Companies must prepare for a patchwork of new regulations to ensure compliance, mitigate risk, and maintain trust with employees.
February 05, 2025
Illustration by Rob & Robin
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With Congress unwilling or unable to pass federal laws in other areas of employment, and federal agencies unlikely to issue broad regulations, the states will take over. The result will be a fragmented legal landscape that will pose significant challenges for businesses as they grapple with a mix of different and even contradictory policies in states where they operate. State policies in four areas will be particularly challenging to navigate: the use of noncompete agreements, paid-leave policies, pay-transparency requirements, and AI regulation.
With Republicans in control of Washington, the conventional wisdom is that companies can expect a lighter touch on employment regulations.
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Ani Huang is senior executive vice president of the HR Policy Association and CEO of its Center on Executive Compensation.
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Timothy J. Bartl is president and CEO of HR Policy Association, the nation’s leading public policy association of senior human resource executives, representing nearly 400 of the largest companies operating within the United States and globally.
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