Akamai HR Solutions | June 2025 HR & Legal Update

June 1, 2025

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: DOL Reverts to Old Contractor Test

  • On May 1, 2025, the Department of Labor (DOL) published a Field Assistance Bulletin which provides guidance about how the agency enforces the law and pursues its mandates. In this bulletin, the DOL stated that the agency will no longer apply the Biden-era test to determine whether a worker is a contractor or employee and will, instead, revert back to using the pro-employer test created by the first Trump administration. The Biden rule is still on the books for purposes of private litigation but will not be enforced by the government. 

Federal: EEOC Sets Hard Deadline for EEO-1 Reporting

  • On May 20, 2025, the Equal Employment Opportunity Commission (EEOC) opened the 2024 EEO-1 Component 1 data collection filing platform. The EEOC set the collection window to close at 11:00 p.m. (EDT) on June 24, 2025, and has made it clear they will not accept filings after the deadline. Employers are also expected to submit all filings electronically–no communications will be made through physical mail. Covered employers will need to submit their EEO-1 reports containing the number of people they employ, broken down by job category and by sex and race or ethnicity, by the filing deadline. In response to recent executive orders, reporting requirements have undergone some changes, one of which is that employers can no longer report employees as non-binary; they must be classified as either male or female. 
  • Certain private employers and federal contractors will need to submit reports. Private employers who are subject to Title VII and have 100 or more employees during an employer-selected pay period (i.e., workforce snapshot period) in the fourth quarter (i.e., October 1 through December 31) of the reporting year must submit an EEO-1 report. Federal contractors must also submit reports if they: (1) are not exempt from the provisions of these regulations under § 60-1.5; (2) have 50 or more employees; (3) are a prime contractor or first tier subcontractor; and (4) have a contract, subcontract or purchase order amounting to $50,000 or more or serve as a depository of Government funds.
  • Employers should review the 2024 instruction booklet and the EEOC’s informational webpage for additional help.

Alaska Updates Minimum Wage 

  • On November 6, 2024, Alaska voters passed Ballot Measure 1, increasing the minimum wage to $15 per hour over three years. On July 1, 2025, the state minimum wage will be $13 per hour. That will increase by $1 per year until it reaches $15 in 2027, at which point it will increase in line with current inflation levels. 

Alaska Bans Captive Audience Meetings

  • On November 6, 2024, Alaska voters passed Ballot Measure 1, prohibiting mandatory workplace meetings about religious or political issues. Beginning July 1, 2025, employers may not punish or threaten to punish employees for refusing to attend an employer-sponsored meeting or listen to communications from the employer about its opinion on religious or political matters. We have updated the Political Activities policy in the Employee Handbook to comply with the change.

Alaska Implements Paid Sick Leave Requirements

  • On November 6, 2024, Alaska voters passed Ballot Measure 1, which, among other things, requires employers to allow employees to earn one hour of paid sick leave for every 30 hours worked. There is no cap on the amount of leave employees can earn, but employers with fewer than 15 employees are only required to allow employees to use up to 40 hours of leave per year. Employers with 15 or more employees must allow employees to use at least 56 hours of leave per year. Sick leave can be used for personal mental or physical illness, care of a family member, and leave related to domestic violence, sexual assault, or stalking. Employees start accruing sick leave beginning July 1, 2025. Employers will also need to begin providing a new onboarding notice. We have added an Alaska Sick Leave policy to the Employee Handbook, State Addenda, and Sick Leave policy.

Arkansas Clarifies 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 adjournment of the legislative session. The session was originally set to end such that the law would be effective in mid-July, but the session actually ended on May 5, 2025, meaning the law will take effect August 3, 2025.

Los Angeles, California Updates its Minimum Wage 

  • Effective July 1, 2025, the minimum wage in L.A. will be $17.87 per hour.

Los Angeles County, California Updates its Minimum Wage 

  • Effective July 1, 2025, the minimum wage in unincorporated L.A. County will be $17.81 per hour.

Los Angeles County, California Implements Predictable Scheduling Ordinance 

  • Los Angeles County’s Predictable Scheduling Ordinance will take effect on July 1, 2025. Retail employers in the unincorporated areas of LA County who have 300 or more employees worldwide will be required to provide their LA County employees with predictable schedules. Among other things, covered employers will need to provide employees with their schedules at least 14 days in advance, give them good faith estimates of their schedules before they are hired, provide at least 10 hours between shifts, and offer extra hours to current employees before hiring new workers.

Pasadena, California Updates its Minimum Wage 

  • Effective July 1, 2025, the minimum wage in Pasadena will be $18.04 per hour.

Santa Monica, California Updates its Minimum Wage 

  • Effective July 1, 2025, the minimum wage in Santa Monica will be $17.81 per hour.

Colorado Legislature Passes Additional Paid Family Leave Benefits

  • On May 2, 2025, the Colorado legislature passed a bill extending the duration of paid family and medical leave, up to an additional 12 weeks, for a parent who has a child receiving inpatient care in a neonatal intensive care unit. The law would apply to claims arising on or after January 1, 2026. The bill is currently awaiting the governor’s signature. 

Colorado Biometric Privacy Act Takes Effect

  • Beginning July 1, 2025, amendments to the Colorado Privacy Act will take effect. As a privacy law, most of the Act’s provisions don’t affect employment law, with one significant exception. Under the amendments, employers who process biometric identifiers will need to adopt written biometric data policies and obtain consent from employees before collecting biometric information. 

D.C. Updates Minimum Wage Rates

  • Minimum wage in the District of Columbia will increase to $17.95 per hour for all employers and employees on July 1.
  • ​​Starting July 1, 2025, the base minimum wage for tipped employees will also increase from $10.00 per hour to $12.00. However, if an employee’s hourly tip earnings (averaged weekly) added to the base minimum wage do not equal the District’s full minimum wage, the employer must pay the difference.

D.C. Publishes New Minimum Wage Poster

  • The District of Columbia recently updated its minimum wage poster. Employers should replace their existing posters. We’ve added the updated version to the 50-State Hiring Kit.

Florida Legislature Passes Non-Compete Restrictions for Medical Professionals

  • On April 24, 2025, the Florida legislature passed HB 1219, strengthening Florida’s pro-non-compete environment. Under this bill, garden leave agreements and non-compete agreements lasting up to 4 years that meet certain requirements are not a restraint of trade and may be enforced against certain medical professionals. This bill would also require courts to order injunctions against any parties alleged to have breached their garden leave or non-compete agreements. This bill awaits the governor’s signature. If signed, it will take effect July 1, 2025.

Chicago, Illinois Requires More Employers to Pay Out Paid Leave

  • Beginning July 1, 2025, employers with 51 or more employees eligible for Chicago Paid Leave for Any Reason must begin paying out all accrued but unused paid leave at the time of separation. Before July 1, 2025, employers with 51 to 101 covered employees only need to pay out up to 16 hours of earned but unused leave. The Chicago, Illinois Paid Leave and Paid Sick and Safe Leave policy already complies with this update, so no change is necessary.

Indiana Protects Leave to Attend Certain School Meetings

  • On April 24, 2025, Governor Braun signed SB 0409, which requires employers to provide employees with unpaid leave to attend a truancy-related attendance conference or a case conference committee meeting for their child. Employees must provide at least 5 days’ advance notice and may be required to provide documentation of the need for the leave. This law is effective July 1, 2025. We have updated the Employee Handbook, State Addenda, and School Leave policy to comply with this change.

Indiana Bans Physician Non-Competes

  • On April 6, 2025, Governor Braun signed SB 0475, banning non-compete agreements with physicians. All physician contracts signed after July 1, 2025, that have the purpose or effect of restricting the physician’s post-employment ability to practice medicine will be void and unenforceable. Non-disclosure and non-solicitation agreements that meet certain specifications are not prohibited.

Iowa Removes Gender Identity From its Protected Characteristics

  • Beginning July 1, 2025, Iowa’s list of protected characteristics will no longer include gender identity.

Kansas Clarifies Non-Compete Restrictions

  • On April 8, Kansas passed a new bill to clarify which types of contracts are restricted by the Kansas Restraint of Trade Act. Effective July 1, 2025, customer and employee non-solicitation agreements are presumed to be enforceable in Kansas. The amendment also requires that if an agreement is found to be overbroad or otherwise unenforceable, courts are to modify the agreement to the extent necessary to enforce it. 

Maine Publishes New Family and Medical Leave Poster

  • Maine recently updated its minimum wage poster. Employers should replace their existing posters. We’ve added the updated version to the 50-State Hiring Kit.

Maryland Non-Compete Restrictions for Medical Professionals Take Effect

  • Last year, Maryland passed HB 1388, which institutes new non-compete restrictions for medical professionals. Effective July 1, 2025, the only valid medical professional non-competes in the state will be those with employees who are required to be licensed under the Health Occupations Article and earn over $350,000 per year providing direct patient care, and those with veterinarians licensed as a practitioner or veterinary technician under the Agriculture Article. Agreements must be limited to a length of one year and may not restrict employees from working for competitors more than 10 miles from their primary place of employment.

Maryland’s Paid Family and Medical Leave Program Contributions Begin

  • Last year, Maryland instituted a new Paid Family and Medical Leave Program which was slated to begin collecting employer contributions on July 1, 2025, and providing benefits to employees a year later. However, citing the high instability of federal support created by the Trump administration’s policies, Governor Moore signed HB 102 on May 6, 2025, delaying that start date until January 1, 2027, with employees not eligible to collect benefits until 2028.

Maryland Excludes Certain Employers from Parental Leave Requirements 

  • Governor Moore also signed SB 785, which exempts Maryland employers who are covered by the federal FMLA from the state’s unpaid parental leave requirements. This law takes effect on October 1, 2025. 

Montgomery County, Maryland, Raises Minimum Wage

  • Effective July 1, 2025, the minimum wage in Montgomery County will be $17.65 per hour for employers with 51 or more employees, $16 per hour for employers with 11-50 employees, and $15.50 for employers with 10 or fewer employees.

Minneapolis, Minnesota Expands Anti-Discrimination Protections

  • On May 12, 2025, Minneapolis amended its anti-discrimination ordinance to add to the list of protected classes. Effective August 1, 2025, all Minneapolis employers are prohibited from discriminating against employees or potential employees based on justice-impacted status, housing status, height and weight, or any combination of protected characteristics. Most notable among these is the protection against discrimination based on a person’s justice-impacted status. “Justice-impacted status” is the city’s vernacular for criminal history, which includes any prior arrest, charge, conviction, time spent incarcerated, or probationary status. Employers can still use that information to make employment decisions, but only after they have gone through an appropriate review process using the factors laid out by the ordinance.

St. Paul Raises Minimum Wage

Missouri Legislature Passes Sick Leave Repeal

  • Beginning May 1, 2025, Missouri employers were required to begin providing sick leave to their employees. However, on May 14, 2025, the Missouri legislature passed HB 567. If signed by the governor, the new sick leave law will be repealed effective August 28, 2025. We are monitoring this bill and will alert users to any repeal. Even if the law is repealed, though, employers will still need to provide sick leave to employees until August 28, at least.

Montana Passes New Non-Compete Restrictions

  • Montana Governor Gianforte signed HB 198 last month, expanding the coverage of the non-compete law. The law previously prohibited post-employment non-competes with psychiatrists, social workers, professional counselors, addiction counselors, marriage and family therapists, and behavioral health specialists. Effective immediately, the same restrictions apply to registered professional nurses or advanced practice registered nurses, physician assistants, and naturopathic physicians.

Nebraska Attempts to Limit Voter-Approved Sick Leave

  • Last November, Nebraska voters approved a new sick leave law. That law was set to take effect on October 1 and would require employers with 20 or more employees to provide up to 7 days of sick leave per year, and would require employers with fewer employees to provide up to 5 days per year. However, on May 28, 2025, the Nebraska legislature passed Legislature Bill 415, allowing businesses to withhold paid sick leave from 14- and 15-year-olds, as well as from temporary and seasonal agricultural workers. This bill would also not require sick leave from employers with 10 or fewer employees and would remove the ability of employees to bring their claims against employers for retaliating against them for using sick leave. This bill is currently awaiting the governor’s signature.

New Hampshire Lactation Accommodation Policy Requirement Takes Effect

  • Beginning July 1, 2025, New Hampshire will begin requiring employers with 6 or more employees in the state to implement a lactation policy that provides nursing mothers with appropriate break time and space to express milk. Employers will also need to notify new employees of the policy upon hire. The State Addenda has been updated to comply with this change. No change is necessary for the Employee handbook.

New Jersey Proposes New Contractor Test

  • On May 5, 2025, the New Jersey Department of Labor (DOL) published a new set of proposed rules clarifying the state’s ABC test to determine whether a worker is an employee or a contractor. Beginning May 5, 2025, the agency began its 60-day notice and comment period for the proposed rules. After the notice and comment period, if the agency adopts the rules as they are proposed, employers who wish to prove that a worker is a contractor must show that: (1) they do not exercise control over the worker; (2) the services the worker performs are outside the scope of the employer’s normal business; and (3) the worker is “customarily engaged in an independently established trade, occupation, profession or business.” 

New Jersey Pay Transparency Law Takes Effect

  • Last year, New Jersey enacted a new wage transparency law that takes effect June 1, 2025. Under these new provisions, employers with 10 or more employees in the state must include in all job postings the pay range or specific wage rate for the position and a general description of benefits and other compensation available for the position. Employers can face fines up to $600 per violation. We have updated our Job Posting tool to comply with these new requirements. 

New York Retail Worker Safety Act Takes Effect

  • On September 4, 2024, Governor Hochul signed the Retail Worker Safety Act (RWSA) into law. Effective June 2, 2025, the RWSA requires employers with at least 10 retail employees to develop a workplace violence prevention policy and workplace violence prevention training. Employers may develop their own policies and training or use the model plans to be released by the NYDOL. Further, beginning January 1, 2027, employers with 500 or more retail employees nationwide must provide access to panic buttons for employees to immediately contact police.

New York Increases Jury Duty Pay

  • On May 9, 2025, Governor Hochul signed the state budget, A 3005C, which includes an increase to the daily rate for jury duty from $40 to $72. Employers with 11 or more employees (the law doesn’t specify which employees to count) must pay employees this rate for their first 3 days of jury duty. The state pays this rate to employees of smaller employers. The new rate is effective June 8, 2025. We have updated the Employee Handbook, State Addenda, and Jury Duty Leave policy for larger employers to comply with this change.

New York COVID-19 Paid Emergency Leave Expires

  • In 2020, New York enacted COVID-19 Paid Emergency Leave (PEL) requiring employers to provide up to 14 days of protected, paid leave to employees who were required to quarantine due to COVID. Last year, Governor Hochul signed the state budget which included an expiration date for PEL. Beginning July 31, 2025, employers will no longer be required to provide PEL. 

Cleveland, Ohio Enacts Pay Transparency Ordinance

  • On May 9, 2025, the Cleveland City Council published the City Record containing updates to the City code. Under Ordinance No. 104-2025, employers with 15 or more employees in Cleveland must include the pay range for open positions in all job postings. Employers also may not ask applicants about their salary history or make any employment decisions based on an applicant’s salary history if they already have it (if the employee is interviewing for an internal promotion, for example). These new restrictions and requirements take effect on October 27, 2025.

Ohio Allows Digital Notices

  • Beginning July 20, 2025, Ohio employers will be allowed to post their required workplace posters either physically or digitally. Ohio recently passed SB 33, specifically allowing employers to post certain workplace notices on the internet instead of in a physical location. The following posters will now be required to be posted either physically or “posted on the internet so that [they are] accessible to the employer’s employees.” 
    • Child Labor
    • Minimum Wage
    • Fair Employment Practices Law
    • Workers’ Compensation
    • Rebuttable Presumption Law (must be displayed in the same place as Workers’ Compensation poster)

Oregon Limits Pre-Employment Inquiries

  • On May 16, the Oregon Senate passed HB 3187, restricting questions employers can ask in the hiring process. Under this bill, to protect applicants from age discrimination, employers will be prohibited from requesting or requiring applicants to disclose their age, date of birth, or when they attended or graduated from any educational institution. If not vetoed by the Governor, this bill is scheduled to take effect on September 28, 2025.

Oregon Raises Minimum Wage

  • Effective July 1, 2025, the minimum wage will be $16.30 per hour in the Portland metro area, $15.05 per hour in standard areas, and $14.05 per hour in non-urban areas.

Oregon Updates Workplace Posters

  • Oregon updates its required employment posters annually on July 1. Review the state website for updated posters after July 1. We will update our 50-State Hiring Kit with new posters as they become available.

Philadelphia Passes POWER Act

  • On May 27, 2025, Philadelphia Mayor Parker signed the POWER Act, creating broad protections for Philadelphia employees. The act prohibits employers retaliating against employees for exercising their rights under the law, grants employees the right to direct compensation if their rights are infringed, empowers the DOL to investigate and pursue violations of the law, grants greater protections for immigrant workers, and raises the hourly paid sick leave rate for tipped workers. This ordinance took effect immediately upon signature.

Vermont Pay Transparency Requirements Take Effect

  • Vermont Governor Scott signed H. 704 on June 4, 2024, implementing new wage transparency requirements. Effective July 1, 2025, employers with 5 or more employees will be required to include a good faith wage range in all job postings for positions that will be (1) located in Vermont or (2) that will be performed remotely for an office or work location that is physically located in Vermont. We have updated our Job Posting tool to comply with these new requirements. 

Virginia Implements Hospital Workplace Violence Incident Reporting Requirements

  • Beginning July 1, 2025, Virginia HB 2269 requires hospital employers to establish a workplace violence incident reporting system to “document, track, and analyze any incident of workplace violence reported.” They must then use those reports to “make improvements in preventing workplace violence.” The reporting system must be clearly communicated to employees and provide guidelines on when and how to report workplace violence. Incident reports must be retained for at least 2 years and include:
    • The date and time of the incident;
    • A description of the incident, including the job titles of the affected employee;
    • Whether the perpetrator was a patient, visitor, employee, or other person;
    • A description of where the incident occurred.
    • Information relating the type of incident, including whether the incident involved (i) a physical attack without a weapon; (ii) an attack with a weapon or object; (iii) a threat of physical force or use of a weapon or other object with the intent to cause bodily harm; (iv) sexual assault or the threat of sexual assault; or (v) anything else not listed in subdivisions (i) through (iv); 
    • The response to and any consequences of the incident, including (i) whether security or law enforcement was contacted and, if so, their response and (ii) whether the incident resulted in any change to hospital policy; and
    • Information about the individual who completed the report, including such individual’s name, job title, and the date of completion.

Virginia Non-Compete Restrictions Take Effect

  • 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 also one who is non-exempt under federal law. This change is scheduled to take effect on July 1, 2025.

Burien, Washington Updates Minimum Wage

  • Beginning July 1, 2025, the minimum wage in Burien will increase for mid-sized employers. Starting in July, the minimum wage for employers with 21-499 employees in King County will be $20.16 per hour. Employers with fewer employees must pay the state minimum wage, and those with more employees must pay $21.16. Those wages for both small and large employers have been in place since January, so the only update is for larger employers.

Everett, Washington Implements Minimum Wage Law

  • The minimum wage law in Everett takes effect on July 1, 2025. Employers with 501 or more employees worldwide must pay employees a minimum wage of $20.24. For employers with 15-500 employees worldwide or with annual gross revenue of more than $2 million, the minimum wage will be $18.24. Employers with fewer than 15 employees must follow the state minimum wage.

Renton, Washington Raises Minimum Wage

  • Beginning July 1, 2025, the minimum wage in Renton will increase for mid-sized employers. Starting in July, the minimum wage for employers with at least 15 but no more than 500 employees worldwide or over $2 million of annual gross revenue in Renton will be $19.90 per hour. Employers with fewer employees must pay the state minimum wage, and those with more employees must pay $20.90. Those wages for both small and large employers have been in place since January, so the only update is for those mid-sized employers. 

Washington Legislature Passes Amendment to Pay Transparency Law

  • Washington has required employers to include wage ranges in job postings under the Equal Pay and Opportunities Act (EPOA) since 2023. Employers who violated the EPOA faced fines up to $5,000 per violation. As a result, employers faced enormous liability as hundreds of class action lawsuits were filed against them under the EPOA. To address that issue, Washington Governor Ferguson signed SSB 5408 on May 20, 2025, amending the EPOA. The most significant update created by SSB 5408 is that, effective July 27, 2025, employers will be allowed up to 5 days to fix any deficient job posting after they have received notice of its deficiency. This cure period will only be in effect until July 27, 2027, however. The legislature expects employers to comply with these job posting requirements by then. 

Washington Expands Use of Paid Sick Leave

  • On April 25, 2025, Governor Ferguson signed HB 1875, requiring employers to allow employees to use their paid sick leave to prepare for or participate in immigration proceedings either for themselves or their family members. These changes take effect July 27, 2025. We have updated the Employee Handbook, State Addenda, and Sick Leave policy to comply with this change.

Washington Expands Equal Pay Protections

  • Washington’s Equal Pay and Opportunity Act currently prohibits discrimination in pay on the basis of gender. The state recently passed amendments to the Act to include not only gender, but age, sex, marital status, sexual orientation, race, creed, color, national origin, citizenship or immigration status, veteran or military status, physical or mental disability, and the use of trained service animals by a disabled person. Beginning July 1, 2025, employers who discriminate in compensation based on any of those protected classes are guilty of a misdemeanor.

Washington Passes Mini-WARN Act

  • On May 13, 2025, Governor Ferguson signed SB 5525, requiring employers to provide notice to employees of mass layoffs and business closures. Effective July 27, 2025, employers with 50 or more full-time employees must provide at least 60 days’ notice to affected employees, union representatives, and members of the state government of site closings or mass reductions in force (RIFs). The new law also protects certain employees from inclusion in RIFs, such as those taking paid family or medical leave under the Washington Paid Family and Medical Leave law, and imposes penalties upon employers who fail to provide appropriate notice..

West Virginia Repeals Minor Work Permit Requirements

  • On April 14, 2025, Governor Morrisey signed SB 427, amending the state’s child labor law. Effective July 1, 2025, West Virginia employers will no longer need a work permit to hire minors. Once the new law takes effect, employers who wish to hire minors under 16 are only required to keep on file a record of written parental consent and a DOL certificate verifying the minor’s age for each minor they employ. 

Wyoming Non-Compete Restrictions Take Effect

  • Wyoming passed SF0107 on March 19, 2025, 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 doesn’t make clear exactly what is meant by “executive” or “management.” 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.