Recap: Essential Compliance Updates for Overtime and Minimum Wage 2025

Our recent webinar, Overtime and Minimum Wage 2025: Essential Compliance Updates for Payroll, led by Product Marketing Manager Jerika Holton, covered key regulatory updates payroll teams need to be prepared for in the new year. Here’s a summary of the highlights and where to find the key slides. Below, we recap the key highlights.

Watch the full session here:

Federal and State Overtime Changes for 2025

*Important Note: As of November 2024, a federal court blocked the nationwide implementation of the US Department of Labor (DOL) minimum salary increase. In State of Texas & Plano Chamber of Commerce, et. al v United States Depart of Labor, Civ. No. 4:24-CV 499/468, the ruling nullified the increase that took effect on July 1, 2024. Employers who made changes to their payroll settings should consider consulting legal counsel about next steps. This ruling does not affect state and local labor laws that impose stricter overtime requirements than federal regulations.

Participants also learned about various state-specific overtime laws, such as daily overtime, seventh consecutive day overtime, and double-time pay, along with unique industry-specific requirements. We emphasized states like Alaska, California, Colorado, and Nevada, which have more stringent overtime policies.

Read Now: Navigating Overtime Laws by State and the Federal Overtime Law Change

Minimum Wage Changes for 2025

The discussion shifted to updates in minimum wage structures, covering tiered increases, tipped wage standards, and municipal rates influenced by local regulations.

We detailed the impact on payroll operations, especially in states with significant upcoming changes such as California, Illinois, and New York.

Read Now: Navigating 2025 Minimum Wage Changes: What Employers Need to Know

How Greenshades Supports Compliance

To wrap up, we detailed how Greenshades' solutions can help navigate these changes seamlessly. Our automated payroll processes, location-based adjustments, and proactive compliance measures ensure accurate handling of both overtime and minimum wage regulations, simplifying payroll management and reducing manual errors.

Garnishment Compliance and Best Practices

A crucial portion of the webinar addressed maintaining compliance when calculating garnishments. We highlighted the importance of understanding location-specific compliance laws to accurately handle garnishments during payroll processing. Special attention was given to the need for detailed reviews of garnishment orders and ensuring that the information is set up properly according to the specific order. This helps avoid compliance pitfalls and protects businesses from potential fines.

Managing Paid Sick Leave Across Jurisdictions

We also discussed the intricacies of managing paid sick leave (PSL), especially for businesses with employees across multiple states. Greenshades' capabilities in tracking paid sick leave ensure accurate accruals based on the number of hours worked in specific locations.

Final Takeaways

2025 brings significant compliance changes, particularly for overtime and minimum wage laws. By leveraging Greenshades’ solutions, payroll teams can stay compliant and operate more efficiently.

Missed the webinar or want a personalized demo? Reach out to us at Sales@Greenshades.com or visit our contact page.