2025 has already been a landmark year for labor and employment laws across the United States, with significant changes at the state level impacting how businesses hire, pay, and manage employees. From expanded noncompete rights in Florida to new anti-discrimination protections in Rhode Island — and a full ban on noncompetes in Wyoming — employers nationwide face a shifting legal landscape.

Below is a deeper look at the most notable laws that took effect during the first half of 2025, plus additional context on how these changes could reshape workplace policies:

Florida: Broader Noncompete Powers

Effective July 1, 2025, Florida’s House Bill 1219 (H.B. 1219) — also called the CHOICE Act — strengthens employers’ rights to enforce garden leave and noncompete agreements lasting up to four years. The law clarifies that such agreements do not act in restraint of trade, so long as workers are given clear notice upfront and meet salary thresholds. Courts must enjoin employees covered by valid agreements from providing similar services elsewhere. This makes Florida one of the more employer-friendly states for restrictive covenants.

Illinois: Prevailing Wages, First Responders & Safety

Illinois saw several sweeping updates:

• H.B. 2840, effective February 7, 2025, expands who qualifies as a “first responder” under the Illinois Freedom to Work Act, meaning more workers are shielded from noncompete and nonsolicitation clauses. A 2024 amendment already barred these restrictions for mental health professionals working with veterans and first responders if such covenants raise costs or limit access.
• H.B. 587, the Electric Transmission Systems Construction Standards Act (ETSCA), effective February 20, 2025, brings new prevailing wage, OSHA safety training, and diversity plan requirements for all workers on electric transmission system projects. Contractors must set clear goals for hours worked by minorities and women and report spending with diverse suppliers.
• S.B. 1344, effective June 30, 2025, ups the stakes for noncompliance under the Illinois Prevailing Wage Act. Contracting employers now face civil penalties of up to $1,000 for a first offense and $2,000 for repeat offenses within five years for failing to file certified payrolls — with each month of violation counted separately.

Indiana: Family School Conference Leave

Effective July 1, 2025, Senate Bill 409 prohibits employers from penalizing employees who take unpaid time off to attend their child’s school conference. Employees must give 5 days’ notice and provide documentation but should make a reasonable effort to hold the meeting virtually if possible.

Iowa: Civil Rights & Drug-Free Workplaces

Iowa enacted two major updates:

• S.F. 418, effective July 1, 2025, removes gender identity as a protected class under the state’s Civil Rights Act, redefining sex as a biological trait determined at birth. This means employees alleging discrimination based on gender identity or transition status can no longer sue under Iowa’s Civil Rights Act.
• H.F. 767 updates Iowa’s drug-free workplace rules, letting employers classify jobs as “safety-sensitive” where mistakes could risk lives or major damage. Workers or applicants can get drug test results by email or in person instead of certified mail. Anyone suing for violations must prove the employer’s breach directly caused their damages.

Kansas: Two-Year Noncompetes

Under S.B. 241, effective July 1, 2025, Kansas now recognizes noncompete and nonsolicitation agreements lasting up to two years, provided they meet certain requirements. Courts must modify overly broad language before enforcing the covenants.

Nebraska: New Veteran Protections

L.B. 150, effective June 4, 2025, adds military members and veterans to the protected classes under Nebraska’s Fair Employment Practices Act. Discrimination based on veteran or military status is now explicitly prohibited statewide.

Minnesota: Sick Leave Flexibility

Starting July 1, 2025, S.F. 17 tweaks Minnesota’s earned sick and safe time law. Employers can require reasonable notice for unforeseeable leave and documentation for absences over two consecutive workdays. Workers can trade shifts to cover leave and, beginning January 1, 2026, employers can advance leave hours but must reconcile differences if actual work hours don’t match projections.

Ohio: New Pay Stub Rules

H.B. 106, effective April 8, 2025, sets new pay stub disclosure requirements. Employers must now include full employee details, gross and net pay, deductions with reasons, the payment date, and the covered pay period.

Rhode Island: CROWN Act & Worker Speech Rights

Rhode Island strengthened anti-discrimination and free speech protections:

• H.B. 5841, effective July 1, 2025, expands fair employment practices to ban discrimination based on hair texture and protective hairstyles, echoing CROWN Act laws elsewhere.
• H.B. 5506, effective July 2, 2025, bars employers from disciplining or firing workers who refuse to attend meetings where the main purpose is to communicate an employer’s religious or political views. Violations can result in civil suits for damages and attorneys’ fees.

Virginia: Non competes & Overtime Protections

S.B. 1218, effective July 1, 2025, broadens the definition of “low-wage employee” to include anyone eligible for overtime pay under federal law. Employers cannot enforce non JDSUPRAcompetes with these employees for contracts made after the law takes effect.

Wyoming: Noncompete Ban

S.F. 0107, effective July 1, 2025, goes further than any other state by banning noncompete agreements outright for both skilled and unskilled labor. Even physicians cannot be restricted from practicing medicine after leaving an employer.

Washington: Fair Chance & Immigration Leave

Effective July 27, 2025, H.B. 1747 expands the Fair Chance Act, blocking employers from asking about criminal history until after a conditional offer is made and barring blanket rejections based on criminal records — including juvenile ones — unless there’s a legitimate business reason. If denied, applicants must get written notice and two days to respond.
H.B. 1875 now lets employees use sick leave for immigration proceedings involving themselves or family members.

Key Takeaway

This is not an exhaustive list of every change in 2025. Employers should continue to monitor new local and state laws and consult experienced labor counsel to ensure compliance as new rules take effect.

Originally reported by JDSUPRA.