September Alerts

President Trump Revokes Biden-Era EO on Competition

On August 13, 2025, the White House announced that President Trump revoked President Biden’s July 2021 Executive Order on Promoting Competition in the American Economy (the “Biden EO”).  President Trump’s revocation of the Biden EO marks a significant shift in federal competition policy that will directly impact employers, especially those involved in mergers, acquisitions, and regulated industries. The Biden EO had imposed a broad, multi-agency framework aimed at curbing corporate consolidation and promoting competition across sectors like healthcare, agriculture, tech, and labor. It included initiatives to limit non-compete agreements, scrutinize mergers more aggressively, and coordinate enforcement across federal agencies. For employers, this meant heightened regulatory scrutiny, slower deal approvals, and increased compliance burdens. With the revocation, the Trump administration is signaling a return to a more market-driven, case-by-case approach to antitrust enforcement. Employers can expect a more permissive environment for mergers and acquisitions, faster regulatory reviews, and greater reliance on negotiated remedies like consent decrees rather than outright deal blocks. Employers should stay alert to evolving agency priorities and prepare for a shifting landscape.

 

Second Circuit: EEOC Retains Jurisdiction Over Claims

On August 25, 2025, in EEOC v. AAM Holding Corp., the Second Circuit Court of Appeals said that the Equal Employment Opportunity Commission (EEOC) retains the authority to investigate a charge even after it issues a right-to-sue letter to the charging party and the charging party files a lawsuit. This ruling joins similar opinions from the Seventh and Ninth Circuits, and widens the split with the Fifth Circuit.

 

Fifth Circuit: PWFA Enforceable Against Texas State Agencies

On August 15, 2025, in State of Texas v. Bondi, the Firth Circuit Court of Appeals overturned a district court injunction that prevented enforcement of the Pregnant Workers Fairness Act (PWFA) against Texas state agencies as employers. The PWFA requires employers to provide reasonable accommodations to workers with known limitations related to pregnancy, childbirth, or related medical conditions, absent undue hardship. When it went into effect on June 27, 2023, the State of Texas challenged enforcement of the law by arguing the U.S. House of Representatives did not meet the necessary quorum requirements to pass legislation. Absent members were allowed to vote by proxy due to the COVID-19 pandemic. A district court agreed and instituted an injunction against enforcement of the PWFA against the State of Texas as an employer. In reaching its ruling overturning the injunction, the Fifth Circuit court ruled in-person voting was not required as the Quorum Clause of the U.S. Constitution did not explicitly require in-person voting. This ruling settles a long-standing legal challenge against the PWFA.

 

Sixth Circuit: Restrictions on Arbitration During Pending Litigation

In Kloosterman v. Metropolitan Hosp., the Sixth Circuit held that the defendant employer had lost their right to arbitrate under the Federal Arbitration Act (FAA) because their conduct in litigating the case, with substantial motion practice and only filing a motion to compel arbitration after a year, put them “in default in proceeding with [their requested] arbitration.” The court ultimately ordered that the matter should proceed in district court, restricting the employer’s ability to use arbitration as a strategic tactic after a full year of litigation.

 

Eighth Circuit: FRA Preempts OSHA for Workers Around Railcars

On August 28, 2025, in MFA Enterprises v. OSHRC, the Eighth Circuit Court of Appeals determined that the Federal Railroad Administration (FRA) preempts the jurisdiction of the Occupational Safety and Health Administration (OSHA). Under the OSH Act, when another federal agency has set standards for the environmental area where the employee customarily works, OSHA’s jurisdiction is preempted. Here, OSHA cited the employer for failing to ensure employees wore personal protective equipment while working on top of railcars. Ultimately, the court vacated the citation because the FRA has asserted its authority over working conditions unique to railroad operations, including the protection of employees working around railcars.

 

Ninth Circuit: EEO Reports Subject to FOIA Requests

On July 30, 2025, the Ninth Circuit issued their decision in Center for Investigative Reporting v. U.S. Department of Labor, ruling that the DOL was required to release EEO-1 Component 1 reports submitted by federal contractors in response to a Freedom of Information Act (FOIA) request from the Center for Investigative Reporting. These reports traditionally include aggregated employee demographic information (e.g., race, ethnicity, and gender) organized by job category. The court found that this data did not qualify as “commercial” under FOIA Exemption 4, which protects confidential business information, because it does not reveal profit-related or trade-sensitive data. As a result, this ruling may open the door to broader public access to EEO-1 data, especially for federal contractors.

 

California: Ignorance is Not a Defense to Properly Paying Wages

On August 21, 2025, in Iloff v. LaPaille, the California Supreme Court said that to establish a good faith defense under Labor Code § 1194.2 for liquidated damages for minimum wage violations, an employer must show that it made a reasonable attempt to determine the requirements of the law governing minimum wages and a good faith effort to comply with the requirements of the law; proof that the employer was ignorant of the law is insufficient.

 

California: Paid Sick Leave Calculations for Outside Salespersons Clarified

On August 4, 2025, in Hirdman v. Charter Communications, LLC, the California Court of Appeals said that outside salespersons qualifying as overtime exempt may be paid for sick time used under the state’s paid sick leave law using the exempt employee pay calculation of the statute, Labor Code § 246(l)(3). Section 246(l) provides three methods employers may use to calculate the rate of pay for sick leave—two options for “nonexempt employees” and one for “exempt employees.” The court said that “exempt employees” in Section 246(l)(3) refers to any employee who is determined to be overtime exempt, not just those falling under the traditional administrative, executive, and professional exemptions.

 

California: Failure to Pay Arbitration Fees is Nonfatal When Due to Good Faith Mistake

On August 11, 2025, in Hohenshelt v. Superior Court, the California Supreme Court said that late arbitration payments under C.C.P. § 1281.98 are subject to equitable contractual remedies and are not preempted by the Federal Arbitration Act (FAA). Section 1281.98 requires arbitration fees to be paid within 30 days, at risk of forfeiture of arbitration rights. Here, the arbitrator’s bill was paid late due to a known paternity leave and communications around the arbitrator’s unavailability, but otherwise promptly paid on discovery. The Court said that one party’s nonperformance of an obligation automatically extinguishes the other party’s contractual duties only when nonperformance is willful, grossly negligent, or fraudulent. The legislature did not intend to strip companies and employers of their contractual right to arbitration where nonpayment of fees results from a good faith mistake, inadvertence, or other excusable neglect.

 

California: Minimum Wage Will Increase to $16.90 on January 1

On August 1, 2025, the state Director of Finance announced the next minimum wage increase on January 1, 2026 will be $16.90. The Director is required to annually calculate an adjusted minimum wage on or before August 1 of each year at the lesser of 3.5 percent or the rate of change for the U.S. CPI-W. The rate of change for the upcoming year was determined to be 2.49%. Note that this increase means that the minimum salary requirement for overtime exempt workers in California, which is two times the state minimum wage, will also increase to $70,304 per year ($5,858.67 per month).

 

Long Beach, CA: Minimum Staffing for Grocery Stores and Pharmacies

As of September 22, 2025, in order to prevent retail theft, Long Beach Ordinance No. 25-0010 will require minimum staffing levels for check-out stands at certain retail grocery establishments and pharmacies. Specifically, the requirements state: (1) there must be at least one staffed traditional check-out lane available; (2) self-checkout lanes must have one staff supervising self-checkout for every three stations; and (3) the assigned employee cannot have other work responsibilities that interfere with their ability to maintain direct visual inspection and surveillance of the self-checkout operations. Staffing requirements do not count managers, supervisors, or confidential employees as complying with the Ordinance. Other operational requirements are also stated for checkout operations, such as limiting self-checkout to 15 items. Violations are subject to a private right of action with daily penalties of $100 for noncompliance, up to $1,000, and attorneys’ fees and costs. There are also anti-retaliation protections against employees enforcing rights under the Ordinance.

 

Colorado: AI Antidiscrimination Law Delayed

As part of a special legislative session called by Colorado Governor, the state legislature has agreed to postpone the effective date of the state’s pending AI antidiscrimination law to June 2026. The law was originally passed in May 2024 and set to go into effect in February of 2026, establishing a comprehensive framework for preventing algorithmic discrimination and imposing tort liability for violations. Almost immediately following the law’s passage, opponents began lobbying for substantive revisions, citing concerns with the burdens imposed on AI developers and businesses utilizing the technology. Although the legislature ultimately failed to reach a compromise on actual revisions to the law, they did agreed to an extension of the law’s implementation date to allow for further negotiations.

 

Hawaii: Lower Filing Threshold for W-2 and HW-2

Effective January 1, 2026, Hawaii will require employers filing 10 or more Forms W-2 and/or HW-2 in a calendar year to file electronically with the state Department of Taxation, regardless of the employer’s annual withholding tax liability. Previously, the filing threshold was 250 or more forms.

 

Massachusetts: Retroactive Immunity for Certain Nonprofit Institutions Paying Monthly Wages

On August 27, 2025, in Curtin-Wilding v. Trustees of Boston University, a federal district court said that Section 113 of the state budget may be applied retroactively by nonprofit higher education institutions and nonprofit healthcare providers to immunize them from Massachusetts Wage Act claims for paying wages on a monthly schedule, provided that wages are timely paid in full.

 

Montana: Limits on Restrictive Covenants for Healthcare Professionals

Effective January 1, 2026, Montana’s HB 620 amends the state’s non-compete law to ban post-employment non-compete and patient non-solicitation clauses in contracts involving physicians of all specialties. Previously limited to psychiatrists and addiction medicine physicians, the amended statute will cover all licensed physicians and will apply to other healthcare professionals like psychologists and counselors. The law applies to employment, partnership, or other professional relationships, prohibiting geographic restrictions and limitations on treating or soliciting current patients. Exceptions include contracts for the sale of a practice and repayment provisions for hiring incentives such as relocation costs or signing bonuses.

 

 

 

Nebraska: Paid Sick Time Poster and Notice Available

On October 1, 2025, employers are required to comply with Initiative 436, as amended by LB 415, implementing Nebraska’s new Paid Sick Time law. The state Department of Labor has published the required poster and employee notice (required distribution to employees as of September 15, 2025) that employers must use to comply with their obligations under the law. There is also an FAQ available on the Labor Standards website for more information.

 

Nevada: Overlapping Workdays Clarified for Overtime Calculations

On July 28, 2025, the Labor Commissioner issued an advisory opinion on how overlapping workdays impact overtime requirements. NRS 608.0126 defines “workday” as a period of 24 consecutive hours which begins when the employee begins work.  NRS 608.018 requires that overtime wages are paid, in part, for work over eight hours in a workday. When multiple shifts overlap within a 24-hour period, the time is counted chronologically for purposes of paying overtime. For example, for an employee who works from 5 pm to 11 pm on Monday and 8 am to 1 pm on Tuesday, all hours are within a 24-hour period, resulting in 8 hours of regular time pay and 3 hours of overtime. The advisory opinion describes multiple example scenarios of how this rule operates.

 

Nevada: Limits Healthcare Certification Fees

Effective January 1, 2026, AB 305 will limit fees healthcare providers can charge for completing healthcare certification forms supporting leave under the Family and Medical Leave Act (FMLA). The fee will be limited to $30, with annual increases based on the Consumer Price Index (CPI).

 

New Jersey: No Captive Audiences

Effective December 2, 2025, A4429/S3302 expands prohibitions on employers concerning requirements for employees to attend or listen to communications related to political or religious matters. The bill makes clear that employers cannot mandate employees’ participation in communications about certain political matters, including mandatory meetings regarding the decision to join or support a labor organization or association. The bill provides for very specific exceptions from the prohibitions, including voluntary meetings where employees can refuse without penalty, legally required communications, job-duty-related information, workplace harassment training, and communications by certain types of organizations like political committees, non-profits, and religious organizations. The bill also strengthens employee protections by allowing workers to file civil actions within 90 days of a violation, with potential remedies including reinstatement, lost wages, attorneys’ fees, and punitive damages.

 

North Carolina: State Recognizes Two Sexes, Male and Female

On January 1, 2026, HB 805 will officially recognize two sexes, male and female, as defined at birth. Additionally, gender identity will not be treated as legally or biologically equivalent to sex. The bill cites compliance with Executive Order 14168, titled “Defending Women From Gender Ideology Extremism and Restoring Biological Truth to the Federal Government,” to maintain eligibility for federal funding and program participation, as the reason for implementing the law.

 

Rhode Island: New Human Trafficking Prevention Rules

Effective January 1, 2026, Rhode Island’s H5563 will require all hotel employees and short-term rental property operators to complete state-approved human trafficking awareness training annually and within 180 days of employment or property listing. The training must cover, among other things, how to recognize signs of trafficking and differentiate between labor and sex trafficking. Operators must maintain training records for at least one year after employment or property operation ends and provide them to the Department of Business Regulation upon request. Covered entities are also required to implement procedures and adopt policies for reporting concerns to the National Human Trafficking Hotline or local law enforcement.

 

South Carolina: Implements Hands-Free Driving Law

As of September 1, 2025, HB 3276 enacted the state Hands Free and Distracted Driving Act, which prohibits drivers from: (1) holding or supporting a mobile device with any part of their body (excluding using an earpiece or wrist device for voice-based communication); (2) using a mobile device to read, compose, or transmit texts, emails, app interactions, or website information; and (3) watching motion on a mobile device, including a video, movie, game, or video call. Employers should implement hands-free device policies to ensure compliance. Review the Department of Public Safety website for more information.

 

Utah: New Regulations for Healthcare Staffing Platforms

As of May 7, 2025, Utah’s SB 288 regulates health care staffing platforms that connect temporary health care workers with shifts, requiring these platforms to register with the state by January 1, 2026, and prohibits them from enforcing non-compete agreements or charging fees when workers accept employment offers. The law also bans restrictions on workers using other platforms or accepting shifts directly from health care providers or facilities. The definition of “health care worker” under the law is broad, encompassing both licensed professionals and unlicensed individuals who assist in delivering health care services.

 

Washington: Pay Transparency Remedies Available to Any Applicant

On September 4, 2025, in Branson v. Washington Fine Wine & Spirits, the Washington Supreme Court weighed in on requirements for pay transparency violations. Specifically, an employer failed to disclose pay ranges in job postings as required by state law. The Court said that applicants to the posting may bring claims under the law, and there are no statutory requirements that the applicants show they were “bona fide” or “good faith” applicants. This means that anyone who applies to a job posting that violates the pay transparency requirements may be eligible for statutory damages.

 

Washington: Healthcare Workers Can Waive Meal and Rest Breaks

Effective January 1, 2026, HB 1879 amends the meal and rest break law for any healthcare workers to allow healthcare workers to waive a meal break for shifts of less than eight hours. If a healthcare worker has a shift eight hours or longer, they can waive their second or third meal break but only if at least one meal break was already taken. The employer and healthcare worker can also agree to waive other timing requirements for meal and rest periods as long as the meal period starts no earlier than the third hour worked and no later than the second to last hour scheduled. An enforceable waiver must: (1) be in writing or electronic recordkeeping format; (2) be recorded by the employer in an electronic information management system and be retrievable; (3) include a summary of the applicable department rule governing meal and rest periods and advise the healthcare worker that they may have other rights under an applicable collective bargaining agreement; (4) be voluntary and the employer must expressly advise the healthcare worker that it is voluntary; (5) be in advance of the first shift in which it is relied upon; (6) be revocable by either the employer or healthcare worker at any time; and (7) be submitted on a form agreed to between the employer and the collective bargaining organization for employees it represents. Employers must also record each time an employee misses a meal or rest period and maintain the records in order to submit a quarterly report to the Department of Labor and Industries detailing: (1) the total meals and rest periods missed in violation of the law; (2) the total number of meal and rest periods waived by an agreement; and (3) the total number of meals and rest periods required during the quarter. Healthcare employers should review and update their meal and rest policies accordingly and draft waivers with the assistance of legal counsel.

 

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Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2025 ManagEase