In this month’s update, we highlight significant employment law changes and practical compliance insights to keep your business compliant, minimize risk, and empower a productive workforce. Need a customized, legally compliant employee handbook? Visit our Handbook page to build yours in just a few clicks.
HR & Legal Updates
Federal: Executive Orders Now Enforceable
- As previously reported, in a challenge brought against the administration’s executive orders labeling DEI practices illegal, a federal judge issued a nationwide preliminary injunction blocking enforcement of the order, stating that the order and related agency enforcement threats are unconstitutionally vague and run contrary to the First Amendment. However, on March 14, the Fourth Circuit stayed that injunction, meaning those executive orders can now be enforced. Importantly, in staying the injunction, the court made it clear that the orders may only be enforced when federal contractors’ DEI programs violate federal anti-discrimination laws.
Arkansas Passes New Non-Compete Restrictions
- On March 4, 2025, Governor Sarah Huckabee Sanders signed SB 139, banning non-competes with physicians. Arkansas already restricted non-compete agreements with medical professionals, but certain carveouts still existed. This update more simply bans non-competes with physicians who practice medicine under the Arkansas Medical Practices Act. The law takes effect 90 days after the adjournment of the legislative session, which means the law will likely take effect in mid-July.
California Pay Data Reporting Due
- Under California’s pay transparency laws, employers with 100 or more employees hired through labor contractors are required to submit their annual pay data reports by May 14, 2025. Review the California Civil Rights Department’s page for more information and guidance.
Maine Proposes New Pay Transparency Requirements
- On March 5, 2025, the Maine legislature introduced a new wage transparency bill that would require employers with 10 or more employees to include good-faith wage ranges on all job postings for positions that would be performed in the state. We are monitoring the progress of that bill and will keep you updated with any changes.
Missouri’s Sick Leave Notice Requirements Take Effect
- On November 5, 2024, voters approved Proposition A, which provided new sick leave benefits for employees. Under the new law, employers must provide employees with written notice about earned paid sick time within 14 days of hire or by April 15, 2025, whichever is later. Employers must also begin displaying a sick leave informational poster in the workplace by April 15, 2025. Note that this new law is the subject of legislative debate and could be repealed. We’ll keep you updated with any changes.
Missouri’s Sick Leave Takes Effect May 1, 2025
- Beginning May 1, 2025, private Missouri employers need to start providing paid sick leave under Missouri’s new sick leave law. Employees earn 1 hour of paid sick leave for every 30 hours worked. There is no cap on the amount of leave employees can earn, but there is a carryover cap of 80 hours of leave and a use cap based on employer size. Employers with 15 or more employees in Missouri must allow employees to use up to 56 hours of leave per year. Those with fewer than 15 employees must allow employees to use up to 40 hours.
- The Missouri legislature is currently considering a bill that repeals Proposition A, which included both the new paid sick leave law and future minimum wage increases. The bill has passed the state House and is being considered by the state Senate. The House was unable to pass the emergency clause of the bill so if this bill is passed by the Senate and signed by the governor, it will take effect on August 28, 2025. This would mean that there will be a period in which paid sick leave will be required even if it is repealed. We are monitoring this situation closely and we will update you as things progress.
New Mexico Introduces Cannabis Testing Bill
- On March 12, 2025, the New Mexico House passed HB 230, which would provide additional protections for medical cannabis users from employment discrimination. In particular, the bill would prohibit random cannabis testing and clarify that employees cannot be considered “impaired” purely based on the presence of cannabis metabolites in drug test results. This bill still has yet to make its way to the Governor’s desk, but we will continue to monitor its progress.
North Carolina Proposes Higher Minimum Wage
- On March 10, 2025, the North Carolina legislature introduced a new bill to raise the state’s minimum wage to $10 per hour on January 1, 2026, then increase the wage by $2 per year annually until 2031, when the Commissioner of Labor would become responsible for calculating the new wage increase based on that year’s Consumer Price Index (“CPI”). We are monitoring the progress of this bill and will update our tools if anything changes.
Ohio Institutes New Pay Stub Requirements
- Ohio recently passed HB 106, which adds new pay stub requirements to Ohio Revised Code Section 4113.14. Beginning April 9, 2025, employers must include all the following information on employee pay stubs, which must be provided every pay period:
- The employee’s name;
- The employee’s address;
- The employer’s name;
- The total gross wages earned by the employee during the pay period;
- The total net wages paid to the employee for the pay period;
- A listing of the amount and purpose of each addition to or deduction made during that pay period;
- The date the employee was paid and the pay period covered by that payment;
- For hourly employees: (1) the total number of hours the employee worked in that pay period; (2) the hourly wage rate at which the employee was paid; and (3) the employee’s hours worked over forty hours in one workweek.
Virginia Updates Non-Compete Wage Thresholds
- Virginia law currently prohibits employers from entering into non-competes with low-wage employees. On March 24, 2025, Governor Youngkin signed a new non-compete bill changing the definition of a “low-wage employee.” Previously, that meant employees who earn less than the Virginia average weekly wage. Under the new definition, a low-wage employee is non-exempt under federal law. Employers may find this change beneficial because the non-exempt threshold is currently lower than the average weekly wage, and it doesn’t adjust annually like the weekly wage does. This change is scheduled to take effect on July 1, 2025.
Wyoming Adds New Non-Compete Restrictions
- Wyoming passed SF0107 on March 19, imposing new restrictions on non-compete agreements. Beginning July 1, 2025, new non-competes signed with employees who are not executive or management personnel will be invalid. The law isn’t clear about what “executive” or “management” means, but because the bill is similar to the law in Colorado, employers may look there for guidance. Non-competes signed before July 1 will still be allowed to run their course, but employers may want to update their form agreements soon.
Disclaimer: The information in this HR & Legal Update is provided for general educational purposes only and does not constitute legal advice. Akamai HR Solutions, LLC is not a law firm, and no attorney–client relationship is created by your use of this content. Laws may change or apply differently to your business. For legal guidance tailored to your specific circumstances, please consult a qualified attorney.