At Inspiring HR, we simplify compliance for small businesses by keeping you informed about labor law changes that could impact your company. Stay ahead of compliance in 2025 with these new updates to state labor laws.
Please note: This blog is for informational purposes only. Employers should consult with an Inspiring HR Consultant or legal counsel to address specific requirements for their organization. Find past updates and insights on our website.
Key Topics This Month:
- Colorado: Privacy Act
- Maryland: Service Member Definition and Paid Family Leave
- Nevada: Employee Saving Trust IRA
- Ohio: Pay Transparency and Compensation History
- Pennsylvania: Power Act
COLORADO
Privacy Act – Effective July 1, 2025
Effective July 1, 2025, employers must obtain employee or applicant consent before collecting or processing biometric data. Consent will be required from Colorado employees for the following if biometric data is used and stored:
- Access to secure locations or systems
- Time Keeping / Time Clock use
- Job-specific safety purposes
- Background checks or ID requirements for applicants
For more detailed information, click here.
We recommend:
Audit your use of biometric data to determine if your terms of use, data protection and data storage procedures are compliant. Consider if you are in need of consent forms for current and future use of biometric data.
MARYLAND
Expanded Definition of a Service Member – Effective October 1, 2025
Beginning October 1, 2025, employment protections for military members will include all uniformed services and reserves. The revised definition of a service member is anyone serving
in the U. S. Army, Navy, Air Force, Marine Corps, Space Force, Coast Guard, the National Oceanic and Atmospheric Administration, and the Public Health Service.
Paid Family Leave – Deferred until 2027
Maryland pushed back implementation of its paid family leave program (FAMLI) until 2027, when tax deductions will begin. Benefits will be available to all employees in Maryland in 2028, up to 12 weeks of paid family leave per year.
In 2023, Nevada enacted the Nevada Employee Savings Trust program (NEST) to establish a state-run payroll deduction IRA program for private sector employees who do not have access to employer-sponsored retirement plans.
NEVADA
Nevada Employee Savings Trust – Effective July 1, 2025
All qualified Nevada businesses are required to facilitate NEST if they:
- have been in business for 36 or more months;
- have six or more employees; and
- do not offer a tax-favored retirement plan to its employees at any time within the current calendar year or previous three calendar years.
- A tax-favored retirement plan is a retirement plan that’s tax qualified and satisfies the requirements of Internal Revenue Code Section 401(a), 401(k), 403(a), 403(b), 408(k), or 408(p).
Please note, participating employers will not be required to contribute to employee plans.
Employees will be required to participate and will be automatically enrolled if they:
- Have been employed for at least 120 days; and
- Are 18 years or older.
Employees will be able to opt-out of the program at any time without any penalty.
The NEST Program will reach out to eligible businesses to facilitate registration and provide resources to help inform employees about the program.
OHIO
Cleveland Pay Transparency and Compensation History Law – Effective October 27, 2025
Effective October 27, 2025, employers with 15 or more employees working in Cleveland, Ohio will be required to comply the city’s new Pay Transparency and Compensation History Law. The new law will require employers to include salary ranges and pay scales in any notification, job posting, or advertisement for any open position. The new law also prohibits employers from screening and/or asking applicants about their compensation and benefits history. In addition, employers may not refuse to hire or retaliate against an applicant who refuses to disclose their compensation history.
PENNSYLVANIA
Philadelphia Power Act – Effective Immediately
The Philadelphia Power Act was signed into law on May 27, 2025 and went into effect immediately. The Power Act has added additional domestic worker protections regarding wages, paid sick leave, and retaliation for workplace complaints.
Updated protections include:
Enhanced Paid Sick Leave Penalties – The Power Act permits civil penalties for covered employers who violate the city’s state sick leave law. Employers must keep a detailed with up-to-date records of employee’s sick time.
Expanded Wage Theft Protections – Philadelphia’s Department of Labor (DOL) has the authority to investigate complaints of wage theft, including violations of state and federal laws and allows the DOL to issue orders for employers to pay back wages and penalties.
Expanded Domestic Worker Protections – Under the city’s Domestic Worker Bill of Rights, domestic workers are entitled to paid meal breaks and the accrual of paid sick time. Employers are required to provide written contracts outlining specific terms of the domestic workers’ employment and terminations. In addition, employers must provide a notice of rights and severance requirements.
Inspiring HR offers helpful resources such as compliance tools, labor law reference guides, and more. For personalized support navigating these updates, contact us today.
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.
