July Legal Updates

H.R. 1, the “One Big Beautiful Bill Act”

This bill introduces significant cuts to the Inflation Reduction Act (IRA) clean energy tax credits. Attached is a Client Alert from the firm with a concise overview of the bill’s key provisions and potential impacts on the renewable energy sector.

5^th Cir Emphasizes Need Not Delay in ADA Accommodation

In Strife v. Aldine Independent School District, the Fifth Circuit Court of Appeals ruled that a significant delay in providing a disability accommodation—even if eventually granted—can still amount to a failure to accommodate under the Americans with Disabilities Act (ADA).

Key Points:

• ADA Requirements: Employers must accommodate known disabilities and engage in a good-faith “interactive process” to find reasonable accommodations.
• Case Facts:
  • Alisha Strife requested to bring her service dog to work due to multiple disabilities.
  • The school district delayed the process for six months, requesting multiple rounds of documentation and medical exams.
  • The accommodation was granted only after legal action was initiated.
• Court’s Holding:
  • The Fifth Circuit reversed the dismissal of Strife’s failure-to-accommodate claim.
  • It emphasized that undue delay—especially when not in good faith—can violate the ADA.
  • The court warned that employers cannot use prolonged processes to avoid compliance.

Takeaway for Employers:

• Respond to accommodation requests promptly and in good faith.
• Delays, especially those that appear obstructive, may lead to legal liability.
• Always consult legal counsel when navigating the ADA’s interactive process.

Employment-Related laws Taking Effect July 1, 2025:

 Wages & Paid Leave

• Alaska: Minimum wage increases to $13.00/hour; introduces paid sick leave (1 hour per 30 hours worked); bans mandatory political/religious meetings.
• California:
  • Los Angeles County: Enacts Fair Workweek Ordinance (predictive scheduling, rest time, premium pay).
  • Statewide minimum wage increases to $17.81/hour.
• Oregon: Minimum wage increases to $15.05/hour.
• Washington, D.C.: Minimum wage rises to $18.00/hour; tipped wage to $12.00/hour.

 Leave & Workplace Rights

• Indiana: Requires unpaid time off for parents to attend school-related meetings.
• New Hampshire: Employers must provide nursing breaks (30 minutes per 3 hours worked) and a private space for expressing milk.
• Washington State: Expands paid sick leave to cover immigration-related proceedings (effective July 27, 2025).

 Hiring & Job Ads

• Vermont:
  • H.704: Requires wage ranges in job postings for employers with 5+ employees.
  • H.259: Hospitals must implement workplace violence prevention plans and reporting systems.

 Restrictive Covenants

• Kansas: Clarifies that certain nonsolicitation agreements are enforceable.
• Virginia: Bans noncompete agreements for employees earning under $76,081/year or eligible for overtime.

 Youth Employment

• West Virginia: Removes work permit requirement for 14- and 15-year-olds; requires age certificate and parental consent instead.

OSHA’s Updated SST Inspections

Here’s a summary of the US DOL’s May 20, 2025 update to OSHA’s Site-Specific Targeting (SST) inspection program:

• Effective Immediately: The updated SST program targets non-construction workplaces with 20+ employees and replaces 2023 guidance. It will remain in effect for two years unless updated.
• Inspection Focus: Uses employer-submitted OSHA Form 300A data (injury and illness records) from 2021–2023 to select workplaces for inspection.
• Selection Criteria Includes:
  • High DART (Days Away, Restricted, or Transferred) rates in 2023.
  • Increasing DART trends that are ≥2× the 2022 national average.
  • Very low DART rates (randomly selected to verify data accuracy).
  • Failure to submit 2023 Form 300A (random selection to enforce compliance).
• Industry-Specific DART Rates: Separate thresholds for manufacturing and non-manufacturing sectors.
• Scope of Inspections:
  • Programmed inspections are comprehensive and cover all workplace areas.
  • Unprogrammed inspections (triggered by incidents or complaints) may be combined with SST inspections if applicable.
• Employer Action: Businesses should review and strengthen their health and safety programs to ensure OSHA compliance, anticipating more frequent and thorough inspections.

False Claims Act Being Used For DEI

The U.S. Department of Justice (DOJ) announced stricter enforcement of the False Claims Act regarding recipients of federal funds who violate civil rights laws, particularly through diversity, equity, and inclusion (DEI) programs. This represents a potential expansion of False Claims Act liability, traditionally focused on government procurement and healthcare fraud.

Deputy Attorney General Todd Blanche introduced a Civil Rights Fraud Initiative on May 19, 2025. This initiative will use the False Claims Act to investigate institutions that receive federal funds and knowingly violate laws such as Title IV, Title VI, and Title IX of the Civil Rights Act of 1964.

Examples of violations cited in the DOJ memo include:

• Institutions fostering antisemitism while failing to protect Jewish students.
• Schools allowing men into women’s bathrooms or requiring women to compete against men in athletics.
• Federal fund recipients implementing race-based DEI policies.

The initiative will be led by the Fraud Section of the Civil Division and the Civil Rights Division, working alongside federal agencies and U.S. Attorneys’ Offices nationwide.

Additionally, the False Claims Act allows whistleblowers—private individuals aware of fraud—to file lawsuits on behalf of the government and receive up to 25% of recovered funds. The DOJ strongly supports such lawsuits, which could lead to an increase in private filings.

Violations of the False Claims Act carry severe financial consequences, including treble damages and penalties per false claim, potentially resulting in enormous liabilities.

SCOTUS Say “No Special Rules”

A unanimous U.S. Supreme Court on Thursday vacated the Sixth Circuit's ruling that heterosexual plaintiffs claiming workplace discrimination for not being part of the LGBTQ+ community need to provide extra "background circumstances" evidence, opining that "Congress left no room for courts to impose special requirements on majority-group plaintiffs alone."

The case is Ames v. Ohio Dept. of Youth Services, No. 23-1039.

DOL Temporarily Reverts to Older Worker Classification Standards

Background:

• The 2024 Rule, effective March 11, 2024, introduced a stricter six-factor test under the FLSA, making it harder to classify workers as independent contractors.
• The rule is currently facing legal challenges, and the DOL is reconsidering its future.

May 1, 2025 Guidance (FAB No. 2025-1):

• DOL investigators are instructed not to apply the 2024 rule in enforcement cases unless back wages or penalties have already been assessed.
• Instead, they will use:
  • Fact Sheet #13 (traditional totality-of-the-circumstances test).
  • Opinion Letter FLSA2019-6 (focused on virtual platforms).

Implications:

• Creates a gap between the rule still in effect and the DOL’s enforcement practices.
• Private lawsuits may still rely on the 2024 rule, leading to inconsistent standards.
• The DOL hints at future rulemaking to formally replace the 2024 rule.

Employer Takeaways:

• Be aware of dual standards: DOL enforcement vs. private litigation.
• Consult legal counsel when classifying workers, especially independent contractors.
• Consider state laws, which may impose stricter tests (e.g., the “ABC” test in some states).

IN Expands Ban on Physician Non-Competes

Background:

• 2020 Statute: Required specific terms for enforceable physician non-competes (e.g., patient contact rights, access to records, buyout options).
• 2023 Amendment: Banned non-competes for primary care physicians and made others unenforceable under certain termination conditions.

2025 Amendment Highlights:

• Broad Ban: All non-compete agreements entered into on or after July 1, 2025, between any physician and a hospital or hospital-related entity (e.g., parent company, affiliated manager, hospital system) are void and unenforceable, regardless of specialty.
• New Definitions: Clarifies what constitutes a “noncompete agreement,” including:
  • Restrictions on practicing medicine with a new employer.
  • Financial penalties or repayment obligations tied to continued practice elsewhere.
  • Requirements for employer consent to practice post-employment.
• Exclusions: The ban does not apply to:
  • Nondisclosure or trade secret agreements.
  • Limited non-solicitation agreements (up to one year, not affecting patient care).
  • Agreements tied to the sale of a business where the physician owns >50%.

Implications:

• Creates a fourth legal framework for evaluating physician non-competes in Indiana.
• Employers must assess agreements based on:
  • Date of execution
  • Type of physician
  • Employer’s status as a hospital or related entity
• Courts may use the 2025 definitions to interpret earlier versions of the statute.

Illinois “Equal Benefits” Law for Temp Workers Upheld

On May 23, 2025, Judge Durkin of the U.S. District Court for the Northern District of Illinois refused to block enforcement of amendments to the Illinois Day and Temporary Labor Services Act (IDTLSA). These amendments require temporary staffing agencies to provide equal benefits to temp workers who work at a third-party client for over 720 hours in a 12-month period.

Key Points:

• The law mandates equal pay and benefits for long-term temp workers, matching those of the lowest-paid, directly hired employee in the same role.
• Agencies can either provide equivalent benefits or pay the cash equivalent of those benefits.
• Plaintiffs argued the “equal benefits” provision was preempted by ERISA, but the court disagreed, stating the law does not reference or require ERISA plans.
• The court found the plaintiffs unlikely to succeed on the merits and dismissed concerns about the difficulty of calculating benefit values.
• The court accepted the state’s method: divide total benefit costs by number of employees in a job classification.

Unresolved Issues:

• The law lacks clarity on:
  • What specific information third-party clients must provide.
  • How to define “substantially similar” benefits.
• The Illinois Department of Labor has not yet issued guidance or a grace period for enforcement.

Next Steps:

• Plaintiffs may appeal to the Seventh Circuit.
• Staffing agencies and their clients should begin preparing to comply and may want to consult legal counsel.

US DOL Brings Back Opinion Letters

The US DOL has launched a new opinion letter program to enhance compliance assistance and help understand how federal labor laws apply in specific workplace scenarios. This initiative involves five key agencies:

• Wage and Hour Division – issues opinion letters.
• Occupational Safety and Health Administration (OSHA) – provides letters of interpretation.
• Employee Benefits Security Administration (EBSA) – releases advisory opinions and information letters.
• Veterans’ Employment and Training Service (VETS) – issues opinion letters.
• Mine Safety and Health Administration (MSHA) – offers resources via a new MSHA Information Hub.

A new website, dol.gov/opinion-letters, allows users to access past guidance and submit new requests.

The End of OFCCP?

• The DOL proposes to eliminate the OFCCP starting October 1, 2025
• This follows Executive Order 14173, titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”, issued by President Trump. The order rescinds Executive Order 11246, which had been the foundation of OFCCP’s authority to audit and investigate federal contractors for race and sex discrimination 
• The budget states that EO 14173 permanently removes the primary basis for OFCCP’s enforcement authority under:
  • Section 503 of the Rehabilitation Act will be transferred to the Equal Employment Opportunity Commission (EEOC).
  • Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) enforcement will move to the Veterans’ Employment and Training Service (VETS) 
• Congress has not yet approved the budget, and statutory changes may be required to reassign OFCCP’s duties to other agencies.

NY Guidance on Workplace Violence

NY Assembly Bill A8947C requires workplace violence prevention policies and training for retail employers, effective June 2, 2025. The law also introduces a silent response button requirement, which takes effect January 1, 2027.

Summary

• Applies to retail businesses selling goods directly to the public, but excludes restaurants.
• Only retail employees count toward the 10-employee threshold—support staff like marketing and administration do not.
• Employers with 10 retail employees across multiple stores are covered under the law.
• Smaller employers (under 50 employees) must provide training upon hire and every two years, while larger employers (50+ employees) must conduct training annually.
• Policies must be distributed to employees upon hire and yearly thereafter.
• The State will release workplace violence prevention materials in 12 common non-English languages, but translations are not yet available.

Next Steps for Employers

• Ensure compliance by June 2, 2025, including policy updates and training plans.
• Monitor official state resources for additional materials.
• Plan for silent response button implementation ahead of the 2027 deadline.

NE Sick Leave Amended

What Remains

• Accrual Rates: Employees still earn one hour of sick leave per 30 hours worked.
• Usage Caps: 40 hours for small businesses, 56 hours for larger employers.
• Carryover: Unused sick leave must carry over or be paid out at year-end.
• Core Provisions: Notice requirements, recordkeeping, and usage rules remain unchanged.
• Deadlines: Employers must comply by October 1, 2025, with notice requirements due by September 15, 2025.

Changes

• Exemptions Added: Workers under 16, temporary agricultural workers, and businesses with 10 or fewer employees are now exempt.
• Independent Contractors: Not covered by the new law.
• Enforcement: The NE Department of Labor will investigate violations, imposing fines up to $5,000 per violation. Employees can no longer sue employers directly.
• Accrual & Carryover: Employers with existing policies that meet requirements don’t have to offer additional accrual or carryover.
• Compensation Clarifications: Updates for employees paid by commission, piece-rate, mileage, or fee-for-service.
• Waiting Period: Employers can delay sick leave accrual for new hires by 80 hours.

Unresolved Issues

• How the law will interact with existing PTO policies.
• Potential conflicts with the Department of Labor’s existing guidance.

What Employers Should Do

• Audit sick leave policies for compliance.
• Ensure notice postings & recordkeeping meet legal requirements.
• Revise PTO policies to align with new rules.
• Prepare for enforcement changes before September 15, 2025.

MO Repeals Sick Leave

Missouri's Senate passed HB 567 on May 14, 2025 which repealed the paid sick leave requirement and modified the minimum wage increases set by Proposition A, which voters approved in 2024.

Key Changes

• Paid sick leave provisions will be repealed but remain in effect until August 28, 2025.
• The minimum wage will still rise to $15 per hour in 2026, but future inflation-based increases starting in 2027 have been eliminated.
• Gov. Kehoe is expected to sign the bill, ensuring its repeal takes effect on August 28, 2025.
• Employers must continue offering paid sick leave until the repeal becomes official.

Employer Considerations

• Until August 28, 2025, businesses must still comply with paid sick leave requirements.
• Employees retain the right to file lawsuits for violations, including double damages and legal fees.

NY WC Benefits Expanded

In case you missed it, NY expanded workers' compensation benefits to include certain mental health-related injuries back on  January 1, 2025.

Key Changes

• All workers can now file claims for mental injuries due to extraordinary work-related stress.
• The law's "extraordinary" standard may be more difficult to meet, potentially impacting how many claims are approved.
• The definition of "extraordinary work-related stress" is not clearly defined, leaving room for inconsistent interpretations by judges.
• The amendment likely applies prospectively, meaning it wouldn't cover past cases unless they remain unresolved.
• Employers may see an increase in claims and higher insurance premiums as a result.

Unanswered Questions

• How will claims be assessed? Unlike physical injuries, mental health injuries don’t fit neatly into compensation formulas.
• Will this law impact emotional distress damages in discrimination claims? Workers’ compensation is usually the exclusive remedy for workplace injuries, but how it interacts with anti-discrimination laws remains unclear.

Employer Considerations

• Employers should train HR teams to identify work-related mental health injuries.
• Encouraging mental health services (like counseling) may help reduce claims.
• Legal counsel may be necessary to review policies and manage compliance risks.

WA Pregnancy Accommodations Law

WA has passed a new law, E2SSB 5217, requiring all employers, regardless of size, to provide pregnancy and postpartum accommodations by January 1, 2027.

Summary:

• Employers must offer paid lactation breaks and flexibility for postpartum medical care.
• Nonprofit religious organizations are not exempt—they must also comply.
• Lactation breaks must be paid at the employee’s regular rate, and employers cannot require employees to use paid leave for these breaks.
• Employers must provide a private space (not a bathroom) for milk expression if available.
• The definition of reasonable accommodation is expanded to include flexibility for postpartum medical visits.
• Enforcement shifts from the Attorney General’s office to the Department of Labor and Industries, and employers who violate the law may face civil penalties.

NLRB GC Memo Shows Shift in Resolution

GC Memorandum 25-06, issued on May 16, 2025, by the Acting General Counsel of the National Labor Relations Board (NLRB), redefines how remedial relief should be handled in settlements of Unfair Labor Practice charges (ULPs). It signals a shift from the previous General Counsel’s approach and reinforces settlements as a key method of resolving ULPs.

The memorandum notes a slight decline in settlement rates, from 99.3% in 2019 to 96.3% in 2024, and encourages Regions to continue prioritizing settlements as a cost-effective resolution. It provides guidance on settlement terms, including:

• Encouraging, but not mandating, default language for noncompliance consequences.
• Allowing non-admission clauses in early investigations but restricting them for repeat violators.
• Supporting make-whole relief but permitting settlements with reduced recovery when warranted.

Additionally, the memorandum clarifies the impact of the NLRB’s Thryv, Inc. decision, which expanded remedial scope but lacked a clear standard. It establishes that harms should be compensable only when a strong causal link to the ULP exists.

Overall, the memorandum offers practical guidance for employers and defines the priorities for settlement agreements moving forward.

DE and Restrictive Covenants

DE courts are increasingly scrutinizing restrictive covenants in agreements, focusing on several key factors:

1. Legitimate Business Interest – Courts assess whether restrictions serve a valid business purpose. If overly broad, they are deemed unenforceable.
2. Geographic Scope – Restrictions that extend beyond a company’s actual business locations are often invalidated. The court has also struck down agreements restricting noncompetes in areas where the business does not operate.
3. Agreement Provisions – Choice-of-law clauses, forfeiture clauses, and waivers of rights to challenge contracts are closely examined. In Hightower Holding LLC v. Gibson, Delaware law was overridden in favor of Alabama’s public policy against restrictive covenants for professionals.
4. Sophistication of Parties – Courts refuse to modify overbroad agreements to save sophisticated parties from their own drafting mistakes, as demonstrated in Intertek Testing.
5. Drafting Errors – If a contract misidentifies key terms or businesses, courts will not enforce it. In Frontline Technologies Parent LLC v. Murphy, a noncompete clause failed to apply to the plaintiff’s subsidiary due to poor drafting.

Overall, Delaware courts are signaling a more restrictive approach, requiring businesses to craft covenants narrowly to ensure enforceability.

Venezuela TPS Update

Updated USCIS guidance following the Supreme Court’s May 19, 2025, decision:

• Background: The Supreme Court lifted a lower court order that had blocked the Department of Homeland Security (DHS) from ending Temporary Protected Status (TPS) for Venezuela.
• 2023 Venezuela TPS Registrants:
  • Work permits expired on April 2, 2025.
  • TPS expired on April 7, 2025.
  • However, those who received documents or approvals by February 5, 2025, with expiration dates of October 2, 2026, will retain TPS and valid work authorization while a lawsuit challenging the termination is pending.
• 2021 Venezuela TPS Registrants:
  • Work permits expired on March 10, 2025.
  • TPS is extended through September 10, 2025.
• Employer Action: Employers should review I-9 forms to identify affected employees. Legal assistance is available for compliance and best practices.

OSHA’s updated Site-Specific Targeting (SST) inspection plan

Effective May 20, 2025, OSHA’s SST program targets non-construction workplaces with 20+ employees for inspections based on injury and illness data submitted via Form 300A. The goal is to focus enforcement on establishments with higher risks of workplace injuries.

1. What Are SST Inspections?
   • SST is OSHA’s main inspection initiative for non-construction sites.
   • Employers are selected based on:
     • High DART (Days Away, Restricted, or Transferred) rates.
     • Upward-trending DART rates.
     • Random selection of non-responders and low-rate establishments (for data validation).
   • The selection is split roughly 50/50 between manufacturing and non-manufacturing sectors.
2. What Is a DART Rate?
   • A metric that reflects serious workplace injuries/illnesses.
   • Calculated as:
     DART Rate=(Number of DART incidents×200,000Total hours worked by all employees)DART Rate=(Total hours worked by all employeesNumber of DART incidents×200,000)
   • Used to identify high-risk establishments for inspection.
3. What’s New in the 2025 SST Instruction?
   • Uses Form 300A data from 2021–2023.
   • High-rate inspections are based on 2023 data; upward-trending inspections use 2021–2023 data.
   • Removed “record-only” inspections, which were controversial.
   • Added detailed walkthrough guidance for OSHA inspectors to focus on documented injury areas and multiple shifts.
4. What Remains the Same?
   • Still excludes construction sites.
   • Inspections remain comprehensive in scope.
   • Establishments inspected within the last 36 months may be exempt.
   • “Office-only” inspections are still allowed but may lead to inspections at other related sites if data originated elsewhere.
5. Why It Matters
   • SST inspections have shown higher violation rates than other programs.
   • Employers should ensure accurate and timely submission of Form 300A data and maintain strong safety programs to avoid being targeted.

OR Legislative Updates

• Workplace Accommodations (Effective May 7, 2025): HB 2541 extends workplace protections to agricultural workers, ensuring access to reasonable rest periods and private locations for expressing breast milk.
• Employer Assistance Division (Effective Sept. 28, 2025): HB 2248 establishes a new division within BOLI to provide education, training, and advisory opinions for employer compliance.
• PEO Licensing Requirements (Effective Sept. 28, 2025): HB 2800 mandates licensure for Professional Employer Organizations (PEOs) and clarifies employer liability exemptions.
• Unemployment & Paid Leave Oregon (Effective Sept. 28, 2025):
  • HB 3021 updates statutes for unemployment insurance and Paid Leave Oregon.
  • SB 69 introduces technical modifications and an OFLA exception for airline flight crew employees.
  • SB 858 allows authorized agents to handle Paid Leave Oregon claims for deceased or incapacitated individuals.
  • SB 859 grants the Employment Department authority to adjust debts and overpayments.
• Anti-Discrimination & Hiring Practices (Effective Sept. 28, 2025): HB 3187 clarifies age discrimination laws and restricts employers from requesting age-related information before an interview or conditional job offer

CO FAMLI Changes

There are a few key changes to CO’s FAMLI law under SB 25-1442. The additional 12 weeks for parents with a child in the NICU is a significant expansion, effectively allowing up to 24 weeks of paid leave in such cases. The slight reduction in premiums—from 0.9% to 0.88% starting in 2026—also ensures some financial relief while maintaining the program's sustainability.

Employers should start adjusting their policies and payroll systems accordingly.

WA Healthy Starts Act Amendments

Summary of SB 5217’s amendments to Washington’s Healthy Starts Act:

• Expanded Coverage: The law now applies to all employers, regardless of size, including religious and sectarian organizations.
• Postpartum Scheduling Flexibility: Employers must provide scheduling accommodations for postpartum medical visits.
• Paid Lactation Breaks: Lactation breaks must be paid at the employee’s regular compensation rate, including travel time.
• Jury Duty Exemption: Lactating individuals can request a delay or exemption from jury service.
• Enforcement Shift: The Washington Department of Labor and Industries now oversees enforcement, including investigations and civil penalties.

Employers should update policies and train staff ahead of the January 1, 2027, effective date

OR OSHA

In 2023, OR enacted Senate Bill 592, mandating tougher OSHA penalties and requiring follow-up inspections for serious violations. Oregon OSHA responded with the Programmed Inspections for Cause initiative, targeting employers with significant safety issues.

What’s a Comprehensive Inspection? These are site reviews covering:

• Physical worksite conditions
• Worker safety practices
• Compliance documentation and training records
• Effectiveness of safety programs Such inspections are time-consuming and can result in steep penalties:
• Willful violations: up to $263,599 (if tied to a fatality)
• Failure to abate: $15,625/day per violation 

When Are Inspections Triggered? When:

• A safety violation leads to a fatality
• An employer racks up 3+ willful or repeat violations in 12 months
• The employer has a vague “history of non-compliance” as determined by the OSHA Administrator

That last trigger is controversial because it lacks a clear legal definition, raising concerns about due process and potential constitutional overreach.

Legal Notes for Employers

• The basis for inspection must be disclosed in the opening conference
• Legal defenses must be asserted at that point or are considered waived
• Follow-up inspections must begin within one year of the original citation’s closing conference

OSHA Interpretation Letter

On April 29, 2025 OSHA issued a letter to address software-generated documents:

• Use of Software-Generated Forms: Employers may use software-generated documents instead of OSHA Forms 300 and 300A, as long as they are equivalent in content, readability, and instructions.
• Electronic Recordkeeping: Employers can maintain electronic logs, provided they can be printed or shared digitally upon request by OSHA, employees, or their representatives.
• Posting Requirements: The annual summary (Form 300A or its equivalent) must be certified by a company executive and physically posted from February 1 to April 30 of the following year. It must also include required statements about employee access and employer penalties.
• No Endorsement of Products: OSHA does not endorse or certify any digital tools. Employers remain fully responsible for compliance with all recordkeeping regulations, regardless of the platform used.

NY Retail Worker Safety Act

Effective Dates & Requirements

• By June 2, 2025: Covered employers must implement a workplace violence prevention policy and provide interactive training.
• By January 1, 2027: Employers with 500+ retail employees statewide must establish a silent response button system for emergencies.

Employer Coverage Clarified

• Retail employees are defined as those directly involved in sales.
• Non-sales personnel (e.g., marketing or admin staff) working on-site don’t count toward the 10-employee threshold.
• Third-party workers (e.g., cleaning staff) are included in coverage if they work at the retail location.

Training Requirements

• Training must be interactive—employees must provide input and get a response—even if delivered digitally.
• Materials must be in the employee’s primary language when translations are available (currently English and Spanish from NY DOL).

Silent Response Button Options

• Can be a physical button, wearable device, or a mobile app installed on employer-provided devices.

Workplace Violence Defined

• Encompasses any act or threat of physical violence or aggressive behavior during work duties or at the workplace

DC Emergency Pause Tipped Min Wage

The DC Council paused a scheduled increase in the tipped minimum wage from $10 to $12/hour, which was set to take effect on July 1, 2025. Employers may continue paying tipped workers $10/hour in cash, with a tip credit of $7.95/hour, as long as total earnings meet or exceed the minimum wage of $17.95/hour.

• The pause does not affect the general minimum wage increase to $17.95/hour.
• It increases the allowable tip credit from $7.50 to $7.95/hour.
• The Council’s emergency measure is temporary (90 days) and signals openness to modifying or repealing the initiative
• Employers must still comply with the new minimum wage for non-tipped workers.
• Tipped employees must still earn at least $17.95/hour in total compensation.

VT Pay Transparency Law

VT’s new pay transparency law goes into effect on July 1, 2025:

Key Requirements:

• Salary Disclosure: Employers must include salary ranges in written job postings for:
  • Jobs located in Vermont
  • Remote jobs primarily performed at a Vermont office
• Employee Rights: Current employees can request their salary range, and employers must respond clearly.
• No Retaliation: Employers cannot punish employees for discussing or asking about wages.
• Who Must Comply: All employers with 5 or more employees in Vermont, including remote workers. 

Not Covered:

• Bonuses, benefits, or other compensation
• Jobs outside Vermont or commission-based roles
• Oral job advertisements (e.g., radio, TV)

MN Fed Case Illustrates Remote Work Jurisdiction

The Eighth Circuit's decision in Kuklenski v. Medtronic USA Inc. (April 2024) clarified that an employee working remotely outside MN for a MN-based company is not protected under the MN Human Rights Act (MHRA) due to lack of physical presence in the state. This reflects a broader trend: many state and city employment laws require some physical connection to the jurisdiction for protections to apply.

Key takeaways from similar cases:

• New York: Courts ruled that remote workers living outside New York (e.g., in Canada) cannot claim protection under New York’s human rights laws.
• Illinois: The Illinois Wage Payment and Collection Act generally does not apply to non-residents unless they perform some work in Illinois and the employer has sufficient ties to the state.
• Washington, D.C.: Offers clear criteria—employees must work over 50% of their time in D.C. or be based there with substantial work time in the district.
• Illinois Paid Leave Act: Uses a fact-based test to determine if work is “primarily” performed in Illinois.
• King v. Aramark Services Inc. (2024): A New York-based remote worker overseeing operations in Virginia and West Virginia was not protected under New York’s human rights law.

New WA State Laws

WA State is implementing several employment laws in the coming months, focusing on wage equity, hiring practices, personnel records access, and expanded worker protections.

Key Changes:

• Effective July 1, 2025:
  • Wage Equality (HB 1905): Expands protected classes under the Equal Pay Act, including age, marital status, citizenship status, and military service.
  • Immigration Protections (SB 5104): Prohibits employers from leveraging immigration status for coercion regarding wage or labor violations.
• Effective July 27, 2025:
  • Fair Chance Hiring (HB 1747): Employers can't inquire about criminal history until after a conditional job offer and must allow candidates to explain records.
  • Personnel Records Access (HB 1308): Requires employers to provide employee personnel files within 21 days at no cost.
  • Paid Leave Expansion (HB 1875): Workers can use sick leave for immigration-related proceedings.
  • Prevailing Wage Enforcement (HB 1821): Expands who can access employer payroll records.
  • Mass Layoff Notices (SB 5525): Establishes a state mini-WARN Act requiring notification before business closures or mass layoffs.
  • Wage Transparency Adjustments (SB 5408): Grants employers a five-day window to correct wage disclosure violations before legal action.
  • Driver’s License Restriction (SB 5501): Employers can't require a license unless driving is essential.
  • Unclaimed Property Changes (SB 5316): Extends abandonment period for reimbursements and adjusts reporting requirements.
  • Paid Leave for Dockworkers (SB 5191): Clarifies employer responsibilities for dockworkers under collective bargaining agreements.
  • Cannabis Worker Collective Bargaining (HB 1141): Grants agricultural cannabis workers unionization rights.
  • Employment Training Program (SB 5682): Adjusts workforce training credit distribution by county.
• Effective Sept. 1, 2025 & July 1, 2026:
  • Transportation Network Companies (HB 1332): Requires companies to disclose vehicle eligibility and provide drivers access to detailed earnings records.

Philly’s PSL Law

Philadelphia’s new law (File #250065), signed on May 27, 2025, which amends the city’s Promoting Healthy Families and Workplaces Ordinance (paid sick leave law):

 Coverage for CBA Employees

• Before: Employees under a collective bargaining agreement (CBA) were exempt.
• Now: Only non-probationary CBA employees are exempt.
• Impact: Employers must now provide paid sick leave to probationary CBA employees.

 Tipped Employees – Pay Rate Changes

• Tip Threshold Raised: From $30 to $50/month to qualify as a “tipped” employee.
• New Pay Calculation: Based on the average hourly wage of three job categories (bartenders, waitstaff, and dining room attendants) as published by the PA Department of Labor.

 Retaliation Protections

• Expanded: Now applies to any person associated with the employer, not just the employer.
• Presumption of Retaliation: Still applies if adverse action occurs within 90 days of a protected activity.

 Notice Requirements

• Handbook Requirement Removed: Employers no longer need to include notice in handbooks—just post or provide it directly.

 Recordkeeping

• Extended: From 2 to 3 years for records on hours worked and leave taken/paid.

 Penalties & Damages

• Civil Penalty: Up to $2,000 per violation.
• No “Willfulness” Needed: For posting/notice violations.
• Damages: Now include actual damages and emotional/physical harm for retaliation cases.

 Enforcement Changes

• No Need to File Admin Complaint First: Employees can go straight to court.
• Notice Requirement: Employees must give employers 15 days to fix the issue (unless it’s willful or retaliatory).
• Statute of Limitations: Extended to 3 years, starting from when the employee knew or should have known of the violation. Can be extended if notice wasn’t provided.

IA’s New Employer Drug Testing Law

Effective July 1, 2025 :

1. Burden of Proof Shift: Employees or job applicants now bear the burden of proof in lawsuits alleging violations of the drug testing statute. Previously, employers had to prove compliance. Also, any awarded attorney’s fees must be “reasonable.”
2. Safety-Sensitive Designations: Employers can now designate which positions are “safety-sensitive” for random drug testing. This change gives deference to the employer’s designation, though it’s still recommended that such roles meet the statutory definition (i.e., roles where accidents could cause serious harm or damage).
3. Notification Flexibility: Employers may now notify employees of positive drug test results via in-person exchange or electronic communication—if the employee consents. Previously, certified mail was required.

Big Beautiful Bill and ERTC

If passed in its current form, as to ERTC:

1. Claim Deadline Restriction:
   • ERTC claims for Q3 and Q4 2021 must have been filed by January 31, 2024 to be eligible for refund.
   • Claims filed after this date but already refunded will not be clawed back.
2. Extended Statute of Limitations:
   • The IRS would have 6 years (instead of 5) to assess ERTC claims for Q3 and Q4 2021.
   • The clock starts from the filing date of Form 941-X.
3. Increased Oversight on Promoters:
   • New penalties target “COVID-ERTC promoters” for Q3 and Q4 2021 claims.
   • Certified PEOs (CPEOs) are excluded from this definition.
   • Non-certified PEOs should review the definition carefully, especially if they assisted with ERTC claims.

• ERTC claims for 2020 and Q1/Q2 2021 remain unaffected.
• Q4 2021 claims are only relevant for “recovery startup businesses,” so the broader impact is mainly on Q3 2021.

NY Replacing NLRB?

NY lawmakers are advancing legislation to expand state-level protections for unions, similar to efforts in CA and MA. Senate Bill S8034A seeks to amend NY Labor Law Section 715 to allow the NY Public Employment Relations Board (PERB) to oversee private-sector labor relations—unless the National Labor Relations Board (NLRB) asserts jurisdiction through a federal court order.

Summary:

• PERB authority to conduct union elections and address unfair labor practices in the private sector.
• New impasse resolution procedures: If no contract is reached within 45 days of union certification, PERB can appoint a mediator. If no agreement is reached within 30 days, an arbitrator may be appointed to impose a binding contract.

The bill has moved quickly and awaits action from Governor Hochul.

The bill may face federal preemption challenges, as federal law (NLRA) typically governs private-sector labor relations. Then, the Supreme Court precedent (San Diego Unions v. Garmon, 359 U.S. 236 (1959)) restricts states from regulating activities covered or arguably covered by the NLRA, making the bill subject to challenge.

IA and Adoptive Parents

Effective July 1, 2025, Iowa Code § 91A.5B (House File 248) requires employers to treat adoptive parents of children up to age six the same as biological parents of newborns for the first year following adoption. This includes equal treatment in employment policies, benefits, and protections. Key points:

• Applies to adoptions through state-approved agencies or legal independent placements.
• Does not mandate disability leave unless the employee qualifies under exisherting policies.
• Enforced by the Iowa Department of Inspections, Appeals, and Licensing.

Employers should review and align parental leave and benefit policies to ensure compliance.

TN Dissolves THRC

On May 12, 2025, TN Governor Lee signed into law House Bill 910/Senate Bill 860 which will dissolve the TN Human Rights Commission (THRC), the state agency responsible for enforcing anti-discrimination laws and promoting equal opportunity in TN, effective Monday, June 30, 2025. The lawmakers who supported the measure argue that this change of authority will reduce bureaucratic inefficiencies and make investigating discrimination complaints more efficient.

On July 1, 2025, the enforcement of the TN Human Rights Act and the TN Disability Act will transfer to a newly created Division of Civil Rights Enforcement within the Office of the Attorney General (AG) and Reporter. During this transition period, the THRC will transfer all new inquiries of alleged discrimination to the AG’s Office. The AG will assume full authority in receiving inquiries on July 1, 2025. Any current complaint that is pending before the THRC will be dismissed on June 30, 2025. Individuals who have their complaints dismissed will need to re-file their complaints with the Division of Civil Rights Enforcement within 90 days of July 1, 2025.

SCOTUS Upholds TN Ban on Gender-Affirming Care for Minors

In a 6–3 decision authored by Chief Justice Roberts, the US Supreme Court upheld a TN law banning puberty blockers and hormone treatments for transgender minors. The Court ruled that the law does not violate the Equal Protection Clause of the Fourteenth Amendment.

• Majority Opinion: Applied rational basis review, finding the law justified by Tennessee’s interest in protecting minors from potential harm. The Court emphasized that the law applies equally to all minors, regardless of sex, and does not constitute sex-based discrimination.
• Justice Alito: Partially concurred with the majority.
• Justice Sotomayor’s Dissent: Argued the law targets transgender youth, denying them medically necessary care. She called for heightened scrutiny, citing broad medical consensus supporting such treatments.
• Justice Kagan: Agreed heightened scrutiny was appropriate but did not state whether the law would pass that test. 

Implications

• The ruling may influence similar laws in over 20 states.
• Raises uncertainty for employer-sponsored health plans covering gender-affirming care.
• Could lead to legal risks for employers, parents, and benefit plans, especially under DOJ initiatives targeting gender-affirming care.

SCOTUS on ADA

In Karyn D. Stanley v. City of Sanford, case number 23-997, the U.S. Supreme Court ruled in a 7–2 decision that the Americans with Disabilities Act (ADA) does not protect retired employees like Karyn Stanley—who can no longer perform job duties—from post-employment benefit changes. The majority, led by Justice Gorsuch, held that the ADA’s workplace protections apply only to current employees or job seekers who can perform essential job functions with or without accommodation. Since Stanley retired in 2018 due to Parkinson’s disease, she was deemed outside the scope of the statute when she sued in 2020 over reduced health benefits.

This decision resolved a split among federal appeals courts and upheld the Eleventh Circuit’s dismissal of Stanley’s claim. The justices acknowledged that had Stanley brought a claim during her employment—while still able to work—the case might have had legal standing, though that argument came too late in her litigation.

Dissenting justices Sotomayor and Jackson criticized the majority’s narrow interpretation, warning it enables employers to discriminate against disabled retirees with impunity. Justice Jackson called the ruling a “bait and switch,” allowing discrimination once a worker retires due to disability.

Los Angeles’ Fair Work Week Ordinance

Applies to:

• Retail businesses with 300+ employees globally.
• Employees earning minimum wage who work at least 2 hours/week in the County.

Requirements

1. Good Faith Schedule Estimates

• Must be given before hire and within 10 days of employee request.
• Not binding, but substantial deviations (e.g., ≥20% change in hours or shifts outside expected parameters) require a documented, unforeseen business justification.

2. Schedule Notice

• Final work schedules must be shared at least 14 days in advance.
• Employees may decline last-minute changes, and acceptance must be documented in writing.

3. Employee Scheduling Rights

• Workers can request preferred hours or locations; employers must respond in writing.
• Employers must offer existing staff additional shifts before hiring externally.

4. Premium Pay for Schedule Changes

• No loss or minor additions (15+ minutes): +1 hour of pay.
• Lost time: ½ regular pay for lost hours.
• Certain exceptions apply (e.g., employee-initiated changes or law violations).

5. Rest Between Shifts

• At least 10 hours of rest required between shifts unless waived.
• If waived, worker is owed 1.5x pay for each hour worked within the rest period.

6. Penalties

• Up to $500 per violation payable to employees and/or County.
• Up to $1,000 for retaliation.
• Remedies can include reinstatement, back pay, and attorney’s fees.