Minimum Wages & Compliance Changes

Federal updates

JULY 4, 2025

H.R. 1, "The One Big Beautiful Bill Act," includes several significant changes that are relevant to employers for payroll, employment tax and employee benefits purposes. The law extends or modifies several elements of the 2017 Tax Cuts and Jobs Act and introduces new deductions to eliminate federal income taxes on certain tipped wages and overtime pay.

State and local updates

ALABAMA

JUNE 30, 2025

Alabama's exclusion of overtime pay from state taxation ends. Alabama excluded amounts received by a full-time hourly wage-paid employee as compensation for work performed in excess of 40  hours in a week from gross income for state income tax purposes. This tax exemption ended June 30, 2025.

ALASKA

JULY 1, 2025

Alaska minimum salary for overtime exemption increase twice in 2025. Since voters approved a ballot measure to increase the state’s minimum wage to $13 per hour on July 1, 2025, the state’s minimum salary required for exemption from overtime increased again, to $1,040 per week.

Alaska voters approve paid sick leave requirement. Alaska requires employers to provide paid sick leave to employees. The state has also released guidance on the new paid sick leave requirements.

Alaska bars mandatory meetings on religious or political matters. Alaska prohibits employers from taking adverse action against employees because they refuse to attend an employer-sponsored mandatory meeting that communicates the opinion of the employer about religious or political matters.

COLORADO

MAY 16, 2025

Colorado clarifies protections for gender expression. Colorado has expanded the definition of gender expression to include “chosen name” and “how an individual chooses to be addressed."

AUGUST 6, 2025

Colorado amends rules on deductions, broadens non-retaliation protections. Colorado will amend rules on payroll deductions and expanded nonretaliation protections under the state’s wage and hour and youth employment laws.

ILLINOIS

JULY 1, 2025

Chicago to phase out tipped minimum wage.  The minimum cash wage for tipped employees increased to 76% of the full minimum wage.

INDIANA

JULY 1, 2025

Indiana protects employees who attend certain school meetings. Indiana prohibits an employer from taking adverse action against an employee for missing work to participate in a school attendance conference or a case conference committee meeting with respect to the employee's child. 

MAINE

SEPTEMBER 24, 2025

Maine adopts pay requirement for reporting to work. Maine will require employers to pay an employee for a certain amount of hours when the employee is asked to report to work and is sent home early.

Maine clarifies carryover under paid leave law. Maine has clarified the rules for carrying over unused leave under the state’s paid leave law. 

MARYLAND

JULY 1, 2025

Maryland delays paid family and medical leave program again. Maryland has delayed the implementation of a program that will provide job protection and wage-replacement benefits to employees who need time off from work for certain family and medical reasons. Contributions by covered employees and employers with 15 or more employees will now begin January 1, 2027.

MINNESOTA

JULY 1, 2025

Minnesota clarifies and amends paid sick leave law. Minnesota has clarified and amended aspects of the state’s paid sick leave law; most provisions took effect on July 1, 2025.

MISSOURI

MAY 1, 2025

Missouri requires paid sick leave for limited time.  Missouri enacted legislation that requires all employers to provide paid sick leave to employees. However, the state has now enacted legislation that repeals the paid sick leave requirements beginning August 28, 2025. 

NEVADA

JULY 1, 2025

Nevada employees' contributions to state-run retirement plan to begin. Nevada requires covered employers to enroll eligible employees in a retirement program that may include the Nevada Employee Savings Trust. Employee contributions began July 1, 2025.

NEW HAMPSHIRE

JULY 1, 2025

New Hampshire adds lactation accomodations. New Hampshire requires employers to provide unpaid time for employees to express milk.

NEW JERSEY

JUNE 1, 2025

New Jersey enacts pay transparency law. New Jersey requires greater transparency in pay and promotional opportunities. The state has also released guidance on its pay transparency law.

NEW YORK

MAY 5, 2025

MAY 9, 2025

JUNE 1, 2025

New York adds protections for warehouse workers. New York's Warehouse Worker Injury Reduction Act adds safety protections for certain warehouse workers.

New York City expands Employee Earned Safe and Sick Time Act (ESSTA) protections. New York City has amended rules under the ESSTA relating to paid personal prenatal leave. 

JUNE 2, 2025

New York takes action to prevent violence in retail. The Retail Worker Safety Act requires employers with 10 or more retail employees to implement a workplace violence prevention policy and provide training and notice on workplace violence prevention to employees.

JUNE 8, 2025

New York increases jury duty pay. The New York State Budget for fiscal year 2025-2026 has increased the amount of pay that certain employers must pay to employees on jury duty leave. 

JUNE 19, 2025

New York enacts Fashion Workers Act. New York's Fashion Workers Act added workplace protections related to working with models in New York. 

OREGON

MAY 7, 2025

Oregon expands lactation protections. Oregon has expanded lactation protections to agricultural workers.

SEPTEMBER 28, 2025

Oregon clarifies hiring protections related to age. Oregon will prohibit employers from requesting or requiring the disclosure of an applicant’s age, date of birth, or when the applicant attended or graduated from any educational institution in certain areas of the hiring process.

PENNSYLVNIA

MAY 27, 2025

Philadelphia expands paid sick leave requirements. The City has expanded employer requirements, such as wage, notice, recordkeeping and nonretaliation under the city’s paid sick leave law. The City has also clarified how to calculate the paid sick leave rate for tipped employees.

RHODE ISLAND

JUNE 24, 2025

Rhode Island enacts menopause protections.  Rhode Island expanded its law requiring accommodation of pregnancy-related conditions to include menopause-related conditions. 

TEXAS

SEPTEMBER 1, 2025

Texas prohibits nondisclosure and confidentiality agreements for claims of sexual assault. Texas will prohibit nondisclosure and confidentiality provisions regarding sexual abuse. 

Texas adds nurse staffing protections. Texas to add certain protections related to nurse staffing in hospitals. 

UTAH

JULY 1, 2025

Utah hiring law expires. A law that helps shield employers from negligent hire claims based solely on the evidence that the hired worker was previously convicted of an offense in Utah or another jurisdiction has expired.

VERMONT

JULY 1, 2025

Vermont requires pay disclosure. Vermont now requires employers to include pay ranges in job postings and advertisements.

Vermont expands Parental and Family Leave Act and short term family leave. Vermont has expanded protections under the Vermont Parental and Family Leave Act. The state has also expanded short term family leave protections. 

Vermont creates state-sponsored retirement savings program. Vermont has created a state-sponsored retirement savings program. Covered employers that do not offer a retirement plan must register or certify their exemption to the Vermont Saves program in a phased implementation beginning July 1, 2025 through July 1, 2026.

VIRGINIA

JULY 1, 2025

Virginia requires hospitals to implement workplace violence prevention plan. Virginia now requires hospitals in Virginia to create a system to help prevent violence in the workplace.

WASHINGTON

 MAY 5, 2025

Spokane, Washington restricts address use in hiring process. Spokane, Washington added restrictions on how employers may use an applicant’s address in the hiring process. 

JULY 1, 2025

Washington adds immigration status protections. The state of Washington prohibits an employer from coercing a worker based on the worker’s immigration status.

JULY 27, 2025

Washington expands paid sick leave. The state of Washington has amended its paid sick leave law to allow employees and transportation network company drivers to use paid sick leave to prepare for or participate in a judicial or administrative immigration proceeding. 

Washington amends pay transparency law. The state of Washington has amended requirements under its Equal Pay and Opportunities Act. 

Washington clarifies employee access to personnel records and termination information. The state of Washington has redefined what constitutes a personnel record and adds employer requirements related to personnel records.

Washington requires notice before certain layoffs. The state of Washington has added employer requirements surrounding mass layoffs and business closures.