5 HR-Related Regulatory Developments to Keep an Eye on for 2025

2025 promises to be a busy year for labor law as a new administration returns to the White House. Of course, it’s not just federal changes we’re keeping an eye on. There are a plethora of state initiatives coming down the pike as well.  

Our job is to help you and your clients stay in compliance by keeping track of any regulatory changes that could affect how you pay your clients’ employees or manage their benefits.

To get you ready for the wild ride that might be headed our way, PrismHR has compiled a list of “25 Payroll & HR Legal Developments to Watch in 2025” as well as our suggestions on how to handle those changes or potential changes.  
 
Grab your bag of popcorn. Things could start popping up in the coming months. Here are a few areas we’re keeping an eye on for you and your clients. 

1. E-Verify+ Expansion: E-Verify+ will streamline the employment verification process in 2025. The new system integrates the completion of the Form I-9 into the verification service via a digital platform, and allows employees to carry their verification to subsequent employers. The U.S. Citizenship and Immigration Services (USCIS) first launched E-Verify+ on a trial basis in May 2024. By November, 2,500 employers were registered to use the service. While current system limitations may dissuade some employers, look for improvements and increased adoption in 2025. 
    

2. Mandatory E-Verify for All? E-Verify is optional for most employers, except where required by state law and federal contractors. Reports indicate President Donald Trump supported some form of mandate during his first term, though it never materialized. Additionally, in June of 2024, six senators, including Vice President-elect JD Vance, introduced the Mandatory E-Verify Act to phase in the requirement for all private-sector employers. While the bill is still in its early stages, it keeps mandatory E-Verify on the table in 2025. It also suggests that alternative measures to spur voluntary adoption could be on the horizon if it fails to advance. 
    

3. Job Posting Requirements Coming to a State Near You: Under the Equal Pay for Equal Work Act, which went into effect in 2021, Colorado was the first state to require employers to disclose compensation ranges and benefits to prospective employees in job postings. While other jurisdictions have slowly adopted similar provisions since then, 2025 will mark the biggest expansion yet. There are five states that have entered or are entering the fold this year: Illinois and Minnesota (went into effect Jan. 1); New Jersey (June 1); Vermont (July 1); and Massachusetts (Oct. 29). 
    

4. Federal Construction Contractors: On Nov. 25, 2024, the Office of Federal Contract Compliance Programs reinstated the CC-257 Monthly Employment Utilization Report for federal construction employers. This report details employee count and hours worked broken down by employee construction trade classifications, race/ethnicity and gender. Reports are due by the 15th of every month for the prior month, with the first due April 15, 2025. 
    

5. Minimum Wage Expansion: With the federal minimum wage stuck on $7.25 since 2009, a growing number of state and local jurisdictions have adopted or increased their own rates year over year. On Jan. 1, 2025, alone, rates increased in 48 local jurisdictions and 21 states. By the end of 2025, at least 88 jurisdictions will have made updates, which is up 22% from 72 jurisdictions in 2020. Interestingly, both Alaska and Michigan will have two rate increases this year because of a successful ballot initiative and resolution of long-standing litigation about a ballot initiative, respectively. 

Download the new white paper “25 Payroll & HR Legal Developments to Watch in 2025” today to learn more about the other potential changes on our radar.