2025: The Road Ahead

By Sally Weldin, Senior Human Resource Specialist
Published January 14, 2025

Keeping informed of federal, state, and local regulations affecting employment is no small task. HR Source has communicated changes throughout 2024 in our weekly newsletter, at our conferences and webinars, and we recently provided a summary of new employment regulations that took effect at the start of the year. Here are a few more changes to be aware of and some to watch in the year ahead.

Minimum Wage Increases. Both Illinois and Cook County increased minimum wage to $15.00 per hour effective January 1, 2025. The minimum wage covers non-exempt workers in Illinois, excluding those working in Chicago who are covered by the City of Chicago Minimum Wage Ordinance. Employers must make the change to the wages of covered workers with wages lower than $15.00 per hour, document the change, and post the updated Illinois Department of Labor poster. The new hourly wage is the last of the increases under Governor Pritzker’s Lifting Up Illinois Working Families Act signed in 2019.

In Cook County, minimum wage is increased through a formula utilized by the Cook County Commission. Cook County municipalities who opted out of following the Cook County Minimum Wage Ordinance must pay the state’s minimum hourly wage to non-exempt workers, which is also $15.00. Cook County employers must also document the change in wages and post the updated poster.

IRS Standard Mileage Rate Increase. The IRS increased the recommended standard business mileage rate for 2025. Effective January 1, 2025, the standard mileage rates for the use of a personal car, van, pickup, or panel truck used for business purposes are:

• 70 cents per mile driven for business use, up 3 cents from 2024.
• 21 cents per mile driven for moving purposes for qualified active-duty members of the Armed Forces, unchanged from last year.
• 14 cents per mile driven in service of charitable organizations, equal to the rate in 2024.

These rates apply to electric and hybrid vehicles, as well as gasoline and diesel-powered vehicles. 

Form I-9 Compliance. Changes are anticipated for employment verification. Employers should be using the 08/01/2023 edition of the Form I-9 and instructions or the updated Form I-9 which USCIS issued in August 2024 for newly hired employees to complete. You can find the newest version on the United States Citizenship and Immigration Services (USCIS) website. The 08/01/2023 version is still acceptable until its expiration date. Employers should review their processes for completing the Form I-9 and storage now to ensure they are in compliance after the ending of remote flexibility in July 2023. While remote verification is still an option for Illinois employers, they must comply with USCIS rules. Schedule time in early 2025 to review your practices. 

Salary Threshold Increase under FLSA Overtime Exemptions. Increases to the minimum salary threshold used in classification of certain workers as exempt from overtime requirements under the federal Fair Labor Standards Act (FLSA) were halted in November 2024 by a ruling by a federal court in Texas. On November 26, 2024, the United States Department of Labor filed a notice of appeal to overturn this decision. The change in presidential administrations and to the Secretary of Labor will likely play a role in the determination of the appeal. HR Source will monitor the status of this appeal. 

OSHA’s Proposed Heat Standard. While the Occupational Safety and Health Administration (OSHA) released their proposed heat protection standard called Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings this past summer, it is still in the open comment period which was extended from December 30, 2024, to January 15, 2025. OSHA also released a fact sheet along with the proposed standard. Note that while there is not an official federal standard, Colorado, California, Minnesota, Oregon, and Washington currently have heat injury and illness prevention regulations in place.

Questions? HR Source members are encouraged to contact us through the HR Hotline Online or at 800-448-4584.