Labor and Employment Law Update

Welcome to the Labor and Employment Law Update where attorneys from SmithAmundsen blog about management side labor and employment issues. We cover topics including addressing harassment and discrimination in the workplace, developing labor law, navigating through ADA(AA), FMLA and workers’ compensation issues, avoiding wage and hour landmines, key legislative, case law and regulatory changes and much more! Learn more about our firm at www.salawus.com.

Latest from Labor and Employment Law Update

All Wisconsin employers know the basics of the state’s workers’ compensation statute. If an employee is hurt on the job, they may be entitled to benefits under workers’ compensation insurance. However, many don’t realize that if they fail to bring the employee back to work when suitable employment is available, the employer may be exposed to liability in the form of paying the employee up to one year of wages and benefits. This risk comes from Wisconsin’s Unreasonable Refusal to Rehire (URR) statute. Although the consequences of this statute are significant, it is frequently overlooked until it is too late.
Continue Reading Wisconsin’s Unreasonable Refusal to Rehire Statute: A Costly Trap for
Employers

Federal and state prevailing wage mandates are colliding on construction projects in Illinois, exposing owners, developers, and contractors to conflicting compliance obligations and increased project costs. With the enactment of Illinois HB 1189, projects that long fell exclusively under the federal prevailing wage law (Davis-Bacon) may now also be subject to the state’s prevailing wage law mandates.
While the Illinois Department of Labor (IDOL) has issued guidance for contractors, there is little clarity on how to reconcile fundamental and incompatible differences between state and federal prevailing wage laws. Contractors operating in this environment must understand where these mandates conflict and
Continue Reading Are Your Federal Construction Projects Now Subject to the Illinois
Prevailing Wage? What Contractors Must Know

If your company offers health benefits, someone has probably asked about GLP‑1 coverage in the last six months. The drugs work, employees want access, and the sticker price through traditional pharmacy channels can run north of $1,000 per month per employee. Direct‑to‑consumer platforms like TrumpRx.gov, Hims, Lilly Direct, and NovoCare now offer the same medications between $149 and $449 per month, cash pay. The obvious question: can we reimburse employees through an HRA for purchases made through these channels?
Continue Reading GLP‑1s, Direct‑to‑Consumer Pricing, and the HRA Opportunity Most Employers
Are Missing

On April 22, 2026, the U.S. Department of Labor (DOL) issued a proposed rule that would set a single standard for joint employer status under the FLSA, FMLA, and the Migrant and Seasonal Agricultural Worker Protection Act (“MSPA”). The proposed rule would offer clarity for employers around when multiple employers are jointly responsible for protecting employee wages and other rights.
Continue Reading DOL Issues Proposed Rule on Joint Employer Status Under FLSA and FMLA

The U.S. Department of Labor has revised OSHA’s National Emphasis Program (NEP) on outdoor and indoor heat-related hazards, signaling that OSHA will continue enforcing heat safety through inspections rather than the rollout of a new federal heat standard.
The updated NEP, which takes effect immediately and continues through April 10, 2031, refines how OSHA targets employers for heat-related inspections when the heat index is expected to be 80 degrees or higher.
Continue Reading OSHA Revises Heat Enforcement Program, Signaling Continued Enforcement
Instead of a Federal Heat Rule

In the U.S. Supreme Court’s 2024 Muldrow v. City of St. Louis decision, the Court expanded the legal standard for what qualifies as an “adverse employment action” by pivoting from asking whether a change to an employee’s terms or conditions of employment was “material” to whether  the change left the employee worse off in those terms or conditions. Unsurprisingly, employers saw a surge of challenges to everyday management decisions in the immediate aftermath.
The First Circuit’s recent decision in Walsh v. HNTB Corp., however, offers an important clarification that should hopefully serve as a blueprint for other courts dealing with
Continue Reading Federal Court Draws the Line on PIPS After Muldrow: A Win for Employers in
Walsh v. HNTB

The U.S. Immigration and Customs Enforcement (ICE) recently posted a new factsheet making significant changes to Form I-9 inspections and which “mistakes” are correctable under the Immigration and Nationality Act § 274A (“Immigration Act”). ICE reclassified many Form I-9 errors from “technical” to “substantive.” The impact is that clerical mistakes that employers formerly could correct during a Form I-9 audit are no longer correctable and instead are subject to immediate fines during a Form I-9 audit.
Continue Reading The Costs of Form I-9 Mistakes Just Went Up Drastically for Employers

Cultivate a thriving culture and drive your business to new heights by transforming your managers into dynamic leaders. Amundsen Davis’s Supervisor and Management Training Series is perfectly crafted for ambitious mid to senior-level managers from any sector to thrive. 
Continue Reading Register Now – Amundsen Davis Supervisor and Management Training Series 

If U.S. employment laws feel impossible to keep up with, you’re not imagining things. Between federal, state, and local laws and shifting agency guidance, even well-intentioned employers can find themselves in violation of labor and employment laws without realizing it.
You probably can’t fix the system, but you can protect your business from unnecessary risk and expense. The key is investing in prevention, empowering the right people, and acting decisively before small issues escalate.
Continue Reading Why U.S. Employment Law Is So Frustrating—and What Employers Can Do About
It

The Ninth Circuit has warned employers that introducing a mandatory arbitration agreement during active class litigation, particularly when done through poor or misleading communication, can invalidate the agreement entirely. In Avery v. TEKsystems, decided January 28, 2026, the court affirmed a district court order refusing to enforce an arbitration policy introduced late in the lawsuit. The court found that the communications used to roll it out were misleading, one-sided, and fundamentally subverted the class action process.
Continue Reading Employers Beware: Courts Are Scrutinizing Mid-Lawsuit Arbitration
Agreements

With AI transforming everyday HR operations comes major opportunities and significant risks for employers.  As these tools become more embedded in workplace decision‑making, they also raise serious concerns about fairness, accountability, and legal exposure. Understanding how AI works and where it can go wrong is now essential for any employer using or considering these technologies.
Our recent webcast explored these developments and offered practical guidance for employers implementing or considering AI solutions. Below are several high‑level takeaways.
Continue Reading Navigating the Risks of Artificial Intelligence in the Workplace: Key
Takeaways for Employers

Among a company’s most valuable assets is its intellectual property (IP). Though often intangible, IP—innovations, concepts, designs, processes, and more—offers companies a competitive edge in the marketplace. Protecting these assets is essential for safeguarding revenue, accelerating growth, and preventing competitors from gaining an unfair advantage—and your employees can be an inside threat.
Continue Reading Managing IP Risks Through the Employment Lifecycle

Many employers hesitate to discipline or terminate for misconduct if the employee has recently engaged in protected activity, such as requesting FMLA, seeking an accommodation, or filing a complaint. Suspicious timing can easily lead to a retaliation claim, so the concern is understandable. But hesitation has costs too for an organization—no accountability for the misconduct, past practice is now undermined, and the employee is emboldened to commit more policy violations.
Continue Reading Seventh Circuit: Termination Following Same-Day FMLA Request Was Not
Retaliation

A federal appeals court has invalidated a National Labor Relations Board (NLRB) standard that eased a union’s path to recognition. On March 6, 2026, the Sixth Circuit U.S. Court of Appeals ruled that the NLRB overstepped its authority when it created a new framework for issuing bargaining orders in Cemex Construction Materials Pacific, LLC. For employers in the Sixth Circuit (Ohio, Michigan, Kentucky, and Tennessee), this ruling limits the NLRB’s ability to impose bargaining orders under the Cemex standard.
Continue Reading Federal Court Blocks NLRB Standard That Made Union Recognition Easier