HR Trends to Watch in 2025
Regulatory –
U.S. Department of Labor's 2024 Overtime Rule:
One of the biggest wage and hour issues has been the Overtime rule that increased the standard salary level for Exempt employees, which was vacated on Nov. 15. The U.S. District Court for the Eastern District of Texas ruled that the DOL exceeded its authority under the statute in the Fair Labor Standards Act (FLSA). As a result, the minimum salary thresholds for the FLSA’s Exempt and Highly Compensated employees reverts to the threshold amounts under the agency’s 2019 Overtime Rule of $684 per week for Executive, Administrative, Professional, Computer,and Outside Sales roles and $107,432 per year for Highly Compensated Employees.
The court’s ruling is subject to appellate review at the Fifth Circuit and potentially by the Supreme Court of the United States. As a result, while the increases to the minimum salary threshold may not currently be required, employers subject to the Fair Labor Standards Act’s requirements should be aware that there is still a possibility that future appellate review may uphold the 2024 final rule and require an increase of the minimum salary threshold for Exempt employees or that new legislation may be proposed.
Immigration Reform and Control Act:
This Act requires that employers verify the identity and employment eligibility of anyone hired to confirm that all new employees may legally work in the U.S. via completion of the Employment Eligibility Verification Form I-9.
The use of E-Verify, an electronic employment eligibility verification system, is likely to become mandatory for all employers. This would require businesses to verify the employment eligibility of every new hire using the E-verify system.
Currently, Florida private employers with over 25 or more employees must utilize E-Verify to authenticate all new hires.
Employers can enroll online and find additional information on the E-Verify website (https://www.e-verify.gov).
Pay Transparency Laws:
Laws that promote pay equity and prohibit employers from paying a lower wage based solely on gender have been around since the Equal Pay Act of 1963 and apply to all 50 states and the District of Columbia. New Pay Transparency Laws, which differ from state to state, require employers disclose salary information and total compensation to job candidates and employees.
Pay Equity and Salary History:
Another area of compliance relating to salaries are those laws enacted that prohibit employers from asking about and/or relying on a job candidate’s prior salary when making hiring and compensation decisions.
Staying updated on local and state requirements for salary disclosures will help prevent compliance issues
IRS standard mileage rate:
The rate for business driving in 2025 is 70¢ per mile (3¢ higher than in 2024). The rate applies to fully-electric and hybrid vehicles, as well as gas and diesel-powered vehicles.
Ban the Box:
To date, 37 states and 100+ cities and counties nationwide have adopted official efforts to “ban the box” or eliminate questions regarding convictions and arrest records so that employers consider a job candidate’s qualifications first. While ban-the-box laws primarily affect the private sector, the Fair Chance Act prohibits most federal agencies and contractors from requesting information about arrest and conviction records from a job applicant prior to a job offer.
Benefits -
According to SHRM, there are more than 200 available benefits that employers can offer employees. There are the mainstay benefits—health care, retirement options, and paid time off. There are also education benefits, financial benefits, volunteering benefits, and family care benefits, which have become more popular in recent years. There’s also a growing number of specialty benefits, such as mental health support, pet care and grandparent leave.
Leave Policies:
Most organizations provide some type of leave benefits, which allow employees to take time off work without the risk of job loss. These benefits can be paid, unpaid or partially paid. Many employees are especially interested in working for an organization that provides generous leave policies.
For example, according to Starbucks’ CEO Brian Niccol, Starbucks is now offering eligible US store employees 18 weeks of PAID parental leave for birth parents, a big leap forward from the 6 weeks previously offered. Non-birth parents are also going to benefit from Starbucks’ expanded parental leave policy, although to a smaller degree at up to 12 weeks of paid leave.
Flexible work arrangements:
Organizations that provide flexible work arrangements, including a hybrid work approach, are positioning themselves to be able to recruit talent from those businesses who have strict RTO (return to office) and mandatory in-office policies.
Providing Employees with a Career Path:
Employee career development that includes coaching, training, mentoring, educating and providing opportunities for advancement that align with individual aspirations will benefit both the organization and the employee. Employees will experience greater job satisfaction and a sense of purpose. Employers will see lower turnover, and a more skilled workforce. Strong leaders know that filling roles internally and providing a career path for those employees seeking to advance is also good for business.
Employers need to gather feedback from employees. This includes employee surveys, focus groups, and other forms of direct feedback to gauge what benefits employees value most. Listening to employees’ concerns and needs is important, but requires employers to take action. Gathering employee input isn’t any good if no changes are made.
