W4 2025 Update

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.

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 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.)

 

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.

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)

 

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)

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.

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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.

Reach out to us at HR Synergy with questions.

November Calendar

November is Men’s Health Awareness aka Movember and National Alzheimer’s Disease Month.

November 1	Remind employees to submit FSA Receipts before end of year
November 2	Dia de los Muertos
November 10-16	Nurse Practitioner NP Week
November 11	Veterans Day
November 13	World Kindness Day
November 14	National Diabetes Day
November 21	Great American Smokeout
November 28	Thanksgiving
October 31	Small Business Saturday

October Calendar

October is Breast Cancer Awareness Month and National Book Month.

October 3	QSEHRA Notice Deadline (for QSEHRAs that begin January 1, 2024
October 4	World Smile Day
October 7-11	Customer Service Week
October 10	*World Mental Health Day*
October 14	Indigenous Peoples’ Day
October 15	Medicare Part D Notice of Creditable Coverage delivered to plan participants
October 16	Boss’s Day
October 31	Quarterly Form 941 & 720 due
October 31	Halloween