Last year brought a whirlwind of changes, including new regulations around non-compete contracts and significant updates to the Department of Labor’s rules for overtime compensation. Toward the end of 2024, these changes were stayed by court rulings, and it is highly unlikely the Trump administration will pursue them in 2025.
With these court rulings, there aren’t many changes taking effect in 2025. Here’s a quick summary of what you need to know:
Ohio Minimum Wage
Ohio’s minimum wage will increase to $10.70 per hour for non-tipped employees. This minimum wage applies to businesses with annual gross receipts of more than $394,000 per year.
Pregnant Workers Fairness Act (PWFA)
The PWFA went into effect in 2023, and in April 2024, the EEOC released a final rule, which became effective on June 18, 2024. The PWFA requires employers with at least 15 employees to provide reasonable accommodations to workers with known limitations related to pregnancy, childbirth, or related medical conditions unless doing so would cause undue hardship to the employer. The final rule clarifies employers’ responsibilities under the law. You can review the guidance here.
CROWN Act
Many states and cities have passed laws prohibiting hair discrimination. These laws aim to protect against discrimination based on hair texture and protective styles such as braids, locs, twists, and knots. While there is currently no federal or state employment law in Ohio, several cities, including Akron, Cincinnati, Columbus, and Cleveland Heights, have implemented these protections.
Pay Transparency Laws
Although not yet a federal or state law, several municipalities in Ohio have adopted pay transparency laws. In Columbus, as of March 1, 2024, employers with 15 or more employees are prohibited from asking job applicants about their salary history. Additionally, employers cannot prevent employees from openly discussing their salaries.
Other cities with pay transparency laws include Cincinnati, Cleveland, and Toledo.
Agencies in these cities should review their handbooks and remove any language indicating that compensation is confidential or that discussing compensation could lead to disciplinary action. A best practice for complying with pay transparency laws is to establish pay ranges for each job description and share these ranges with employees and prospective job candidates.
Employee Rights Under the National Labor Relations Act (NLRA)
Regardless of union membership, employees have the right to engage in protected activity, including improving wages, hours, and working conditions. The NLRB has been active in enforcing the NLRA, with a 7% increase in enforcement actions. Recently, the Board has expanded protections to include confidentiality and non-disparagement clauses.
Heading into 2025, employers should review policies and procedures that might “chill” employees’ rights to organize and engage under the NLRA. This includes policies such as social media guidelines that prohibit criticism of management, confidentiality provisions around wages, discipline, investigations, and harassment complaints.
If you have questions about your handbook, employment policies, or other HR-related matters, please don’t hesitate to contact Brian Lawrence, Director of HR Solutions at brian@ohioinsuranceagents.com.
