At Inspiring HR, we uncomplicate HR for small businesses by providing timely insights and practical guidance on labor law changes. Here’s a summary of what you need to know heading into 2025 to stay ahead of compliance requirements.
Please note: This is just a summary to provide general information on HR compliance changes. As it’s not exhaustive, we encourage you to speak with an Inspiring HR Consultant to ensure full compliance with each state’s specific requirements. Find past updates and insights on our website.
Key Topics This Month:
- Illinois: Captive audience meeting ban and expanded protected classes.
- Maryland: Pay transparency requirements and paid family leave deductions.
- Federal Updates: Changes for federal contractors, including wage requirements, EEO-1 filing, and evolving AI guidance.
ILLINOIS: Captive Audience Meetings Ban and New Protected Classes
Ban on Captive Audience Meetings – Effective January 1, 2025
Starting in 2025, Illinois employers can no longer discipline or retaliate against employees for declining to attend mandatory meetings centered on religious or political topics. These include discussions about political elections, legislation, labor organizations, or religious practices. Additionally, incentives or employment perks to encourage attendance are prohibited. Employers should review policies to ensure compliance with this new standard.
Learn more about Illinois’ Captive Audience Law.
Expansion of Protected Classes – Effective January 1, 2025
The Illinois Human Rights Act now includes “family responsibilities” and “reproductive health decisions” as protected classes. Employers must ensure policies and practices—such as hiring, firing, and accommodations—are aligned with these expanded protections.
MARYLAND: Pay Transparency and Paid Family Leave
Pay Transparency – Effective October 1, 2024
Maryland employers are now required to include the reasonable minimum to maximum salary range, benefits, and other expected compensation in all job postings. This applies to both internal and external postings. Records must be retained for at least three years after a position is filled in order to document compliance. Noncompliance could lead to penalties, so employers should audit their postings to meet these standards.
Paid Family Leave Deductions – Effective July 1, 2025
While paid leave benefits aren’t available to employees until July 2026, payroll deductions begin next year. Maryland’s paid family leave program is funded by a 0.9% wage tax, split evenly between employers and employees. The leave is job-protected, meaning employers will be required to restore employees to the same job after taking leave. To prepare, employers must update payroll systems and inform employees about upcoming deductions.
FEDERAL: Updates for Federal Contractors
For Federal Contractors, 2024 brought a few updates to be aware of. Talk to your Inspiring HR consultant to make sure you’re complying with new regulations.
Minimum Wage and Tip Credits
The expected minimum wage increase for federal contractors in January 2025 has been delayed by court action. Currently, the minimum wage remains $17.20 per hour, and tip credits are not permitted. Stay tuned for potential changes under the new administration.
E-Verify+ and I-9 Compliance
The launch of E-Verify+ offers enhanced features for verifying work eligibility. Although adoption is optional for now, all users may eventually migrate to this platform. Employers should also take this opportunity to review I-9 retention and onboarding processes.
EEO-1 Reporting
Federal contractors with at least 50 employees and contracts totaling $50,000 must file EEO-1 reports annually. The next cycle opens in spring 2025. More information can be found at the EEO-1 portal. Your Inspiring HR consultant can assist with filing this report.
Contractors meeting higher thresholds (i.e. employers holding a single contract of $150,000 or more and at least 50 employees) must also file Vets-4212 reports. Reports were due September 30 but can still be filed.
AI Guidance in Business Decisions
Federal agencies have released guidance on the responsible use of artificial intelligence in employment practices, emphasizing fair and unbiased decision-making. Employers, especially contractors, should familiarize themselves with these principles to avoid scrutiny during audits.
Salary Transparency Proposal
A proposed rule may require federal contractors to disclose salary ranges in job postings and prohibit using salary history in hiring decisions. Though not yet finalized, preparing for compliance now is advisable.
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Visit our Resources page for past Labor Law Reference Guides and more. Ready to partner with Inspiring HR? Contact us for a friendly and helpful consultation to help uncomplicate HR!
This article does not constitute legal advice, and there are subtle variations in employment law as it pertains to these topics, depending on where your business operates It is strongly suggested that you seek HR consultation or legal counsel before making decisions about policies.
