January 2025 Employment Law Update: Key Changes for Employers
As we enter the new year, it’s crucial for employers to stay informed about evolving employment laws and compliance requirements. This month’s update covers significant legal changes that could impact your workplace, including wage increases, updated labor posters, and new reporting obligations. Let’s dive into the latest updates you need to know.
Corporate Transparency Act: Filing Deadline Paused
The Corporate Transparency Act’s beneficial ownership reporting requirement remains on hold due to ongoing litigation. Originally set for January 1, 2025, the reporting deadline was paused by a federal court in December. Although an appeals court briefly reinstated the requirement with a January 13 deadline, it reversed course on December 26, placing the requirement on hold once again.
What This Means for Employers:
Currently, there is no obligation for companies to file ownership reports.
This could change depending on how the litigation unfolds, as the government has requested the Supreme Court to reinstate the reporting requirement.
Stay tuned for further updates as this situation develops.
More Legal Updates
Idaho Releases Updated Labor Posters
The Idaho Department of Labor has updated its Discrimination in Employment, Unemployment Insurance Benefits, and Minimum Wage posters. Employers should replace outdated versions with the state’s newly combined labor poster to stay compliant.
Massachusetts Wage Data Reports Due February 1
Employers in Massachusetts with 100 or more employees must submit a wage data report by February 1, 2025, as part of the state’s Act Relative to Salary Range Transparency.
Action Steps:
Prepare and file the required wage data report by the deadline.
Ensure wage transparency practices align with state guidelines.
Michigan Minimum Wage and Sick Leave Changes Effective February 21
A recent Michigan Supreme Court decision has led to significant wage and leave policy updates:
Minimum Wage Increase: Rising from $10.56/hour to $12.48/hour on February 21, 2025.
Tipped Employees: Direct wages must be at least $5.99/hour with a maximum tip credit of $6.49. Employers must make up any shortfall if combined tips and wages do not meet the minimum wage.
Paid Sick Leave Expansion:
The previous 50-employee threshold has been eliminated.
Employers with 10+ employees must provide up to 72 hours of paid sick leave annually.
Employers with fewer than 10 employees must allow up to 40 hours of paid sick leave.
Missouri Faces Lawsuit Over Voter-Approved Minimum Wage and Sick Leave
On December 6, 2024, the Missouri Restaurant Association, the Missouri Chamber of Commerce, and other business groups filed a lawsuit challenging Proposition A, a voter-approved measure that:
Increases the state minimum wage to $13.75/hour effective January 1, 2025.
Introduces up to 7 days of paid sick leave annually, starting May 1, 2025.
Despite the lawsuit, the new minimum wage is currently in effect. We will continue monitoring this case and provide updates as they become available.
Key Takeaways for Employers
Monitor Legal Updates: Stay current on pending legal decisions, especially regarding the Corporate Transparency Act and Missouri’s Proposition A.
Review Compliance Materials: Replace outdated labor posters, especially in Idaho, and review wage transparency policies in Massachusetts.
Prepare for Wage Increases: Adjust payroll systems in Michigan and Missouri to comply with new wage laws.
Update Leave Policies: Ensure sick leave policies reflect expanded requirements in Michigan.
By staying proactive and informed, you can navigate these changes effectively and maintain compliance throughout 2025. Check back monthly for regular employment updates!
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