Labor Laws Effective May 1, 2025

Staying compliant in today’s regulatory environment means keeping up with constant changes in labor laws at the federal, state, and local levels. Several new employment law updates went into effect on May 1, 2025, impacting HR compliance, payroll practices, and employee rights.

Federal Labor Law

Overtime Expansion Rule Blocked

A Biden administration rule that would have expanded overtime pay to 4 million salaried workers was blocked by a federal judge. The rule aimed to raise the overtime threshold to $56,656 annually. As of now, the threshold remains at $35,568.

State & Local Employment Law

Missouri – New Paid Sick Leave Law

Starting May 1, 2025, Missouri employers must provide earned paid sick time (EPST). Employees accrue at least 1 hour of paid sick leave for every 30 hours worked, usable as soon as it is earned.

Laws That Took Effect Earlier in 2025

Illinois

1. Minimum Wage Increase

Minimum wage has increased statewide to $15/hour. In Chicago, the minimum wage is higher at $16.20/hour.

2. Pay Transparency Law

Employers with 15+ employees must include salary ranges and benefits in all job postings.

3. Worker Freedom of Speech Act

Employees may opt out of meetings on political or religious topics without fear of retaliation.

California

1. Paid Family Leave Adjustments

Assembly Bill 2123 removes the provision allowing employers to require employees to use two weeks of vacation before accessing paid family leave benefits. ​

2. Whistleblower Protections Expansion

Assembly Bill 2299 expands protections for whistleblowers, ensuring that employees reporting improper governmental activities are safeguarded against retaliation.

3. Workplace Safety Enhancements

Assembly Bill 2975 mandates that hospitals implement weapons detection screening policies, aiming to enhance workplace safety. ​

New York

1. Paid Prenatal Leave

New York introduces paid prenatal leave, allowing employees to take up to 20 hours annually for pregnancy-related medical care. ​

2. Minimum Wage Increase

The minimum wage in New York increased to $16.50 per hour in specific areas and $15.50 elsewhere, effective January 1, 2025, with indexed raises commencing in 2027. ​

Partner with NewEra HR for Strategic HR Compliance Support

As labor laws continue to evolve, staying compliant while focusing on business growth can be overwhelming. That’s where we come in.

At NewEra HR, we provide fractional HR consulting designed to help growing companies stay ahead of employment law changes, minimize risk, and build strong people strategies that support long-term success.

📩 Get in touch to schedule a consultation or learn more about our on-demand HR support.

As a disclaimer and general rule of thumb, NewEra HR is not providing legal advice nor acting as a lawyer or other legal representative in anyway. While we pride ourselves on sourcing our information from credible sources, NewEra can not 100% guarantee the information provided .