2025 HR Compliance Updates: What Employers Need to Know 

Written By Dylan Benedict

Stay Ahead of the Curve with This Year’s Must-Know Regulatory Changes 

HR compliance is always evolving and 2025 is no exception. With new federal and state regulations taking effect, it’s more important than ever for employers to stay informed and proactive. 

At HRBuffalo, we work with growing businesses to navigate compliance confidently. Below is a breakdown of key updates you should be aware of in 2025, and what steps to take to stay compliant and protect your business. 

1. Federal Overtime Rule Changes (Effective July 1, 2025) 

The U.S. Department of Labor is increasing the salary threshold for overtime exemption under the Fair Labor Standards Act (FLSA). 

  • New minimum salary: $58,656 per year (or $1,128 per week) 

  • Applies to: Executive, administrative, and professional (EAP) employees 

  • Note: New York State has its own minimum salary thresholds that may differ from the federal standard. 

What Employers Should Do: 

  • Review current employee salaries to determine who may be impacted. 

  • Reclassify employees or adjust pay as needed to maintain exempt status. 

  • Communicate any changes to affected employees in advance. 

  • Update job descriptions and timekeeping practices accordingly. 

2. Minimum Wage and Overtime Salary Threshold Updates in New York 

New York State continues its annual increases to the minimum wage. Beginning January 1, 2025, the hourly minimum wage is: 

  • $16.50 in New York City, Long Island, and Westchester County 

  • $15.50 across the rest of the state 

 3. Paid Leave Laws Expanding at the State Level 

Several states have expanded paid family and medical leave programs in 2025, and new local laws are taking effect around paid sick leave and bereavement leave. 

  • NY State: Clarified guidance around leave stacking, intermittent leave, and mental health conditions 

  • Some states now allow paid leave to care for chosen family, not just immediate relatives 

What to Do: 

  • Audit your current leave policies 

  • Ensure handbooks reflect the most current state and local requirements 

  • Train managers on how to respond to leave requests appropriately and legally 

 3. Pay Transparency Requirements 

More states and cities are enacting pay transparency laws in 2025, requiring: 

  • Salary ranges in job postings 

  • Internal access to compensation bands 

  • Disclosures during the interview or offer process 

Even if you’re not in a state with current legislation, pay transparency is becoming the new norm. 

What to Do: 

  • Establish formal pay bands and document compensation decisions 

  • Update job descriptions and postings accordingly 

  • Conduct a pay equity audit to mitigate risk and build trust 

 4. Mental Health Accommodations and ADA Enforcement 

The EEOC continues to emphasize enforcement around mental health protections under the ADA. 

  • Employers must engage in the interactive process 

  • Reasonable accommodations can include flexible scheduling, remote work, or workload adjustments 

 What to Do: 

  • Update ADA accommodation request procedures 

  • Train supervisors on handling mental health disclosures 

  • Document all accommodation conversations carefully 

 5. Remote and Hybrid Work Policies Need Updating 

With more employers offering flexible work options, 2025 brings new expectations for clarity and consistency in remote work policies. 

  • Tax implications for multi-state workers 

  • Safety and reimbursement concerns for home offices 

  • Data security and confidentiality measures 

What to Do: 

  • Formalize or update your remote work policy 

  • Consider remote onboarding and performance management procedures 

  • Consult legal counsel if you have remote employees in multiple states 

 Final Thought: Don’t Wait Until It’s an Emergency 

HR compliance isn’t just about avoiding fines—it’s about building a fair, ethical, and sustainable workplace. The 2025 changes present an opportunity to modernize your policies, protect your business, and take better care of your team. 

At HRBuffalo, we specialize in proactive, practical HR support for growing businesses. Whether you need help auditing your handbook, conducting a pay equity review, or training your managers, we’re here to help you stay compliant and confident. 

Not sure where to start with 2025 compliance updates? 
Let’s talk. Schedule a consultation with HRBuffalo today, and we’ll help you put a plan in place. 

Dylan Benedict