Tilson HR Shares Key Public Policy Trends for Employers to Follow in 2025
Employers navigating the complexities of employment law in 2025 should prepare for regulatory shifts, evolving compliance requirements, and potential legislative changes, according to Steve Seibold, HR Department Manager at Tilson HR.
“It is important to recognize that employment law is in a state of constant flux, and 2025 is no exception,” Seibold said. “While there are discussions, proposals, and potential regulatory changes on the horizon, many of these will be subject to legal challenges, delays, or modifications before they take effect.”
Key Areas of Focus in 2025
Tilson’s 2025 Employment Law Outlook highlights several emerging issues that employers should monitor, including wage and hour compliance, AI usage and governance, and updates to Occupational Safety and Health Administration (OSHA) standards.
“Potential shifts in federal labor policies could affect overtime pay structures, employee classification rules, and benefits administration,” Seibold said. “While no major changes have been finalized, staying ahead of these discussions will help businesses remain agile and prepared to adjust when necessary.”
Taxation of Overtime Wages and Tips
Discussions surrounding possible changes to overtime wage taxation and tip regulations, particularly under a possible Trump administration policy shift, has raised concerns among some businesses in the hospitality and service industries.
“At this time, the possibility of eliminating the tip tax credit remains speculative, with no confirmed changes,” Seibold said. “If such a shift were to occur, businesses could see increased payroll tax obligations, requiring a reassessment of compensation structures.”
Seibold advises employers to monitor legislative developments, consult with tax professionals, and maintain transparency with employees regarding potential changes.
Minimum Wage in Indiana
Indiana’s minimum wage remains aligned with the federal rate, and no statewide increases have been enacted for 2025. However, Seibold encouraged businesses to stay informed about federal proposals and localized wage initiatives that could impact pay structures.
“Even if no legislative changes occur, competitive labor market conditions may require businesses to reassess their pay structures to attract and retain employees,” he said.
OSHA Regulations and Workplace Safety
Employers should also be aware of potential increases in OSHA enforcement efforts, particularly concerning heat exposure protections, ergonomic safety, and remote work compliance.
“Employers should proactively review their workplace safety programs, ensure required training is up to date, and maintain accurate documentation to avoid potential penalties,” Seibold said.
Ethical and Compliant AI Use
As artificial intelligence becomes more integrated into HR and general administrative functions for businesses, employers are encouraged to take steps to ensure ethical and legal compliance.
“Best practices include conducting audits of AI-driven decision-making tools, ensuring human oversight in employment decisions, and staying informed about emerging state and federal regulations,” Seibold said.
“Employers should remain proactive in developing ethical policies that align with both legal and ethical standards.”
Overtime Rules and Federal Labor Policies
Changes to federal overtime eligibility, including potential increases to the salary threshold for exempt employees, are possibly on the table in 2025.
“If such changes are finalized, employers may need to reassess salary structures and reclassify affected employees,” Seibold said. “Additionally, employers should stay informed about potential updates to independent contractor classifications and any federal leave mandates that could impact workplace policies.”
Staying Informed and Prepared
While the future of employment policies remains uncertain, Seibold emphasized the importance of employers and HR professionals staying informed and adaptable. Tilson will continue to monitor developments and provide guidance to help businesses navigate compliance challenges throughout the year.
“While these are considered ‘trends’ for 2025, it is important to recognize that employment law is always evolving,” he said. “Employers should stay informed, review their policies regularly, and be prepared to adapt when new regulations take effect.”