HR Compliance Trends for 2025: Preparing for the Future of Work

HR compliance continues to grow in complexity as the workplace evolves. With the rise of pay transparency laws, advancements in AI, increased labor actions, and the continued growth of remote workforces, human resources professionals must navigate a dynamic and often challenging landscape. 

As we enter this fresh new year, staying ahead of these trends is essential for minimizing risk and building a thriving workplace.

Pay Transparency Gains Momentum

Pay transparency remains a top priority as organizations and governments push for greater fairness in compensation practices. Currently, 17 states in the U.S. have adopted pay transparency laws, and many more are expected to follow. These laws vary but often require employers to disclose salary ranges in job postings and provide clear explanations of how pay decisions are made.

Expect a greater emphasis on pay equity audits this year. Companies will need to evaluate and address disparities not only to comply with regulations but also to build trust with employees. Transparency in pay also supports retention by aligning with employees’ desires for fairness and openness.

Preparing for Pay Transparency

• Conduct Regular Pay Audits: Review your pay structures regularly to identify and correct inequities. Tools like data analytics can help streamline the process.
• Develop Job-Leveling Frameworks: Establish clear criteria for roles, responsibilities, and compensation levels to support fairness and consistency.
• Train Leaders: Managers will play a key role in implementing these changes. Equip them with tools and communication strategies to handle pay discussions confidently and transparently.

Ban-the-Box and Fair Chance Hiring Practices

The ban-the-box movement continues to gain traction in the public and private sectors. By the end of this year, more organizations will likely adopt policies that delay inquiries into an applicant’s criminal history, ensuring fairer consideration of their skills and qualifications.

Recent updates, like the U.S. Office of Personnel Management’s final regulations for the Fair Chance Act, highlight the need for compliance in federal hiring practices. Private employers are also under increased scrutiny as laws evolve, with some jurisdictions expanding regulations and others scaling back.

Steps for Compliance

• Audit Hiring Practices: Review application forms, interview questions, and hiring policies to ensure they align with current ban-the-box laws in all applicable jurisdictions.
• Delay Background Checks: Shift criminal history inquiries to later in the hiring process, after an offer has been extended.
• Focus on Individual Assessments: If criminal history is relevant to a role, conduct individualized assessments that consider the nature of the offense, the time elapsed, and the position’s responsibilities.

Addressing the Rise In Labor Actions

Labor relations are expected to remain a critical focus in 2025. With strike activity doubling in recent years and major walkouts gaining national attention, employers must prepare for a workforce increasingly willing to assert its rights.

Labor relations encompass the dynamic between employees, their representatives (such as unions), and management. While unions are a key component, non-unionized workplaces also see shifts in employee expectations for communication, collaboration, and shared decision-making.

Enhancing Labor Relations

• Invest in Expertise: Hire labor relations specialists or consultants to guide negotiations and address workplace tensions.
• Educate Leadership: Train managers and HR teams on collective bargaining laws, employee rights, and effective communication strategies.
• Proactively Address Concerns: Regularly survey employees to identify and resolve grievances before they escalate into larger issues.

Technology and Compliance In the Age of AI

Artificial intelligence will continue transforming HR processes, from recruitment and onboarding to performance management and compliance. However, as technology advances, so do concerns about privacy, bias, and legal responsibilities.

A critical update from the Consumer Financial Protection Bureau (CFPB) in late 2024 outlined how third-party technology vendors may be considered Consumer Reporting Agencies under the Fair Credit Reporting Act (FCRA). This means employers using AI tools for hiring decisions must adhere to FCRA obligations, ensuring accuracy, transparency, and fairness.

Navigating AI Compliance

• Understand Vendor Responsibilities: Partner with technology providers that prioritize compliance and are clear about how they collect, store, and process data.
• Ensure Human Oversight: Combine AI tools with human judgment to mitigate bias and errors in decision-making.
• Provide Candidate Transparency: Clearly communicate how AI is used in the hiring process, including the criteria for decisions and recourse options if errors occur.

Remote Work and Multistate Compliance

Remote work is no longer a trend—it’s a standard. Employees working from various states and countries face increased challenges in complying with tax laws, employment regulations, and worker protections across jurisdictions.

For example, different states have unique laws regarding overtime, leave policies, and workplace safety. In some cases, federal laws apply, while others defer to state or local regulations, creating a patchwork of requirements for HR teams to manage.

Managing a Distributed Workforce

• Centralize Compliance Tracking: Use technology to monitor and manage compliance requirements for all employee locations.
• Review State-Specific Laws: Partner with legal experts to understand the nuances of employment laws in the states where your employees are based.
• Update Employee Handbooks: Ensure policies reflect the diverse regulations applicable to your workforce.

Upskilling and Continuous Learning

As industries evolve, so do the skills employees need to succeed. Upskilling initiatives will take center stage in 2025 as organizations prioritize workforce development to stay competitive. This focus on learning isn’t just about technical skills—it also addresses leadership development, change management, and digital fluency.

Building a Learning Culture

• Offer Tailored Training Programs: Create learning paths aligned with employees’ roles and career goals.
• Leverage Technology: Use platforms that offer microlearning, gamification, and on-demand resources.
• Recognize and Reward Growth: Celebrate employee learning milestones to encourage participation and engagement.

Building a Culture of Compliance and Trust

HR compliance isn’t just about following rules—it’s about creating a workplace culture where employees feel valued, protected, and empowered. Companies prioritizing transparency, fairness, and adaptability will be best positioned to attract top talent, mitigate risks, and thrive in an ever-changing environment.

By addressing these trends head-on and equipping HR teams with the tools and knowledge they need, organizations can confidently navigate compliance challenges and focus on their strategic goals.

Stay ahead by making compliance a cornerstone of your HR strategy—your employees and your organization’s success depend on it.

SUBSCRIBE TO BLOG