The Brief: February 2025
As 2025 begins, this is a friendly reminder about minimum wage changes taking effect across various states. While some of these updates may already be familiar to you, it’s a good opportunity to double-check your payroll systems and ensure compliance.
Below are the highlights: Dive into the details to ensure your policies, payroll, and labor compliance are up to date for a seamless start to 2025!
Minimum Wage Updates
On January 1, 2025, several states will increase their minimum wage. Below are the highlights.
States with Scheduled Increases
Arizona: $14.40 (inflation-adjusted)
California: $16.00 statewide. Many cities/counties have higher minimum wages
Colorado: $14.94 statewide; Denver: $18.81
Florida: New rates effective September 30, 2025
Maine: $15.00 (inflation-adjusted)
Maryland: $16.00 for large employers; smaller employers have different schedules
Massachusetts: Final step to $16.00
Minnesota: $15.97 for large employers; smaller businesses pay lower rates
New Jersey: $16.00 (inflation-adjusted)
New Mexico: $12.00 statewide; Las Cruces: $12.65
New York: $16.50 for NYC, Long Island, and Westchester; $15.50 for the rest of the state
Oregon: New rates effective July 1, 2025
Virginia: $13.50
Washington: $16.66 statewide; King County: $20.29; Seattle: $20.76
Local jurisdictions often have higher minimums. Employers should verify rates specific to their county or city.
California Employment Law Changes
- Discrimination Protections: Anti-discrimination laws now cover traits like hair texture and protective hairstyles.
- Local Enforcement of Discrimination Laws: SB 1340 grants local agencies expanded authority to address complaints, aiming for quicker resolutions.
- Paid Family Leave: Employers can no longer require employees to use vacation before accessing state Paid Family Leave benefits.
- Restrictions on Requiring Driver’s Licenses for Job Openings: Effective January 1, 2025, SB 1100 prohibits employers from requiring a valid driver’s license in job advertisements, applications, or employment materials unless:
- The employer reasonably suspects driving is a job function of the position.
- The employer reasonably believes alternative transportation (e.g., biking or public transit) is not comparable in travel time or cost.
Illinois Employment Law Changes
- Family Responsibility Protections: New protections for employees caring for family members, including medical care or transportation to appointments. Employers cannot penalize employees based on these responsibilities.
- Pay Transparency: Employers with 15+ employees must include pay scales and benefits in all job postings starting January 2025.
New York Employment Law Changes
Paid Prenatal Leave: Starting January 1, 2025, New York State will implement the nation’s first paid prenatal leave program for covered employees. The Paid Prenatal Personal Leave (PPPL) program requires all employers to provide at least 20 hours of paid prenatal leave per year in addition to the existing paid sick leave under the New York State Paid Sick Leave Law.
Key details of the PPPL program include:
- Eligibility and Usage:
Eligible employees can use PPPL in hourly increments for health care services during pregnancy, such as physical exams, medical procedures, testing, and consultations with health care providers. The leave is available only to the pregnant employee, not their spouse, partner, or support person. - Frontloading of Leave:
The 20-hour entitlement is frontloaded each year on January 1 (or upon hire, if later) and is available for immediate use with no waiting period. - Additional Leave Benefits:
PPPL is separate from and in addition to other leave options, ensuring eligible employees can access up to 60 or 76 total hours of paid leave annually (depending on employer size).
Federal Compliance Reminder: Labor Posters
Ensure compliance with federal labor poster requirements by visiting the Department of Labor (DOL) website. Remember, not all businesses need to display every poster. Posting needs can vary based on specific laws. For instance, smaller companies might not fall under the Family and Medical Leave Act, so they wouldn’t need its poster.