Alabama



Income Tax Exemption for Overtime Pay Ends June 30, 2025

The Alabama Department of Revenue has issued taxpayers a notice stating that the state income tax exemption for overtime wages will end on June 30, 2025. After this date, amounts received as overtime compensation will be subject to Alabama income tax. The requirement to report overtime wage data to the Department will also end once the final exempt overtime wages are reported on the employer's monthly or quarterly withholding tax filing. For a copy of the notice and more information, click here.

Alaska



New Rules for Employers July 1, 2025

Ballot Measure 1 - passed last November - will impose the following new rules for employers effective July 1, 2025:

• Increase the state’s minimum wage to $13 per hour;
• Increase the minimum salary threshold for exempt employees to $1,040 per week;
• Require all employers to provide paid sick leave to all employees unless otherwise exempted;
• Prohibit employers from holding mandatory meetings to share political or religious opinions.

More details can be found by clicking here, with FAQs here.

Colorado



Paid Family Medical Leave Expanded Benefit & Rates for 2025 and 2026

Colorado Senate Bill 144, enacted during the 2025 legislative session, allows parents of newborns receiving inpatient care in a neonatal intensive care unit (NICU) access up to an additional 12 weeks of paid leave. It also maintains the current premium rate of 0.9% of employee wages for 2025 and sets the 2026 rate at 0.88%. Beginning in 2027, the rate will be determined annually by the program director.

Indiana



Time Off for School Conferences

Starting July 1, 2025, Indiana employers will need to provide employees with unpaid time off to attend school conferences. Employees must provide employers with advance notice of at least five days; submit documentation confirming their attendance; make a reasonable effort to schedule the meeting as a virtual conference if possible; and limit the time off to what’s reasonably necessary.

New Hampshire

Accommodations for Nursing Mothers

In addition to federal rules about providing accommodations for nursing mothers, which applies to employers with 50 or more employees, New Hampshire employers with six or more employees will need to provide such accommodations beginning July 1, 2025. Nursing mothers are required to notify their employer at least two weeks prior to needing reasonable break periods and sufficient space for expressing milk during work hours. Employers are responsible for providing such space for a period of one year from the child’s date of birth. Such space cannot be a bathroom and must be a clean space shielded from view and free from intrusion by others.

Vermont

Wage Ranges in Job Advertisements

Effective July 1, 2025, employers with five or more employees must include wage ranges in job ads. To read the Act, click here.

Washington

Paid Time Off for Immigration-Related Proceedings

Beginning July 27, 2025, Washington’s paid sick leave program will expand to allow paid time off to allow employees to prepare for or participate in any judicial or administrative immigration proceeding involving the employee or employee’s family member. To read the text of Engrossed Substitute House Bill 1875 passed April 15, 2025, click here and scroll to items that are underlined.

Washington D.C.

Paid Family Leave Rates for 2025

The Paid Family Leave (PFL) tax rate for the remainder of 2025 will remain at 0.75%. The PFL tax is 100% employer funded and may not be deducted from employee’s checks. More information about the DC Paid Family Leave program can be found by clicking here.

West Virginia

Child Labor Law Amendment

Beginning July 1, 2025, employers seeking to hire a 14- or 15-year-old will no longer be required to obtain a work permit. Instead, employers must obtain an age certificate verifying the child’s age from the West Virginia Division of Labor along with the written consent of the child’s parent or guardian. To read the text of Senate Bill 427, click here.