Stay Compliant and Ahead: What You Must Know About June 2025 Labor Law Changes

A Labor Compliance Roundup 

Here's a brief overview of the latest labor compliance laws as of June 1, 2025, including state and local initiatives, along with other key developments. This summary is not legal advice, but it provides insights into industry challenges and critical issues impacting our field. If you have questions or would like more information, please contact us at compliance@castandcrew.com. 
 

State and Local Laws

Illinois  

• Cook County’s revised mandatory paid leave rules, April 2025   
  On April 10, 2025, Cook County updated its mandatory paid leave regulations. Notable changes include a clarification that employees do not accrue paid leave while they are on leave. Employers may also now choose to permit the use of paid leave during periods of suspension or disciplinary action. Additionally, the revisions address timelines for payment and the availability of supplemental benefits when paid leave is used. More here. 
  
  
• Prohibition of retaliation under the Illinois One Day Rest in Seven Act, March 2025
  On March 21, 2025, Governor JB Pritzker signed SB 3180, which prohibits retaliation under the One Day Rest in Seven Act. This law requires employers to provide employees with at least 24 consecutive hours of rest each calendar week. Employers are in violation if they retaliate against employees for exercising their rights, filing complaints, or testifying in related investigations or proceedings. Employees who face unlawful retaliation may seek legal relief through the Illinois Department of Labor, which is also authorized to impose penalties and take enforcement action against non-compliant employers. More here. 

Maryland  

• Maryland Paid Family and Medical Leave postponed, January 2027  
  House Bill 102 (HB 102) delays the implementation of the state’s paid family and medical leave program, known as the Family and Medical Leave Insurance Program (FAMLI). Under the new timeline, premium collection will begin on January 1, 2027, and benefits for eligible individuals will become available starting January 3, 2028. More here.  

Missouri 

• Missouri General Assembly passes bill to repeal paid sick time law, August 2025  
  On May 14, 2025, the Missouri General Assembly approved House Bill (HB) 567, which would repeal the state’s paid sick leave law effective August 28, 2025. This change would eliminate the requirement for employers to provide earned paid sick time to Missouri employees. Until then, the current law remains in effect, and employers must continue to offer paid sick time to eligible workers. If enacted, the bill would create a seventeen-week compliance period from May 1, 2025, to August 28, 2025, during which employers must continue to follow existing paid sick leave regulations. More here. 

Michigan 

• Updates to Michigan’s Earned Sick Time Act and Minimum Wage, February 2025 
  On February 20, 2025, Michigan amended its Earned Sick Time Act, implementing several key changes. Employees may no longer sue employers for violations and must instead file administrative complaints. The waiting period for new hires to use sick leave has been extended to 120 days. Employers are now allowed to establish notification procedures and may request documentation if an employee is absent for more than three consecutive days. Additionally, employers must inform employees of their rights within 30 days of hiring. The revisions also include changes to minimum wage laws. Starting January 1, 2026, Michigan’s minimum wage will rise to $13.73, increasing to $15 in 2027, with annual inflation-based adjustments thereafter. The law also raises the minimum cash wage for tipped employees while preserving the tip credit and introduces penalties of up to $2,500 for wage violations. More here and here. 

Nevada 

• Nevada creates state-run retirement plan, July 2025 
  Effective July 1, 2025, Nevada employers with six or more employees, who have been in business for at least 36 months and have not maintained a retirement plan, are required to automatically enroll eligible employees in the Nevada Employee Savings Trust Program (NEST), established in 2023. Eligible employees are those who have been employed for 120 days or more. Employees may opt out of the program at any time without penalty. The default contribution rate is 5%, though employees may choose to adjust their contribution amount. More here and here. 

New York  

• New York City amends lactation room accommodation policy requirements, May 2025 
  As of May 11, 2025, amendments to New York City’s Int. 0892-2024 require employers to provide a written lactation policy at the start of employment and ensure it is easily accessible to employees. The policy must be posted both physically in the workplace and electronically on the employer’s intranet, if available. These postings must also include a statement informing employees of their right to paid lactation breaks under New York State law. More here.  
  
  
• Sunsetting of COVID-19 Paid Emergency Leave law, July 2025 
  Starting July 31, 2025, New York employers will no longer be required to provide separate leave for COVID-19-related quarantines or isolations. Under the COVID-19 Paid Emergency Leave (PEL) program, employers were previously obligated to offer up to 14 days of protected, paid leave to employees subject to a mandatory or precautionary isolation or quarantine order who were unable to work remotely. More here. 
  
  

• New York State Fashion Workers Act, Effective June 2025
  The New York State Fashion Workers Act establishes new regulations for model management companies (MMCs) and their clients in the fashion industry. MMCs must register with the New York Department of Labor, provide models with contracts 24 hours in advance, and disclose any deducted costs. Clients are required to pay overtime for hours over eight in a day, ensure meal breaks, and maintain insurance for models. The law prohibits MMCs from charging hiring fees, imposing excessive commissions, or altering models' digital likenesses without consent. Models have the right to take legal action for violations within six years and may hold other controlling entities liable as well. This new law will take effect on June 19, 2025. More here.

Washington 

• Washington enacts Mini-WARN Act, July 2025 
  On May 13, 2025, Governor Bob Ferguson signed the Securing Timely Notification and Benefits for Laid-Off Employees Act (WA WARN), which takes effect on July 27, 2025. This law is broader than the federal WARN Act in several key areas. It requires employers with 50 or more employees to provide at least 60 days’ notice for mass layoffs involving 50 or more employees, as well as for any worksite closure affecting 50 or more positions. Employers must notify affected employees, unions, and the Washington Employment Security Department, including details about the impacted workers and the nature of the layoffs. Notably, employees on state-mandated paid family or medical leave may not be counted as part of a mass layoff. More here.
   
• Washington State expands Paid Sick Leave for immigration proceedings, July 2025 
  On April 25, 2025, Washington State Governor Bob Ferguson signed House Bill 1875, which takes effect on July 27, 2025. The law expands the allowable uses of paid sick leave for employees and transportation network drivers to include participation in immigration proceedings for themselves or their family members. Verification may be provided through documentation from advocates or attorneys, as long as no personal immigration information is disclosed. More here. 

Federal Law 

• EEOC Initiates 2024 EEO-1 data collection and revised reporting options 
  The Equal Employment Opportunity Commission (EEOC) has opened the 2024 EEO-1 data collection period, with submissions due by Tuesday, June 24, 2025. Following our previous communication (linked here), the Office of Management and Budget (OMB) has approved the EEOC’s proposed modification to the EEO-1 report. This change removes the option for employers to voluntarily report employees who identify as “non-binary,” restricting reporting to male or female only. For additional information, visit the EEO-1 website at www.eeocdata.org/eeo1.
   
• Sixth Circuit rules on weekly salary and overtime eligibility under FSLA 
  The US Court of Appeals for the Sixth Circuit, which covers Kentucky, Michigan, Ohio, and Tennessee, recently ruled in Pickens v. Hamilton-Ryker IT Solutions that an employee’s guaranteed weekly salary, calculated from a daily or hourly rate, does not exempt them from overtime pay under the Fair Labor Standards Act (FLSA). Other appellate courts have issued differing rulings, making this an evolving area of FLSA compliance. 

International 

• The Neonatal Care (Leave and Pay) Act, April 2025  
  The Neonatal Care (Leave and Pay) Act 2023, effective April 6, 2025, allows parents in England, Scotland, and Wales to take up to 12 weeks of paid leave if their newborn requires neonatal care within 28 days of birth and is hospitalized for at least seven days. Employees are entitled to one week of leave for each week of required care. To qualify for pay, employees must have at least 26 weeks of employment and earn a minimum of £125 per week. Leave must be taken within 68 weeks of the child’s birth or adoption. More here. 

US Minimum Wage Increases

Provincial Minimum Wages

We’re here to help 
Stay informed about upcoming changes to workplace policies and employee guidelines. If you have any questions, please reach out to compliance@castandcrew.com.