Beltway Buzz - September 2025

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Congress: We’re Back, Baby! The U.S. Congress is back in Washington, D.C., this week after its annual August recess. As they return, Republican senators are exploring options to tinker with U.S. Senate procedures to allow them to more quickly advance President Donald Trump’s nominees. Indeed, we are still awaiting Senate-confirmed positions at the National Labor Relations Board (NLRB), U.S. Equal Employment Opportunity Commission (EEOC), Occupational Safety and Health Administration (OSHA), Wage and Hour Division (WHD), and Employee Benefits Security Administration (EBSA), among others.

But chief among our legislators’ priorities in the coming weeks will be funding the federal government beyond its current September 30, 2025, deadline (an evergreen issue both on Capitol Hill and, consequently, here at the Buzz). In addition to the challenging politics of such an endeavor, Congress is scheduled to be out the week beginning September 22, giving lawmakers only twelve legislative days to work. In light of all this, a continuing resolution to extend current funding until a later date is the most likely solution to avoid a shutdown.

Regulatory Agenda Released. After an inadvertent leak a few weeks ago, on September 4, 2025, the Trump administration released the Spring 2025 Unified Agenda of Regulatory and Deregulatory Actions. The agenda provides a roadmap of federal agency rulemaking activities for the next six months. Below are some key labor/employment-related items.

  • OSHA (DOL)
    • Heat Injury and Illness Prevention. The agenda lists no new updates regarding a potential final rule or new proposal, though an accompanying press release from OSHA states that the agency “is continuing to examine how to establish standards specifically related to heat-related injury and illness prevention.”
  • WHD (DOL)
    • Independent Contractor (IC). According to the agenda, “The Department intends to rescind the 2024 IC rule and is considering how it will proceed with respect to independent contractor classification under the FLSA employee or under the FLSA.” DOL is no longer enforcing the 2024 IC rule. A proposal is expected in September.
    • Joint Employer. The first Trump administration issued a rule regarding joint employment under the Fair Labor Standards Act (FLSA) that was rescinded by the Biden administration in July 2021. Now, “The Department is considering a notice of proposed rulemaking to adopt regulations that would guide WHD’s enforcement of FLSA joint employer liability, and help promote greater uniformity among court decisions nationwide.” A proposal is slated for December 2025.
    • Overtime? According to a press release, “The department will determine whether certain salaried employees are exempt from FLSA minimum wage and overtime requirements.” However, that entry is listed in the “Long-Term Actions” section of the agenda, meaning that the department does not expect any action on the issue within the next twelve months.
  • Immigration
    • Practical Training. Later this month, U.S. Immigration and Customs Enforcement is expected to issue a proposed rule to “amend existing regulations to address fraud and national security concerns, protect U.S. workers from being displaced by foreign nationals, and enhance the Student and Exchange Visitor Program’s capacity to oversee the program.” As we’ve discussed in the Buzz, USCIS Director Joseph Edlow is on record as stating that he’d like to “remove the ability for employment authorizations for F-1 students beyond the time that they are in school.”
    • Reforming the H-1B Nonimmigrant Visa Classification Program. In December 2025, U.S. Citizenship and Immigration Services (USCIS) “will propose to reform the H-1B program by revising eligibility for cap exemptions, providing greater scrutiny for employers that have violated program requirements, and increasing oversight over third-party placements, among other provisions.”
    • Biometrics. USCIS will propose to collect biometric information from individuals “throughout the entirety of the immigration lifecycle,” including in both enforcement proceedings and the adjudication of any immigration application, petition, or benefit. This proposal is scheduled for October 2025.
    • Weighted Selection Process for H-1B Petitions. USCIS will amend the current H-1B lottery process to “favor beneficiaries whose proffered wages correspond to higher Occupational Employment and Wage Statistics wage levels.” The proposal will not affect the recently implemented beneficiary-specific selection procedure.

Neither the EEOC nor the NLRB included submissions in the agenda.

Treasury Issues No Tax on Tips’ Guidance. While President Trump’s “no tax on tips” promise was enacted as part of the One Big Beautiful Bill Act, there has been a lot of uncertainty regarding who may qualify for relief under the provision. Pursuant to the act, workers may deduct up to $25,000 in tips from their income per year through 2028 when such tips are “received by an individual in an occupation which customarily and regularly received tips on or before December 31, 2024, as provided by the Secretary.” (Emphasis added.) This week, the U.S. Department of the Treasury released a preliminary list of occupations that will qualify for the deduction, noting that formal regulations are still to come, but that such regulations “will be substantially the same as this preliminary list.” The list includes occupations in various hospitality positions (including casino workers), dancers, musicians and singers, porters and bellhops, hairdressers, golf caddies, home service providers (e.g., plumbers), and “digital content creators.” Michael K. Mahoney, Stephen Kenney, and Zachary V. Zagger have the details.

House Spending Bill Reveals Republican Employment Policy Priorities. Speaking of funding the federal government, this week, the U.S. House of Representatives Committee on Appropriations’ Labor, Health and Human Services, Education, and Related Agencies Subcommittee voted to advance its fiscal year (FY) 2026 bill. The measure would provide funding for agencies such as DOL and the NLRB during the government’s 2026 fiscal year, which runs from October 1, 2025, to September 30, 2025. The bill includes the following labor and employment–related policy provisions:

  • Elimination of funding for the Office of Federal Contract Compliance Programs (OFCCP), consistent with President Trump’s Executive Order 14173.
  • Elimination of funding for the Bureau of International Labor Affairs and the Women’s Bureau.
  • A cut of $25 million from WHD and $50 million from OSHA.
  • A prohibition on the use of funds to implement the current Biden-era independent contractor rule, which—as we noted above—the current WHD has already stated it will no longer enforce.
  • A continuation of a long-standing prohibition against the NLRB’s use of funds to implement electronic voting for union elections.

Of course, given the government funding issues noted above, these provisions will have multiple hurdles to overcome if they are to be enacted into law.

The Harlem Hellfighters. The U.S. Army’s 369th Infantry Regiment, often referred to as the “Harlem Hellfighters,” was awarded the Congressional Gold Medal. The 369th was the first African-American regiment to serve with the American Expeditionary Forces during World War I. However, due to many white American soldiers’ refusal to serve alongside African-American soldiers, the 369th was assigned to the French Fourth Army. The 369th spent 191 days on the front lines, more than any other regiment of its size, and 170 of its members were awarded the French Croix de Guerre for their bravery on the battlefield. According to the ‘‘Harlem Hellfighters Congressional Gold Medal Act,” which was enacted in 2021, “It is generally believed that the 369th was dubbed the ‘Harlem Hellfighters’ by German soldiers, who found the men to be incredibly determined and courageous in battle.”

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Ogletree, Deakins, Nash, Smoak & Stewart, P.C.

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