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New HR Compliance Changes to be Aware of in 2025
As 2025 begins, HR professionals must stay ahead of the evolving regulatory landscape to ensure their organizations remain compliant. From labor laws to workplace policies, several key updates are shaping the year.
Below, we break down the most critical HR compliance changes to watch in 2025 and how businesses can prepare:
- Expanded Workplace Transparency Requirements – Transparency remains a central focus, with new regulations requiring organizations to provide employees with greater access to information about pay, benefits, and company policies. Ogletree Deakins reports that updates include pay transparency, which mandates that employers in certain states disclose salary ranges in job postings, and policy accessibility, which requires employers to make workplace policies easily accessible to all employees, including through digital platforms.
- Evolving Remote Work Regulations – The growth of remote work has introduced new compliance challenges, particularly in areas such as taxation, labor laws, and data privacy. Key changes include multi-state taxation, which imposes new tax reporting obligations on employers for remote workers operating across state lines, and safety standards, which require employers to ensure that remote workspaces, including home offices, meet minimum safety requirements.
- Updated Diversity, Equity, and Inclusion (DEI) Regulations – The new executive order regarding the reversal of DEIA initiatives will primarily affect corporations that hold federal contracts, as it eliminates requirements for DEI programs, affirmative action, and diversity reporting. Companies with federal contracts will no longer need to maintain diversity metrics or implement specific DEI measures. While private-sector companies are not directly impacted, the broader shift away from DEI efforts could influence their own workplace initiatives. Corporations that emphasize diversity may face reputational challenges and pressure to adjust their strategies. Goodwin notes that companies will need to navigate the evolving federal landscape, balancing DEI practices with changing regulations and public expectations.
- Enhanced Data Privacy Regulations – As HR processes become increasingly digitized, protecting employee data has become a top priority. According to Littler, in 2025, stricter rules will require employers to limit data collection to only what is necessary and to establish clear retention policies. Additionally, organizations will face new cybersecurity requirements, mandating the implementation of robust measures to prevent data breaches, with severe penalties for non-compliance.
- Labor Law Updates – In 2025, many states and cities are raising minimum wages and introducing new benefits requirements. Callie Horner recommends that employers should stay informed about regional changes to minimum wage laws. Additionally, several jurisdictions are expanding paid leave policies, including provisions for parental leave, sick leave, and caregiver leave.
By staying informed and proactive, HR professionals can protect their organizations from legal risks while fostering a compliant and equitable workplace. Prioritize education, technology, and collaboration to navigate these changes effectively.
