State Labor Law Updates: What Employers Need to Know June 2025

At INFINITI HR, we help small businesses stay compliant with evolving state labor laws. This June 2025 update outlines new employment regulations in Colorado, Nevada, Maryland, and more, including privacy act, power act, pay transparency, etc. Stay informed and protect your business from legal risk.

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

Reviewed and endorsed by the INFINITI HR Advisory Team.

Key Topics This Month:

• Colorado: Privacy Act
• Maryland: Service Member Definition and Paid Family Leave
• Nevada: Employee Saving Trust IRA
• Ohio: Pay Transparency and Compensation History
• Pennsylvania: Power Act

Quick Answer: June 2025 brought new state and local labor law changes for employers in Colorado, Maryland, Nevada, Ohio, and Pennsylvania. Highlights include Colorado’s biometric data consent requirements, Maryland’s expanded service member protections and delayed paid family leave, Nevada’s NEST retirement savings mandate, Cleveland’s pay transparency ordinance, and Philadelphia’s POWER Act for domestic workers. Employers operating in these areas should review policies now to stay compliant.

What Does Colorado’s New Privacy Act Require Starting July 1, 2025?

Effective July 1, 2025, employers must obtain employee or applicant consent before collecting or processing biometric data. Consent will be required from Colorado employees for the following if biometric data is used and stored:

• Access to secure locations or systems
• Time Keeping / Time Clock use
• Job-specific safety purposes
• Background checks or ID requirements for applicants
• For more detail, see the biometric data amendment to the Colorado Privacy Act (HB24-1130).

What Employers Should Do in Colorado:

Audit your use of biometric data to determine if your terms of use, data protection, and data storage procedures are compliant. Consider if you are in need of consent forms for current and future use of biometric data, or reach out to our HR consulting team for help.

What Is Maryland’s New Service Member Definition Effective October 1, 2025?

Beginning October 1, 2025, employment protections for military members will include all uniformed services and reserves. The revised definition of a service member is anyone serving in the U. S. Army, Navy, Air Force, Marine Corps, Space Force, Coast Guard, the National Oceanic and Atmospheric Administration, and the Public Health Service.

Why Was Maryland’s Paid Family Leave Program Delayed to 2027?

Maryland pushed back implementation of its paid family leave program (FAMLI) until 2027, when tax deductions will begin. Benefits will be available to all employees in Maryland in 2028, up to 12 weeks of paid family leave per year.

In 2023, Nevada enacted the Nevada Employee Savings Trust program (NEST) to establish a state-run payroll deduction IRA program for private sector employees who do not have access to employer-sponsored retirement plans.

What Is Nevada’s NEST IRA Requirement for Employers Effective July 1, 2025?

All qualified Nevada businesses are required to facilitate NEST if they:

• have been in business for 36 or more months;
• have six or more employees; and
• do not offer a tax-favored retirement plan to its employees at any time within the current calendar year or previous three calendar years.

A tax-favored retirement plan is a retirement plan that’s tax qualified and satisfies the requirements of Internal Revenue Code Section 401(a), 401(k), 403(a), 403(b), 408(k), or 408(p).

Please note, participating employers will not be required to contribute to employee plans.

Employees will be required to participate and will be automatically enrolled if they:

• have been employed for at least 120 days; and
• are 18 years or older.

Employees will be able to opt-out of the program at any time without any penalty.

The NEST Program will reach out to eligible businesses to facilitate registration and provide resources to help inform employees about the program.

What Does Cleveland’s New Pay Transparency and History Ban Require Starting October 27, 2025?

Effective October 27, 2025, employers with 15 or more employees working in Cleveland, Ohio will be required to comply with the city’s new Pay Transparency and Compensation History Law. The new law will require employers to include salary ranges and pay scales in any notification, job posting, or advertisement for any open position. The new law also prohibits employers from screening and/or asking applicants about their compensation and benefits history. In addition, employers may not refuse to hire or retaliate against an applicant who refuses to disclose their compensation history.

What Is Philadelphia’s New Power Act Effective May 27, 2025?

The Philadelphia Power Act was signed into law on May 27, 2025 and went into effect immediately. The Power Act has added additional domestic worker protections regarding wages, paid sick leave, and retaliation for workplace complaints.

What Are the Power Act’s Key Domestic Worker Protections?

Enhanced Paid Sick Leave Penalties – The Power Act permits civil penalties for covered employers who violate the city’s state sick leave law. Employers must keep a detailed with up-to-date records of the employee’s sick time.

Expanded Wage Theft Protections – Philadelphia’s Department of Labor (DOL) has the authority to investigate complaints of wage theft, including violations of state and federal laws and allows the DOL to issue orders for employers to pay back wages and penalties.

Expanded Domestic Worker Protections – Under the city’s Domestic Worker Bill of Rights, domestic workers are entitled to paid meal breaks and the accrual of paid sick time. Employers are required to provide written contracts outlining specific terms of the domestic workers’ employment and terminations. In addition, employers must provide a notice of rights and severance requirements.

Key Takeaways:

• Colorado employers must obtain consent before collecting biometric data starting July 1, 2025.
• Maryland expanded its service member definition for employment protections effective October 1, 2025, and delayed paid family leave (FAMLI) until 2027.
• Nevada businesses that meet size and tenure thresholds must facilitate the NEST retirement savings program starting July 1, 2025.
• Cleveland employers with 15 or more employees must include pay ranges in job postings and cannot ask about salary history starting October 27, 2025.
• Philadelphia’s POWER Act, effective immediately as of May 27, 2025, expands wage, sick leave, and retaliation protections for domestic workers.

INFINITI HR helps small businesses stay ahead of changing state and local labor laws across the country. Contact us to learn how our HR experts can help you stay compliant.

Interested in other current employment trends? Click the link to view the recent blog: Why 2025 Business Compliance is More Important Than Ever 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.