As of February 2025, several significant updates have emerged in U.S. labor laws at both federal and state levels:
1. Federal Overtime Pay Regulation Blocked
A federal judge in Texas has blocked a new rule from the Biden administration intended to expand overtime pay to millions of salaried workers. The rule would have required overtime pay for salaried workers earning less than $43,888 annually starting July 1, 2024, and increasing to $58,656 in 2025. With the ruling, the threshold reverts to $35,568 as set in 2019 under the Trump administration. The Labor Department has yet to comment on whether it will appeal.
2. State-Level Workers' Compensation Reforms
In 2024, numerous states enacted reforms to workers' compensation insurance rates and laws:
Rate Adjustments: Connecticut approved a 6.1% reduction, West Virginia proposed a 9.1% decrease, while Washington State plans a 3.8% increase to cover higher wage and medical benefit costs.
Legislative Changes: Michigan introduced bills expanding claims to include neurocognitive disorders, California mandated employer notifications of the right to counsel, and Pennsylvania eased PTSD claim requirements for first responders.
3. Paid Sick Leave Expansion
Recent state ballot measures have expanded worker rights:
Paid Sick Leave: Missouri and Nebraska passed policies granting one hour of paid sick leave for every 30 hours worked, effective May and October 2025, respectively. Alaska's similar measure is likely to pass, becoming effective in July 2025.
Union Rights: Massachusetts granted ride-share drivers the right to unionize, and Oregon required cannabis businesses to enter into "labor peace agreements" with labor organizations.
4. Proposed Legislation on Union Activities
A federal law proposed in the U.S. Senate seeks to prevent unions from using members' dues to support antisemitic positions and other hateful ideologies without explicit consent. The bill would mandate that union members "opt in" to funding activities unrelated to collective bargaining. Its passage may be challenging in the Democrat-controlled Senate, with potential concerns about free speech and union autonomy.
5. California's Private Attorneys General Act (PAGA) Amendments
California amended its Private Attorneys General Act to encourage employers to proactively address labor violations:
Penalty Reductions: Employers can benefit from up to an 85% reduction in penalties by conducting payroll audits, implementing lawful policies, and training supervisors.
Cure Period: Employers now have 60 days to correct certain violations upon receiving notice from the Labor and Workforce Development Agency.
6. Michigan's Earned Sick Time Act (MESTA)
Effective February 21, 2025, Michigan's Earned Sick Time Act requires:
Sick Leave Accrual: Employees earn sick leave every pay period instead of monthly.
Expanded Usage: Sick leave can now be used for reasons including domestic violence and related school meetings.
Part-Time Employees: Casual part-time employees will earn sick leave based on hours worked.
These developments reflect a dynamic labor law landscape, emphasizing the importance for employers and employees to stay informed about changes affecting workplace rights and obligations.
Comments