HR professionals have had to adapt quickly in 2024 to changes in the labor and employment landscape caused by new regulations, laws, and employee expectations. As 2024 draws to a close, we’ve taken a look at the events that impacted human resources the most this year.

The U.S. Department of Labor (DOL) introduced updates to federal minimum wage and overtime regulations, which can have a considerable impact on compensation strategies. This year, the minimum wage for federal contractors rose to $17.20 per hour and new overtime eligibility thresholds were set to $132,965 for exempt and non-exempt workers. These changes could mean that HR had to adjust pay structures to remain compliant. Companies with locations in more than one state may have more complex pay structures if states also raise their minimum wage.

Paid leave policies saw significant expansions in 2024, with several states passing laws that broadened eligibility for paid family, medical, and caregiving leave. The states that did so included California, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Puerto Rico, Rhode Island, Washington, and Washington, D.C., obligating HR for companies operating in those locations to update benefits offerings.

Even companies outside of those states may also consider updating their benefits offerings to attract top talent. The recent focus on paid leave has led to an increase in employee demand for flexible and comprehensive leave options, creating a need for HR to consider more generous and adaptable leave benefits.

The rise of artificial intelligence in hiring has prompted federal and state governments to implement new guidelines for using AI in recruitment. To address concerns over bias and transparency, 2024 regulations now require that any AI used in hiring processes undergo regular audits for fairness. In these regulations, the DOL emphasized that a human had to be involved in the hiring process; using AI alone without human oversight or involvement could violate federal labor laws.

In response to the ongoing demand for flexible work arrangements, many organizations have formalized hybrid and remote work policies in 2024. The Occupational Safety and Health Administration (OSHA) has released new guidance to ensure safe working conditions for remote employees, which HR professionals had to incorporate into their policies. Companies that didn’t use to offer remote work may now be exploring hybrid options or fully remote options when possible.

Some employees moved states during the COVID-19 pandemic because their jobs became remote. As remote work continues for many, 2024 brought new tax guidelines for employees working across state lines, affecting payroll, tax withholding, and compliance. HR teams are now tasked with ensuring tax accuracy and updating policies to meet multi-state regulations, creating a fair and compliant structure for remote employees.

This year also saw the expansion of DEI initiatives, with some states requiring mandatory DEI training and specific reporting on diversity metrics. These changes have encouraged HR departments to improve their DEI efforts, going beyond basic training to create measurable diversity goals. HR professionals are now working to establish transparent DEI metrics, which require consistent tracking and reporting to meet legal standards and foster an inclusive workplace.

In 2024, several states passed stricter data privacy laws, impacting how HR handles employee data. These laws restrict the types of data that can be collected and require employers to safeguard personal information, particularly for remote and hybrid workers. HR departments have had to enhance their data security practices and implement clear privacy policies, ensuring that employees’ personal information is protected and stored securely in compliance with these new regulations.

Mental health took center stage in 2024 as more companies introduced programs and benefits to support employee well-being. With the prevalence of workplace burnout, new regulations emerged encouraging employers to offer resources like mental health days, employee assistance programs (EAPs), and stress management workshops. HR professionals have responded by expanding wellness offerings and integrating mental health support into their benefits packages, promoting a more holistic approach to employee well-being.

This year, the classification of gig workers has been a prominent issue, with new legislation affecting how companies classify contractors and freelancers. The push for reclassification and enhanced rights for gig workers means that HR departments must stay updated on employment classifications to avoid misclassification issues. These changes prompted HR to review independent contractor agreements, compliance processes, and benefit offerings for part-time or gig-based roles.

With rapid technological advancements reshaping job requirements, 2024 saw a strong emphasis on reskilling and upskilling initiatives. Government incentives for skills development led HR teams to prioritize employee training programs, addressing skill gaps and preparing the workforce for emerging roles. This trend increased the role of HR in building learning cultures, providing access to training resources, and encouraging continuous development for long-term organizational success.

Union activity has been on the rise, with employees in various industries pushing for unionization and collective bargaining rights in 2024. These efforts have required HR professionals to navigate union negotiations, address employee concerns, and establish fair labor practices. The renewed focus on collective bargaining has also influenced HR to reinforce employee relations strategies and address workplace issues proactively to maintain positive engagement.

Expanded ADA protections in 2024 require employers to offer more comprehensive accommodations, especially for mental health and non-visible disabilities. HR teams are revisiting policies, ensuring accessibility in both physical and digital spaces, and providing updated training on inclusive practices to create a more supportive work environment.

New pay transparency laws in 2024 mandate that employers disclose salary ranges on job postings and provide clear pay scales for employees, aiming to reduce wage disparities. HR teams are standardizing pay structures, updating compensation policies, and improving communication to foster a fair and transparent workplace culture.