Applicable to: Vermont, Maine, Connecticut, and New York
As Q2 of 2025 approaches, it’s critical for small to mid-sized businesses in New England to stay aligned with new labor law changes and people operations trends. Below is a breakdown of the most pressing legislative updates and practical action steps to help keep your business compliant and your people supported.
Vermont
- Minimum Wage Increase: Effective January 1, 2025, Vermont’s minimum wage increased from $13.67 to $14.01 per hour. The tipped minimum wage also rose to $7.01 per hour. Read More
- Pay Transparency Law: Starting July 1, 2025, employers with five or more employees must include compensation ranges in all job advertisements. This initiative aims to promote salary transparency and equity. Read More
Maine
- Paid Family and Medical Leave Program: Payroll contributions for Maine’s Paid Family and Medical Leave Program began on January 1, 2025. Employers will commence their first quarterly wage reporting and premium payments starting April 1, 2025, with a due date of April 30, 2025. Employers with fewer than 15 employees are required to contribute 0.5% of wages, which can be deducted entirely from employees’ wages. Read More
- Private Plan Substitution: Employers have the option to apply for an exemption from the state plan by offering a comparable private plan. Applications for such exemptions are accepted starting April 1, 2025. Read More
Connecticut
- Expanded Paid Sick Leave: As of January 1, 2025, companies with at least 25 employees are required to provide up to 40 hours of paid sick leave annually. This threshold will decrease to 11 employees in 2026 and extend to all employers by 2027. Employees accrue one hour of paid sick leave for every 30 hours worked. Read More
- Minimum Wage Adjustment: Connecticut’s minimum wage increased to $16.35 per hour on January 1, 2025. Read More
New York
- Minimum Wage Increase: Effective January 1, 2025, the minimum wage increased to $16.50 per hour in New York City, Long Island, and Westchester County, and to $15.50 per hour in the rest of the state. Read More
- Paid Prenatal Leave: New York introduced a pioneering Paid Prenatal Leave Law, granting all private-sector employees up to 20 hours of paid leave annually for pregnancy-related medical appointments. Read More
- Retail Worker Safety Act: Originally set to take effect on March 4, 2025, the implementation of this act has been delayed to June 2, 2025. The act mandates safety training and protocols for retail workers to enhance workplace safety. Read More
💡 Tips for Employers
- Audit Your Job Ads: If hiring in Vermont, begin updating postings with transparent salary ranges now to prepare for July’s deadline.
- Update Payroll and Leave Systems: Make sure all software reflects minimum wage changes and leave contribution deductions.
- Review Employee Handbooks: Incorporate new state leave laws and wage rates into your policies.
- Train Your Team: For NY retailers, get ahead by rolling out safety training programs in Q2 before June.
- Consider Private Plan Savings: In Maine, evaluate whether a private plan could provide comparable leave coverage with more flexibility.
We’re Here to Support You
If you have any questions or concerns about how these changes affect your organization, we’d be happy to talk through them.
Contact us to learn about our HR services and how the Cultivate Consulting team you already trust can help with all your human resources and compliance needs at grow@cultivateconsulting.co.
Whether you’re adjusting policies or preparing for audits, we’re here to guide you every step of the way.
