With every New Year there are new Labor Laws that go into effect January 1^st. Some of the new laws include increases in minimum wage, tax-free overtime, changes in paid leave policies, and pay transparency laws. Every employer needs to be aware of all the different local, state, and federal changes that impact payroll, HR compliance, and workplace policies. There are several states that have increased minimum wage requirements which will affect overtime calculations and exempt salary thresholds. Employers should update their payroll systems to avoid wage compensation issues.

This is a small list of the major changes, especially with the increases in minimum wage per hour, that you can expect to see:

Arizona

Minimum wage will increase to $15. 

California

CA has multiple changes affecting wages, contracts, data, and workforce management. Statewide minimum wage will increase to $16.90. There are also changes to new immigration-related workplace notices, job posting requirements, equal pay enforcement, and pay data reporting.

Colorado

Statewide minimum wage increases to $16.57. Employers should also account for local minimum wages, which may exceed the state rate. 

Connecticut

Statewide minimum wage increases to $16.35. CT significantly expands its paid sick leave law, extending coverage to smaller employers that were previously exempt.

Illinois

IL continues to expand worker protections and employer obligations. Key updates to the Illinois Human Rights Act (IHRA) introduce new guardrails around the use of artificial intelligence in employment decisions, requiring employers to provide notice when AI is used in certain hiring, promotion, or employment-related evaluations.

Massachusetts

MA implements updates to its Paid Family and Medical Leave (PFML) program which will affect benefits calculations and program administration.

Michigan

MI’s state minimum wage increases from $12.48 to $13.73. Tipped employees’ minimum base wage rises to $5.49. Minors aged 16–17 will increase to $11.67, while the training wage for employees under age 20 during their first 90 days remains $4.25.

Minnesota

Statewide minimum wage increases for large employers to $11.23, while small employers move to $9.23. MN launched its new Paid Family and Medical Leave (PFML) and expanded meal and rest break requirements. MN also updated its Earned Safe and Sick Time (ESST) law, increasing employee usage rights and employer tracking obligations.

Missouri

Statewide minimum wage will increase to $15.00. MO also flags an insurer data breach notification law, tightening requirements around how and when certain data breaches must be reported.

Montana

Minimum wage increases to $10.55. MT also expands its ban on noncompete agreements for healthcare professionals.

Nebraska

Statewide minimum wage increasing to $15.00. There are also new limits on fees healthcare providers may charge employees for complying with FMLA medical certification requirements.

New Jersey

Statewide minimum wage increases to $15.69.

New York

NY minimum wage increases to $17.00 in New York City, Long Island, and Westchester County, while the remainder of the state increases to $16.00. NY also overhauled the Healthy Terminals Act, expanding wages, benefits, and leaving protections for airport and terminal workers.

Ohio

Statewide minimum wage increases with the non-tipped minimum wage rising to $11.00 and tipped minimum wage increases to $5.55.

Rhode Island

Statewide minimum wage increases to $16.00. A new onboarding notice requirement will obligate employers to provide written notice of key terms and conditions of employment at the time of hire. In the hospitality sector, employers must comply with an annual human trafficking awareness training requirement.

South Dakota

Statewide minimum wage increases to $12.25.

Vermont

Statewide minimum wage increases to $15.01.

Virginia

Statewide minimum wage increases to $12.77.

Washington

Statewide minimum wage increases to $17.13. Washington expanded its Paid Family and Medical Leave (PFML) program, adding written notice obligations for employers.

It is important that every employer knows the details of new laws affecting all their employees. Review your employment contracts, keep good records, and stay updated through a trusted legal provider. 

If you found this article helpful and interesting and would like to discuss any of these ideas, please feel free to give me a call or contact me at judy@jcsrllc.com, or visit my website at https://www.jcsrllc.com for more information on partnering with the best service providers.