Employco Blog

5 Attraction and Retention Trends to Monitor in 2025 – Employers will likely continue to struggle to attract and retain talented employees this year. In fact, 38% of employees are likely to leave their jobs in 2025. Despite looming employee turnover in 2025, employee quits consistently decreased throughout 2024. This means workers stayed in their current jobs, potentially due to reduced optimism about the job market. However, market trends could shift back to workers more confidently exploring the job market in 2025.

5 Employee Benefits Trends Shaping 2025 – Employee benefits are transforming, and employers can get ahead of these changes as they strive to attract and retain top talent. The modern workforce is multigenerational, with evolving expectations around work-life balance, mental health, and personalized benefits. In this dynamic environment, understanding and implementing the latest trends in employee benefits can set an organization apart as an employer of choice.

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California Employment Laws Effective Jan. 1, 2025 – Most new bills in California become effective on Jan. 1 of the following year once approved by the state Legislature and the state governor (though some exceptions are possible for emergency measures and when the bills specifically appoint a different effective date).

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The minimum wage rate is expected to change in 2025 in the following states: Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Illinois, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Oregon, Rhode Island, South Dakota, Vermont, Virginia, and Washington.

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States and localities have been adding pay transparency requirements since 2021. Most recently, Maryland’s Wage Range Transparency Act took effect on Oct. 1. New legislation in Hawaii was also enacted in 2024, while Colorado and the District of Columbia amended their pay transparency laws.

Pay transparency is when an employer uses established practices to openly communicate pay-related information to current or prospective employees.

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On Nov. 26, 2024, the U.S. Department of Labor (DOL) filed a notice of appeal seeking to overturn the recent decision by the U.S. District Court for the Eastern District of Texas that vacated the DOL’s final rule. The final rule amended requirements that employees in white-collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA). The District Court’s ruling set aside the final rule’s increases to the standard salary level nationwide, returning the salary threshold to the pre-July 2024 threshold.

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Employee handbooks are important for establishing employee expectations, addressing workplace issues, and defending against potential lawsuits. Failing to update the employment policies in these handbooks regularly can make employers vulnerable to legal risks and liabilities that may result in costly fines, penalties, and attorney fees. Employment laws are often complicated, and employers must know about new regulatory developments that may impact their organizations and workforce. The start of the year provides employers with an excellent opportunity to review and update their policies.

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