15 New Employment Policies To Keep An Eye On In 2025

1. Remote Work Regulations and Compliance

   - With the continued rise of remote and hybrid work, HR managers should stay updated on state and federal regulations regarding remote work, including tax implications, wage and hour laws, and workplace safety requirements for home offices.

   - States may introduce new laws addressing remote workers' rights, such as reimbursement for home office expenses or clarity on overtime rules for remote employees.

2. AI and Automation in the Workplace

   - The use of AI in hiring, performance management, and workforce planning will likely face increased scrutiny. HR managers should ensure compliance with emerging laws governing AI use, such as bias prevention and transparency requirements.

   - New regulations may require employers to disclose the use of AI in hiring processes or provide employees with the right to challenge AI-driven decisions.

3. Pay Transparency Laws

   - Pay transparency laws are expanding across states and cities. By 2025, more jurisdictions may require employers to include salary ranges in job postings or provide pay data to employees upon request.

   - HR managers should ensure their organizations comply with these laws and prepare for potential federal legislation on pay equity.

4. Non-Compete Agreements

   - The Federal Trade Commission (FTC) has proposed a rule to ban non-compete agreements nationwide. If finalized, this could take effect in 2025, significantly impacting how employers protect trade secrets and retain talent.

   - HR managers should review their employment agreements and consider alternative strategies, such as non-disclosure agreements (NDAs) or retention bonuses.

5. Minimum Wage Increases

   - Several states and cities are scheduled to increase their minimum wages in 2025. HR managers should ensure compliance with local wage laws and adjust payroll systems accordingly.

   - Federal minimum wage discussions may also resurface, so staying informed about potential changes is critical.

6. Diversity, Equity, and Inclusion (DEI) Initiatives

   - DEI efforts will remain a priority, but they may face legal challenges. HR managers should ensure their DEI programs comply with anti-discrimination laws and focus on measurable outcomes.

   - New reporting requirements for diversity data or pay equity may be introduced at the state or federal level.

7. Employee Mental Health and Well-Being

   - Workplace mental health will continue to be a focus, with potential new regulations requiring employers to provide mental health resources or accommodations.

   - HR managers should consider expanding employee assistance programs (EAPs) and training managers to support mental health in the workplace.

8. Immigration and Work Visa Policies

   - Changes to H-1B and other work visa programs may impact hiring practices, especially in tech and other industries reliant on international talent.

   - HR managers should stay updated on immigration policies and ensure compliance with visa sponsorship requirements.

9. Gig Worker Classification

   - The classification of gig workers as employees or independent contractors will remain a contentious issue. New federal or state laws may clarify or change the criteria for worker classification.

   - HR managers should review their contractor relationships and ensure compliance with updated labor laws.

10. Data Privacy and Employee Monitoring

   - As employee monitoring tools become more prevalent, new laws may regulate how employers collect and use employee data. HR managers should ensure transparency and obtain consent where required.

   - Compliance with state-specific privacy laws (e.g., California's CCPA) will be critical.

11. Expanded Leave Policies

   - States and cities may introduce or expand paid family and medical leave laws. HR managers should monitor these changes and update their leave policies accordingly.

   - Federal legislation on paid leave could also gain traction in 2025.

12. Climate Change and Workforce Adaptation

   - As climate change impacts workplaces, HR managers may need to address issues like extreme weather disruptions, remote work during emergencies, and employee safety in high-risk areas.

   - Sustainability initiatives may also influence hiring and retention strategies.

13. Unionization and Labor Relations

   - Unionization efforts are expected to grow, particularly in tech, retail, and service industries. HR managers should be prepared to navigate union organizing campaigns and ensure compliance with the National Labor Relations Act (NLRA).

   - New NLRB rulings or federal legislation could further impact labor relations.

14. Skills-Based Hiring

   - The shift toward skills-based hiring (rather than degree requirements) will likely accelerate. HR managers should update job descriptions and recruitment strategies to attract a broader talent pool.

   - Partnerships with training programs and apprenticeships may become more common.

15. Healthcare and Benefits Updates

   - Changes to healthcare laws, including the Affordable Care Act (ACA), could impact employer-sponsored health plans. HR managers should stay informed about compliance requirements.

   - Expanded benefits, such as student loan repayment assistance or fertility benefits, may become more common as employers compete for talent.

Action Steps for HR Leaders and Hiring Managers:

   - Regularly review federal, state, and local labor laws for updates.

   - Invest in HR technology to streamline compliance and reporting.

   - Train managers on new regulations and best practices.

   - Engage with legal counsel or HR consultants to address complex issues.