:

• All leave requests and related documentation must be kept confidential, unless required by law (e.g., court order or safety concerns).
• Employees must be notified before any such disclosures are made. 

🔹Recommended Next Steps:

• Update or integrate violence-related accommodations into existing policies.
• Train HR and management staff on the new requirements and CRD guidance.

Did Your California Local Minimum Wage Rate Jump on July 1? Check Out the Comprehensive Chart

As of July 1, several local governments in California increased their minimum wage rates—but not everyone got the memo. These mid-year changes often slip under the radar, and missing them can lead to costly compliance issues.

Whether you’re adjusting payroll or just trying to stay ahead, it’s essential to know if your city or county is on the updated list.

👉 Click here to see if your location is affected and what it means for your business.

COLORADO

Colorado Lawmakers Were Busy in 2025 – What Employers Need to Know

Colorado was once again busy this legislative session – and employers need to adjust their practices in order to adapt to some key new laws soon to take effect. We have highlighted below a few of the critical changes that will soon impact your workplace, and provided you with a plan for dealing with these upcoming changes. READ MORE HERE.

GEORGIA

Georgia Ends Subminimum Wage for Workers with Disabilities: What Employers Need to Know About the New State Law

Georgia will no longer allow employers to use 14(c) certificates issued by the US Department of Labor (DOL) to pay certain workers with disabilities below the $7.25 federal minimum wage. The state’s Dignity and Pay Act, which took effect July 1, immediately banned subminimum wages for employers who did not already hold a DOL certificate and will phase out the practice by July 2027 for employers that did. Here’s what you need to know to comply. READ MORE HERE.

IOWA

Iowa Requires Employers to Treat Adoptive Parents Equally

As of July 1, 2025, Iowa employers must treat adoptive parents of children up to age 6 the same as biological parents of newborns when it comes to leave, benefits, and workplace protections—for one year after adoption.

Signed by Gov. Kim Reynolds, the law (House File 248) ensures equal treatment for adoptive parents under Iowa Code Section 91A.5B.

🔹 Applies to adoptions through licensed agencies, the state, or legal independent placements
🔹 Does not require disability leave unless the employee qualifies under standard policy
🔹 Employers should review parental policies to stay compliant

The law is enforced by the Iowa Department of Inspections, Appeals, and Licensing.

KANSAS

New Kansas Law Boosts Enforceability of Non-Solicitation + Other Restrictive Covenants: What Employers Should Know and Do Now

Kansas has long been an enforcement-friendly state for restrictive covenants, and it just got friendlier. A new state law, which took effect July 1, provides clearer guidelines and stronger protections for businesses seeking to enforce restrictive covenants. The new framework is especially helpful for employers that use customer or employee non-solicitation terms in their employment contracts. We’ll explain everything Kansas employers need to know about these changes, and what steps you should take next. READ MORE HERE.

MINNESOTA

Minneapolis Expands Civil Rights Protections

Starting August 1, updated civil rights rules will require employers to follow expanded protections and clearer accommodation standards.

🔹What’s New:

Minneapolis employers can’t discriminate based on:

• Height or Weight
• Criminal Record (Justice-impacted status)
• Housing Status

The ordinance also redefines:Height or Weight

• Race (now includes protective hairstyles)
• Familial Status (includes caregivers for dependents)Housing Status

🔹Employers Must:

• Provide accommodations for pregnancy-related needs and religious beliefs, unless it causes undue hardship.
• Carefully assess if criminal history is relevant to job duties.

🔹Limited Exceptions

• When required by law or no reasonable accommodation is possible.

New Minnesota Meal and Rest Break Rules – Effective Jan. 1, 2026

Under Senate File 17, Minnesota has updated its labor laws to strengthen rest and meal break requirements:

• Rest Breaks: Employers must now allow a 15-minute paid rest break (or more, if needed to use the nearest restroom) for every four consecutive hours of work.
• Meal Breaks: Employees working six or more consecutive hours must be allowed a 30-minute meal break.
• This is a significant change from current rules, which do not specify exact durations for either rest or meal breaks.

🔹Penalties for Non-Compliance:

If an employer fails to allow these breaks, they must compensate the employee for the time at their regular rate of pay, plus liquidated damages.

🔹Next Steps for Employers:

• Prepare for these changes by reviewing and updating policies.
• Watch for additional rules or guidance from the Minnesota Department of Labor and Industry.

Minnesota now joins other states with strict rest and meal break standards, holding employers accountable with financial consequences for violations.

NEW HAMPSHIRE

New Law Requires New Hampshire Workplaces to Accommodate Nursing Mothers: 3 Steps You Should Take

New Hampshire just implemented a new law that guarantees nursing mothers accommodations such as an unpaid 30-minute break to express breast milk every three hours. Effective July 1, this new state law (which follows the Federal PUMP Act of 2022) requires employers with six or more employees to establish policies that address both reasonable break periods and spaces for expressing milk. Read on for a three-step guide for employers operating in New Hampshire. READ MORE HERE.

NEW YORK
New York Increases Jury Duty Pay to $72 Per Day

Effective June 8, 2025, the New York Legislature amended Judiciary Law Sections 519 and 521, raising the jury duty pay rate from $40 to $72 per day.

🔹 Key Takeaways:

• Employers with 11 or more employees must now pay $72 per day for the first three days of an employee’s jury duty.
• If an employee’s daily wage is equal to or more than $72, the employer must pay at least $72.
• If the wage is less than $72, the employer pays the regular wage, and the state covers the difference up to $72.
• After 3 days, employers are not required to pay, unless other laws, CBAs, or policies say otherwise.
• Employees cannot be penalized or fired for serving jury duty if they notify the employer beforehand.
• Noncompliance can lead to criminal contempt, with penalties of up to $1,000 fine, 30 days in jail, or both.

PENNSYLVANIA

Pittsburgh Ramps Up Paid Sick Leave Rules: What Employers Need to Know About the Changes and How to Comply

Pittsburgh employers will be required to provide significantly more paid sick leave starting in 2026, thanks to a city ordinance signed by Mayor Ed Gainey earlier this month. The new rules, which take effect January 1, increase not only the rate at which employees can accrue paid leave time but also the total amount of paid leave that they can earn each year. We’ll cover what’s changing, how you should prepare for the new rules, and other employer best practices for paid sick leave compliance. READ MORE HERE.

TENESSEE

Tennessee Has a Brand-New Framework for Employment Discrimination Enforcement: What Do Employers Need to Know?

Tennessee just said goodbye to its longstanding civil rights enforcement agency and created a new enforcement division to handle employment discrimination complaints. What do employers in the state need to know about this transfer of power? READ MORE HERE.

VERMONT
Are Your Workplace Policies Compliant with Vermont’s New Leave Law? A 4-Step Action Plan for Employers

Vermont employers should ensure compliance with an update to the state’s Parental and Family Leave Act (PFLA). H. 461, which took effect on July 1, expands PFLA and now covers individuals in nontraditional family structures. Here are the top things employers need to know about the update and a four-step action plan for qualified employers. READ MORE HERE.

Tackling ADA Accommodation Challenges Head-On

Providing reasonable accommodations under the Americans with Disabilities Act (ADA) is not just a compliance issue—it’s a critical part of supporting an inclusive workplace. But the process often raises questions and confusion. Here’s what employers need to know today:

🔹What Is a Reasonable Accommodation?

The ADA requires employers to provide reasonable accommodations to qualified employees with disabilities to help them perform essential job functions—unless doing so would cause undue hardship.

🔹Key Parts of the Accommodation Process:

1. Recognize the need: An employee doesn’t have to use legal terms. If they express difficulty due to a condition, that may trigger the obligation.
2. Engage in the interactive process: This means having an open, timely discussion with the employee to explore options.
3. Know the do’s and don’ts: Avoid blanket denials, delay, or assumptions.
4. Document everything: Keep records of requests, decisions, and steps taken.
5. Get legal input when needed: Especially if the request is complex or could create hardship.

🔹Common Misconceptions:

• “Magic words” are not required. Employees don’t need to say “ADA” or “reasonable accommodation.”
• Inconvenience ≠ undue hardship. Just because it’s difficult doesn’t mean you can deny it.
• Leave can be an accommodation. Time off might be the most effective solution.
• You can re-evaluate accommodations. If circumstances change, employers can revisit whether a solution remains reasonable.

🔹Why Training Is Crucial:
Many ADA missteps happen at the manager level. Employers should train managers to:

• Identify potential accommodation requests
• Notify HR immediately
• Understand their role in supporting the process
• Follow through once accommodations are approved

Mental Health + Unusual Requests:

In 2025, more requests involve mental health or nontraditional needs. Employers should be prepared to assess these in good faith and avoid quick judgments about what is “reasonable.”

An Employment Compliance Checklist for Tech Startups

After years of brainstorming, planning and raising funding, you’ve finally gotten your startup off the ground. Launching a startup is exhilarating – but it’s also easy to overlook compliance basics in the rush to get your product out the door. It’s critical to lay the groundwork for a legally sound workplace before you hire employees or work with independent contractors so you can avoid the many legal landmines you might face. Getting your employment house in order as early as possible will signal to investors, clients, and future hires that you’re building a real company. Here’s your startup’s practical roadmap to get compliant, stay lean, and grow smart. READ MORE HERE.

Your Company Wants to Close Pay Gaps. Here’s Where to Start

Many companies today aim to close pay gaps not just to avoid legal risks, but to build fairer workplaces. The first step is conducting a pay equity analysis, which evaluates compensation across demographic groups while accounting for job roles and qualifications. This helps identify real pay gaps.

Once gaps are found, companies must decide how to address them based on their values and regulatory pressures. Those facing legal scrutiny or with strong equity-driven cultures may aim to close gaps entirely, while others might set an internal tolerance (like 1%).

Two types of significance matter. Statistical significance is what courts and regulators look at to judge whether a gap is likely caused by discrimination. Economic significance, or the size of the gap, often matters more to employees and investors—even if it’s not legally meaningful.

To close gaps, companies must raise pay for underpaid groups until gaps fall below their chosen threshold. But it doesn’t stop there. Equity must be built into compensation practices since pay gaps can reappear over time through hiring, promotions, and ad hoc adjustments.

A proactive pay equity strategy includes fair starting salaries, real-time monitoring, and data-informed decisions. When managed well, pay equity can help attract and retain talent while reducing legal and reputational risks.

Open Enrollment 2025–2026: IRS Updates, Compliance, and AI Tools

As employers prepare for the upcoming open enrollment season, it’s important to stay compliant with updated IRS regulations and explore new ways to improve health plan offerings.

🔹IRS Limits and Compliance
For 2026, the IRS has released updated contribution limits for health savings accounts (HSAs): $4,300 for individuals and $8,550 for families. To qualify, high-deductible health plans must have at least a $1,700 deductible for individuals and $3,400 for families. While HSA and HDHP limits are confirmed, updates for flexible spending accounts and 401(k)s are still pending.

Large employers (50+ full-time staff) must continue offering minimum-value, affordable coverage under the ACA. Additionally, due to the Paperwork Reduction Act, Form 1095-C is no longer required unless requested. Employers should post a notice that it’s available.

🔹Plan Design and Cost-Saving Strategies
Health care inflation is expected to raise premiums, prompting employers to explore preventative wellness initiatives like mental health programs, smoking cessation, and chronic disease management. These can help reduce overall plan usage and costs.

Tiered plan options and offerings like telemedicine, pharmacy benefits, and onsite services (e.g., flu clinics) are recommended for flexibility and accessibility. Telemedicine, in particular, is reducing cost and access barriers.

Some employers may consider self-funded health plans, which can lower annual costs by 7%–15%, but require a solid understanding of employee health claim trends before switching.

🔹Using AI to Streamline Enrollment
Artificial intelligence can simplify open enrollment by automating tasks, guiding employee decisions, and analyzing post-enrollment data. Employers are encouraged to use user-friendly platforms like mobile apps, newsletters, or guides to better educate employees on their options.

🔹Trending Benefits
Looking ahead, caregiving support benefits such as elder care and caregiver leave are expected to grow in importance, especially with multiple generations in the workforce.