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The ever-changing landscape of HR regulation changes requires continuous monitoring. As laws change on local and federal levels, small businesses are having a hard time keeping up.

Executive Orders and anticipated legislative changes on the horizon are already shifting how agencies plan to navigate employment laws, and shifting more responsibility to the private sector and state regulations to adjust to changes at a swift pace.

In addition, pay transparency laws are gaining traction across multiple states, requiring businesses to disclose salary ranges in job postings and during the hiring process. This trend aims to promote fair pay practices but also brings new compliance obligations for employers.

Infographic: Steps to Prepare Your Business for HR Regulation Changes

 

Getting Your Business Ready for Upcoming Government Regulations

When new government regulations and labor laws come into effect, adjusting to them can require initial expert guidance and eventual case law to interpret how those laws affect employers in the long term. The best way to prepare for these changes is to take a highly proactive approach.

Take the Time to Learn Existing HR Laws

Before diving into the new laws and regulations, you need to gain a solid understanding of the existing laws that govern your industry.

This will provide a foundation for analyzing how the new regulations may impact your business operations. Conducting a thorough review of the current human resource laws that apply to your industry allows you to ensure full compliance.

If you are not already in compliance when changes arrive, all existing non-compliance issues can snowball into significant problems that lead to unexpected expenses.

Set Up a Strong HR Infrastructure

Establishing a strong HR infrastructure can make it easier for you to adjust to the new regulations. When you have a team of specialists who know exactly what they are responsible for, they can handle any change seamlessly.

Small human resource teams that are overwhelmed with payroll, benefits administration, pension funds, occupational safety and health needs, and other manual administrative tasks rarely have sufficient resources to handle compliance properly.

When laws and regulations change, weak infrastructures struggle. Without a strong approach to your HR framework, you risk hurting business operations. 

Get Assistance from HR Partners

Seeking assistance from competent specialists, such as consultants who specialize in HR compliance, can be invaluable in navigating new government regulations. These experts can provide guidance on the ever-changing requirements, help you understand the implications of the new regulations, and assist with implementing necessary changes.

They can also keep you informed about any updates or changes to regulations that may affect your business specifically. A reliable HR partner is a team of professionals who have the time and resources to handle continuous monitoring of the regulation landscape.

For example, an HR partner would know that the temporary flexibilities for I-9 forms are about to end and help you set up a procedure for verifying employee identity and authorization in advance. At the time ICE announced changes, your company would have already been on the way to completing the new requirements.  

Rule Out Regulations That Don’t Affect You

Not all new regulations directly impact your business. Carefully evaluate and determine which laws are applicable to your specific industry and business operations.

By ruling out regulations that don’t affect you, you can focus your resources on understanding the laws that truly matter. This can help streamline your preparation efforts and avoid unnecessary compliance burdens. 

Stay Informed and Plan Ahead

Government regulations are always subject to change. Some may stay the same for decades while others change monthly. To avoid stress, errors, and fines, you can monitor the landscape by:

• Reading industry news
• Checking government websites
• Joining professional associations and following their discussions

The more resources you use to stay informed, the more likely you are to pinpoint the change the moment it occurs. By planning ahead and anticipating potential regulatory shifts, you can position your business to adapt efficiently. 

Train and Educate Your Employees

When changes occur, your team has to be ready to tackle the issue quickly without causing downtime or facing non-compliance. To respond effectively, your workforce requires training. If you are working with an HR partner, they can share valuable knowledge with your employees and empower them to adjust to the changes. 

In addition, encourage open communication and provide channels for employees to ask questions or seek clarification on the new regulations.

Taking a Proactive Approach 

Staying on top of the latest regulations is a full-time job, often requiring significant adjustments to your HR processes when changes occur. Rushing or not being thoughtful in adapting leads to errors, fines, and reputational issues. 

As you can see with the I-9 updates, two new announcements were published within one month. If you don’t have the resources to handle active and ongoing monitoring, you may want to consider collaborating with an HR partner you can trust.

New regulations often appear as a reaction to an employer who did something wrong.  Becoming a test-case for new regulation is something you want to avoid. Getting back on track and regaining your reputation can be close to impossible. 

At INFINITI HR, we proactively monitor all the latest HR legislation changes and help our clients adjust to them without missing deadlines. For more information about our ability to help your HR succeed, please contact our team at any convenient time.

Interested in other current employment trends? Click the link to view the recent blog: Labor Law for January 2025 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.

As we move into 2025, small business owners are considering the year ahead and asking questions about hiring, managing, and retaining great employees. At INFINITI HR, we’ve identified the top HR questions and concerns we’ve heard from clients recently. Our team of HR solutions experts has outlined actionable advice you can use to help your business thrive this year.

How do I hire people who will do their job well and stay at my company?

Hiring for both skills and cultural fit is key. Start by refining your job descriptions to outline responsibilities and expectations clearly. This is a foundational step to building and retaining a great team. You may just find the candidate whose dream job is with your organization. 

Be clear about the skills, knowledge, and attributes that would make someone thrive at your company. During interviews, ask questions to help you learn whether a candidate fits your company’s values and culture. 

Key Takeaway: Retention starts at recruitment. Taking the time to find the right person for the role can go a long way in finding success. INFINITI HR offers customized hiring strategies and onboarding templates tailored to your small business’s unique needs. Your consultant can help you identify what HR interview questions you should be asking. 

How do I address less-than-average performers?

Clear communication about expectations and next steps goes a long way – for everyone involved. Document specific performance concerns and schedule a one-on-one meeting to discuss them constructively. 

Set measurable goals and a timeline for improvement, providing support as needed. If performance doesn’t improve, it may be time to transition the employee out of the role.

Key Takeaway: Addressing underperformance is about fairness and clarity. An HR consultant can offer counsel on performance management so you can handle tough conversations confidently and professionally.

How can small businesses manage finances and compensation effectively?

Start with the basics: create a budget that includes competitive salaries and benefits. 

Use market data to benchmark pay and ensure fairness. To boost employee satisfaction, explore creative options like flexible schedules, professional development, or profit-sharing. Think about ways you can have a positive impact on your employees’ day-to-day lives.  

Key Takeaway: Compensation is more than a paycheck. Focus on total rewards to retain top talent within your budget. An HR consultant can help you with a 12-month plan and offer top strategies for employee compensation. 

How do I manage remote workers effectively?

Set clear expectations for communication, availability, and deliverables. 

Begin with the three keys to successful remote work for your organization: 

• Flexibility
• Trust 
• Communication

Use various communication tools to keep your team connected, maintain transparency, and foster collaboration. Regular check-ins ensure remote workers feel supported and aligned with company goals. 

Key Takeaway: Remote work opportunities and flexible work are fundamental parts of work in 2025. With the right strategies and policies, you can create an environment of trust and flexibility that supports your team in doing their best work. 

How do I keep employees accountable for their behaviors and actions?

Accountability begins with clear policies and consistent enforcement. 

When addressing issues, focus on the behavior, not the person. Use direct but empathetic communication to foster understanding and growth. Document all conversations to ensure clarity and protect your business. Make sure policies and processes are clearly outlined in your company’s handbook. 

Key Takeaway: Tough conversations are more manageable with a clear framework. Utilize tools, training, and templates to manage employee accountability with professionalism and care.

Where do I even begin with human resources for my company?

Begin with an experienced consultant, like the team at INFINITI HR, who can help you conduct an HR audit. 

Your first step with your HR consultant will be to evaluate your current policies, compliance practices, and employee handbook. Prioritize must-haves like payroll accuracy, workplace safety, and anti-discrimination policies. From there, your consultant can help you build a more robust HR framework. 

INFINITI HR can conduct a full audit of your current HR functions, then supply a report of findings you can consider and incorporate into future strategic business planning sessions. 

Key Takeaway: A strong foundation prevents costly HR missteps. Your goal for 2025 should be to identify gaps and build a roadmap for a compliant, people-focused HR strategy.

Interested in other current employment trends? Click the link to view the recent blog: Labor Law Updates for December 2024

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.

 

Please note: This is just a summary to provide general information on HR compliance changes. As it’s not exhaustive, we encourage you to speak with an Inspiring HR Consultant to ensure full compliance with each state’s specific requirements. Find past updates and insights on our website.

Key Topics This Month:

1. California: Victims of violence leave, captive audience meetings, driver’s license requirements and workplace restraining orders.
2. Washington: Non-competes, captive audience meetings, and paid sick leave.

 

California: Labor Law Updates for 2025 Captive Audience Meetings Ban and New Protected Classes

Leave for Victims of Violence – Effective January 1, 2025

Rights have been expanded for employees who are victims of a qualifying act of violence, specifically defined under the law. All employers should continue to allow reasonable time off for related legal proceedings or to obtain relief, such as a restraining order or other measures to ensure the safety of themselves and/or children.

Employers of 25 or more employees will also be required to reasonably accommodate leave or other requests of employees for their own, or a family member’s, legal proceedings, treatment for injuries, relocation needs, counseling sessions, and/or need to provide or seek child or dependent adult care or other related services unless it causes undue hardship.

Leave under this law will be unpaid and run concurrently with CFRA/FMLA.  Employees must be allowed to use their available sick leave, vacation time or PTO.

Restrictions for Captive Audience Meetings – Effective January 1, 2025

Employers will not be permitted to demote, discharge or otherwise retaliate against employees who decline to attend company-sponsored events pertaining to religious or political matters, or matters related to union organization.

Workplace Temporary Restraining Order Expansion – Effective January 1, 2025

Employees may not request a workplace Temporary Restraining Order (TRO) in situations of harassment that is directed to a specific person, is “knowing and willful”, would cause a “reasonable person” to suffer substantial emotional distress, and has caused the targeted employee substantial emotional distress.

 

WASHINGTON: Non-Competes, Captive Audience and Paid Sick Leave

Noncompete Agreement Earnings Threshold – Effective January 1, 2025

Under Washington’s non-competition law, only employees or independent contractors who earn more than the threshold established by law can be held to non-competition agreements. For 2025, an employee’s annual earnings must exceed $123,394.17 and an independent contractor’s earnings must exceed $308,485.43 for a non-compete agreement to be enforceable.

Ban on “Captive Audience” Meetings – Effective January 1, 2025

Washington employers are now prohibited from disciplining or otherwise retaliating against employees for refusing to attend mandatory employer sponsored meetings related to religious and/or political matters. Political matters are defined as matters relating to elections for political office, political parties, proposals to change legislation, proposals to change regulations, and the decision to join or support any political party or political, civic, community, fraternal, or labor association or organization.

Employers are also required to post a notice; however one has not yet been provided by the state.

For more information about this new law, a good summary is available here.

Paid Sick Leave Changes – Effective 1/1/2025

These changes broaden the definition of “family member” to include roommates and close relationships. It will also allow employees to use paid sick leave if a child’s school or daycare is closed due to emergency declarations made by local, state or federal government.

Interested in other current employment trends? Click the link to view the recent blog: Embracing Work-Life Balance: Giving the Gift of Time 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.