Stay Compliant: Compliance Updates from April 2025

New Zeal Compliance Features

• Washington CARES Exemption: Employers can now mark employees living in Washington as Exempt from the tax in an employee’s profile. For more information about who is exempt from this tax see the Washington Cares Fund website: https://wacaresfund.wa.gov/ 
• California Rest And Meal Break Premiums (Coming Soon): Employers will soon be able to enter an earning component for any missed meal or rest breaks in California that will apply one hour of pay at the employee’s regular rate of pay.

State and Local Employment Tax and Compliance Updates

• Utah Updates Its Withholding Formula: Utah Governor Spencer Cox signed bill H.B.106  which lowers the state’s income tax rate to 4.5% (previously it was 4.55%) 
• Idaho Lowers Its Income Tax Rate: Idaho Governor Brad Little signed House Bill 40, which reduces the state income tax rate from 5.695% to 5.30%
• Oregon Updates Its State Minimum Wage Requirements Effective July 1st, 2025: Oregon announced updates to its state minimum wage requirements to reflect the increase in the consumer price index. The minimum wage requirements will be as follows:
  • Standard: $15.05/hr (previously $14.70/hr)
  • Portland Metro Area: $16.30/hr (previously $15.95/hr)
  • Nonurban Counties: $14.05/hr (previously $13.70/hr)
• Seven More States Have Active Legislation That Would Require I-9 E-Verify: Arkansas, Massachusetts, Montana, New Jersey, Oregon, Texas, and Rhode Island have all introduced legislation that would require employers to use I-9 E-Verify. This represents a growing trend in the requirement to use I-9 E-Verify as 23 states either require or have legislation that would require E-Verify for employees.

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California Court of Appeal Upholds The Use Of Meal Break Waivers For Employees

The California Court of Appeal ruled on April 21, 2025, that employees in California can voluntarily waive their meal breaks in advance for shifts between five and six hours, as long as the waivers are reasonable and not coerced.

In Bradsbery v. Vicar Operating, Inc., former employees claimed their employer violated state meal break laws, but the court upheld the validity of written waivers that could be revoked at any time.

This decision affirms that prospective meal period waivers are legally permissible under certain conditions, though employers should seek legal guidance on their use.

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Stay Compliant

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