Incoming Employment Law Issues For Employers In 2025

Bonisiwe Shabane
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incoming employment law issues for employers in 2025

Employers entered the third quarter of 2025 facing a familiar challenge: keeping up with accelerating legal change. This quarter delivered not only new legal requirements, but also deeper operational risks. From tightened fair chance protections in Philadelphia and Washington to expanded salary disclosure mandates in Massachusetts and Cleveland, employers were forced to reexamine how they evaluate candidates, structure compensation, and manage workplace risk. At the same time, state lawmakers doubled down on regulating AI in employment, clarified cannabis testing restrictions, and added new layers to I-9 and E-Verify procedures. What was once a series of policy updates has become a coordinated shift in how compliance must be integrated into hiring workflows. Below is your Q3 2025 Compliance Playbook.

Each development may require operational changes in the way employers hire, vet, and retain talent. Beginning January 6, 2026, Philadelphia employers must implement new lookback periods and procedural protections when using criminal history in hiring. Misdemeanor convictions are limited to a four-year lookback window, and summary offenses are excluded altogether. Expunged and sealed records must not be considered even if reported. The amended ordinance also requires employers to issue a written notice before taking any adverse action based on a criminal record. That notice must include a summary of rights under the Philadelphia Fair Criminal Record Screening Standards Ordinance, a statement that the employer will consider evidence of error, rehabilitation, or mitigation, and instructions for submitting...

Employers must then provide the applicant ten business days to respond before finalizing the decision. As we approach midyear, the ArentFox Schiff Labor, Employment & OSHA team highlights some of the most pressing legal issues facing employers this year, including artificial intelligence (AI) regulation at the state level, reshaping... Like most government agencies, the National Labor Relations Board (NLRB) has not escaped the Trump Administration’s efforts to reshape the federal government and replace officials in positions of power. Since assuming office, President Trump has discharged former NLRB General Counsel Jennifer Abruzzo and removed NLRB panel member Gwynne Wilcox. While replacement of Abruzzo was expected, the president’s decision to remove Wilcox surprised many and introduced legal challenges, both at the NLRB and in court: Removing Wilcox on January 27 left the NLRB with only two of its typical five members and without a quorum to decide the cases pending before it.

On March 6, a DC District Court ordered Wilcox’s temporary reinstatement based upon a 90-year-old US Supreme Court precedent, Humphrey’s Executor v. US — a case that prohibited then-president Franklin D. Roosevelt from removing members of independent agency panels. The second half of 2025 is bringing some of the most impactful employment law changes we’ve seen in recent years. From expanded pay transparency mandates to evolving leave laws and wage thresholds, staying ahead of these updates isn’t just smart—it’s essential for avoiding costly compliance risks. Our recent 2025 Legislative Update Webinar brought together MP’s HR and compliance experts to break down the changes employers need to know and the actions to take now.

This blog recaps the top takeaways from the session. Several states—including Illinois, Minnesota, New Jersey, Vermont, and Washington—have new pay transparency requirements taking effect mid-year. These laws affect not only local employers but also companies hiring remotely into those states. States like Alaska are raising both their minimum wage and exempt salary thresholds as of July 1, 2025. Employers must ensure payroll systems are updated and that exempt employees meet the new salary test to avoid misclassification. Paid sick leave requirements are expanding, with some states mandating accrual from day one of employment.

Leave policies must be updated to meet both state and local standards, particularly in jurisdictions like Alaska and Washington. The U.S. District Court for the Eastern District of Texas has vacated the Department of Labor's rule raising the salary threshold for exempt workers. This means we’ve now returned to the 2019 rule with a threshold of $684 per week. This situation mirrors what happened during Trump's first term when an Obama-era salary threshold increase was vacated, followed by a more modest increase in 2019. Employers should be prepared for a potential moderate increase in the salary threshold at some point during this administration.

The Trump administration is not expected to appeal a Texas District Court’s decision to stop the Federal Trade Commission (FTC) from banning non-compete agreements. This ban was slated for September 2024, but instead, non-compete regulation has shifted to the state level, with many states introducing their own legislation on the issue. Even with an administration that appears unwilling to enforce the FTC non-compete ban, there may still be scrutiny from the agency focused on employment matters. At a Feb. 24 event, new FTC Chairman Andrew Ferguson announced a task force to investigate corporate actions that harm workers in ways that violate antitrust and consumer protection laws. He indicated this will be a top priority.

For now, employers should have legal counsel review their existing agreements with restrictive covenants to ensure that the covenants are narrowly tailored and enforceable. Several 2024 Fourth Circuit and U.S. Supreme Court decisions provide employers with additional guidance on hard-to-navigate issues around FMLA, ADA, mental health, and taking adverse actions against employees. In Muldrow v. City of St. Louis, the Supreme Court unanimously ruled that a job transfer can be an adverse employment action under Title VII even if the employee maintains the same rank and pay.

If the transfer results in loss of certain benefits, perks or standing, it can be considered adverse. 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Φ�o�p!��K`1 g1i~SR�I��1��dF����{xpdp��4opxhp82�?��H��Z�����H-�#�Û{{��z�{"#-��6 D��P�%�TG`����L{�?"E���HO���5��Zi��7i�uÃ��Hs�������ޑ�%�Q�E�����4�ihh���GZ;�q�H��$m��I�FzaNX�4K��R�pod��@����H��=��p?<�.�p��HC���GGa�5c����ލd.x0" k�Z�B��� �l�-��`l�-пQ����ݗ��X�c����h���cҴ��R�5�˅�0�?–v��߸N���&ܻ���k6���~Xe�wa�p?��3�e��`�g*�" �z��va)(7�m�zz�6I��ށ����8�v' � �>}�k�碾�ѡ+���l�R�A�_0�xtlhp�pd�o���?R��D�hm@4�4��`�������rp�h�r��������u�}��7��������%�uC�A4�Z+�yt�!ZF���������po�6�_(Fa��½zo��z��Z�#B��C�`$�������t��鈊��*`�2��xT?ņ@�s��26���6�y�����:Z�;�zw�}�� �t�E0��D�g �Ya��r�YG�C��~J ��>F)E;��s �(%<��h�I� �izD�P���(��h��}��g�~ul�:K�Z�й�(���(}FF��xht�;"�4��#�F×��M���|��{`L7� (�IR�-H�s���,l�t���4ۢ����l�R�sYړ1���Ý���.��]��K� ��Й�A�0��Qʹ��]n���5;I�N�����4���Af��� Pi#�*���SE�"S����eP-�])�&� �R��j���!=���}U��F�3f�4�_�2���Ji��}��C`Y��g �)���*E����ԁSϝ��)!����7Q��:�Oș��K+m�Ҹ<�t|h|��C������7�?3ΐ.CO�z*�����oc�[W�2�+��O�`�-O�Z����-.nQc 7�q&����[WcEW]S�ͩ��ͭ p�j2����.���R����+�(�*�Wp���k�)'���9 +���;t��$� ̇����ޅ��C7��:D{|%��+9r��I���2�~� #ߝV)?��U��K��T_�ͻR��o[wY�Yo���ۿ�{񾝻v�������޿�*ߨ�UZ��Ì|��Ti݀��X��y����O��5�5�y(�XW�B��+p�p!g��L�;]�ߙ��y���^�6p^����Nr�[ť�����5�IJ�v^�Ւ�G6���7=��7�h����'��܏���&?�l�i�g��/<��?�\���r�D��챀��#��/�h~�Ŀ�'~�ӱg����Q��:�b�rD�cdtd$t�O�m� }���! �X��D���C8�l�:�d��Q* �m�ܚ�Q( ���Y�T�t�����RG�<��f� � endstream endobj 112 0 obj 11892... Personal care assistants, or PCAs, are vital to providing comprehensive care for patients. They... Comprehensive background checks can alert employers to potential issues with prospective... As an HR or talent management pro, you know background checks are valuable in protecting your... For employers, this means staying prepared for potential shifts in federal policies, heightened oversight, and new legislative initiatives.

Whether you're navigating changes in wage laws, addressing pay transparency, or adapting to evolving labor relations, staying ahead is essential. Partnering with a human resources attorney or a labor and employment law firm is more critical than ever to successfully manage these challenges. Below, we outline the key employment law issues employers should prioritize in 2025. With the change in administration, workplace policies are expected to shift to reflect new leadership priorities. In November 2024, we reported on a federal judge in Texas striking down the U.S. Department of Labor's (DOL) rule that significantly raised the minimum salary thresholds for executive, administrative, and professional employees.

The rule proposed two increases: the first, effective July 1, 2024, raised the threshold from $684 per week ($35,568 annually) to $844 per week ($43,888 annually). The second increase, scheduled for January 1, 2025, would have raised the threshold to $1,128 per week ($58,656 annually). The court's ruling vacated the entire rule, including the July 1 increase.

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