Key Legal Updates for Employers in 2025
As we enter 2025, there are several important updates to employment laws that employers and employees should be aware of. These changes impact everything from wage and hour laws to leave policies and COVID-19 regulations. Staying on top of these updates is crucial for maintaining compliance and fostering a fair workplace.
If you’re feeling unsure about how these changes might affect your business or need assistance with updated required labor law posters or handbook updates, I’m here to help. Feel free to reach out to me at info@nowwhathr.com to discuss how I can support you.
Please note the information below is based on Federal and California specific changes. If you live in another state and have questions, please contact us directly.
Wage and Hour Updates
The federal minimum wage remains at $7.25 per hour, but in California, the state minimum wage has risen to $16.50 per hour. If you’re in San Diego, the rate is even higher at $17.25 per hour. One thing to keep in mind is that minimum wage rates apply based on where an employee physically works on any given day—not where the employer is located. This detail is especially important to keep in mind for businesses with remote or mobile employees.
For exempt employees, the minimum salary threshold is now $68,640 per year. This means that employees earning below this amount are entitled to overtime pay. It’s also worth noting that local minimum wage increases do not affect the salary threshold for exempt employees, which remains uniform across California.
IRS Mileage Reimbursement Rate
Another important update is the IRS mileage reimbursement rate, which has been adjusted to 70 cents per mile for 2025. If your employees travel for work, be sure to update your reimbursement policies accordingly.
PAGA (Private Attorneys General Act)
PAGA continues to be a significant area of focus. PAGA allows employees to sue on behalf of themselves and others for wage and hour violations, often leading to hefty penalties and legal fees for employers. However, recent reforms offer some relief. If employers take reasonable steps—such as conducting payroll audits, disseminating clear wage and hour policies, and training supervisors—they may limit penalties if they proactively address compliance issues or correct them within 60 days of receiving notice.
Leave and Accommodations
When it comes to leave policies, there are some notable changes to the California State Disability Insurance (SDI) and Paid Family Leave (PFL) programs. Employers can no longer require employees to use up to two weeks of accrued vacation before accessing PFL benefits. Additionally, wage replacement rates for PFL will increase to 70-90% of an employee’s highest quarterly wages, up from the previous 60-70%. These changes apply to leave periods starting on or after January 1, 2025, and are designed to provide more robust financial support during times of need.
COVID-19 Regulations
Finally, let’s talk about COVID-19 regulations. Most of the Non-Emergency Standards that have been in place will expire on February 3, 2025. While this marks the end of many COVID-related workplace requirements, it’s still a good idea to stay informed about any lingering obligations or updates that might arise
Stay Compliant!
Navigating employment law can be overwhelming, but you don’t have to do it alone. Whether you have questions about these updates or need support with compliance, we are just an email away at info@nowwhathr.com.
Let’s ensure your business is prepared for a successful year ahead!
