2025 Regulatory Environment and Trends in Workplace Compliance

In SHRM’s “Workplace Compliance Trends for 2025” webinar, Paola Cecchi-Dimeglio, chair of the Executive Leadership Research Institute for Women and Minority Attorneys at Harvard Law School, discussed this year’s regulatory environment and how new worker protections are increasing employer obligations.  

Consistency in Policy

In light of the new compliance burdens employers are facing, it is critical for companies to exhibit consistency in policy to avoid legal risk. Specifically, employers need to ensure uniformity across all “processes related to how [they] screen, interview, and train people coming into [their] organization,” Cecchi-Dimeglio said. While consistency is important in major milestones such as hiring and onboarding, it is also essential to have regularity in performance management, disciplinary measures, data security, and workplace safety.  

By having clear and well-structured policies, a company creates a stable environment where “every employee knows what is about to happen, as well as helping management do their job,” Cecchi-Dimeglio said.

It is especially important to be consistent when terminating an employee in order to avoid a claim of wrongful termination. This happens when an employer fires an employee for an illegal reason. 

In Jones v. Georgia Ports Authority (2024), an employee sued his employer for wrongful termination after being fired on the grounds of failing to follow company policy. “The employee had to return a letter to his employer from his doctor. This letter was not signed,” Cecchi-Dimeglio explained. The court ruled in favor of the employer, saying it had the right to dismiss the employee because it was consistently applying its policy of requiring a signed doctor’s note.  

To avoid legal exposure, employers need to document the reason behind an employee’s termination. It is recommended that employers stay up-to-date on what qualifies as illegal discrimination, so they do not inadvertently terminate an employee based on a protected trait. Cecchi-Dimeglio suggested having a centralized system for documentation storage, which would allow “easy access for both the employee and the management.”

Importance of Cybersecurity

In 2025, new data privacy laws have gone into effect in Delaware, Iowa, and New Hampshire, reflecting an ever-increasing focus on cybersecurity. Employers must be “very clear about what personal data” is collected and how it is used, Cecchi-Dimeglio said. It is necessary to obtain consent legally with an opt-out option, as well as to be transparent about data sharing with third parties.

The new data privacy laws are going to “increase the burden on employers,” who are “going to have to respond within a very strict limit of time,” Cecchi-Dimeglio said. A lot of resources will have to go toward being fully compliant. Noncompliance could lead to significant legal exposure and the risk of fines and penalties.  

Along with data privacy, employers must also contend with digital threats that put employee and company information at risk. The reality is that employees represent a company’s greatest vulnerability. Therefore, all team members with access to company systems would benefit from cybersecurity training. Cecchi-Dimeglio recommended employing simulated email phishing tests, two-factor authentication, single sign-on systems, one-on-one coaching, and limited access to sensitive systems.  

Leave Laws and Time Off

New leave laws taking effect in 2025 include:

• New York Paid Prenatal Leave Law.
• Maine Paid Family and Medical Leave.
• Michigan Earned Sick Time Act.
• Delaware Paid Family and Medical Leave. 

To prepare for administrative changes in these states, employers should update employee handbooks, adjust their HR and payroll systems, and train HR so that all protocols are met. Cecchi-Dimeglio also recommended consulting a lawyer on a regular basis to ensure compliance. “Being proactive is key,” she said.  

To answer employee questions regarding leave, it may help to have a centralized tool or platform, as well as automated responses that ensure consistency in messaging. Cecchi-Dimeglio suggested having a legal ambassador who can help translate legalese for employees.  

“Make sure you have people tracking what is happening at the federal level, and also at the state [level]” she added. It is a good idea to check and update employee handbooks once a year, or twice if the company is a multistate employer that must juggle various leave laws.

It can be helpful to have a “centralized HR portal that consolidates all the leave rules” at the federal and state levels, Cecchi-Dimeglio said. Likewise, employers can benefit from having software to track each employee’s leave usage.