U.S. employers are forecasting average wage increases of 3.5% in 2026, consistent with 2025 levels. A recent survey, which polled over 1,500 employers in the United States, showed that 53% plan no change to their salary increase budgets, while 31% expect to reduce them. Only 15% anticipate budget increases, signaling a continued shift toward cautious compensation planning even as overall wage growth holds steady.
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We recently released our 3rd quarter HR Edge newsletter. This edition of the newsletter covers the following topics:
Click here to read HR Edge (Q3 2025).
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Colorado Enacts Significant Wage and Hour Amendments – On May 22, 2025, Colorado enacted House Bill 1001, which makes several important changes to the state’s wage and hour laws.
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Employee engagement refers to an employee’s emotional connection and commitment to their organization and its goals. It is often reflected in their loyalty, motivation, and willingness to advocate for the organization. Engagement is a critical factor in driving retention and productivity.
According to a report from Gallup published in early 2025, the percentage of engaged employees fell to 31% in late 2024 from 33% in 2023. It was the lowest level of employee engagement recorded in a decade. Previous years saw high levels of employee quits, while employees are now more likely to stay in their current jobs—even if they are not satisfied with their role or their employer. This means employers may face lower productivity and a damaged workplace culture, which can lead to attraction and retention difficulties.
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On July 4, 2025, President Donald Trump signed a major tax and spending bill, commonly referred to as the “One Big Beautiful Bill Act” (OBBB Act), into law. The OBBB Act includes changes for employee benefit plans, including provisions that:
Throughout 2025, there have been significant changes in employment law at the federal and state levels. A review of agency guidance, presidential executive orders, litigation, and recent and proposed legislation reveals a number of emerging trends that will affect employers for the remainder of the year. Employers should ensure that they are apprised of significant legal developments and are either in compliance or prepared to comply with their requirements.
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Question: Does an employer legally need to provide something in writing to an employee being terminated?
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With seasonal employment, internships, and graduations, summer presents a strategic recruitment opportunity for employers. What’s more, summer is the peak season for many businesses, potentially driving them to hire more workers to keep up with increased demand. Summer is an ideal time for employers to review their efforts to attract and retain quality talent for seasonal or long-term employment.
Continue readingIllinois (Chicago) Increases Minimum Wage – On June 4, 2025, the City of Chicago announced an upcoming change to the minimum wage. Effective July 1, 2025, the Chicago minimum wage for employers with 4 or more employees will be $16.60 per hour, while the tipped employee minimum wage will be $12.62 per hour. For youth workers, subsidized temporary youth employment programs, and subsidized transitional employment programs, the minimum wage will be $16.50 per hour.
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