As 2025 begins, small business owners in Missouri and Kansas face a familiar challenge: staying compliant with ever-changing employment laws. Federal updates and state-specific regulations in Kansas and Missouri demand attention to avoid penalties and foster a positive work environment. This article explores key changes, offers practical tips, and explains how a fractional HR leader can help small businesses navigate the complexities.
Federal Updates You Need to Know
- Exempt/Non-Exempt Classification: A federal court struck down a proposed rule change to increase salary thresholds for exempt employees. As of now:
- The threshold for white-collar employees remains at $35,568.
- Highly compensated employees must earn $107,432. Ensure employees are classified correctly to avoid compliance issues.
- Pay Transparency: Although this is gaining traction nationwide, employers should prepare for potential changes requiring clear pay and benefits disclosures in job postings.
Missouri’s 2025 Employment Law Changes
- Criminal History Disclosures: Individuals with expunged arrests can legally answer “no” when asked about arrests, provided there’s no public record. Employers should update hiring policies and ensure interviewers are trained to comply.
- Weapons in the Workplace: Employers cannot ask employees about firearms in their vehicles or search for them, provided the weapons are lawfully owned and stored in locked vehicles. This law is particularly relevant for organizations receiving public funds.
- Minimum Wage: Missouri’s minimum wage increases to $13.75 per hour. Ensure payroll systems reflect this update to avoid wage disputes.
Kansas Employment Considerations
While Kansas law hasn’t undergone dramatic changes this year, small businesses must still comply with federal mandates and best practices. For example:
- Adopting robust drug testing policies can address legal marijuana use while maintaining workplace safety.
- Staying proactive about pay equity and transparency is critical, even before formal laws mandate it.
Tips for Compliance
- Review Policies Regularly: Employment laws evolve constantly. Schedule quarterly reviews of employee handbooks, job descriptions, and workplace policies.
- Train Your Managers: Managers should understand new laws affecting hiring, wage discussions, and workplace accommodations. Investing in training mitigates risks of non-compliance.
- Audit Payroll Practices: Ensure systems reflect updated minimum wages and overtime calculations. Mistakes in paychecks can lead to legal disputes and loss of trust among employees.
- Communicate Changes: Transparency with employees about new laws and company policies fosters trust and reduces misunderstandings.
How a Fractional HR Leader Can Help
Navigating these complexities can overwhelm even the most diligent small business owner. That’s where a fractional HR leader comes in. Unlike a traditional consultant or a Professional Employer Organization (PEO), a fractional HR leader works as an embedded part of your team, providing:
- Strategic Guidance: Tailored advice on complying with local and federal laws.
- Policy Development: Crafting or updating handbooks and HR practices.
- Training Programs: Equipping managers to lead effectively in compliance with legal standards.
Think of a fractional HR leader as your HR co-pilot, ensuring you stay on course while you focus on running your business.
Questions to Consider
- Are your employee classifications up to date under the current federal rules?
- Have you accounted for Missouri’s minimum wage increase in your payroll system?
- How will you address potential conflicts arising from weapons-in-vehicles laws?
- Who in your organization ensures compliance with ever-changing employment laws?
Compliance isn’t just about avoiding penalties; it’s about creating a workplace where employees feel secure, valued, and respected. Staying informed and seeking expert guidance can help your business thrive in the face of legal changes. Partnering with a fractional HR leader is like having GPS for your business—they’ll keep you on track, avoiding unnecessary detours and ensuring your team is aligned with the latest regulations. By taking proactive steps, you can focus on running your business while building a compliant and supportive work environment.
