As 2025 unfolds, employers must stay ahead of rapidly changing workplace laws. From noncompete agreements to the rise of AI in hiring, HR professionals need to be prepared to adapt policies and stay compliant. Here are five key legal areas to watch closely this year:
1. Noncompete Agreements
The Federal Trade Commission (FTC) has proposed a near-total ban on noncompete clauses. If passed, this rule would significantly alter how companies protect intellectual property and manage employee transitions.
2. Overtime Exemptions
The U.S. Department of Labor (DOL) is finalizing changes to the salary threshold for exempt employees. This means many more employees may soon be eligible for overtime pay — even if classified as exempt under current standards.
3. Pay Transparency
A growing number of states and cities are enacting pay transparency laws requiring employers to post salary ranges and refrain from asking about a candidate’s salary history. These laws aim to reduce pay inequities and increase fairness in hiring.
4. Nondiscrimination
New updates and court interpretations of Title VII are expanding protections, particularly related to pregnancy, gender identity, and religious accommodations. Employers should ensure policies and training are up to date.
5. Use of AI in Hiring
Regulatory attention is increasing around the use of artificial intelligence in recruitment and employment decisions. Employers should evaluate their tools for potential bias and ensure they are being used in compliance with new laws and ethical standards.
Bottom line: Compliance isn’t optional — it’s essential. These five legal trends are shaping the future of work, and staying ahead will help protect your business from costly mistakes.
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