Employment Law Update: New Laws for 2025

States and some cities were especially active this year passing workplace legislation, many of which create new compliance obligations for employers. Littler’s Workplace Policy Institute (WPI) has been tracking these laws as they worked their way through the legislative and regulatory processes before going into effect on January 1, 2025. Below is our annual summary of these new laws and regulations. This article, which focuses on laws taking effect in or around January 1, 2025, is not intended to be an exhaustive discussion of every single new employment and labor law, does not include the host of new minimum wage laws,1 and is intended to be informative but not to constitute specific legal advice for any employer.

Alaska

Arizona

California

Colorado

Connecticut

Delaware

Illinois

Indiana

Kentucky

Minnesota

Nebraska

New Hampshire

New Jersey

New York

Oregon

Pennsylvania

Rhode Island

Washington

West Virginia

 

 

Alaska

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

Alaska SB 147

Workers’ Compensation

Amends the workers’ compensation law’s reemployment provisions to provide that the employee or employer may request an eligibility evaluation if an employee is unable to return to employment for 90 consecutive days as a result of injury.

1/1/2025

Arizona

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

Arizona HB 2764

Background Checks: Homecare Workers

Requires home health agencies to contact an applicant's previous employers to obtain information or recommendations that may be relevant to a person's fitness to work in a home health agency; requires employers to verify that a potential employee is not on the adult protective services registry.

*The portion of the law addressing adult protective services registry verification takes effect on January 1, 2025. Other portions of the law are scheduled to take effect on March 31 and June 30, 2025.

1/1/2025*

California

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

California AB 1008

Privacy and Data Security

Amends the definition of “personal information” under the California Consumer Privacy Act (CCPA) to include various formats, including “artificial intelligence systems that are capable of outputting personal information.” 

1/1/2025

California AB 1815

Discrimination /CROWN Act

Defines “race” under the Unruh Civil Rights Act to include traits associated with race, including, but not limited to, hair texture and protective hairstyles.

1/1/2025

California AB 1824

Privacy and Data Security

Amends the California Consumer Privacy Act (CCPA) to require that a business which acquires the personal information, including HR data, of a consumer as part of a merger, acquisition, bankruptcy, or other transaction, comply with the opt-out directions that the consumer originally provided to the transferor company.

1/1/2025

California SB 1223

Privacy and Data Security

Amends the CCPA to expand the definition of sensitive personal information and add “neural data” as a category of personal information. The CCPA applies to both employment-related and consumer personal information.

1/1/2025

California AB 1870

Workers' Compensation

Expands workers' compensation poster and notice requirements to include attorney consultation provisions.

1/1/2025

California AB 1976

Workplace Safety

Requires CalOSHA to enact regulations mandating employers carry Narcan in their first aid kits. While the law takes effect on January 1, regulations must be enacted by 2027.

1/1/2025

California AB 2123

Paid Family ⁄ Medical Leave

Removes the provision that allows employers to require employees use two weeks of vacation prior to using paid family leave insurance benefits.

1/1/2025

California AB 2299

Whistleblowing

The California Whistleblower Protection Act requires employers to prominently display a list of employees’ rights and responsibilities under the whistleblower laws, including the telephone number of the whistleblower hotline. The notice must be displayed in lettering larger than size 14-point type. This amendment requires the Labor Commissioner to develop a model list of employees’ rights and responsibilities, accessible on the Labor Commissioner’s internet website, which must be included in the employer’s posting.

1/1/2025

California AB 2364

Sexual Harassment Training

Amends the Property Service Worker Protection Act by increasing the fees employers must pay for sexual violence and harassment prevention training.

1/1/2025

California AB 2434

Employee Benefits

Adds additional requirements for an association of employers to offer a large group health care service plan contract to small group employer members.

1/1/2025

California AB 2499

Domestic Violennce / Crime Victims Leave

Amends the FEHA to allow leave when an employee or an employee’s family member is a victim of an act of violence, and expands the reasons an employee can use paid sick leave for “safe” time purposes. Requires employers to provide reasonable accommodations for an employee, such as implementation of safety measures, when an employee or an employee’s family member is a victim of an act of violence.

1/1/2025

California AB 2455

Whistleblower Protections

Expands whistleblower protections to reports of improper governmental activity undertaken by contractors providing services to local governments.

1/1/2025

California AB 2602

Artificial Intelligence (AI) and Robotics

Makes a provision in an employment agreement unenforceable if the provision allows for the creation and use of a digital replica of the individual’s voice or likeness in place of work the individual would otherwise have performed in person.

1/1/2025

California AB 2738

Workplace Safety

Allows local prosecutors to bring actions for certain labor code violations (live entertainment/concerts).

1/1/2025

California AB 2975

Workplace Violence

Requires CalOSHA to adopt regulations requiring hospitals to implement a weapons detection screening policy. While the law takes effect on January 1, 2025, regulations must be enacted by 2027.

1/1/2025

California AB 3234

Child Labor

Requires an employer that voluntarily participates in a social compliance audit related to child labor to post a clear and conspicuous link on its website to a report detailing the findings of its compliance with child labor laws.

1/1/2025

California AB 3281

Discrimination:  Immigration Status; Age

Voids any waiver that removes protections or rights for applicants or employees based on their immigration status. Allows the Department of Civil Rights to bring civil actions for violations of the federal Age Discrimination in Employment Act.

1/1/2025

California SB 428

Harassment

Makes four substantive changes to California Code of Civil Procedure section 527.8 to expand an employer’s ability to seek a restraining order on behalf of one of more employees who have been harassed.

1/1/2025

California SB 1090

Paid Family ⁄ Medical Leave and Insurance

Allows employees to file a claim for State Disability Insurance (SDI) and Paid Family Leave (PFL) benefits up to 30 days in advance of the first compensable day for benefits. The amendment therefore allows workers to apply before anticipated leave rather than completing the process after they have begun leave. 

1/1/2025

California SB 1100

Job posting /Driver’s License

Amends the FEHA to prohibit employers from including a statement in a job advertisement, posting, application, or other material that an applicant must have a driver’s license unless the employer “reasonably” anticipates driving to be an essential job function that cannot be comparably performed by alternative means.

1/1/2025

California SB 1105

Paid Sick Leave -Agricultural Employees

Amends the Healthy Workplace, Healthy Families Act to require paid sick days to be provided to agricultural employees to avoid smoke, heat, or flooding conditions created by a local or state emergency.

1/1/2025

California SB 1137

Discrimination

Clarifies that protected characteristics under the FEHA includes any combination of the listed characteristics as well a perception that a person has one or more characteristics.

1/1/2025

California SB 1340

Discrimination

Allows localities to enforce local employment discrimination laws when certain procedural requirements are met.

1/1/2025

California SB 399

Mandatory Employer-Sponsored Meetings

Creates the California Worker Freedom from Employer Intimidation Act to prohibit employers from requiring employees to attend meetings for the purpose of communicating the employer’s opinion about religious and political matters.

1/1/2025

California SB 988

Independent Contractors

Creates the Freelance Worker Protection Act to impose minimum requirements for freelance contracts, including requirement for  contract payment within a specified timeframe.

1/1/2025

California: Berkeley Ordinance No. 7,905-N.S.

Discrimination

Amends the city antidiscrimination ordinance to prohibit employment discrimination based on family or relationship structure.

1/1/2025

Colorado

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

Colorado HB 1095

 Child Labor

Increases penalties for violations of the Colorado Youth Employment Opportunity Act of 1971 and requires that the penalties be deposited into the wage theft enforcement fund.

1/1/2025

Connecticut

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

Connecticut HB 5005

Paid Sick Leave

Expands paid sick leave coverage and requires all private-sector employers with 25 or more employees give employees 40 hours of paid sick leave annually. The Act expands the definition of “family member” for whom employees can use the leave; prohibits employers from requiring documentation that the employee took paid sick leave for a qualifying reason; and requires written notice to employees of their paid sick leave rights.

1/1/2025

Connecticut HB 5524

 

Income Tax

Instead of automatically deducting and withholding personal income tax for distributions from deferred compensation and retirement income plans, employers are only required to make these deductions if requested by the payee, or in the case of a lump sum distribution. 

1/1/2025

Delaware

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

Delaware SB 233

Change of Ownership

Creates the Service Worker Protection Act, which establishes employment protections for certain service employees during changes of ownership; sets requirements for notifying and retaining employees.

12/29/2024

Delaware SB 1

Paid Family ⁄ Medical Leave Insurance

The Healthy Delaware Families Act, enacted in 2022, created a statewide paid family and medical leave insurance program funded through employer and employee contributions. Beginning January 1, 2025, employers participating in the state plan must remit employer and employee contributions to the state.

1/1/2025

Illinois

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

Illinois HB 2161

Discrimination and Harassment

Prohibits employment discrimination based on an individual's family responsibilities.

1/1/2025

Illinois HB 3129

Pay Transparency

Requires employers with 15 or more employees to include the pay scale and benefits for a position in all job postings.

1/1/2025

Illinois HB 3763

Personnel Records

Specifies the categories of documents that every employee has a legal right to inspect and copy; provides that an employee can sue an employer if the state Department of Labor does not resolve their complaint under the law within 180 days.

1/1/2025

Illinois HB 4867

Discrimination

Amends the Illinois Human Rights Act to prohibit discrimination based on reproductive health decisions.

1/1/2025

Illinois HB 5371

Discrimination and Harassment

Amends the Illinois Human Rights Act to allow a court to award restitution to a person injured by a pattern or practice of discrimination; increases the civil penalty amounts for violations.

1/1/2025

Illinois HB 5561

Whistleblowing

Provides that an employer may not take retaliatory action against an employee who discloses or threatens to disclose information about an activity that they in good faith believe violates the law.

1/1/2025

Illinois HB 5640

Military/ Veterans Status Protections

Expands the definition of armed forces or uniformed services to include the U.S. Space Force for purposes of employment protections for military service members.

1/1/2025

Illinois SB 3208

Wage Statements

Amends the Illinois Wage Payment and Collection Act to require employers to maintain a copy of an employee's pay stub for at least 3 years and provide employees with copies of their pay stubs upon request.

1/1/2025

Illinois SB 3310

Discrimination and Harassment

Changes the statute of limitations for filing a discrimination or harassment complaint under the Illinois Human Rights Act from 300 days to two years after the civil rights violation was allegedly committed.

1/1/2025

Illinois SB 3646

Child Labor

Increases restrictions on employment of minors under 16, including limitations on hours of work, and sets forth additional requirements for employers employing minors. Repeals prior law and replaces it with the Child Labor Law of 2024.

1/1/2025

Illinois SB 3649

Mandatory Employer-Sponsored Meetings

Provides that an employer or their agent may not discharge, discipline, or otherwise penalize an employee for declining to attend or participate in an employer-sponsored meeting that relates to religious or political matters, including “the decision to join or support any …labor organization.”

1/1/2025

Illinois SB 508

Discrimination: Employment Eligibility Verification

Provides additional employment protections for individuals flagged by an employment eligibility verification system, including federal E-Verify, as having identification discrepancies. Prohibits an employer from imposing work authorization verification or re-verification requirements greater than those required by federal law and requires an employer to provide certain notices to employees.

1/1/2025

Indiana

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

Indiana HB 1093

Child Labor

Amends Indiana’s child labor laws to expand working hours for minors between 14 and 16 and removes working hour and time restrictions for minors between 16 and 18.

1/1/2025

Indiana SB 80

Child Labor

Provides that a civil penalty may not be assessed for child labor shift schedule and shift length violations of ten minutes or less.

1/1/2025

Kentucky

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

Kentucky SB 47

Cannabis Use/Drug Testing

Allows employers to establish policies and procedures to limit the use of cannabis in the workplace, including a drug testing policy, drug-free workplace policy, or zero-tolerance drug policy.

1/1/2025

Minnesota

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

Minnesota Omnibus Policy Bill SB 3852

Pay Transparency

Requires employers with 30 or more total employees in Minnesota to include in all job postings a starting salary range, or if no range, a fixed pay rate. The range must include a minimum and a maximum amount based on the employer’s good-faith estimate of the opportunity for each position, and cannot be open-ended. Additionally, any posting must include a “description of all the benefits and other compensation, including but not limited to any health or retirement benefits” associated with the position. 

1/1/2025

St. Paul Ordinance No. 24-27

Wage and Hour

Creates a city wage theft ordinance that defines wage theft and actions and remedies for violations; requires an employer to provide employees with a wage notice at the start of employment and wage statements for each pay period.

1/1/2025

Nebraska

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

Nebraska LB 1023

Income Tax; Relocation Expense Credit

Revises income tax and employer withholding obligations for nonresident and remote employees. Provides employers with a credit of 50% of the relocation expenses paid for a qualifying employee, up to $5,000 per employee, per tax year.

1/1/2025

New Hampshire

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

New Hampshire HB 1038

Criminal Background Checks

Prohibits registered sex offenders from employment at businesses providing direct services to minors or direct supervision or oversight of minors.

1/1/2025

New Hampshire HB 1336

Weapons Restrictions

Prohibits employers that receive public funds from prohibiting employees from storing a firearm they legally possess in their personal vehicle while entering or exiting the employer’s property or in a locked vehicle parked on the employer’s property. Prohibits all employers from (1) requiring an employee to disclose whether they are storing a firearm or ammunition in their vehicle; or (2) searching an employee's vehicle for a firearm or ammunition. Limits employer liability for economic loss, injury, or death involving a firearm or ammunition stored in compliance with the new law.

1/1/2025

New Jersey

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

New Jersey SB 332 (AB 1971)

Privacy and Data Security

Creates the New Jersey Data Privacy Act; requires businesses to notify consumers about any information collected on them and allow consumers to view, correct, or request deletion of personal data. Notably, the new law does not apply in the employment context.

1/15/2025

New York

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

New York AB A08805C  

Paid Sick Leave

Requires New York employers provide up to 20 hours of paid leave for pregnant employees to attend prenatal medical appointments and procedures.

1/1/2025

Oregon

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

Oregon HB 4127

Labor Law

Creates rules and standards for warehouse employees' quota requirements and requires employers provide each employee with written documentation summarizing the quota to which they are subject. Provides that current or former employees have a right to receive certain records upon request.

1/1/2025

Oregon HB 4129

 

Home HealthCare

Requires the Department of Human Services and the Oregon Health Authority to adopt rules for licensing agencies providing home care services regarding background checks, specialized training, and certain required documentation for direct support workers.

1/1/2025

Pennsylvania

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

Pennsylvania HB 1633

Noncompete Agreements: Health Care Employees

The Fair Contracting for Health Care Practitioners Act bans certain noncompete covenants, including patient nonsolicitation provisions, between an employer and health care practitioner if the covenant is for more than one year or the health care practitioner was “dismissed by the employer.” 

1/1/2025

Pennsylvania SB 1232

Workers’ Compensation

Amends the Workers' Compensation Act to allow for direct deposit of workers' compensation payments.

12/29/2024

Rhode Island

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

Rhode Island HB 7058; Rhode Island SB 2128

 

Workplace Posters: Veterans

Requires employers with more than 50 employees to display a poster containing basic information on veterans' benefits and services.

1/1/2025

Rhode Island HB 7171

Paid Family ⁄ Medical Leave

Increase the number of weeks of available temporary caregiver paid leave from six weeks to seven weeks beginning January 1, 2025, and eight weeks beginning January 1, 2026.

1/1/2025

Washington

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

Washington SB 5793

 

Paid Sick Leave

Provides that paid sick leave may be used when an employee’s child's school or place of care has been closed for health-related reasons or public emergency. Expands the definition of family member.

1/1/2025

Seattle Council Bill No. 120580

 

App-Based Workers

 

Requires employers of 250 or more app-based workers worldwide to follow specified procedures and provide workers 14 days’ notice prior to deactivating an app-based worker from the company’s worker platform.

1/1/2025

West Virginia

Bill / Ordinance Number

Main Topic of Legislation

Summary

Effective Date

West Virginia SB 841

Unemployment

Freezes employer contributions to the state unemployment insurance fund at $9,500. Requires employers to report to the Labor Commissioner refusal of an offer of employment by an individual who is receiving unemployment benefits and a job referral from Workforce West Virginia.

1/1/2025


See Footnotes

​1 An Insight on new wage and hour laws taking effect in 2025 is forthcoming.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.