Key Labor and Employment Trends Law Firms Should Watch for 2025

Key Labor and Employment Trends Law Firms Should Watch for 2025

According to a Bloomberg Law article by Laura Maechtlen of Seyfarth Shaw, employers are navigating a complex legal landscape as 2025 approaches. Maechtlen highlights these key labor and employment trends for the coming year:

Cultural Flashpoints: Workplace conflicts spurred by divisive political and cultural issues are expected to continue, particularly following the presidential election. Topics such as immigration, reproductive rights, and religious accommodations will remain focal points, influencing workplace harmony and increasing reputational risks. Additionally, regulatory changes will likely curb diversity, equity, and inclusion (DEI) initiatives, amplifying these challenges.

AI Regulation: As the market matures, the employment sector will see an evolving AI regulatory framework. While federal policies may encourage AI development, states like California, Colorado, and Illinois will implement stringent laws focused on transparency and testing. This patchwork will create complex compliance demands and heightened litigation risks regarding hiring and recruitment practices.

Agency Priorities: President-elect Trump’s anticipated removal of NLRB General Counsel Jennifer Abruzzo underscores potential shifts in agency leadership and policy. Changes at the NLRB and the EEOC could impact investigatory and prosecutorial approaches. Employers should be mindful of new rulemaking, such as the Department of Labor’s overtime exemption regulations, which have already faced judicial challenges. Classification practices may need revisiting as plaintiffs’ lawyers leverage these regulatory shifts.

State-Level Regulations: Despite federal gridlock, states will remain proactive in workplace legislation. Effective in 2025 across several states, pay equity and transparency laws will require job postings to include pay ranges, potentially leading to class action litigation.

Wage-Hour Litigation: Employers face continued wage-hour challenges as courts revisit interpretations of the Fair Labor Standards Act. Both sides are expected to advocate for revised readings of statutes and regulations, fueling an environment where disruption is the norm.

Law firms that stay attuned to these labor and employment trends will have a critical advantage for strategic compliance and risk mitigation going into the coming year.