By Katie S. Lonze, Esq. | Assistant General Counsel - HR Consultant and Robert Dominguez | Associate GC/Director of HR Services
As we continue into 2025, employers should start the new year with an expectation that rapid change may be incoming, especially as it pertains to the workplace and the workforce. Setting clear expectations for the future can help your company meet compliance goals and stay ahead of the curve.
Below are 5 human resources best practices that will set your business up for success in 2025.
1. Prepare for Compliance Updates
This year will be an especially busy year for compliance navigation, as a new administration prepares to make a number of employment law changes out of the gate. There is already a renewed focus on illegal immigration, so HR teams should prioritize I-9 practices and recordkeeping.
2. Wages Changes
On top of this, employers should be mindful of existing updates, including minimum wage updates in many states. In addition to state minimum wages, many cities and municipalities have separate minimum wages as well. In some states, there are differences based on industry type and employer size.
Make sure your company reviews and prepares for any state minimum wage and/or salary threshold increases that have already taken effect, with more coming later in 2025.
3. Paid Sick and Other Leave
The number of states with new sick leave laws is growing, with Missouri, Nebraska, and Alaska joining the list later this year. Michigan’s replacement for its current sick leave will take effect in February. In addition, New York has implemented a new leave entitlement that may be used for prenatal care for expecting mothers.
The start of the year is a good time to catch up on these updates, along with upcoming changes.
4. Improve Retention Efforts Through Wage Transparency and Reporting
Mandatory wage transparency laws are also spreading. While there are administrative burdens to disclosing wages or salary ranges to current employees and/or applicants, many employers may find that recruiting and hiring may become more efficient, as such laws may tamp down the need to negotiate because the applicant is already aware of the pay scale.
5. Monitoring HR Trends
Several HR topics are already trending early in 2025, including:
- The state of artificial intelligence (AI) regulations- States have begun passing laws around AI and employment law.
- Diversity, Equity, and Inclusion (DEI) programs- Many companies, and the federal government, are rolling back their DEI programs. Others are standing by their initiatives but may face potential legal challenges related to corporate DEI programs.
It is important to note that DEI should not be confused with sexual harassment and discrimination prevention training, which several states require. Such training, even if not mandatory, remains one of the best tools employers can deploy to prevent costly lawsuits.
- According to the EEOC, disability discrimination cases remain the number one filed charge outside of unlawful retaliation. The reasons for this are many, including that the well-meaning law has laid a virtual minefield for employers.
Getting Started
Implementing these trends into an organization can be a challenge, especially for those with limited resources. Thankfully, Engage PEO is here to help.
Our experienced client service teams, including our HR Consultants (all licensed attorneys), can provide guidance. We can also help your organization gain access to health insurance and retirement offerings, learning management tools, applicant tracking technology, and more.
*This article does not constitute legal advice and does not address state or local law.