Employment Law Updates for 2025: What Workers and Employers Need to Know

As we step into 2025, significant changes to employment laws at the federal and state levels are set to impact workers and employers alike. From wage increases to expanded discrimination protections, understanding these updates is essential for staying compliant and informed. Below, we outline the key changes you need to know, focusing on Maryland, Virginia, and federal updates.

Federal Employment Law Changes

American flag outside of federal building

1. Overtime Eligibility Expansion

Beginning January 1, 2025, the U.S. Department of Labor has raised the salary threshold for overtime eligibility to $58,656 annually. Employees earning less than this amount must now receive overtime pay for hours worked beyond 40 in a week. This change ensures fair compensation for millions of American workers.

2. Federal Contractor Minimum Wage Increase

The minimum wage for federal contract workers has risen to $15.00 per hour. This adjustment reflects ongoing efforts to improve living standards for those employed under government contracts.

Maryland Employment Law Updates

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1. State Minimum Wage Hike

Maryland has accelerated its minimum wage increase schedule, setting the new minimum wage at $15.00 per hour for all employers, regardless of size. This adjustment provides critical financial support for workers and aligns with broader economic goals.

2. Time to Care Act Delays

While Maryland’s Paid Family and Medical Leave program—known as the Time to Care Act—has seen delays, employers should remain vigilant. Clarifications to the program’s implementation timelines are expected, ensuring businesses and workers are prepared for future changes.

Virginia Employment Law Updates

1. Incremental Minimum Wage Increase

As part of a gradual plan to reach $15.00 per hour by 2026, Virginia’s minimum wage has increased to $12.41 per hour starting January 1, 2025. This step reflects ongoing efforts to improve wages for low-income workers.

2. Expansion of the Virginia Human Rights Act

The Virginia Human Rights Act now includes “ethnic origin” as a protected class. This update strengthens anti-discrimination protections, fostering more inclusive workplaces across the state.

What These Changes Mean for You

Whether you’re an employee or an employer, these updates emphasize the importance of staying informed:

  • For Employees: Know your rights regarding wages, overtime, and workplace discrimination. If you suspect non-compliance, consult an employment law expert.
  • For Employers: Review and update your policies to ensure compliance with new regulations. This includes updating compensation structures, revising anti-discrimination policies, and monitoring pending legislative developments.

How The Spiggle Law Firm Can Help

Navigating employment law changes can be overwhelming, but you don’t have to do it alone. At The Spiggle Law Firm, we specialize in advocating for workers’ rights. Whether you’re dealing with wage disputes, discrimination, or other workplace issues, our experienced attorneys are here to guide you.

Stay Ahead in 2025

Understanding employment law updates is the first step to protecting your rights or ensuring compliance.

For more resources and legal support, schedule a consultation with one of our employment attorneys today.