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.
Last month we published a special update on all the new employment laws and minimum wage increases that took effect on January 1, 2025. Please take some time to review these important updates.
Before we jump into our employment content, we want to give you an update on the back-and-forth litigation over the Corporate Transparency Act’s filing deadline. Currently, the beneficial ownership reporting requirement is on pause, and no companies are required to report. The initial reporting date deadline of January 1, 2025, was paused by a federal court in December. An appeals court then reinstated the reporting requirement but gave companies until January 13 to file their report. Then, most recently, on December 26, the appeals court changed course and put a pause on the reporting requirement. Long story short: companies have no obligation to report, but that might change as litigation continues. The government has asked the Supreme Court to put the reporting requirement back in place. We’ll keep you updated as things change.
HR & Legal Updates
Idaho Publishes an Updated Labor Poster
Idaho’s Department of Labor published new versions of its Discrimination in Employment, Unemployment Insurance Benefits, and Minimum Wage posters. Those can be found in the state’s combined labor poster.
Massachusetts Wage Data Reports Due February 1
Under the state’s Act Relative to Salary Range Transparency, employers with at least 100 employees in Massachusetts must file a wage data report with the state by February 1, 2025.
Michigan Minimum Wage and Sick Leave Change Next Month
Thanks to a Michigan Supreme Court decision, Michigan’s minimum wage is set to increase to $12.48/hour on February 21, 2025, after it just increased to $10.56/hour on January 1.
Beginning February 21, 2025, employers must pay tipped employees at least $5.99 per hour in direct wages. The maximum tip credit will be $6.49, which makes up the difference to reach the minimum wage of $12.48/hour. Employers must ensure that employees receive at least the minimum wage when cash wages and tips are combined. If tips don’t cover the gap, the employer must pay the difference.
Voter-backed expansion of paid sick leave also takes effect on February 21st. The changes include removing the 50-employee threshold for the law and instead requiring employers with at least one employee to provide paid sick leave to their employees. Employers with 10 or more employees must allow employees to accrue and use up to 72 hours of paid sick leave per year. Employers with less than 10 employees must allow employees to accrue and use up to 40 hours of leave per year.
Missouri Businesses Sue to Stop Voter-passed Minimum Wage and Sick Leave
On December 6, 2024, the Missouri Restaurant Association, the Missouri Chamber of Commerce, and others filed a lawsuit with the Missouri Supreme Court challenging the constitutionality of Proposition A. Missouri voters passed Proposition A in November 2024 which increases the state minimum wage to $13.75 beginning January 1, 2025, and creates up to 7 days of paid sick leave per year beginning May 1, 2025. Despite the legal challenge, the new minimum wage is currently effective. We will keep you updated as the situation develops.
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.