New Federal-Level Employment Laws in 2025 to Know

w employment laws, and 2025 is no different. In fact, several new federal-level employment laws in 2025 are set to take effect, impacting everything from salary exemptions to healthcare. As workplace policies continue to evolve nationwide, employees and employers must stay informed and agile to adapt to these changes. For employers, staying compliant is essential to avoid potential legal challenges and penalties. For employees, understanding how these updates impact your rights and benefits is crucial to ensuring your present and future security is taken care of.

As a legal expert with a focus on employment law and workplace trends, my goal is to provide clear insights into the latest legislative changes. As we enter 2025, it’s important to prepare for the upcoming shifts in federal law. Let’s take a closer look at some of the key updates to federal employment laws that employers and employees should expect to see in the coming year.

What Are New Federal-Level Employment Laws in 2025?

As we enter the new year, it is important to understand the changes in labor laws so that you can adapt accordingly. So, without further ado, let’s get into some notable changes that both employers and employees should anticipate.

Related Article: New California Labor Laws in 2025 to Know

Minimum Exemption Salary Threshold

The minimum exemption salary threshold is scheduled to change in the new year, which is one of the adjustments to federal-level employment laws in 2025 that employers must be aware of to ensure compliance. While this is a federal-level change, the adjustment will differ state-to-state:

In Alaska, this exemption salary threshold will rise from $48,796.80 to $49,545.60 on January 1. It is also scheduled to rise again on July 1 to $54,080.
In California, it is scheduled to rise from $66,560 to $68,640. In
In Colorado, it is scheduled to rise from $55,000 to $56,485.
In Maine, it is scheduled to rise from $42,450 to $43,951.
In New York, it is scheduled to rise from $58,458.40 to $60,405.80. However, in New York City and Nassau, Suffolk, and Westchester counties, it is scheduled to rise from $62,400 to $64,350

Additionally, there will be a change to the computer employee exemption. The federal hourly rate for employees in a computer-related occupation to be classified as exempt from overtime is $27.63 hourly, which comes out to $684 weekly. The following states have also adjusted their minimum salary exemption required for computer employees:

California: $56.97 hourly, or $118,657.43 annually
Colorado: $34.07 hourly
Washington: $58.31 hourly

Because of these changes, employers in these states should adjust their salary overtime policies accordingly to ensure they are compliant with the Fair Labor Standards Act (FLSA). Employees, on the other hand, should be aware if they have a right to overtime pay under these protections in the new year.

Still, it’s essential to keep your finger on the pulse of developments in this area because legal challenges could still impact these changes, and it is impossible to anticipate what will happen until President-elect Donald Trump takes office.

Updates to 401(k)

Retirement plans will also be affected by new federal-level employment laws in 2025. The federal “highly compensated” threshold, as it pertains to retirement plans, is scheduled to increase from $155,000 to $160,000 in the new year. There will also be changes to both the Traditional 401(k).

In 2025, employee contributions will cap at $23,500, a $500 increase from 2024. While the catch-up deposits for people aged 50 and older will remain at $7,500 due to a change made in SECURE 2.0, a higher catch-up contribution limit applies for those aged 60, 61, 62, and 63 who participate in these plans. In 2025, this catch-up contribution limit will be $11,250 instead of $7,500.

For employers, it’s crucial to update payroll and benefits systems, communicate these changes to employees, and make sure retirement plans are adjusted to accommodate changes. For employees, it’s crucial to check your contribution limits and take advantage of catch-up contributions to plan ahead for retirement.

Health Savings Account (HSA) Contributions

The annual federal inflation-adjusted limit on HSA contributions for self-only coverage is also scheduled to increase from $4,150 to $4,300. The HSA contribution limit for family coverage will increase from $8,300 to $8,500.

Employers should update HSA contribution limits and ensure their plan options reflect these changes, communicate these changes to employees, and review payroll deductions to ensure they are compliant, while employees should increase contributions and plan for healthcare costs.

Affordable Care Act (ACA) Affordability

The ACA affordability threshold, which determines if an employer’s lowest-premium health plan meets the ACA’s affordability requirement, is scheduled to be 9.02% of an employee’s “household income,” increased from 8.39% in 2024, for plans starting in the calendar year 2025.

For employers, it’s imperative to review health plan offerings and ensure that their lowest-cost plan does not exceed the new 9.02% threshold. Then, they should notify employees and prepare to report affordability in their filings.

Minimum Wage Increase for Federal Contractors

One of the final new federal-level employment laws in 2025 to be aware of is the minimum wage increase for federal contractors. Beginning on January 1, 2025, the Executive Order 14026 minimum wage rate will increase to $17.75.

This increase generally applies to workers performing work on or in connection with federal contracts that were entered into, reviewed, or extended on or after January 30, 2022.

Thought Leader, Media Personality, Professional Speaker, & Legal Commentator on New Federal-Level Employment Laws in 2025 & Beyond

Understanding the new federal-level employment laws in 2025 is imperative for both employees and employers. For employers, it ensures compliance to avoid legal and potentially financial consequences. For employees, it ensures that they understand their rights and can enforce them. I am an expert on all aspects of employment law and am uniquely positioned and qualified to provide expert insight and analysis on all employment law issues. These issues can be complex, so you need a seasoned legal professional to shed light on them. My passion is being a beacon in uncertain times of transition that provides that light.

Employment Law Thought Leader & Professional Speaker on New Federal-Level Employment Laws in 2025, Employment Law Trends, and Breaking Employment Law News

Both employees and employers alike need to be able to navigate this changing landscape, and this knowledge is the only way to do so. I am a former employment and labor law attorney turned mediator, ADR, and conflict resolution specialist who believes it is imperative to stay current with groundbreaking changes to employment law for employees and employers alike. My passion is educating the general public on recent developments in employment law and the workplace trends that impact them as a thought leader and legal commentator. As such, I am uniquely qualified to address the issue of discussing politics in the workplace. My more than 20 years of experience as a media legal analyst and contributor led to my radio show on Tavis Smiley’s KBLA Talk 1580, “Legal Lens with Angela Reddock.” I also am a regular speaker and blogger on employment law and issues related to the workplace.

Also, learn more about my book – The Workplace Transformed: 7 Crucial Lessons from the Global Pandemic – here – https://angelareddock-wright.com/book/.

To follow and stream my Legal Lens Podcast, visit here – The Legal Lens Podcast.

For media inquiries, please reach out to josh@kwsmdigital.com.

For more information regarding mediation and dispute resolution resources for both employees and employers, let’s connect on LinkedIn for new updates or contact me here. You may also follow me on Instagram.

This communication is not legal advice. It is educational only. For legal advice, consult with an experienced employment law attorney in your state or city.