New Year, New Compliance: 2025 Guide to Critical HR Compliance Law Updates

This year presents a new set of challenges in ways HR professionals have never faced before. With the new administration, changing regulations, questions around enforcement and new workforce attitudes, HR professionals have a lot of trials ahead. Staying informed and proactive has never been more important and we’ve identified several crucial areas in employment law that require your attention in 2025. 

This comprehensive post reviews the latest developments in pay transparency laws, EEO-1 reporting changes, remote work regulations, affirmative action updates, and OSHA workplace safety requirements. As we move forward into 2025, our experts will cover additional topics to keep you abreast of the critical business changes. 

Pay Transparency Laws 

The movement toward pay transparency continues to gain momentum, with multiple states enacting laws to promote wage openness and address pay disparities. This is an area of HR law updates that no one can afford to ignore. Significant developments include: 

• California: SB 1162 requires employers to disclose pay scales in job postings and provide pay information to employees. Employers with 100 or more employees must submit annual pay data reports to the California Civil Rights Department (effective since 2023). 

• Illinois: Effective January 1, 2025, employers with at least 15 employees must include pay scales and benefits information in job postings for positions performed, at least in part, in Illinois or reporting to a supervisor in that state. 

• Massachusetts: Starting October 29, 2025, employers with 25 or more employees are required to disclose pay ranges in all job postings. Additionally, beginning February 1, 2025, employers with 100 or more employees must submit annual EEO data reports to the state, aligning with federal EEO-1 reporting requirements. 

• Minnesota: From January 1, 2025, employers with 30 or more employees must include starting salary ranges and a general description of benefits in all job postings.  

• New Jersey: Effective June 1, 2025, employers with 10 or more employees are mandated to include wage ranges and a general description of benefits in job postings. 

• New York: Employers with 4 or more employees are required to include a pay range in all job postings, promotions, or transfer opportunities. Employers cannot retaliate against employees who request this information (effective since 2023). 

• Vermont: Beginning July 1, 2025, employers with five or more employees must disclose a good faith wage range in all job postings for positions located in Vermont or performed remotely for a Vermont-based office.  

These legislative changes emphasize a national movement toward pay equity and transparency. In order to keep ahead of these numerous changes, HR professionals should conduct comprehensive reviews of compensation structures and job postings to ensure compliance with these shifting requirements.  

EEO-1 Reporting 

The Equal Employment Opportunity Commission (EEOC) is poised to reintroduce pay data collection in the EEO-1 reporting process, likely to focus on the previously discontinued "Component 2" of EEO-1 report. Organizations should prepare for potential adjustments to EEO-1 reporting requirements by conducting the following processes:  

• Assessing Data Collection Processes: Evaluate current systems for collecting employee compensation data to ensure readiness for expanded reporting obligations. 
• Implementing Pay Equity Audits: Conduct internal audits to identify and rectify any existing pay disparities, promoting fairness and compliance. 
• Monitoring Regulatory Updates: Stay informed about EEOC announcements regarding the proposed rule and its implications. Subscribe to OutSolve’s blog and we’ll deliver the latest news on EEO-1 updates right to your inbox. 

Remote Work Updates 

The rise of remote work has prompted regulatory bodies to establish guidelines ensuring fair labor practices and compliance in virtual environments. Key considerations include:  

• Wage and Hour Compliance: Ensure accurate tracking of remote employees’ working hours to comply with the Fair Labor Standards Act (FLSA) and prevent wage and hour violations. 

• Occupational Safety: While OSHA does not have specific regulations for home offices, employers are responsible for providing a safe work environment. Implement remote workplace safety checklists and provide ergonomic resources to mitigate potential hazards. 

• State-Specific Regulations: Be aware of varying state laws affecting remote workers, including taxation, workers’ compensation, and employment rights, to ensure comprehensive compliance.  

Affirmative Action Updates 

On January 21, 2025, President Trump issued a new executive order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” bringing significant changes to the affirmative action obligations of federal contractors and subcontractors. This directive shifts the focus from traditional affirmative action mandates to emphasizing anti-discrimination and merit-based practices. Its objective is to uphold federal civil rights laws through anti-discrimination enforcement.

To prepare to transition from affirmative action requirements to new practices consider the following: 

Review Current Policies. Conduct compliance audits to assess your current practices.

Align with Federal Civil Rights Laws: Review and revise policies to explicitly align with federal anti-discrimination laws.

Shift DEI Programs: Begin to prepare for anti-discrimination planning, reporting, and analytics. This means shifting from DEI to measurable, evidence-based anti-discrimination practices.

Prepare for Certification: Contractors receiving federal funds may need to certify that their programs comply with the updated interpretation of federal civil rights laws.

OSHA and Workplace Safety 

Maintaining a safe workplace remains a paramount concern, with OSHA implementing new regulations and emphasizing existing ones:  

• Enhanced Reporting Obligations: Employers are required to submit detailed reports of workplace injuries and illnesses. Ensure timely and accurate submissions to avoid penalties. 

• Safety Training Programs: Invest in comprehensive safety training for employees, including those working remotely, to foster a culture of safety and compliance. 

• Regular Safety Audits: Conduct periodic safety audits to identify potential hazards and implement corrective actions promptly. 

By proactively addressing these critical HR Compliance law updates, HR leaders can focus on the changes ahead in 2025, ensuring compliance and promoting equitable, safe, and inclusive workplaces. Stay connected and subscribe to OutSolve’s blog - we will bring you HR law updates as we get them.