Employment Pulse (August 2025 Edition)

McGlinchey Stafford

McGlinchey’s Employment Pulse showcases thought leadership from our team of experienced labor and employment attorneys, providing timely insights that help employers stay competitive, meet regulatory requirements, and tackle evolving workplace challenges.

DOJ Expands Whistleblower Program to Include Corporate Immigration Violations

The U.S. Department of Justice (DOJ) has expanded the Corporate Whistleblower Awards Pilot Program (CWAPP) to include corporate immigration violations, thereby incentivizing whistleblowers to report such violations. The DOJ will not prosecute companies that disclose, cooperate, and implement appropriate remediation measures in their Corporate Enforcement and Voluntary Self-Disclosure Policy within 120 days of the initial internal report.

9th Circuit: Federal Contractor Workforce Reports Not Exempt Under FOIA

On July 30, the 9th Circuit Court of Appeals settled a long-standing debate between federal contractors and journalists when it ruled on Center for Investigative Reporting v. United States Department of Labor. The court determined that reporters and members of the media have a right to access reports containing the demographic data of the employees of federal contractors.

DOL Limits Authority to Seek Liquidated Damages in Wage and Hour Investigations

On June 27, 2025, a new enforcement directive from the U.S. Department of Labor’s Wage and Hour Division took effect, formally eliminating the agency’s policy of seeking the payment of liquidated damages in any administrative matter conducted under the Fair Labor Standards Act. This shift rescinds the DOL’s prior position, which permitted WHD to pursue liquidated damages in pre-litigation investigations with approval from the Solicitor’s Office.

Tax Deductions on Tips and Overtime Under Trump Tax Plan

On July 4, 2024, President Trump signed the “Big Beautiful Bill” which contains two provisions that provide federal income tax deductions on both tips and overtime compensation beginning January 1, 2025 through December 31, 2028.

Florida CHOICE Act Expands Enforceability of Non-Compete and Garden Leave Agreements

On July 1, 2025, Florida’s Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act took effect, ushering in substantial changes to the state’s non-compete law under Florida Statute § 542.335. The Act significantly enhances employers’ ability to enforce restrictive covenants against certain “Covered Employees,” creating a more favorable legal environment for businesses seeking to protect their competitive interests.

5th Circuit Clarifies Highly Compensated Employee Exemption

The highly compensated employee exemption under the Fair Labor Standards Act is one of the most complex exemptions in employment law. In the recent case of Gilchrist, et. al. v. Schlumberger Technology Corp. (5th Cir. July 14, 2025), the 5th Circuit clarifies how to analyze the HCE exemption.

SCOTUS Ames Decision: Everyone’s in a “Protected Class”

In analyzing discrimination claims, one of the first questions a court asks is whether an individual is in a class protected by Title VII or other anti-discrimination laws, such as the Americans with Disability Act. More recently, the question has become, “can a member of ‘the majority’ also be a victim of discrimination?” According to the United States Supreme Court, the short answer is yes, and those claims have to be treated identically to claims from members of minority groups.

Fifth Circuit: Employer’s Unreasonably Delayed Response Is Failure to Accommodate

A recent Fifth Circuit case highlights the importance of engaging in the interactive process around accommodation requests in good faith and without undue delay.

Trump on Education: When ‘Dismantle’ Doesn’t Mean Dismantle and Sending Education Back to the States

One of Donald Trump’s most controversial campaign promises was his proposal to eliminate the U.S. Department of Education (Department) and, in his words, send “education back to the states.” At the time, the idea was met with skepticism and viewed by many as unlikely to gain traction. However, on March 20, he took a formal step toward that controversial goal by signing an executive order to begin dismantling the Department.

NLRB General Counsel Already Instituting Changes

The National Labor Relations Board can change subject to political whims – particularly since the President appoints the agency’s board members and the Office of the General Counsel. Acting NLRB General Counsel William Cohen wasted no time in setting forth the potential policies of his office and the new board. Specifically, Cohen issued several memoranda in which he disfavored the previous board’s agenda and set forth his own agenda.

Keeping Track of Employees’ Time Using Technology

Employers have a duty to keep accurate records of their employees’ work time. Oh, it used to be so easy to keep track. Employees arrived at work and clocked in, and they clocked out at lunch and at the end of the day. If an employee clocked in late, employers could simply round that time out to the nearest quarter hour. Why it is so difficult now? Enter the world of smartphones, computers, and other modern technology.

Trump on Education: ICE Policy Reversal’s Impact on Schools

Since 2011, the U.S. Immigration and Customs Enforcement (ICE) has been restricted by policy from conducting raids and other immigration enforcement actions in “sensitive locations,” such as schools, churches, and hospitals. However, on January 20, 2025, the administration of President Donald J. Trump issued a statement reversing that policy. In response, state education departments and local school systems across the country have issued guidance on handling potential visits from federal immigration officials.

Trump on Education: DOE Targets DEI, Threatens Federal Funding

On February 14, 2024, the Office for Civil Rights within the Department of Education issued a “Dear Colleague” letter threatening the federal funding of any academic institution that considers race in any manner of operation. The letter is directed at all preschool, elementary, secondary, and postsecondary educational institutions, as well as state educational agencies that receive federal financial assistance.

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.

© McGlinchey Stafford

Written by:

McGlinchey Stafford
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

McGlinchey Stafford on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide