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Significant changes are unfolding that could impact your business operations. From new regulations around employee files and pay data reporting to proposed tax incentives for student loan assistance, the business landscape is evolving. We’re also seeing advancements in career education reforms and new considerations around AI in the workplace. Keeping an eye on these developments can help your business stay informed and better prepared for what’s ahead.
To explore these updates in more detail, check them out here!
State and Local Updates
California
Fundamentals of Employee Files for Employers in California
Current and former employees have the right to inspect their staff files upon request within a time frame set by statute. When an employment-related claim arises, these individuals typically request a copy of their personnel file. However, if the employer has not properly maintained these files, it is impossible to recreate them retroactively. Read more here.
California Governor Unveils Master Plan to Expand Career Opportunities — With or Without a College Degree
California Governor Gavin Newsom recently introduced a bold Master Plan for Career Education as part of his 2024–25 budget proposal, aiming to streamline career pathways and expand access to high-quality jobs — regardless of whether individuals pursue a college degree.
The plan focuses on two primary goals:
HRM Backs California Bill to Spur Employer Student Loan Benefits
SHRM is throwing its support behind a California bill that would incentivize employers in the state to provide student loan repayment assistance.
California Assembly Bill 386, which was introduced Feb. 3 by Republican Assemblymember David Tangipa, proposes a tax incentive for businesses that contribute to their employees’ student loan payments, offering a voluntary dollar-for-dollar tax credit of up to $3,000 per full-time employee annually. It would apply to taxable years beginning on or after Jan. 1, 2026, and before Jan. 1, 2031. Read more here.
Will California’s Pay Data Reports Get a New Look Next Year?
As employers deal with all the changes at the federal level, they should also be mindful of potential changes at the state level, specifically in California. As we see companies evaluating the type of data they are collecting from their employees in light of the many executive orders issued by the new administration, we wanted to provide an update on a new bill that has been introduced in California that could result in changes to the California Pay Data filing report in 2026. Read more here.
AI Regulation: California Lawmaker Proposes ‘No Robo Bosses’ Act
Another California lawmaker wants the state to be at the forefront of artificial intelligence regulation, unveiling the “No Robo Bosses” Act and taking direct aim at the use of AI in the workplace. Senate Bill 7, released by state Sen. Jerry McNerney, a Democrat from Stockton, seeks to regulate the use of automated decision systems (ADS) in employment, hoping to strictly limit AI-driven tools when hiring, promoting, disciplining, and terminating workers. If enacted, SB 7 would significantly impact employers using AI-driven workforce management tools. Here’s what businesses need to know about this latest push to regulate AI in the workplace — and how it differs from other pending AI legislation in California. Read more here.
California’s Employer Obligations Remain Expansive
California’s employment laws go well beyond federal statutes’ requirements in many ways, including state requirements on leave, equal employment opportunity (EEO), and wage and hour. A recent Seyfarth report highlights these and other idiosyncrasies in California employment law. Read more here.
California Location Data Probe: 5 Ways to Safeguard Your Business
A new California investigative sweep into the location data industry focuses on whether businesses have violated state law relating to the consumers’ right to limit how their personal information — including their geolocation data — is used. This California Consumer Privacy Act (CCPA) enforcement initiative, announced on March 10, is part of broader state efforts to crack down on businesses that rely on location tracking. We’ll explain what’s happening and give you five proactive steps to comply with the CCPA’s stringent requirements and avoid getting dinged in the sweep. Read more here.
Understanding Los Angeles County’s New Fair Workweek Law
Los Angeles County recently joined the cities of Los Angeles, Berkeley, San Francisco, San Jose, and Emeryville, Calif.; New York City; Philadelphia; Chicago; Seattle; and Oregon as jurisdictions that have enacted “fair workweek” legislation, also referred to as predictive scheduling. Similar to the City of Los Angeles’s Fair Work Week Ordinance, the county’s ordinance will apply only to retail businesses that have at least 300 employees worldwide (including franchises and those employed through temporary staffing agencies). Employees of such businesses who qualify for minimum wage and perform at least two hours of work in a workweek in the unincorporated area of Los Angeles County will be covered by the ordinance, which contains a host of scheduling and recordkeeping requirements. It is scheduled to go into effect on July 1.
Read more here..
Northern California
Supreme Court Permits Termination of Probationary Federal Workers
Staying an injunction entered by the U.S. District Court for the Northern District of California, the U.S. Supreme Court permitted the firing of approximately 16,000 probationary federal employees for now in a 7-2 order issued April 8. Read more here.
Maryland
Maryland Legislators Have Postponed Paid Family and Medical Leave
The Maryland General Assembly’s 2025 legislative session ended at 11:59 p.m. on April 7. Unlike in previous years, this session ended up being a relatively positive one for employers.
Although many concerning bills were proposed (for example, increased minimum wage, an increased salary level for overtime exemptions, expansion of the Workplace Fraud Act to include all employers, harassment reporting and training requirements, etc.), there were only three employment-related bills that passed: 1) another delay to the forthcoming paid family and medical leave insurance (FAMLI) program, 2) an expansion of protections for military service members and their families, and 3) a clarification of the definition of “employer” under Maryland’s Parental Leave Act. Read more here.
New York
Effective May 3, 2025: New York
New York City enacts heightened safety protections for employees.
Missouri
Effective May 1, 2025: Missouri
Paid sick leave requirements come into effect
Washington
Effective May 1, 2025: Washington
Bellingham Minimum Wage Increases to $18.66 per hour.
USCIS Releases New Form I-9
U.S. Citizenship and Immigration Services (USCIS) issued a new edition of the Form I-9 on April 3.
The new version of the government’s employment eligibility verification form, dated 01/20/25, is currently available for download and has an expiration date of May 31, 2027. The new form contains minor changes in language and an updated privacy notice.
Employers may continue to use prior editions of the I-9 form until their respective expiration date. Those versions include:
Flu Season: Coordinate Compliance with FMLA, ADA, Paid-Leave Laws
The 2024-2025 flu season has been among the worst in recent years, according to the Centers for Disease Control and Prevention. Since Oct. 1, there have been at least 44 million recorded flu illnesses in the U.S. The flu is potent, with patients taking four days or more to recover. That may mean they qualify for Family and Medical Leave Act (FMLA) leave. Different provisions of state and local paid-sick-leave laws and the Americans with Disabilities Act (ADA) might also apply to employees who come down with the flu. Read more here.
ACA’s No-Cost Preventive Care Mandate Is Before the Supreme Court
Certain no-cost preventive services — such as cancer screenings, pregnancy care, testing for sexually transmitted diseases, and pre-exposure prophylaxis (“PrEP”) antiretroviral medication to prevent the spread of HIV — offered by group health care plans might eventually become subject to cost-sharing due to an upcoming benefits case before the U.S. Supreme Court.
The Affordable Care Act (ACA) requires that employer health plans and individual health plans cover certain preventive services without imposing any cost-sharing obligation on the covered person. The U.S. Preventive Services Task Force and the Health Resources and Services Administration determine which services are considered preventive. Read more here.
What Exactly Are ‘Mini-COBRA’ Laws?
COBRA was enacted in 1986 to give workers who are separating from their employment — whether voluntarily or involuntarily — the option of continuing their employer-provided health insurance coverage temporarily at group rates by paying the full premiums. Read more here.
State Affirmative Action Requirements Challenge Contractors
Even though the federal government is no longer mandating affirmative action by federal contractors for minorities and women, several state affirmative action requirements remain in place for state contractors. Read more here.
Trump Rescinds Executive Order That Raised Minimum Wage for Federal Contractors
On March 14, as part of an extensive rollback of Biden-era mandates, President Donald Trump rescinded Executive Order (EO) 14026. Issued in April 2021, former President Joe Biden’s order required that the minimum wage for federal contractors be raised to $15 per hour, with scheduled increases. The mandate expanded upon former President Barack Obama’s original order, EO 13658, from 2014. As of this month, federal contractors are required to pay their employees a minimum wage of $17.75, reflecting the periodic adjustments over the past four years. Trump’s new order would see that sum significantly reduced. Read more here.
March Inflation Falls, But Won’t ‘Provide Much Comfort to Businesses’
With help from falling energy prices, annual inflation fell in March, new data out today shows. But the impacts from President Donald Trump’s tariffs are still looming and putting a damper on employers’ confidence. The consumer price index (CPI) for March decreased 0.1% on a monthly basis and rose 2.4% for the 12 months ending in March, the U.S. Bureau of Labor Statistics (BLS) reported April 10. That’s down from the 2.8% year-over-year increase notched in February.
Read more here.
ADA at 35: Reasonably Accommodate Workers with Mental Illness
When the Americans with Disabilities Act (ADA) turns 35 on July 26, it can be agreed that much has improved for people with disabilities. But stigma in the workplace, particularly for individuals with mental illness, remains. And too often, employers don’t provide ADA reasonable accommodations to people with disabilities.
“In my experience, the most significant barrier people with disabilities face nowadays — as opposed to 1990, when the ADA was enacted — is attitudes about mental illness,” said Robin Shea, an attorney with Constangy, Brooks, Smith & Prophete in Winston-Salem, N.C. Read more here.
2025 Benefit Plan Reporting & Disclosure Calendars
This comprehensive guide gathers key compliance calendars and reporting resources for benefit plans in 2025, including retirement, health, and HR-specific deadlines. With contributions from leading law and consulting firms, it offers a variety of formats to suit your needs—making it easier than ever to meet important dates and maintain compliance all year long. Read more here.
Compliance Resources
The following resources are meant to provide HR practitioners with guidance in complying with a variety of federal statutes such as reporting, disclosure and posting; requirements, maintenance and retention of employee files; and other regulatory requirements. Read more here.
