Perspectives

Part 2: What is Happening in Your State? New Employment Laws Impacting Day-to-Day HR

Catch Part 1 here.

If 2024 was the year of emerging compliance trends, 2025 is the year of enforcement-level specificity. Employers are facing new laws that regulate everything from how to write a job posting to how quickly you must deliver a personnel file. Below, we go beyond the headlines and into the weeds on state laws that will affect your team’s procedures, documentation, and legal exposure.

Sick Leave Laws are No Longer Optional-They’re Complex

Forget the “one-size-fits-all” paid sick leave policies. States are now layering in nuanced rules that make multi-jurisdicitonal compliance a challenge.

Minnesota (ESST Updates)

• Effective July 1, 2025, the standarad for notice changed from “as soon as practicable” to “as reasonably required by the employer.”
• Employers may now require reasonable documenation after just 2 consecutive missed days (down from 3).
• Clarified that employees may voluntarily trade shifts to cover ESST balances.

Michigan (Earned Sick Time) 

• Accrual: 1 hour per 30 hours worked.
• Caps:
  • Small employers (fewer than 10 employees): 40 hours/year
  • Larger employers: 72 hours/year
• Carryover allowed, but capped by employer size.
• Effective: February 21, 2025 (most employers); October 1, 2025 (small employers)

Nebraska (Amended June 2025)

• Applies to employers with 11+ employees and those working 80+ hours/year in NE.
• Accrual: 1 hour per 30 hours worked
• Caps: 40 (for 11-19 employees) or 56 hours  (20+ employees)
• Unlimited carryover is permitted, but employers may limit usage annually.

✅ Compliance Tip: You must track hours worked by location if employees across state lines, especially in remote or hybrid work arrangements.

Pay Transparency Laws are Rewriting Job Postings

Employers in multiple states must now treat job postings as legal documents-with specific, required disclosures.

Illinois

• Must list wage/salary range and benefits in job postings (15+ employees)
• Must notify employees of internal promotion opportunities within 14 days of an external posting.

Massachusetts

• Starting February 1, 2025, employers with 100+ employees must report race, gender, and pay data under wage reporting rules.
• October 29, 2025: Employers with 25+ employees must disclose:
  • Pay range in job postings
  • Pay range upon request

New Jersey (June 2025)

• Applies to employers with 10+ employees
• Job postings must include:
  • Wage or wage range
  • List of all benefits and compensation programs available within the first 12 months.

✅ Audit Action: Do your job posting templates meet the strictest state requirements? If not, your risk increases every time a position is advertised.

Whistleblower, “Captive Audience”, and Political Neutrality Protections are Expanding

Sates are implementing laws that prohibit employers from influencing employee political or religious views.

California

Employers may not require attendance at meetings promoting religious or political views.

New laws require posting of whistleblower rights-model notice available from the state.

Rhode Island

Effective July 2, 2025: Employers may not retaliate against employees who refuse to attend meetings focused on employer opinions related to religion or politics.

Illinois

Employers may not:

• Discriminate against employees for their reproductive health decisions.
• Discriminate based on family responsibilities, including caring for ill family members.
• Retaliate against employees for disclosing saftey or legal concerns in good faith.

✅ Training Update: Managers need to be trained to avoid language or behavior that could trigger claims under these new categories of protected rights.

Personnel Records Access, Posters, and Pay Stub Disclosures

States are adding detailed administrative and notice requirements that can result in penalties if missed.

Washington

• Personnel file access: Employers must provide copies within 21 days upon request-free of charge.
• Definition of personnel file incudes:
  • Job applications
  • Performance Reviews
  • Disciplinary records (even if closed)
  • Reasonable accommodation records
  • Payroll and employment agreements

Ohio

Pay Stub Protection Act (April 8, 2025): Must include net/gross pay, hours worked, deductions, and more in written or electronic statements.

Pennsylvania

Employers with 50+ employees must physically or electronically post a new veteran’s rights notice by January 1, 2026.

✅ Poster & Recordkeeping Audit: Make sure posters are updated by state and confirm your HRIS system can fulfill document requests quickly.

AI Regulations and Automated Hiring Tools

Employers are being held responsible for discriminatory outcomes even if they use third-party AI tools.

California

Final employment regulations prohibit use of automated decision systems that result in protected class discriminationincludes tone of voice, facial recognition, or other biometric tools.

New Jersey

Clarifies that liability exists even if the employer did not build the AI tool. The key factor is how the AI was used and whether it created disparate impact.

Texas

Texas Responsible Artificial Governance Act (January 1, 2026): Explicit ban on intentional AI-driven discrimination. 

✅ Policy Alert: Companies must create an AI usage policy, train HR teams, and review third-party vendor tools.

Wrapping It Up: It’s Time to Shift from Reactive to Proactive Compliance

The pattern is clear: states are stepping into legislate where federal law is silent, often with specific deadlines, disclosures, and technicalities that trip up even well-meaning employers.

Your best protection in this landscape?

• Audit your policies.
• Update your employee handbooks.
• Track state-specific implementation dates.
• Train managers, HR, and compliance teams regularly.
• Partner with legal counsel who can interpret and implement these changes for your unique workforce.

Need Help Untangling This Web?

Our legal and compliance teams are ready to help you:

• Conduct a multi-state compliance audit
• Draft new policies to reflect paid leave and posting requirements
• Review AI and hiring practices for bias and exposure

Reach out to us for a consultation today!