HR Insights - March 2025 Edition

HR challenges are always evolving, and staying ahead is key to protecting your business and team. In this issue, we’re covering what small businesses need to know—off-boarding risks, supporting employees facing domestic violence, remote work pros and cons, and key employment law trends for 2025. Let’s dive in…

HR professionals talk a lot about the Employee Life Cycle, but one stage often gets overlooked—off-boarding.

A structured off-boarding process isn’t just a formality; skipping it can lead to major risks, such as:

📉 Harming your employer brand – Employees who leave on bad terms won’t hesitate to share their experiences online or with potential future hires.

🧠 Loss of institutional knowledge – Without a proper transition, valuable information walks out the door with your departing employees.

😔 Low morale for remaining employees – Seeing colleagues exit in a disorganized or dismissive way can erode team trust and engagement.

💡 Missed opportunities for feedback – Exit interviews can provide crucial insights to improve retention and workplace culture.

🔒 Security risks – Delayed deactivations of accounts and access can put your data and systems at risk.

⚖️ Legal and compliance concerns – Mishandling terminations can lead to wrongful termination claims, unemployment disputes, and compliance issues.

💸 Higher turnover costs – A poor off-boarding experience can discourage former employees from returning or referring talent to your company.

Having a solid off-boarding plan protects your business, keeps your team engaged, and sets the stage for positive relationships with alumni employees. If you need help designing an off-boarding process that works, check out my latest guide: “The Ultimate Off-boarding Checklist.”

Domestic violence isn’t just a personal issue—it can spill into the workplace, affecting employee safety, attendance, and performance. In fact, more than 22 million U.S. workers have missed work due to domestic violence.

As a small business owner, you may not have a HR department to handle these situations, but you can take steps to support employees while also protecting your business and team.

✅ How Small Businesses Can Support Employees Facing Domestic Violence

Domestic violence hotline

🔹 Create a Safe & Supportive Culture – Make it clear that your business does not tolerate abuse, harassment, or intimidation. Encourage employees to speak up if they need help.

🔹 Understand Employee Rights & Legal Protections – Some key laws to be aware of:

✔️ FMLA (Family and Medical Leave Act) – Allows eligible employees to take unpaid leave for medical care, court proceedings, or relocation due to domestic violence.

✔️ ADA (Americans with Disabilities Act) – If the survivor has physical or mental health conditions due to abuse, reasonable accommodations may be required.

✔️ State & Local Safe Leave Laws – Many states require employers to provide paid or unpaid leave for survivors to handle legal, medical, and housing needs.

🔹 Provide Resources & Confidential Assistance – Keep a list of local shelters, hotlines, and support organizations available in case an employee needs help. You don’t have to be a counselor, but you can point them to the right resources.

🔹 Consider Flexible Work Arrangements – If an employee is in immediate danger, offering temporary remote work or adjusted schedules can provide safety while they make necessary arrangements.

⚠️ How Small Businesses Can Protect Their Workplace & Team

🔸 Have a Workplace Safety Plan – If a known abuser poses a potential workplace threat, develop a safety plan that could include:

✔️ Alerting security or law enforcement if necessary.

✔️ Restricting workplace access if the abuser is a former employee or known individual.

✔️ Encouraging affected employees to update emergency contacts and share any protective orders (if they’re comfortable doing so).

🔸 Train Managers & Staff – Educate supervisors on how to recognize warning signs (e.g., unexplained absences, sudden changes in behavior) and handle disclosures with care and confidentiality.

🔸 Review Policies on Workplace Harassment & Violence – Make sure your policies cover domestic violence-related harassment, including threats, stalking, or unauthorized workplace visits.

The Bottom Line: You don’t have to be an expert in domestic violence intervention, but as an employer, you can foster a workplace where survivors feel safe and supported. At the same time, having clear policies and proactive safety measures will help protect your business and all of your employees.

Need help developing workplace policies that address domestic violence? Let’s chat.

Remote work isn’t just for big corporations—it’s increasingly becoming a game-changer for small businesses looking to attract talent, reduce costs, and stay competitive. But like any business decision, it comes with both advantages and challenges.

✅ The Pros of Remote Work for Small Businesses:

💰 Lower overhead costs – With fewer (or no) office spaces, businesses save on rent, utilities, and office supplies.

🌎 Access to a wider talent pool – Small businesses can hire the best candidates regardless of location, opening up opportunities for specialized talent.

📈 Increased productivity – Many employees work more efficiently in a remote setting with fewer office distractions.

👩‍💻 Better employee retention – Offering flexibility can improve job satisfaction and reduce turnover.

⚠️ The Cons & Challenges:

🔄 Communication barriers – Without the right tools and systems, remote teams can struggle with collaboration, leading to misalignment.

⏳ Tracking performance – Managing productivity remotely requires different strategies, and some business owners worry about accountability.

🔐 Security risks – More remote work means increased cybersecurity concerns, especially for businesses handling sensitive client data.

👥 Building company culture – Creating a strong team dynamic without in-person interaction takes intentional effort.

Many small businesses are adopting hybrid models—mixing remote work with occasional in-person meetings—or setting clear expectations around availability, communication, and performance tracking.

The key is balancing flexibility with structure so that remote work remains a benefit rather than a burden.

How is your business handling remote work? Are the benefits outweighing the challenges?

A recent case involving Starbucks serves as an important reminder that dress code policies must align with federal labor laws. Here’s what happened:

👕 A Starbucks employee in Tennessee wore a T-shirt with a union logo.

⚖️ The store manager asked the employee to change, citing a dress code policy that banned graphic designs.

📢 The employee filed a complaint, and the National Labor Relations Board (NLRB) ruled that Starbucks violated the employee’s rights.

The takeaway?

Dress codes should be neutral and consistently enforced—but they can’t infringe on protected rights, such as union activity.

If you have dress code policies in place, now’s a great time to review them to ensure they align with labor laws.

Employment laws are constantly evolving, and 2025 is shaping up to be a year of significant changes. Here’s what’s on the horizon:

📉 DEI initiatives under pressure – As some companies scale back diversity, equity, and inclusion efforts, discrimination and harassment claims may rise.

🔐 Data privacy & cybersecurity – Employee lawsuits over data breaches are increasing, making compliance with privacy laws more important than ever.

💼 Independent contractor vs. employee classification – Expect continued scrutiny over worker classification, with increased penalties for misclassification.

💰 Pay transparency & wage laws – More states are rolling out pay transparency laws and stricter overtime rules.

🤖 AI in HR – New regulations are emerging around how AI can be used in hiring, performance management, and workforce analytics.

With the new administration in place, additional labor law changes will be coming. The best way to stay compliant? Keep policies updated, document decisions carefully, and partner with an HR professional to ensure you remain compliant.

No HR resources on staff? Let’s chat about On Demand HR Solutions advisory services can help.

💡 Do employees have to give two weeks’ notice?

Legally, no. The U.S. follows at-will employment, meaning employees can leave without notice. That said, giving notice is a professional courtesy that helps ensure a smooth transition.

💡 Are zero-hour contracts always unfair?

Not necessarily. While they get a bad reputation, they can be beneficial for workers who want flexibility. The key is transparency and fairness—employees should fully understand the terms and expectations before agreeing to one.

💡 Can I ask anything I want in a job interview?

Nope. Certain questions—like those about age, marital status, religion, or family plans—can be considered discriminatory and create legal risks. Stick to job-related questions that assess skills, experience, and qualifications.