Navigating Compliance Changes for HR: Key Updates from 2024 & What to Anticipate in 2025 and Beyond
As 2024 comes to an end, the landscape of HR compliance is set to undergo significant transformations. With evolving regulations and a heightened focus on workplace equity and employee rights, HR professionals must stay informed to ensure their organizations remain compliant. Here’s a look at the key compliance changes from 2024 and what to anticipate in 2025.
Key Compliance Changes from 2024
1. Increased Pay Transparency Laws
Many states are adopting laws that require employers to disclose salary ranges in job postings. This move aims to promote pay equity and reduce wage gaps. HR teams will need to revise their recruitment strategies and ensure that hiring managers are trained on these new requirements.
Several states have embraced the principle of pay transparency by enacting laws that guarantee employees and job applicants access to crucial salary information. This move aims to foster greater equity and informed decision-making in the workplace. Colorado led the charge in May 2019, followed by Maryland, Connecticut, Nevada, Rhode Island, Washington, California, and New York. Local measures include Jersey City, New Jersey; New York City, New York; Ithaca, New York; Westchester County, New York; Cincinnati, Ohio; and Toledo, Ohio.
Illinois - In Illinois, a new pay transparency law requires employers with 15 or more employees to disclose wage ranges and a general description of benefits for job positions, including bonuses and incentives, effective January 1, 2025. Employers must also notify current employees of promotion opportunities within 14 days of posting the position externally.
Maryland - Maryland's expanded pay transparency law mandates that employers post the minimum and maximum salary or hourly range for roles in both internal and external job postings, applicable to jobs performed at least partially in Maryland. Effective October 1, 2024, the law aims to enhance compensation clarity for job seekers and employees, with the Commissioner of Labor and Industry providing a compliance form for wage disclosures. Effective October 1, 2024, this legislation was signed into law on April 25, 2024, ensuring that job seekers and employees have clearer insights into compensation expectations.
Minnesota - Minnesota’s new pay transparency law requires employers with 30 or more employees to disclose starting salary ranges and a general description of benefits for job openings, ensuring that any fixed pay rate is included in the posting without open-ended salary ranges. Signed into law on May 17, 2024, this legislation aims to improve transparency and fairness in hiring and will take effect on January 1, 2025.
Vermont - In Vermont, employers with five or more employees must post the minimum and maximum hourly or salary ranges for job roles, including any compensation from tips or commissions, to promote transparency in compensation offers. Signed into law on June 4, 2024, this legislation will take effect on January 1, 2025, with guidance from the Attorney General on its application.
Washington, DC - Washington, DC's pay transparency law mandates that employers disclose salary ranges for roles, including promotions and transfers, and inform candidates about available healthcare benefits while prohibiting inquiries about salary history. Signed into law on January 12, 2024, the legislation took effect on March 25, 2024, and applies to any job with at least one employee in the district.
2. Expanded Family Leave Policies
2024 will see expanded family leave policies in various states, allowing employees more time off for family-related issues, including parental leave and caregiving responsibilities. Employers must update their leave policies, train managers on the changes, and ensure that all employees are aware of their rights.
3. Enhanced Anti-Discrimination Protections
Anticipate stricter enforcement of anti-discrimination laws, particularly regarding sexual orientation and gender identity. Organizations should conduct thorough training sessions for employees and managers to foster an inclusive workplace culture. Regular audits of company policies will also be essential to ensure compliance.
4. Increased Focus on Mental Health
In response to the growing awareness of mental health issues in the workplace, more states are mandating mental health resources and support systems within organizations. HR departments must consider integrating mental health days into their leave policies and providing access to mental health professionals.
5. Data Privacy Regulations
As remote work continues to rise, compliance with data privacy regulations, such as GDPR and CCPA, is more critical than ever. HR must implement robust data protection measures, train employees on data handling practices, and stay updated on changes to privacy laws.
Looking Ahead: Compliance Changes for 2025
2024 has brought significant changes, while 2025 is expected to usher in even more regulatory shifts:
1. Department of Labor (DOL) Overtime Ruling Struck Down
There has been much anticipation on news regarding the DOL overtime ruling since phase one of the ruling went into effect July 1st. In mid-November, the DOL's overtime ruling was officially struck down. This means that the changes that went into effect on July 1, 2024 that had increased the minimum salary threshold to $43,888 and was going to increase again to $58,656 on January 1, 2025 no longer apply. The minimum salary threshold is reverting to back to $35,568. The job duties test, as well as state law requirements on salary thresholds and employee classifications will need to be re-examined with this recent development.
2. Federal Minimum Wage Increase
There are discussions around a potential increase in the federal minimum wage. HR departments should prepare by evaluating their payroll structures and considering adjustments to compensation strategies to comply with new federal standards.
3. Mandatory Diversity, Equity, and Inclusion (DEI) Reporting
Organizations may face requirements for more comprehensive DEI reporting. This could involve tracking diversity metrics and publicly sharing data on hiring practices. HR will need to develop systems for collecting and analyzing this data to ensure compliance.
4. Remote Work Regulations
As remote work continues to be a dominant force in the employment landscape, there may be new regulations regarding remote work arrangements, including stipulations for work-from-home setups, employee reimbursements, and health and safety standards. HR will need to craft policies that address these changes.
Preparing for Change
To navigate these compliance changes successfully, HR professionals and companies should consider the following steps:
Stay Informed: Regularly monitor updates from federal and state labor agencies to stay ahead of compliance changes.
Training and Development: Implement training programs for employees and management to ensure awareness and understanding of new policies and regulations.
Policy Review: Conduct regular audits of HR policies and procedures to identify areas that require updates or revisions.
Engage Employees: Foster an open dialogue with employees about compliance changes, encouraging feedback and questions.
Conclusion
As we move into 2025 and beyond, the compliance landscape for HR will continue to evolve. By staying informed and proactive, HR professionals and companies can ensure their organizations not only meet regulatory requirements but also foster a workplace culture that values equity, inclusivity, and employee well-being. Embracing these changes will not only mitigate legal risks but also enhance employee satisfaction and retention in an increasingly competitive job market. Need some support in making sure your company is up to date? Contact Skywalk Group to work with one of our Human Resource Consultants!
2024 State-By-State Pay Transparency Laws: Key Insights for Employers (forbes.com)
By: Breanna Treimer