Labor Law Updates for March 2025

At INFINITI HR, we simplify compliance for small businesses by keeping you informed about labor law changes that could impact your company. Stay ahead of compliance in 2025 with these new updates to state labor laws. 

Please note: This blog is for informational purposes only. Employers should consult with your HR Consultant or legal counsel to address specific requirements for their organization. Find past updates and insights on our website.

Key Topics This Month:

1. Illinois: Pay Record Retention, Pay Stub Requests and Pay Records at Separation
2. Minnesota: St. Paul Ordinance on Wage Theft.
3. Federal: Reminders on the new use of E-Verify for Remote I-9 Document Verifications.

ILLINOIS

New Pay Record Guidelines – Effective January 1, 2025

As of January 1, 2025, IL employers have new obligations when navigating pay record requests as outlined below.

Pay Record Retention

Employers are required to maintain copies of employee pay stubs for at least three years from the date of payment. This applies regardless of whether the employee’s employment ends during that time and whether the pay stub was provided on paper or electronically.

Pay Stub Request

• Employers must provide copies of pay stubs within 21 days of receiving a written request from an employee.
• Former employees can request past pay stubs for up to one year after separation.
• Employers must provide pay stubs in the format the employee prefers (e.g., physical copy, email, computer access or regular mail).

Separation Requirements

• Employers who provide electronic pay stubs that are inaccessible to the employee after separation must offer departing employees a record of all pay stubs from the prior year.
• The employer must document the offer in writing, including the date, method of communication, and the employee’s response.

MINNESOTA

St. Paul Wage Theft Ordinance Update Effective January 1, 2025

On January 1, 2025, the City of St. Paul, Minnesota’s Wage Theft Ordinance went into effect. The Ordinance largely mirrors Minnesota’s existing wage theft requirements; however St. Paul’s Ordinance contains additional obligations for employers with employees working within the geographic boundaries of the City of St. Paul.

EMPLOYEE NOTICE INFORMATION REQUIRED

Minnesota state law requires employers to provide detailed information, in writing, to Minnesota employees at the start of their employment and provide written notice of changes which occur during employment. The notice to St. Paul employees must contain the following additional information:

• St. Paul’s minimum wage rates, and the employee’s entitlement to such rates;
• If applicable: a statement that the sharing of gratuity is voluntary; and
• The overtime policy applicable to the employee’s position, if any, including when overtime must be paid and at what rate[s].

In addition, employers are required to notify employees annually of their rights under the Ordinance; and employers are also required to post a notice of employees’ rights. Employee handbooks should also be updated to include the Notice.

FEDERAL

E-Verify – Effective January 1, 2025

As of January 1, 2025, employers in Illinois utilizing E-Verify will face new obligations under the amendments to the Right to Privacy in the Workplace Act.

Interested in other current employment trends? Click the link to view the recent blog: How to Prepare Your Business for HR Regulation Changes or check back for more on human resources, payroll, insurance, and benefits.

This article does not constitute legal advice, and there are subtle variations in employment law as it pertains to these topics, depending on where your business operates. It is strongly suggested that you seek consultation or legal counsel before making decisions about policies.