Employment laws are changing. Across the country, employers will face new HR regulations in 2025, ranging from updates to mandated minimum wages to changing retirement plan requirements.
Keeping up with these varied and ever-changing requirements is extremely challenging. It consumes valuable time and resources. Time and resources you could be spending on growing your business. As we head into the new year, it is more important than ever to understand these changes. Here are a few key changes on the horizon and how Pinnacle Employee Services (PES) can help you overcome them.
Changes to Wage and Overtime Requirements
Staying aligned with wage and overtime requirements is difficult. Especially since 21 states will be increasing their minimum wage in 2025, and updates often vary by regions within a state. Minimum wage increases are becoming more regular with many states implementing tiered systems based on cost-of-living adjustments or employer size. For instance, New York sets different minimum wage rates for New York City, Long Island, Westchester County, and the rest of the state. This makes it challenging for employers operating in multiple jurisdictions to develop consistent policies. Furthermore, areas like New York City have put in place predictive scheduling laws requiring employers to give advanced notice of work schedules. This is meant to improve transparency and stability for workers but also increases the administrative burden for employers.
There are a few ways Pinnacle Employee Services can make it easier to adapt to changing wage and overtime regulations.
- Monitor updates regularly: Our team regularly monitors changes in federal, state, and local wage regulations. As a regional HR solutions provider, we are uniquely positioned to help you navigate the complex wage laws in New York state.
- Streamline payroll processes: We help you optimize payroll processing and ensure that your business is compliant with all wage regulations. We’ll help you reduce errors and admin headaches so you can focus on growing your business.
Retirement Program Changes Under Secure 2.0
The Secure 2.0 Act introduces sweeping changes to retirement savings plans, impacting how employers manage 401(k) programs. Key changes include mandatory automatic enrollment for new plans, increased catch-up contributions for older workers, and updated deadlines for required minimum distributions. Employers also face more detailed annual reporting requirements, adding more complexity to administrative processes.
Adapting to these changes will require careful planning. Here are some ways we can help make sure you’re compliant.
- Review current plans: We’ll review your current 401(k) plan to identify any gaps between existing processes and the new requirements. From there, our team will develop a plan that reduces errors and streamlines update implementation.
- Plan Administration: With our retirement plans, most administrative tasks are handled by an independent third party who also acts as fiduciary. This lets you focus on your business, while they handle tracking, reporting, compliance, testing, and many other day-to-day plan activities.
Changes to Mandated Leave Policies
Newly mandated leave policies like New York State’s prenatal sick leave and the federal Pregnancy Workers Fairness Act (PWFA) add additional responsibilities for employers. These regulations look to support employee health and well-being, but add layers of complexity to leave management processes. Employers must navigate state-specific rules while ensuring compliance with broader federal mandates. This can strain your HR resources and increase your administrative costs.
Adapting to these leave policies requires some preparation. Here are some ways our team can help you effectively ensure compliance.
- Audit existing leave policies: We’ll review your current leave policies to ensure they meet new state and federal requirements. Our HR compliance experts will identify any gaps and avoid potential penalties.
- Partnering with a Professional Employer Organization (PEO): For businesses with limited HR resources, outsourcing leave administration to a professional employer organization (PEO) like PES can ease the burden.
- Communicate updates clearly: Pinnacle Employee Services will share updated leave policies with employees in a clear and accessible way, helping develop trust and reduce confusion, ensuring smoother implementation.
Staying ahead of changing HR regulations in 2025 requires a proactive approach to minimize time and cost burdens. By partnering with our team of HR experts, your company can streamline compliance and reduce administrative stress. Taking steps now ensures your company remains compliant while creating a supportive and efficient workplace. By prioritizing preparedness, you can safeguard your business from penalties and create an environment that attracts and retains top talent.
Need help with HR compliance? Pinnacle can help! We’re here to take care of all your HR needs so you can focus on growing your business. Contact us for your HR Review and Needs Analysis today!