Attention Employers: 2025 Employment Law Update

2025 IS AROUND THE CORNER. ARE YOU READY?

As we step into 2025, we want to make sure that you are in compliance with both recent and upcoming legislative changes that could impact your business operations. Below, we provide a comprehensive overview of significant legal developments in New York, New Jersey and at the federal level.

We recommend that employers review and revise their employment policies to ensure compliance. As always, we are here to assist with navigating these changes or to discuss how these developments may specifically impact your business.

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FEDERAL

The DOL’s Final Rule On Salary Thresholds For Overtime Exemptions Is No Longer In Effect

• On November 15, 2024, a Texas federal court struck down the DOL’s regulation that increased the salary thresholds for overtime exemptions under the Fair Labor Standards Act (“FLSA”).

• This ruling rescinded both the increase that took effect in July 2024, which set the salary threshold for bona fide executive, administrative, and professional (“EAP”) employees at $844 per week ($43,888 annually), and the planned January 1, 2025 increase for those same categories to $1,128 per week ($58,656 annually).
• The court determined that the DOL exceeded its authority by shifting the exemption criteria from duties performed to salary earned, and reverted the salary thresholds to their 2019 levels: $684 per week ($35,568 annually) for EAP employees and $107,432 annually for highly compensated executive employees.
• This decision is of nationwide effect but does not override state laws that prescribe higher salary thresholds, such as in New York and California.
• An appeal by the DOL to the Fifth Circuit is anticipated, though decisions are not expected until after the Trump Administration takes office in January 2025.

NEW YORK

New York is Making Minimum Wage Adjustments

• Effective January 1, 2025, minimum wage rates in New York City, Westchester, and Long Island will increase to $16.50 per hour, with a subsequent rise to $17.00 per hour on January 1, 2026.
• For the rest of New York State, the minimum wage will increase to $15.50 per hour in 2025, and to $16.00 in 2026.
• These adjustments apply to all employers in New York State, regardless of the number of employees.

Employers Will Now be Required to Provide Prenatal Leave

• Beginning January 1, 2025, New York employers will be required to provide employees with 20 hours of paid “prenatal personal leave” during any 52-week calendar period to attend prenatal medical appointments during or related to pregnancy.
• Eligible employees may utilize this leave in hourly increments to receive health care services during their pregnancy or related to a pregnancy, including physical examinations, medical procedures, monitoring and testing, and discussions with a health care provider related to pregnancy.
• This prenatal leave entitlement will be in addition to the sick leave provided under the New York State Paid Sick Leave Law. Therefore, eligible employees will be entitled to use up to a total of either 60 hours or 76 hours (depending on employer size) of paid leave for various medical needs.
• New York State also recently extended paid lactation breaks from 20-minutes to 30-minutes for up to three years following childbirth.

New York State is Discontinuing COVID Paid Sick Leave

• As of July 31, 2025, state-mandated COVID-19 paid sick leave will be discontinued.
• Employees may still utilize other applicable paid leave for COVID-19 related absences.

The Freelance Isn’t Free Act is Still In Effect

• After going into effect August 28, 2024, New York State is still requiring employers to give written contracts and specific wage protections to freelancers earning $800 or more over 120 days.

NEW JERSEY

New Jersey is Making Minimum Wage Adjustments

• The minimum wage in New Jersey will increase to $15.49 per hour for most employees starting January 1, 2025.
• For tipped employees, the minimum wage will rise to $5.62 per hour, with a maximum tip credit of $9.87.
• The minimum wage for seasonal and small employers with fewer than six employees will increase to $14.53 per hour.
• The minimum wage for long-term facility staff will increase to $18.49 per hour.

New Jersey is Joining the Pay Transparency Law Bandwagon

• Starting June 1, 2025, New Jersey’s new pay transparency law will require employers with 10 or more employees to disclose salary ranges and benefits in job listings.
• Employers must publicly post the hourly wage or salary range, along with a general description of benefits and other compensation for each new job or transfer opportunity, both internally and externally. They retain flexibility to adjust compensation when making an actual employment offer.
• Non-compliance with the new requirements will result in a $300 penalty for the first violation and $600 for each subsequent violation. 
• Temporary help and consulting firms must provide pay and benefit information at the interview stage or when hiring for specific positions.