As the new year begins, employers in New York and New Jersey must comply with significant HR-related legal updates. Here’s a breakdown of the key changes effective January 1, 2025:
New York
- Minimum Wage Increase:
- NYC, Long Island, and Westchester: $16.50/hour (up from $16.00).
- Rest of the state: $15.50/hour (up from $15.00).
- Paid Prenatal Leave:
- Employers must provide up to 20 hours of paid leave annually for pregnant employees to attend prenatal appointments.
- Workers’ Compensation Benefits:
- Minimum weekly benefit increased to $325 (up from $275).
New Jersey
- Minimum Wage Increase:
- Most employees: $15.49/hour (up by $0.36).
- Seasonal/small business employees: $14.53/hour (up by $0.80).
- Agricultural workers: $13.40/hour (up by $0.59).
Federal Changes
- 401k
- Contribution limit increased from $23,000 to $23,500
- Flexible Spending Account (FSA)
- Contribution limit increased from $3,200 to $3,300
- Healthcare Savings Account (HSA)
- Contribution limit for self-only coverage increased from $4,150 to $4,300
- Contribution limit for family coverage increased from $8,300 to $8,550
- Catch Up Contributions (Ages 60-63)
- Standard catch-up contribution remains at $7,500 for most participants
- For individuals aged 60-63, the limit increased to $11,250
Action Steps for Employers
- Update payroll systems to reflect the new wage rates.
- Revise employee handbooks and policies to include prenatal leave and pay transparency requirements.
- Ensure compliance with workers’ compensation benefit adjustments.
- Review insurance policies to ensure EPLI coverage.
For further details on these updates, visit the official state labor department websites or consult legal counsel to ensure full compliance. Stay proactive to keep your workplace compliant and supportive!
