With the second quarter of 2025 on the horizon, here is a snapshot of a few HR and employment law updates impacting employers.
The Trump Administration has promised increased Form I-9 enforcement, and many experts are warning employers to expect increased ICE audits (U.S. Immigration and Customs Enforcement). HR Tip: take time to internally audit and review your Form I-9s to ensure your organization is in compliance.
As a friendly reminder, covered employers are required to post OSHA Form 300A from February 1st through April 30th. The requirement applies, even if you didn’t have any recordable injuries in 2024. Tack up OSHA 300A near the area where you post your employment law posters.
The new Minnesota Paid Leave law takes effect on January 1, 2026, and will cover most employers in the state. Minnesota will join thirteen other states and the District of Columbia in providing a paid leave program.
The new law will provide two primary types of paid leave:
Upon implementation, eligible individuals will be entitled to a maximum of twelve weeks of family leave or a maximum of twelve weeks of medical leave in one benefit year. If an individual uses both medical and family leave within a single benefit year, paid leave will max out at twenty weeks.
On February 21, 2025, Minnesota DEED (Department of Employment and Economic Development) finally confirmed the premium rate for the new law will be 0.88 percent.
The premium rate is a percentage of wages that will be paid by the employee and the employer to fund the program. The first premium payments will be due on April 30, 2026, and will be based on wage detail reported between January 1, 2026, and March 31, 2026.
DEED has published a new calculator tool to assist employers in estimating costs under Paid Leave. Small employers (currently defined as having 30 or fewer employees) will pay a reduced premium rate, and the new calculator will assist with calculating these rates and provides an explanation of who is eligible and how the rate is applied.
DEED also issued guidance for employers opting for private plans. To comply with the new law, employers will have three options: (1) pay into the state-run plan; (2) apply to administer their own private plan; or (3) purchase a qualifying plan from a third-party insurance carrier. Both options (2) and (3) must be approved by the state. Employers approved for an equivalent plan will not pay premiums to the state, but must still submit wage detail reports each quarter and comply with notice requirements. Employers can begin to apply for an equivalent plan exemption in the spring of 2025.
According to the Director of Government Relations, Deven Bowdry, DEED is prepared to implement the program in January of 2026.
However, a bill (HF11) authored by Representative Dave Baker (R-Willmar) would delay implementation of the law by one year — from January 1, 2026, to January 1, 2027. According to the League of Minnesota Cities, it (along with the Association of Minnesota Counties, Minnesota Inter-County Association, Minnesota School Boards Association, and the Minnesota Association of Townships) submitted joint written testimony advocating for modifications to Minnesota Paid Leave before it takes effect. Stay tuned for updates.
The salary threshold had a rollercoaster ride last year. As a reminder, DOL (U.S. Department of Labor) increased the Fair Labor Standards Act (FLSA) annual salary level threshold on 7/1/24 to $43,888 ($844 per week) for executive, administrative, and professional exemptions (typically referred to as the white collar exemptions). The next increase to $58,656 ($1,128 per week) was slated to take effect on 1/1/25.
On November 15, 2024, a U.S. District Court Judge blocked DOL’s planned increase to the exempt salary threshold. The Court’s decision not only blocked the planned 1/1/25 increase, it rolled back the 7/1/24 increase. As a result, the salary threshold for white-collar exemptions returned to the previous level of $684 per week ($35,568 annually) on a nationwide basis for all employers.
As a reminder, effective 1/1/25, any “person or entity that employs 30 or more employees” in Minnesota must disclose in job postings “the starting salary range” and a general description of the benefits and other compensation that will be offered to the applicant hired for the position. This follows a growing trend towards increased transparency in job posts.
Stay tuned for updates and consult with a trusted advisor to fully understand how these laws impact your organization.
Unsure how to navigate the complexities of workplace romance? Check out our blog post for tips and guidelines.
About the Author
HR thought leader, Stacy Johnston, provides innovative HR solutions with a mission to support organizations in understanding and engaging their biggest competitive advantage… their employees. Johnston writes and speaks about contemporary HR topics. She is a licensed attorney and holds the SHRM-CP credentials.
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