Policy Week in Review – September 2025 #2

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The Policy Week in Review, prepared by Littler’s Workplace Policy Institute (WPI), sets forth WPI’s updates on federal, state, and local matters.

NLRB General Counsel Intends to Challenge New York Trigger Law

The National Labor Relations Board (NLRB) Acting General Counsel Bill Cowen stated his intention this week to file suit against the recently enacted New York law that asserts state authority of private sector labor disputes, claiming federal preemption under the National Labor Relations Act. This follows Cowen’s recent statement warning those states seeking to regulate private sector labor relations due to the NLRB’s lack of a quorum that their measures “very likely would be preempted by the National Labor Relations Act” given that states are not permitted to regulate conduct “that the NLRA protects, prohibits, or arguably protects or prohibits” and that this type of legislation cannot be reconciled with the Supremacy Clause of the U.S. Constitution. New York Governor Kathy Hochul signed the bill into law on September 5, 2025. For further information, read our legislative analysis here.

Bipartisan Joint Employer Legislation Introduced

Representatives Kevin Hern (R-OK) and Don Davis (D-NC) on Wednesday introduced the “American Franchise Act” in an effort to codify a joint employer standard specifically for the franchise industry. The bill would amend the National Labor Relations Act and the Fair Labor Standards Act to clarify that “A franchisor may be considered a joint employer of the employees of a franchisee only if the franchisor possesses and exercises substantial direct and immediate control over one or more essential terms or conditions of the employees of the franchisee.” Upon introduction of the legislation, Rep. Hern stated, “As one of the few franchisees in Congress, I understand how damaging an ever-changing joint-employer rule is to the franchise business model.” Before serving in Congress, Rep. Hern owned 24 McDonald’s restaurants that employed thousands of people in his home state of Oklahoma.

Chairs Walberg and Allen Seek Answers from UAW

On September 11, Education and Workforce Committee Chair Tim Walberg (R-MI) and the Committee’s Health, Employment, Labor, and Pensions Subcommittee Chair Rick Allen (R-GA) sent a letter to United Auto Workers (UAW) President Sean Fain demanding answers related to the Committee’s investigation as to whether the UAW and its responsible officers breached their fiduciary duties under the Labor-Management Reporting and Disclosure Act (LMRDA) by failing to reinvest hundreds of millions of dollars in unused strike benefit funds in accordance with the union’s own investment policy. This letter follows and aligns with the Committee’s ongoing efforts to consider needed legislative reforms to the LMRDA.

Chair Cassidy (R-LA) Introduces Bipartisan Legislation to Integrate AI in the Classroom

On September 11, Senator Bill Cassidy (R-LA), chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, along with Senators Jon Husted (R-0H) and Lisa Blunt Rochester (D-DE), introduced the Recommending Artificial Intelligence Standards in Education (RAISE) Act, which would allow states to include artificial intelligence (AI) and emerging technology educational standards in their K-12 school curriculum.

Senate Republicans Invoke Rules Change to Move White House Nominees

Senate Republicans forced a vote this week to change the Senate rules via a legislative procedure, referred to as the “nuclear option,” which will allow them to speed up the confirmation of pending nominees. Specifically, the rules change will allow the Senate to vote to confirm a group of mid-to-lower-level nominees at the same time, rather than separate votes on each nominee. As reported in last week’s Wrap Up, among the nominees that could clear as soon as next week include the following Department of Labor nominees: Jonathan Berry to be solicitor; Andy Rogers to be administrator of the Wage and Hour Division; David Keeling to be assistant secretary of labor for the Occupational Safety and Health Administration; David Brian Castillo to be chief financial officer; Daniel Aronowitz to be an assistant secretary of labor for the Employee Benefits Security Administration; Wayne Palmer to lead the Mine Safety and Health Administration; Henry Mack III to be an assistant secretary of labor; Wayne Palmer to be assistant secretary of labor for Mine Safety and Health; and Julie Hocker to be an assistant secretary of labor.

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.

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