Labor Law Updates for January 2025

Please note: This blog is for informational purposes only. Employers should consult with an Inspiring HR Consultant or legal counsel to address specific requirements for their organization. Find past updates and insights on our website. 

Key Topics This Month:

1. Massachusetts: Expanded sick leave, EEO reporting, and pay disclosure requirements.
2. Michigan: New sick time law replacing the Paid Medical Leave Act.
3. New Jersey & Vermont: Pay transparency mandates.

Massachusetts: Expanded Sick Leave and Pay Transparency

Expanded Sick Leave Qualifying Reasons – Effective November 21, 2024

Massachusetts has broadened the qualifying reasons for state-mandated sick leave. In addition to existing uses, employees may now use sick leave to address the physical, mental, or legal effects of pregnancy loss, failed surrogacy, adoption, or assisted reproduction. Employers should update handbooks and train managers to ensure compliance with these changes.

More Information on Massachusetts Earned Sick Time

Expanded EEO Reporting Requirements – Effective February 1, 2025

The law requires employers with 100 or more employees to submit an annual “aggregate wage data report” with demographic and wage information categorized by race, ethnicity, sex, and job role. This reporting is intended to enhance pay equity and transparency. Unions, schools, and governments must file these reports biennially. This year the deadline to submit will fall on February 3, 2025.

Pay Disclosure Law – Effective October 29, 2025

Employers with 25+ employees must include pay ranges in all job postings and advertisements. The law defines “pay range” as the range of an annual salary or hourly wage an employer reasonably expects to pay in good faith for the position at the time of the job posting.

Additionally, qualifying employers are required to:

• Provide pay ranges to employees or applicants upon request.
• Share pay ranges with employees offered a promotion or transfer.

Michigan: Earned Sick Time Act (ESTA)

Effective February 21, 2025

Michigan’s ESTA will require employers to provide 72 hours of annual sick leave, replacing the Paid Medical Leave Act for employers with 50+ employees. For smaller employers—those with less than 10 employees—at least 40 of the 72 hours must be paid sick leave. Employers with more than 10 employees must offer paid leave for all 72 hours of offered sick leave.

Details include:

• Accrual Rate: Employees earn sick leave by accruing 1 hour for every 30 hours worked, with optional front-loading.
• Accrual State Date: Accrual under ESTA begins on February 21, 2025.
• Carryover: Unused sick time must be carried over to the following year.
• Using Sick Time: Valid use of sick time can include caring for an employee’s own mental or physical illness, injury or health condition, or preventative medical care, or for that of their family member.
• Documentation: When employees use sick leave for three or more consecutive days an employer may require reasonable documentation.

Employers should review current policies to ensure they meet or exceed ESTA standards.

More Information on ESTA

New Jersey: Pay Disclosure Law – Effective June 1, 2025

New Jersey employers with more than 10 employees will need to:

• Include pay ranges in all job postings.
• Notify current employees of promotion opportunities within affected departments before making decisions.

The law defines “promotion” as a change in job title and increased compensation. Employers should evaluate internal promotion practices to ensure compliance.

Vermont: Pay Transparency Requirements – Effective July 1, 2025

Vermont’s new law applies to employers with five or more employees. Job postings must include:

• The minimum and maximum annual salary or hourly pay range.
• Whether the role is tipped, along with the base hourly rate of pay.

For commission-based positions, employers are not required to disclose the pay range. Businesses with remote roles supporting Vermont locations should also comply with this law.

Interested in other current employment trends? Click the link to view the recent blog: HR Solutions for 2025: Tackle Hiring,Performance, and Remote Work or check back for more on human resources, payroll, insurance, and benefits.

This article does not constitute legal advice, and there are subtle variations in employment law as it pertains to these topics, depending on where your business operates. It is strongly suggested that you seek consultation or legal counsel before making decisions about policies.