Author: hrsynergy
Client Alert: 2025: HANDBOOK Employment law updates
2025: HANDBOOK Employment law updates
Highlights seven key employment law updates for 2025 that both employers and employees should be aware of in order to avoid legal issues and ensure compliance.
1. Minimum Wage Increases: Many states and cities are raising minimum wages in 2024, requiring businesses to adjust payroll and remain compliant. Employees should monitor their pay to ensure proper compensation.
2. Remote Work Regulations: New laws cover expense reimbursements and wage standards for remote workers, with states like California ensuring compensation for work-related expenses.
3. Expanded Family and Medical Leave: States are increasing paid and unpaid leave options, broadening eligibility and protections. Employers must update policies, and workers should know their expanded rights.
4. Anti-Discrimination Updates: Revised laws in various states enhance protections for gender identity, pregnancy, and caregiving status. Employers need to revise policies, and employees should understand their rights.
5. Workplace Safety Rules: OSHA and states like California are updating safety standards, particularly in high-risk industries and for outdoor work. Businesses must comply to avoid penalties.
6. Employment Contracts & Non-Competes: Laws are tightening on non-compete clauses, especially for lower-wage workers. Employees should understand these changes, and employers may need to revise agreements.
7. Protections: New regulations in 2025 increase protections against unfair dismissal. Employers must follow proper protocols, while employees should seek legal advice if terminated unjustly.
Understanding 2025 employment law updates is critical for businesses to stay compliant and for employees to safeguard their rights. Employers must stay updated on these changes to avoid legal consequences, while employees should understand their rights to ensure fair treatment in the workplace.
Client Alert: 2025 UPDATES: Massachusetts PFML
2025 UPDATES: Massachusetts PFML
Massachusetts employers need to inform their employees about the 2025 Paid Family and Medical Leave (PFML) contribution rates by December 2, 2024.
The 2025 rates are:
- 0.88% for employers with 25 or more employees.
- 0.46% for employers with fewer than 25 employees.
Employers must distribute Rate Sheets showing the contribution shares for both the employer and employees. These notices can be given out like other policy updates, and while no signed acknowledgment is needed, it’s good to have proof of distribution.
Additionally, an updated PFML poster with the 2025 maximum weekly benefit amount of $1,170.64 must be displayed prominently.
For new employees, revised notices must be issued within 30 days of hire, and employees should acknowledge receipt.
The updated notice should include:
- The new maximum benefit amount.
- Information on using accrued paid leave to supplement PFML benefits.
- A requirement that PTO policies do not discriminate against employees using PFML.
Employers should review and clarify their paid time off policies, especially if they offer unlimited time off, to specify limits during PFML leave.
The Department of Family and Medical Leave (DFML) will continue audits, with fines of:
- $50 per employee for a first notice violation and;
- $300 for subsequent violations.
February 2025 Dates
FEBRUARY Calendar
February is American Heart Month and Black History Month.
Request a new Form W-4 from any employee who claimed an exemption from income tax withholding last year and wants to claim the exemption again for 2024. If the employee doesn’t give you a new Form W-4, withhold tax as if the employee is single or married and filing separately without any allowances.
| February 1 | OSHA Form 300A must be posted in visible areas from Feb 1- April 30 |
| February 2 | Groundhog Day |
| February 7 | Wear Red Day |
| February 10 | Form 940 is due (if quarterly FUTA taxes were paid when due) |
| February 14 | Valentine’s Day |
| February 17 | President’s Day |
| February 22 | School Bus Driver Appreciation Day |
| February 28 | Forms 1094-C and 1095-C, 1099-MISC without NEC to IRC are due (if paper filing) (if filing electronically, due 3/31/25) |
| February 28 | Form 8809 Paper Filing Deadline (Request an extension of the due date to file federal tax forms, including the W-2, W-2G, 1042-S, and 1094-C.) |
Client Alert: BY 12/15/24: General HIRD reporting requirements
BY 12/15/24: General HIRD reporting requirements
Massachusetts employers, it’s time to get familiar with the Health Insurance Responsibility Disclosure (HIRD) form. This annual requirement, launched in 2018, helps MassHealth identify members who might qualify for the Premium Assistance Program by gathering information about employer-sponsored insurance (ESI) offerings. Here’s a quick breakdown to keep you compliant.
HIRD Form Purpose: Annual reporting requirement for Massachusetts employers to provide information on employer-sponsored insurance (ESI) offerings, aiding MassHealth’s Premium Assistance Program.
Who Must File: Employers with six or more employees in Massachusetts, even if health insurance isn’t offered.
Filing Period: November 15 to December 15, completed electronically via MassTaxConnect (no paper forms).
Responsibility: Employers must ensure timely filing, even if using a payroll company or PEO. Coordination with HR/benefits is necessary.
Data Collected: Employer-level health plan information only, no personal employee data.
Non-Compliance Impact: No new penalties, but important for MassHealth assistance programs and won’t affect EMAC Supplement obligations.
Action Required for Non-Offering Employers: Still required to submit, indicating no health insurance is provided.
IS YOUR COMPENSATION PACKAGE MARKETABLE?
Crafting a Strong Compensation Philosophy: The Key to Attracting and Retaining Talent
A compensation philosophy is more than just a document; it’s a guiding framework that defines an organization’s approach to employee pay. It explains the “why” behind compensation decisions, offering clarity and consistency that benefit both employers and employees. By establishing a solid compensation philosophy, companies can effectively attract, retain, and motivate their workforce.
What Is a Compensation Philosophy?
At its core, a compensation philosophy is a formal statement that outlines the company’s stance on employee pay. It serves as a strategic tool that defines pay programs, aligns compensation practices with organizational goals, and ensures fair and equitable pay practices.
This philosophy acts as a compass, helping employers navigate decisions about salaries, bonuses, benefits, and other rewards. When thoughtfully crafted, it provides a framework for consistent and transparent compensation practices.
What Should a Compensation Philosophy Entail?
A comprehensive compensation philosophy should include the following elements:
- Pay Structure: Clear definitions of base pay, variable pay, and incentives.
- Market Positioning: The organization’s stance on competitive pay relative to the market (e.g., leading, matching, or lagging market rates).
- Total Rewards Strategy: A holistic approach encompassing benefits, bonuses, recognition programs, and non-monetary rewards.
- Pay Equity: Commitment to ensuring equal pay for equal work, with lawful variances based on experience, performance, or other non-discriminatory factors.
- Legal Compliance: Adherence to applicable labor laws and regulations.
- Performance Alignment: Criteria linking compensation to individual, team, and organizational performance.
- Communication Guidelines: Strategies for transparently sharing compensation policies and practices with employees.
Factors Influencing a Compensation Philosophy
Developing a compensation philosophy involves collaboration between the human resources department and the executive team. It is shaped by several factors, including:
- Financial Position: The organization’s budgetary constraints and financial health.
- Size and Industry: The scope of the organization and its competitive landscape.
- Business Objectives: Long-term strategic goals and initiatives.
- Market Conditions: Salary benchmarks and talent availability.
- Talent Acquisition Challenges: Specific roles or skills that are hard to fill.
Given these dynamic factors, a compensation philosophy should not be static. Periodic reviews ensure it stays aligned with the current business environment. For instance, if market conditions demand higher pay for specialized roles, the organization may need to revise its philosophy to stay competitive.
Reviewing and Updating the Compensation Philosophy
A compensation philosophy should be reviewed regularly—at least annually or in response to significant changes in market conditions, business goals, or legal requirements. Regular updates ensure that the philosophy remains relevant and effective.
Organizations often use tools like salary benchmarking software, compensation surveys, and data analytics platforms to assess market trends and internal pay practices. Engaging an external consultant or compensation analyst (like HR Synergy) can also provide valuable insights and ensure that pay structures remain competitive and compliant.
Commitment to Education and Transparency
An effective compensation philosophy is not just about the numbers—it’s also about communication. Employers must commit to educating both managers and employees on how compensation decisions are made. Transparent communication fosters trust and ensures that employees understand how their pay aligns with their contributions and the organization’s goals.
Objectives of a Compensation Philosophy
A well-designed compensation philosophy supports an organization’s broader strategic plan by:
- Attracting Talent: Offering competitive compensation to draw top candidates.
- Motivating Performance: Encouraging employees to excel in their roles.
- Retaining Key Talent: Rewarding high performers to reduce turnover.
- Defining Competitive Positioning: Establishing the organization’s stance on base pay, variable compensation, and benefits.
- Ensuring Fairness: Guaranteeing equal pay for equal work while allowing lawful pay differences.
- Maintaining Legal Compliance: Adhering to labor laws and regulations.
Quality Test for an Effective Compensation Philosophy
To be successful, a compensation philosophy must meet specific quality standards. Ask the following questions to evaluate its effectiveness:
- Equity: Is the program perceived as fair by employees?
- Defensibility: Can the organization justify its compensation practices?
- Fiscal Sensitivity: Are the programs financially sustainable?
- Legal Compliance: Do they adhere to labor laws and regulations?
- Communication: Can the philosophy and its policies be clearly communicated to employees?
- Competitiveness: Are the programs in line with market trends and organizational goals?
While human resources typically lead the development of a compensation philosophy, collaboration with the leadership team is essential. Leadership provides strategic input and ensures organizational alignment, helping to build buy-in across all levels.
A thoughtful compensation philosophy is a cornerstone of a successful human capital strategy. It not only helps organizations attract and retain top talent but also fosters a culture of fairness and transparency. By regularly reviewing and updating the philosophy, employers can ensure that their compensation practices remain competitive and aligned with evolving business needs.
Read more from our COMPENSATION SERIES:
Is Your Compensation Package Marketable?
The Paycheck Playbook: Key Compensation Trends Shaping 2025
Cracking the Compensation Code: How HR Synergy Can Help
Read more from our previous series -THE EMPLOYEE LIFE CYCLE:
January 2025 Dates
JANUARY 2025 Calendar
January is Be Kind to Food Servers Month, National Blood Donor Month, and Walk Your Pet Month.
| January 1 | New Year’s Day |
| January 3 | Drinking Straw Day |
| January 5-11 | Thank Your Customers Week |
| January 13 | Rubber Duckie Day |
| January 19-25 | Hunt for Happiness Week |
| January 20 | Martin Luther King, Jr. Day |
| January 24 | Activity Professionals Day |
| January 25 | Intravenous Nurse Day |
| January 29 | Puzzle Day |
| January 31 | Form W-2 is due to be e-filed, paper-filed, and furnished to recipients.
Multiple 1099 forms are due Quarterly Forms 720 and 941 are due Annual Form 940 is due (if quarterly FUTA taxes were not paid when due) Distribute 1095-B & 1095-C Forms to employees (if applicable) |
Offboarding: Leaving a Lasting, Positive Impression: Employee Life Cycle
The Art of Offboarding: Leaving a Lasting, Positive Impression
When an employee decides to leave your company, the journey doesn’t end there. The offboarding process often doesn’t get the same level of attention as onboarding, yet it’s an essential part of the employee life cycle (ELC). Done right, offboarding can create a ripple effect of benefits for both the organization and the departing employee. It’s a two-fold opportunity: to gain valuable insights into hiring and employee experience and to leave a positive, lasting impression. A strategic, thoughtful offboarding experience can strengthen your employer brand and create advocates for your company long after employees have moved on.
The Goal: Happy Leavers
Imagine this: an employee leaves your company with a smile, feeling appreciated and content, despite their decision to move forward. One of the primary goals of offboarding is to ensure that departing employees leave as satisfied individuals who feel respected and valued. When employees exit on a high note, they’re more likely to become your company’s ambassadors, speaking positively about their experiences and contributing to a strong employer brand. In today’s connected world, word-of-mouth is powerful. This can have lasting impacts, such as attracting top talent and building a network of alumni who may even become future clients, partners, or boomerang employees with more experience and new insights.
Key Components of an Effective Offboarding Process
Insight: Exit Interviews
Exit interviews are a key element of offboarding. These interviews provide departing employees a platform to share their honest feedback. What aspects of the job and workplace culture did they appreciate? What challenges did they face? Use these insights to refine your practices, identify potential gaps in your employee engagement strategy, and enhance the overall employee experience. A successful exit interview isn’t just about collecting feedback; this feedback loop can be invaluable for creating a better workplace environment and improving retention.
A Smooth and Supportive Transition
A well-structured offboarding process ensures a smooth transition for both the employee and the organization. This includes clear communication, proper handover of responsibilities, and offering resources to support the departing employee’s next career step. Whether it’s providing references, discussing alumni programs, or even just expressing gratitude for their contributions, these gestures make employees feel appreciated and leave on good terms.
Key Steps for Effective Offboarding:
Plan and Communicate: Clearly outline the steps of the offboarding process and communicate them to the employee.
Conduct Meaningful Exit Interviews: Conducting exit interviews is a critical part of offboarding. Use this time to gather constructive feedback and understand the employee’s experience.
Celebrate Contributions: A simple yet powerful way to make a lasting impression is by acknowledging the departing employee’s contributions. Acknowledge the achievements of the employee and express genuine appreciation for their work.
Offer Support: Whether it’s career counseling or a heartfelt send-off, ensure the employee feels prepared for their next chapter.
Stay Connected: Offboarding doesn’t have to mean cutting ties completely. If appropriate, consider keeping in touch with former employees through an alumni network or other professional groups. This network can serve as a talent pool for future hiring and foster opportunities for collaboration down the road.
Offboarding is more than just a final HR process; it’s a strategic opportunity to learn, grow, and leave a lasting, positive impact. By aiming for happy leavers, conducting insightful exit interviews, and ensuring a smooth transition, your organization can boost its reputation and continually refine the employee experience. Remember, the way you say goodbye can be just as important as the way you say hello.
Effectively managing the employee life cycle (ELC) is crucial for HR professionals. By focusing on key stages—attraction, recruitment, onboarding, retention, and offboarding—organizations can better meet employees’ needs, boost productivity, and create a positive work environment. A well-managed ELC benefits both employees and the organization’s overall success.
Read more from our THE EMPLOYEE LIFE CYCLE:
December Calendar
December Calendar
December is Read a New Book Month.
| December 7 | National Pearl Harbor Remembrance Day |
| December 10 | Human Rights Day |
| December 13 | National Cocoa Day |
| December 21 | Winter Solstice |
| December 25-January 2 | Hanukkah |
| December 25 | Christmas |
| December 26-January 1 | Kwanzaa |
| December 29 | Review employee handbooks, updated workplace policies, distribute 2025 holiday calendar and payroll calendar |
| December 31 | Nondiscrimination testing, 401K plans, 125 Premium Only Plans (POP), and flexible spending account (FSA) nondiscrimination testing (if on calendar plan year) |
Client Alerts: 2024 OVERTIME RULE
December 2024: How Should Employers Respond Now that OVERTIME RULE Is Blocked?
A Federal court decision on November 15 blocked planned increases to the salary threshold for overtime exemptions.
The salary threshold will return to the 2019 level of $35,568 annually ($684.00 per week), halting increases scheduled for July 2024 ($43,880) and January 2025 ($58,656).
The court criticized the increases for exceeding statutory authority and prioritizing salary thresholds over the duties test. The ruling applies nationwide and nullifies automatic salary threshold adjustments.
- Employers who increased salaries in preparation for the new rule are unlikely to lower them. However, some employees who were reclassified as nonexempt might be switched back to exempt if they fulfill the duties test.
- The duties test remains a key determinant for white-collar exemptions, requiring assessment of job roles alongside salary.
- The ruling may be appealed, and changes could occur under the incoming presidential administration.
- Employers must assess workforce impacts and comply with duties tests and state notice requirements when reclassifying employees.
- Duties tests outline specific criteria for executive, administrative, and professional exemptions, ensuring roles meet both duties and salary standards.
APRIL 23, 2024: OVERTIME RULE
On April 23, 2024, the USDOL issued a Final Rule that will raise the minimum salary level for exempt employees and increase the total compensation minimum for highly compensated employees (HCEs). The new rule also introduces a mechanism to update these thresholds every three years. Despite potential legal challenges that may delay implementation, employers should review and adjust current salaries to ensure compliance with the new minimums.
The rule’s journey began in Fall 2023 when the USDOL proposed changes to the federal wage law overtime exemption requirements. These proposed changes were open for public comment until November 8, 2023. During the comment period, concerns were raised about the substantial 65% increase and its impact on businesses during a tough economic period. To ease the transition, the USDOL adopted a two-step compliance approach, raising salary thresholds on July 1, 2024, and January 1, 2025.
The USDOL estimates that about 1 million currently exempt workers earn below the new $43,888 threshold and another 3 million earn less than $58,656. Employers must either raise salaries to meet the new minimum levels or reclassify these employees as non-exempt and eligible for overtime pay. While legal challenges are anticipated, similar to those in 2016, the outcome is uncertain. Therefore, employers should review current exemptions to avoid potential misclassification liabilities.
Employers should ensure exempt employees are paid at least the current minimum salary and that their job duties align with the exempt categories. For those who do not meet the duties test or new salary levels, employers need to confirm work schedules, communicate overtime eligibility, and review timekeeping, meal break, and overtime approval policies. Additionally, managers and supervisors should be trained on monitoring work hours and timekeeping.
Employers operating in multiple states should also consider varying state wage laws, which may have higher minimum salaries for overtime-exempt employees, to avoid unfavorable wage audits or claims. Compliance with both the FLSA Final Rule and state laws is crucial for reducing legal risks.
