A recent poll of employers has revealed some of the topics on the forefront of their minds in 2025. Norton Rose Fulbright has polled employers in its 2025 Litigation Trends Survey. We highlight below some of the trends showing the greatest growth in risk.
The poll also further emphasizes the importance of experienced legal counsel. Just under half (45%) of survey respondents reported being involved in employment law and labor disputes last year. That’s down only slightly from the previous year, when 49% reported being drawn into litigation, in 2024. Any employers needing further guidance in litigation or preventing such through proper compliance with all regulations, can contact the experienced legal counsel at MNK Law via info@mnklawyers.com or 562.362.6437.
Data Management Risks and Requirements, Including Employees’ Data
48% of employers surveyed anticipate that managing employee data and addressing data privacy concerns will become more challenging in 2025. This figure is up from 36% last year. This increase highlights growing anxiety among employers over their obligations to safeguard sensitive employee information.
The inherent nature of employment requires organizations to retain large volumes of personal data about their workforce. This has led to a rise in legal actions where employees have sued their employers following data breaches that exposed private information. Consequently, businesses are paying closer attention to how they manage employee data and ensure that privacy protections are in place.
Another growing concern is keeping up with constantly evolving data privacy laws, especially regarding consumer data. More than half of employers surveyed said that staying compliant with changing cybersecurity and privacy regulations could elevate their risk exposure this year.
Varying Workplace Requirements and Regulations Across Jurisdictions
Navigating employment law compliance across multiple jurisdictions remains a challenge for many organizations. This year, 29% of respondents indicated that such compliance issues are likely to lead to an increase in claims, compared to 24% the previous year.
California was once a rarity in its focus on employment regulation. Recently, the regulatory landscape has become more complex as a growing number of states and local governments enact additional labor and employment laws, besides those mandates laid out by the U.S. federal government. This patchwork of requirements is making it increasingly difficult for multistate employers to stay compliant in all areas.
For example, new pay transparency laws took effect in Illinois and Minnesota on January 1, 2025. Three additional states expected to implement similar regulations later this year. Employers operating across state lines to avoid liability must navigate a maze of overlapping and sometimes conflicting rules.
The Use of AI in Hiring and Other Employment Decisions
Employers are curious about using Artificial Intelligence to increase productivity, but also mindful of potential increased risk of litigation arising therefrom. Employers are turning to AI to do things like boost performance, or even enhance workplace diversity—but these initiatives are not without risk. This year, 36% of respondents said they expect AI use to increase the risk of labor and employment law claims, a mark that is up 8%. Recent studies have shown that close to two-thirds of current jobs are susceptible to some level of AI automation.
Upcoming case decisions in class-action lawsuits by job applicants against HR companies, including Mobley v. Workday, Inc., a federal case in California, will have significant effects in employment regulation. Plaintiffs in these cases allege that the companies’ AI-driven hiring tools have discriminated on the basis of race, age, and disability. Given the widespread use of AI and HR technologies, these cases could have significant implications for employers in 2025 and beyond. Their growing apprehension is not without merit.
Should any employers require additional guidance on these or any other matters of employment, please contact MNK Law at 562.362.6437 or info@mnklawyers.com.