2025 is set to be a transformative year for the event staffing industry. With sweeping changes to employment laws and minimum wage regulations across the U.S., these legal shifts will affect not just staffing agencies but also the brands and agencies relying on temporary event workers. In this article, we’ll explore the key changes to employment laws and minimum wage rates and offer practical advice on what to expect and how to prepare.
Overview of Key Employment Law and Minimum Wage Changes for 2025
In 2025, several significant shifts in employment laws and minimum wage regulations will directly impact industries like event staffing and marketing agencies. These changes will lead to increased labor costs, greater complexity around compliance, and potential shifts in worker classification (full-time vs. independent contractors). For many agencies, these shifts will prompt a reevaluation of how they hire and manage contractors, potentially requiring solutions like PEO (Professional Employer Organizations) or contingent worker services instead of continuing to hire Tour Managers, Market Managers, Producers, and other roles as independent contractors (1099).
Here are 5 of the most impactful changes you should be aware of and how they might affect your event staffing and contractor employment strategies.
1. Federal Minimum Wage Increase (Potential)
A federal minimum wage increase has been a topic of ongoing discussion, and 2025 may be the year Congress finally raises the national minimum wage to $15 per hour. While some states and cities have already adopted this wage, a federal increase would standardize wages in areas where they remain lower, affecting businesses across industries, including event staffing.
Impact: For event staffing agencies, this would mean increased wages for temporary workers, which will directly raise overall staffing costs for events.
2. State-Level Minimum Wage Increases
21 states in the U.S. have already passed legislation to raise their minimum wage in 2025 or shortly after. States like California, New York, and Washington are planning significant increases, and some cities are implementing even higher local rates to reflect the cost of living.
Impact: Event staffing costs will rise in these areas. Brands planning events in these markets should adjust their budgets to accommodate these wage hikes. Rising wages and a shortage of workers post-pandemic have already affected the event industry, and this trend is expected to continue in 2025.
3. Overtime Pay Threshold Changes
In 2025, the U.S. Department of Labor will likely raise the overtime pay threshold, which currently sits at $35,568 annually. This change means that more salaried employees will qualify for overtime pay unless they meet specific exemption criteria.
Impact: Event staffing agencies and marketing agencies may see salaried workers (like event managers, tour managers, and producers) entitled to overtime pay. This will need to be factored into event budgets for those working long hours.
4. Expanded Paid Sick Leave Laws
Paid sick leave laws are expanding in multiple states, and 2025 will likely see more states enacting or expanding these requirements. For instance, California and New York have already implemented paid sick leave laws, and more states are following suit.
Impact: Event staffing budgets will need to account for paid sick leave, especially for large-scale events with multiple shifts and short-term hires.
5. Worker Classification Reforms (Independent Contractors vs. Employees)
States like California have passed stricter laws around worker classification, pushing more workers to be classified as employees rather than independent contractors. This means they will be entitled to benefits like unemployment insurance, health coverage, and other employee protections.
Impact: Elevate Global operates with a 100% W2 employment model, but other staffing agencies may be required to shift from hiring independent contractors (1099) to W2 employees. This transition would lead to higher rates to cover the additional employment, payroll, and compliance costs. Marketing agencies, which often hire independent contractors for temporary event work, will need to adjust their hiring practices to comply with these new laws. For agencies not ready to handle the HR, liability, compliance, and payroll implications of W2 employees, a PEO service may be a solution. Elevate offers this service to brands and agencies, allowing them to manage workers directly while we handle all the HR, compliance, and payroll responsibilities.
Advice for Event Staffing Clients: What to Expect and How to Prepare
With these changes on the horizon, here are 5 ways you can proactively prepare for the shifts in the employment landscape:
1. Review Staffing Budgets
As labor costs increase, it’s essential to review and adjust your event staffing budgets. Make sure your projections align with the new minimum wages, overtime thresholds, and any additional benefits or insurance requirements.
2. Communicate with Your Staffing Agency
As labor costs increase, it’s essential to review and adjust your event staffing budgets. Make sure your projections align with the new minimum wages, overtime thresholds, and any additional benefits or insurance requirements.
3. Anticipate Increased Administrative Effort
These legal changes may add administrative complexity, such as tracking additional hours worked, managing employee benefits, and ensuring workers are correctly classified. Prepare your team for the extra workload and update event contracts to reflect the new regulations.
4. Build Flexibility into Contracts
Consider creating flexible staffing agreements that allow for adjustments to labor costs, should minimum wage or other labor-related expenses increase during event planning. Clear terms regarding overtime, sick leave, and worker classifications can help mitigate confusion later.
5. Plan Ahead for Worker Shortages
Staffing shortages may become more common as new regulations come into play. To avoid last-minute hurdles, consider pre-booking staff and discussing contingency plans with your staffing agency well in advance.
The employment landscape is rapidly evolving, and the event staffing industry must stay ahead of these changes. By engaging proactively with your staffing agency, adjusting budgets, and updating contracts, you can navigate these shifts smoothly. With the right preparations, 2025 can be an opportunity to enhance compliance and streamline operations within your event staffing and temporary worker strategies.
Stay informed, stay prepared, and let’s make the most of these changes. If you have any questions on this – don’t hesitate to reach out to a member of the team today.