Looking Ahead: Compliance, PWFA, and DEI in 2025
The Larkin Company has always monitored the compliance landscape as it pertains to leave laws, statutory benefit programs, accommodations, and much more. We track legislation throughout the year to keep tabs on what is happening in the country and monitor laws that may impact our business and that of our clients. While 2025 has brought much uncertainty, our approach has remained unchanged. We remain vigilant. For example, there has been talk of the rule related to the Pregnant Workers Fairness Act (PWFA) being rescinded or at a minimum, significant changes to the rule.
Rest assured, we’ll continue to monitor the PWFA situation, and if any changes become official, we’ll inform you on how this impacts our clients and guide you through next steps. Our goal is to ensure you are well-informed and prepared as we navigate these changes together. As far as other changes like the elimination of Diversity, Equity and Inclusion (DEI) initiatives in the federal government, we stand by our internal DEI program and will continue to foster a diverse and inclusive work environment where all are welcomed and supported.
City and State Updates
New York City
The New York City Council has amended employer requirements for their written lactation room accommodation policy. Employers must provide their lactation policy to an employee at the commencement of employment (as opposed to upon hire). The policy must be posted conspicuously at the employer’s place of business and electronically on the employer’s intranet, if they have one. Employers must provide 30 minutes of paid break time and allow employees to use existing paid break time or meal time for time in excess of 30 minutes to express breast milk.
Maryland
The Maryland General Assembly has passed a final bill to establish new implementation dates for Maryland’s paid family and medical leave insurance program:
- Payroll deductions will now begin January 1, 2027 (previously July 1, 2025)
- Benefits will become available by January 3, 2028 (previously July 1, 2026)
This is the second time the MD FAMLI program implementation has been delayed. There’s a small chance we may also see some other changes to the program; we’ll keep you updated on any other updates from the state.
Missouri
We previously covered how voters in the state approved Proposition A late last year, which will soon be going into effect as of May 1, 2025.
The state’s Department of Labor has created an FAQs page on their website that covers the reasons for use of paid sick time, accrual, front-loading, and carryover – all the details you may need to know if you have employees in Missouri. The DOL has also made available a model notice and poster, found at the same link above. Note that written notice of the new earned paid sick time* policy must be provided to Missouri employees no later than April 15, 2025.
Montana
A new leave law has been enacted in Montana regarding volunteer emergency service providers*. Effective October 1, 2025, both public and private employers will be prohibited from terminating an employee’s employment if they are a volunteer emergency service provider, have completed their probationary period, and are absent or late to work as a result of performing these services during an emergency. Employers may request an employee who utilizes this leave to provide a written statement from a supervisor of the volunteer emergency service organization confirming the employee responded to the emergency and the date, time, and duration of such emergency.
An emergency services provider is defined as a volunteer firefighter, a volunteer who is an enrolled member of a volunteer fire department, or a volunteer emergency medical technician, and is not paid full-time by the entity for which the services are performed in the local service area.
Employees are required to provide their employer with a written notice, confirming their status as a volunteer emergency services provider. Those employees who serve as a volunteer before October 1, 2025 must provide this notice within 30 days of the new law’s effective date (i.e., by October 31, 2025). If an employee joins a volunteer emergency unit or organization after October 1, 2025, they must provide the notice within 30 days of joining the unit or organization. Further, all new hires will be required to provide the notice within 30 days of hire.
Washington
The Evergreen State has expanded both the covered uses and the definition of family member under its paid sick leave law*, effective January 1, 2025. Covered uses for paid sick leave now include when an employee’s workplace or their child’s school or place of care has been closed for any health-related reason by order of a public official or after the declaration of an emergency by a local or state government or agency, or by the federal government.
Qualifying family members now includes: 1) any individual who regularly resides in the employee’s home, except that it does not include an individual who simply resides in the same home with no expectation that the employee cares for the individual; and 2) a child’s spouse. Further, grandparents and grandchildren have been clarified to mean those of the employee.
You may read the full text here. Also, if needed, you can find FAQs on Washington’s paid sick leave law on their Department of Labor and Industries website.
Wyoming
The Wyoming Legislature passed a bill last month related to the protection and rights of blind and disabled persons, which amended the definition of a service animal under state law. With this amendment, a service animal shall now include a dog that is being trained to do work or perform tasks for the benefit of an individual with a disability, effective immediately. This is a notable departure from definitions of other state jurisdictions, as a service dog in training is not typically considered as a service animal. Notably, in California, a dog in training to be a service animal is not considered a service animal.
Virginia
Virginia is one of the states that have been working hard to try and pass a new paid family and medical leave program. Unfortunately, this time didn’t work out as House Bill 2531 was vetoed late last month. If or when there is another proposal, we’ll be sure to give you the details.
*The Larkin Company does not administer paid sick leave or leave for volunteer emergency service providers.
Canada Updates
Employment Insurance (EI) Benefits
The Employment Insurance regulations were recently amended, as made by the Canada Employment Insurance Commission. These new regulations will effectively be introducing a 6-month pilot project for EI with three temporary measures:
- The waiting period is waived for all new claims for EI benefits that start between March 30, 2025 and October 11, 2025. However, if an employer has a registered Supplemental Unemployment Benefit (SUB) plan with Service Canada, employees may serve the waiting period if it’s to their advantage.
- For unemployment benefits, earnings paid from separation of employment will not be deducted from benefits if the claim or the allocation starts between Mach 30, 2025 and October 11, 2025.
- The EI regional unemployment rates will be artificially boosted by one percentage point in all regions, to a maximum of 13.1%, and establish a minimum unemployment rate of 7.1%. This applies April 6, 2025 through July 12, 2025.
As a result of these temporary changes, please ensure that calculations of any salary continuation/company top-up pay align with the waived waiting period. If we handle any top-up calculations or short-term disability services for you, we will adjust accordingly.
British Columbia
British Columbia has recently introduced Bill 11, the Employment Standards Amendment Act, which would eliminate the need for sick notes in relation to short-term sick leaves under the Employment Standards Act. This Bill has just had its first reading not too long ago, and it’s been announced by the BC government that regulations will be established to define how many days is considered a short-term absence, and how often an employee may be absent before their employer can request a formal sick note.
This will be the fourth province to introduce a bill to remove the requirement for employees to provide medical certification for sick leave in certain circumstances, with the others being Ontario, Quebec, and Newfoundland and Labrador. We’ll keep you updated as Bill 11 makes its way through parliament.
