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Companies with a US workforce can expect material changes to employment laws under the Trump administration, with impacts felt across their business operations. President-elect Trump’s first term, his campaign platform, and the typical shifts in a Democratic to Republican transition provide clues about what’s to come: federal agencies, policies and rules will become more business-centered and many of the Biden-era worker-focused protections will be rolled back.

Below are four major shifts we anticipate:

(1) Significant shifts in US Department of Labor policy

The end of the DOL’s 2024 final overtime rule. On November 15, 2024, a federal judge in Texas blocked implementation of the DOL’s final rule in its entirety, thereby preventing the agency from instituting increases to the salary thresholds for the “white collar” overtime exemptions under the Fair Labor Standards Act. While the government may appeal the judge’s order before the change in administration, any such appeal is likely to be short-lived come January 2025.

Accordingly, employers can halt plans to change their compensation levels or exempt classifications in response to the now-blocked rule. If such changes have already been made, employers should consult with counsel on how best to unwind undesirable changes, if any.

A lower burden for employers to classify workers as independent contractors under federal law. Trump will likely reverse Biden’s worker-friendly contractor classification efforts, making it easier for businesses to classify workers as independent contractors, and pivoting away from the Biden administration’s 2024 DOL independent contractor rule.

Notwithstanding this easing at the federal level, employers must remember that, under US and state law, there is no single test for independent contractor classification. Many states have their own tests, which are often more stringent than federal law and that apply to state wage and hour claims. Moreover, even within the same states, different tests will apply to unemployment claims, workers’ compensation, wage and hour, and taxation.Continue Reading Back to Business: Trump’s Second Term and the Four Major Shifts Employers Should Expect

Employers have been eagerly awaiting the EEOC’s Final Rule to implement the Pregnant Worker Fairness Act, and it’s (finally!) here. On April 15, the EEOC issued the Final Rule, which largely follows the proposed rule (we blogged about the proposed rule here, and about the PWFA here). The Final Rule was published in the Federal Register on April 19, 2024 and will take effect on June 18, 2024. There are no major surprises for employers, but the Final Rule has arrived with a bit of controversy.Continue Reading Special Delivery: The PWFA Final Rule Has Arrived

You’re not alone in wondering where the Equal Employment Opportunity Commission’s final regulations to implement the Pregnant Workers Fairness Act are. In fact, they are well past their due date.

How it started

The PWFA became effective on June 27, 2023. In August 2023, the EEOC published proposed regulations to implement the PWFA. (We outlined the proposed regulations in our blog here, and about the PWFA here). The public comment period for the proposed regulations closed October 10, 2023, and the proposed regulations were delivered to the Office of Information and Regulatory Affairs (“OIRA”) on December 27, 2023 for review.

How it is going

However, to date, no final regulations have been issued, despite the PWFA’s requirement that the EEOC issue regulations by December 29, 2023. The regulations, once finalized, will provide clarity for employers implementing policies and practices to comply with the PWFA. For instance, the proposed regulations outline a nonexhaustive list of what the EEOC considers potential accommodations under the PWFA, including job restructuring and part-time or modified work schedules.

However, even without final regulations in place, employers are required to meet the PWFA’s mandates. The proposed regulations can still be used to offer insight into how the EEOC believes the PWFA should be interpreted.Continue Reading Pregnant Pause: The EEOC’s Delay In Issuing Final Regs For The PWFA Should Not Delay Compliance

We are pleased to share a recent SHRM article, “EEOC General Counsel: Anti-Discrimination Damages Caps Are Too Low,” with insights from our own JT Charron. Million-dollar jury verdicts in equal employment opportunity cases sometimes mask large cuts in final judgment due to federal caps on compensatory and punitive damages. Karla Gilbride, the EEOC’s general…

Happy Halloween from the EEOC! The federal agency’s 2022 EEO-1 Component 1 data collection is now open.

  • The deadline for submitting and certifying 2022 data is December 5, 2023

Covered employers

By way of reminder…

This August, the Equal Employment Opportunity Commission published proposed regulations to implement the Pregnant Workers Fairness Act, which became effective June 27.

The new law requires covered employers to “provide reasonable accommodations to a qualified employee’s or applicant’s known limitation related to, affected by, or arising out of pregnancy, childbirth, or related medical conditions,”…

The Equal Employment Opportunity Commission recently published proposed regulations to implement the Pregnant Workers Fairness Act (which became effective June 27, 2023). We covered the new law here, explaining how it requires covered employers to provide reasonable accommodations to a qualified employee’s or applicant’s known limitation related to, affected by, or arising out of pregnancy, childbirth, or related medical conditions, unless the accommodation will cause the employer an undue hardship. 

The proposed regulations are open for public comment through October 10, 2023, and must be finalized and implemented by December 29, 2023. Although the proposed regulations could change after the commenting period, their current form offers perspective on how the EEOC believes the PWFA should be interpreted.

Here are five significant ways the proposed regulations could change how US employers accommodate pregnant workers and those with “related medical conditions”:

Continue Reading 5 Ways the Proposed Pregnant Workers Fairness Act Regs Might Catch US Employers By Surprise

The EEOC just announced an updated filing deadline for US employers to submit their demographic data. The EEO-1 Component 1 data collection for 2022 begins October 31 and the deadline to file is December 5. The federal agency posted instructions and other information (here), and will post the data file specifications on…

The Equal Opportunity Employment Commission (EEOC) has released new guidance for employers on the use of artificial intelligence (AI) in employment, this time with a focus on adverse impact under Title VII. On May 18, 2023, the EEOC released “Select Issues: Assessing Adverse Impact in Software, Algorithms, and Artificial Intelligence Used in Employment Selection…

Special thanks to Bradford Newman and Stephen J. Malone, Fox Corporation.

Companies are turning to artificial intelligence (AI) to assist in recruiting and hiring the best talent in this tight labor market. However, there’s substantial corporate oversight in assessing AI threats, while agencies like the Equal Employment Opportunity Commission (EEOC) in the US are closely…