HR’s 2025 Compliance Survival Guide, Part 3
Not all compliance updates come from new laws. In 2025, several major court rulings will redefine how employers must approach protected leave, discrimination, independent contractor classification, and more.
If you’re only watching legislation, you’re missing half the picture.
Here are the top legal cases from 2025 that every HR leader should have on their radar, and the real-world policy shifts they demand.
Issue: Religious accommodations and protected leave
Why it matters: The court sided with the employee, reinforcing that employers must explore all reasonable options before denying accommodations related to religious practices.
What to do: Review your leave policies and manager training around interactive accommodation processes.
Issue: Independent contractor misclassification
Why it matters: Reinforced the strict application of the “economic realities” test, making it harder to classify certain workers as 1099.
What to do: Audit your use of contractors. If they work like employees, treat them like employees, or be ready for litigation.
Issue: Disabled retiree, received only 24 months of post-employment health insurance—not the lifetime coverage until age 65 that the city previously offered—after a 2003 policy change. She sued under the ADA.
Why it matters: On June 20, 2025, the U.S. Supreme Court ruled (8–1) that only “qualified individuals”—those who hold or seek employment and can perform its essential functions—can sue under Title I of the ADA. Since Stanley had retired and wasn’t seeking employment when the policy changed, she was not covered.
What to do:
- Still review benefit changes carefully for compliance with ERISA and other applicable laws.
- You’re in the clear under the ADA when changing or trimming retiree benefits—retirees can’t sue under Title I.
Issue: Religious exemptions and wage law
Why it matters: Clarified the boundaries of religious organization exemptions under state wage laws.
What to do: If you’re a nonprofit or religious organization, ensure you’re not relying on outdated exemption logic.
Issue: Pay equity and wage transparency
Why it matters: Emphasized that employers must prove compensation decisions are based on legitimate, documented business reasons.
What to do: Revisit your comp philosophy. If you can’t back up your ranges or decisions, you’re at risk.
What HR Teams Should Do Now:
- Train managers on retaliation and accommodation policies
- Conduct a wage audit to ensure defensibility
- Evaluate your contractor classification using federal and state tests
- Update job descriptions and internal documentation to reflect actual duties
Don’t Wait for a Lawsuit to Get Compliant
The courts are sending a clear message: outdated assumptions won’t hold up anymore. HR teams must adapt policies now to protect the organization and its people.
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