July Alerts

OFCCP Resumes Processing of Section 503 and VEVRAA Complaints

Following the revocation of Executive Order 11246, the Office of Federal Contract Compliance Programs (OFCCP) had paused enforcement of Section 503 of the Rehabilitation Act of 1973 (protecting those with disabilities) and VEVRAA (protecting certain veterans) obligations, but has now announced that all pending compliance reviews will be administratively closed. Contractors will receive formal notice of these closures, and the OFCCP will not take further action on the November 2024 scheduling list. However, the OFCCP emphasized that Section 503 and VEVRAA remain in effect, and contractors must continue to comply with their obligations under these laws. While certification through the Contractor Portal is not currently required, the OFCCP has resumed processing both new and previously held complaints under Section 503 and VEVRAA. Additionally, the moratorium on enforcement for VA Health Benefits Program providers has been extended through May 7, 2027.

 

DOL Withdraws Proposed Rule to Eliminate Subminimum Wage for Workers with Disabilities

On July 7, 2025, the Department of Labor (DOL) announced that it was formally withdrawing its proposed rule that would have phased out the issuance of subminimum wage certificates for workers with disabilities under Section 14(c) of the Fair Labor Standards Act. This marks a clear decision not to move forward with regulatory changes at this time, citing the complexity of the issue, over 17,000 public comments, and concerns about the DOL’s authority to end the program unilaterally. As a result, the current regulatory framework remains in place, and Section 14(c) certificates are still available at the federal level. However, many states have already taken steps to phase out or ban the use of these certificates, so employers must also consider state law before applying.

 

DC Circuit: Union Negotiation Impasse is Based on Evidence Not Party’s Declaration

On June 13, 2025, in Troy Grove v. National Labor Relations Board, the D.C. Circuit Court of Appeal said that the NLRB did not have sufficient evidence to say there was no impasse in negotiations between the employer and union. There had been five years of unsuccessful negotiations around the employer’s request to end pension contributions, which included a three-year strike and ongoing mutual rejections of each party’s proposed action. The employer ultimately declared impasse, but the union denied there was an impasse which would prohibit the employer from taking final action. The court indicated that the NLRB cannot declare impasse just because one party said there was no impasse. Based on the evidence presented, the appeals court said that the employer did not engage in an unfair labor practice when indicating its intent to move forward as a result of the impasse.

 

California: New Model Notice for Crime Victim Rights  

Effective January 1, 2025, California’s AB 2499 expanded workplace protections for employees who are victims of crime, broadening the definition of “victim” and extending job-protected leave and safety accommodations. The law also requires employers to provide written notice of these rights to all new hires and to current employees upon request. As of July 1, 2025, the California Civil Rights Department (CRD) issued the official model notice that employers must use or replicate, as long as it is substantially similar in content and clarity. Employers must provide this notice to all new hires at the time of onboarding and to current employees upon request.

 

Maine: Minimum Wage for Agricultural Employees

Effective January 1, 2026, LD 589 provides agricultural workers a guaranteed minimum wage. The bill amended the state’s minimum wage law to include a new section addressing agricultural workers. As of the effective date, agricultural workers will be entitled to at least $14.65 an hour with a cost-of-living increase occurring each January 1 thereafter. Employers also have recordkeeping requirements for hours worked and wages paid for a period of at least three years. Employers must provide employees a wage statement with the date of the pay period, the hours, total earnings and itemized deductions. The Maine Department of Labor is responsible for enforcing the minimum wage requirements. In addition to payment of unpaid wages, employers violating the law must pay an additional amount equal to the unpaid wages as liquidated damages and the costs, including reasonable attorneys’ fees. Employers will also be subject to a fine of not less than $50 and not more than $200.

 

Maine: Prince George’s County Minimum Wage Increase

Effective February 4, 2025, CB-088-2024 provides for annually increasing the Prince George County minimum wage rate using the Consumer Price Index (CPI). As of January 1, 2026, the Director of Finance will increase the minimum wage rate using the lesser amount of the percentage growth in the CPI or 5%. If there is no decline or growth in the CPI, the minimum wage will remain the same. The County Council also has the authority to temporarily suspend minimum wage indexing if there is negative employment growth in the Current Employment Statistics series as reported by the U.S. Bureau of Labor Statistics.

 

Oklahoma: Updates to Minimum Wage Act

Effective November 1, 2025, SB 250 will amend the Oklahoma Minimum Wage Act by updating the provisions related to the computation of minimum wage for employees. The bill specifies that credit toward the minimum required wage will be given for tips, gratuities, meals, or lodging received by the employee, provided that the employer pays a cash wage that meets or exceeds the requirements set forth in federal regulations. The previous limitation allowed credit for these benefits, but only up to 50% of the wage. Additionally, the bill introduces a new provision stating that if the minimum wage exceeds the current federal minimum wage, credit for tips, gratuities, meals, or lodging may still be applied.

 

Virginia: New “Vulnerable Victim” Law

Effective July 1, 2025, Virginia’s SB 894 establishes a new law to address an employer’s vicarious liability for an employee’s tortious conduct, requiring courts to consider whether an employer should be held vicariously liable when a “vulnerable victim” brings a personal injury or wrongful death claim against an employee. The law defines “vulnerable victim” broadly, including patients, individuals with disabilities, assisted living residents, certain transportation passengers, and clients of esthetics or massage businesses. To hold an employer vicariously liable under the law, a vulnerable victim must prove that the employee was likely to come into contact with them and that the employee’s actions directly caused their injury or death, and that the employer failed to take reasonable steps to prevent the harm or control the employee, despite having both the ability and the need to do so. In other words, the employer must have known, or should have known, that they could and should have intervened, but didn’t. The law does not require that the employee’s interaction with the victim be directly tied to the victim’s vulnerability, potentially expanding employer exposure. As a result, employers should undertake steps to conduct background screening on applicants, train employees on proper conduct, and proactively monitor employee conduct that could pose risks to vulnerable individuals.