New Compliance Laws for 2025
Dec 18, 2024
2025 is just around the corner, and as we step into a new year, businesses face a host of new changes! This comes in the form of new compliance requirements, all of which will come into effect on and from January 1. That said, the new changes aren’t about following the law, instead they are crafted to create a workplace where employees feel valued and respected.
For those who aren’t quite aware of the new changes in the compliance laws, the latest updates range from pay transparency to the ethical use of artificial intelligence in hiring and a lot more. Luckily, our team at Corel Consulting is here to help! We have taken it upon ourselves to help businesses figure out exactly what the new updates are all about. So, let’s get started!
Navigating Compliance in 2025
Pay Transparency
The pay transparency laws are changing in 2025 – with more states now urging organizations to state the salary range when posting job openings. The same applies even for promotions and other in-house transfers. With the new changes, the government is hoping to create a fairer workplace, addressing pay gaps, reducing bias, and promoting trust. But there’s more to this! In addition to providing salary ranges, companies will also have to explain the factors that influence their pay decisions and performance metrics.
Wondering how to update the handbook? Well, to make sure that your business meets modern regulations, add a dedicated section on pay transparency. Start with detailing how salary ranges are determined for any and all posts and how the company makes decisions on the same. Outline a clear process and add a statement highlighting the company’s focus/ commitment to equitable pay practices. Taking these steps would not only help meet compliance but also foster a culture of openness.
Paid Family and Medical Leave
The scope of duration of paid family and medical leave is going through a change for the better! It now brings more employees under the benefits. In fact, in some cases, the eligibility criteria for the same will now include siblings and in-laws. This is a great move, considering modern family structures in today’s society.
As for the handbook, you should revise the FMLA section in the same to reflect the new changes. Start by explaining who is now eligible for leave, mention the family relationships for which the leaves are applicable, and the categories under which they are applicable. State the duration of the leaves and explain if there’s a state-level variation. By addressing these in the handbook, your organization provides clarity to your employees and shows your commitment to their well-being.
Drug Testing Policies and Use of Marijuana
With more and more states legalising the recreational use of Marijuana, employers must amend their policies to reflect the changing norms. The new compliance regulations are geared towards protecting employees/ workers from being penalized for off-duty marijuana use, unless, of course, the impairment affects their job performance. However, certain sectors, such as healthcare or transportation, may still enforce stricter standards.
So what should your business do? Well, to comply with the latest regulations that will be in effect from January 1, 2025, you must update your drug and alcohol policy. Mention that while the use of off-duty Marijuana is allowed in certain states, workplace impairment still remains unacceptable. You must mention what constitutes impairment and how it will be evaluated. You are also expected to include a section that states the consequences of violating the policy.
Use of AI in Hiring
Artificial Intelligence has literally taken the world by storm and has become an integral part of recruitment and performance evaluation processes. But with the rise in demand for the same, greater scrutiny has now come into effect. Come 2025, many states are introducing laws to conduct bias audits, disclose the use of AI tools, and be more transparent when it comes to hiring employees. The move is aimed to promote fairness and rule out any and all discriminatory practices in recruitment.
How can you go about it? Well, you can start by introducing a dedicated section in your handbook that explains the company’s use of AI in the recruitment process. Mention if AI is used in screening resumes or assessing performance metrics, and then go on to explain your commitment to fairness and bias-free decision-making. Inform people on how bias audits are conducted and the frequency of reviews. All this will come in handy in reassuring your employees/ applicants of your organization’s ethical practices.
How does A Compliance Handbook Help?
Let’s face it – an employee handbook isn’t just a compliance tool. In fact, it is a strategic asset for your business/ organization. It communicates expectations, helps bring about consistency in policies and their application, and showcases your organization’s dedication to transparency and fairness. Here’s a little more about it.
- Clear Communication: A thorough handbook makes sure that your employees understand their rights and the resources available to them. This offers a certain level of clarity, ruling out misunderstandings, thereby creating a positive workplace.
- Legal Protection: In case of audits, disputes, or even business litigations, your employee handbook serves as evidence of your compliance with the law of the land – both state and federal. In fact, properly documented policies can save you and your business from any and all legal challenges.
- Consistency: Uniform policies cut the chances of perceived favoritism or discrimination. It makes sure that there’s fairness across the workforce and trust in the leadership.
Staying Ahead with Corel Consultancy
Of course, you need to keep your handbook compliant with the evolving laws, but this can often be a little daunting for businesses/ organizations. Luckily, you don’t have to do it alone! At Corel Consulting, we specialize in crafting customized, legally compliant employee handbooks – tailored to the modern needs of businesses.
Our team will make sure that your employee handbook reflects the new updates, whether about AI usage or pay transparency. But there’s more to what we do! We will make sure that you get a unified handbook that addresses state-specific nuances – perfect for businesses that operate across different states.
Ready to get started? Connect with us at Corel Consulting to schedule your 2025 handbook consultation.
Let’s start the new year with confidence. Take action to ensure your policies align with the needs of 2025 and even beyond.
