New Employment Laws For 2025 Key Changes Employers And Employees

Bonisiwe Shabane

-Oct 31, 2025, 4:47 AM

new employment laws for 2025 key changes employers and employees

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...

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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. Employment law is constantly evolving, and 2025 is no exception. Starting September 1, 2025, several new federal and state laws will go into effect, impacting how businesses hire, pay, and manage their teams.

If you’re an employer, it’s time to review your policies and ensure compliance. In this blog, we’ll break down the key changes and how they may affect your business. Corri Fetman & Associates, Ltd., a trusted Chicago employment law attorney, is here to help you navigate these updates. The U.S. Department of Labor has introduced a new six-factor test under the Fair Labor Standards Act (FLSA) to determine who qualifies as an independent contractor. This expanded test replaces the simpler two-factor guidelines, meaning more workers may now be classified as employees.

This reclassification is critical since employees are entitled to overtime pay and benefits, unlike independent contractors. Employers should take proactive steps to avoid misclassification claims by updating contracts and policies. States like Illinois are expanding paid sick leave and family leave laws in 2025. Employers must update their leave policies to align with these changes or risk penalties, disputes, and lawsuits. Reviewing and adjusting your internal policies with the help of an attorney will save time and reduce risks. The world of employment law is constantly evolving, and 2025 is no exception.

This year brings several significant changes that employers and employees alike need to understand to ensure compliance, protect their rights, and navigate workplace relationships effectively. From updates to wage laws to new regulations on workplace harassment, staying informed is crucial. Here’s an overview of the most notable employment law changes in 2025 and how Thomas & Ahnell, LLC can guide you through them. One of the most prominent updates in 2025 is the rise in minimum wages across several states and jurisdictions. Legislators are pushing for higher wages to reflect the increased cost of living, with some states introducing annual adjustments tied to inflation. How This Affects You:Employers must ensure compliance with the updated wage standards to avoid penalties, while employees should be aware of their rights to fair compensation.

How Thomas & Ahnell, LLC Can Help:We provide tailored advice to businesses on implementing wage adjustments seamlessly and assist employees in filing claims if they are denied fair wages. The new year is all about fresh starts and celebrations—but for HR professionals, it also kicks off the busiest season for employment law compliance. Starting January 1, 2025, over fifty new employment laws took effect across the U.S. For multi-state employers, keeping track of all these changes can feel overwhelming. But don’t stress—we’re here to help you stay ahead of the game. Pay transparency is gaining momentum nationwide.

In 2025, two more states have joined the movement, requiring employers to disclose salary ranges in job postings. This trend pushes organizations to reevaluate compensation strategies, improve internal pay equity, and ensure compliance with state-specific requirements. Beyond pay transparency, here are a few major changes employers need to prepare for: Minimum Wage Increases – Several states and cities are raising their minimum wages. Employers must review and adjust employee pay rates to stay compliant. As we move into 2025, several key updates in employment law are set to impact both employers and employees.

These changes reflect shifts in economic conditions, labor market trends, and government priorities. Here’s a comprehensive look at the most important employment law updates that employers and employees should be aware of for the year ahead. A significant change in 2025 is the increase in the minimum wage in many countries. The minimum wage adjustments aim to address rising living costs and promote fair wages for workers. For example, in Thailand, the minimum wage has been raised across various provinces, with wages ranging from 337 to 400 baht per day, depending on the region. These wage hikes are designed to help employees keep pace with inflation and the rising cost of living.

What Employers Need to Know: Employers will need to update their payroll systems to reflect these new wage rates. Failure to comply with these changes can result in legal issues, penalties, and reputational damage. Employers must also monitor the minimum wage changes in their specific region to ensure compliance. What Employees Need to Know: Employees will benefit from higher wages, which should help with their purchasing power and living expenses. However, workers in regions with lower wage increases may see less significant improvements compared to those in areas with the largest hikes. To address labor shortages and boost the local economy, several countries, including Thailand, are offering tax incentives to attract citizens working abroad.

In Thailand, the government has introduced a new tax scheme that offers a 17% ceiling on personal income tax for returning nationals. This is an effort to incentivize skilled workers to return home and contribute to the country’s economic growth.

New Employment Laws For 2025 Key Changes Employers And Employees

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