According to Dayforce research, nearly half (48%) of surveyed leaders believe that increased compliance and regulatory complexity will impede their organization’s ability to achieve its business objectives. This could be due in part to the sheer number of emerging workforce compliance trends and how many different areas they impact.
This shift requires substantially more oversight than the compliance function needed in the past. To help simplify the situation, I’ve rounded up key workforce compliance trends that should be top of mind for HR professionals through 2025.
Non-compete agreements
In certain nations, including Malaysia and Mexico, most post-termination non-compete agreements have generally been prohibited for some time. Then, in the spring of 2024, the U.S. Federal Trade Commission published a final rule that would effectively ban all non-compete agreements between employers and workers. The exceptions to the rule pertain to existing agreements with senior executives, sale-of-business non-competes, and causes of action that accrued before the rule’s effective date of September 4, 2024.
Expanded leave requirements
Globally, the parameters of paid and unpaid leave are constantly in flux. Most interesting is the increase in laws that allow employees to take paid time off (PTO) for any reason. Generous accommodations for new parents and senior caregivers are also becoming an expectation for employers of a certain size. Just this spring in Japan, Parliament passed legislation requiring companies to offer flexible working options to employees with young children to help them balance work with child rearing.
Minimum pay thresholds
In the U.S., the beginning of 2024 was marked by an increase in the minimum wage in more than 20 states, and more changes are occurring in individual states and localities as the year progresses. Canada continues to raise its minimum wage every year, while European countries continue to realize the effects of 2022’s Minimum Wage Directive, which took aim at in-work poverty. If you have employees in the U.S., you should note that in April, the U.S. Department of Labor (DOL) issued a rule updating overtime pay requirements. This rule increases the minimum salary threshold for employees to be exempt from overtime pay, with the first phase having taken effect on July 1, 2023 and the second phase on January 1, 2025.
For more compliance happenings, read the full article on Dayforce.com.
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