As of January 2025, business owners in the United States should be aware of the latest changes in employment law so that they will be in compliance and maintain a safe and fair workplace. Najla Law Firm summarizes legal changes that might impact employers this year.
1. Federal Shift of DEI Policies
The new executive orders dismantle the DEI programs within the federal agencies and discourage similar programs within the private sectors. In this respect, examples include the repeal of orders prohibiting employment discrimination by federal contractors. Employers need to monitor their DEI policies in relation to legal changes.
2. State-Level Minimum Wage Increases
Other states have upped their minimum wages starting from January 1, 2025. The list includes California, which sets the minimum wage at $16.50 an hour. With this is also the raising of the threshold to annually include $68,640 for exempt employees. Undeniably, one would be held liable for violations of law if one fails to check and stay compliant with state and local wage laws.
3. New Protections to Victims of Violence
This new law also extends its definition of “victim” by including new employees whose family members have qualified acts of violence. The employees are barred from retaliating against any employee who takes time off due to a related reason. The employers are expected to extend the rights in writing to all its employees.
4. Pay Transparency and Wage Equity Initiatives
There is a growing emphasis on pay transparency, sometimes legislated to require employers to post ranges of salary for job openings advertised and to report pay distributions by gender, race, or other categories. It is an ideal for equality and the eventual collapse of pay discrimination. Businesses should conduct pay audits from within that identify and correct imbalances.
5. AI in Employment Practice Regulation
There is growing attention on the use of AI in hiring and other employment decisions. New laws demand transparency in AI algorithms to avoid discrimination. Employers using AI tools should ensure policies in place for auditing and validating these systems to comply with anti-discrimination laws so that human oversight remains part of the decision-making process.
Taking into account changing employment laws, the Najla Law Firm of view is that business owners need to be proactive about compliance. It would then have regular legal audits, up-to-date workplace policies, and legal consultation so that risks would be mitigated, and by 2025, the workplace will be a legally sound workplace.
