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.

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By: Amundsen Davis

Latest from Labor and Employment Law Update - Page 3

A strong workers’ compensation defense strategy begins long before a claim is filed. After all, an unexpected claim can costly regardless of industry. Strategic and proactive measures to prevent accidents coupled with an understanding of how to manage the claims that do arise are indispensable tools for businesses.
In a recent webcast, two of our workers’ compensation attorneys shared their insights and best practices to help employers confidently manage claims and achieve favorable outcomes. Here are three key takeaways from their presentation. 
Continue Reading Key Takeaways – Prevention to Resolution: Managing Workers’ Compensation
Claims With the End in Mind

The U.S. Equal Employment Opportunity Commission (EEOC), the agency charged with the administration of federal workplace laws, including Title VII of the Civil Rights Act, recently regained a voting quorum. As a result, the agency can now enact sweeping policy changes in line with President Trump’s second term agenda. Employers can expect increased scrutiny of DEI practices and an increase in charges surrounding religious accommodations.  
Continue Reading EEOC Regains Quorum: What Employers Can Expect

The Illinois legislature recently passed House Bill 1437 (H.B. 1437), which delays implementation of the fringe benefit payment mandates for apprentices on projects subject to the Illinois Prevailing Wage Act (“IPWA”).  As some may recall, Governor Pritzker signed House Bill 2488 (H.B. 2488) into law effective June 30, 2025.
H.B. 2488 requires the payment of “full journeyman annualized fringe benefits” to apprentices working on prevailing wage projects in Illinois, regardless of the terms in the underlying prevailing area-wide union contract. H.B. 1437 delays the date that contractors must begin paying apprentices full journeyworker fringe benefits on public works projects to…
Continue Reading Illinois Amends the Prevailing Wage Act (Again) to Delay Implementation of
Full Fringe Benefit Mandate for Apprentices Until July 1, 2026

If your organization has been struggling to understand how to implement the new tips and overtime reporting requirements from the One Big Beautiful Bill Act (OBBB), you can breathe a temporary sigh of relief. The IRS has issued Notice 2025-62, providing penalty relief for the 2025 tax year while employers adapt to the tax reporting changes.
Continue Reading IRS Provides Critical Transition Relief for New Tips and Overtime Reporting
Requirements: What HR Needs to Know Now

On August 15, 2025, Governor Pritzker signed House Bill 3638 (H.B. 3638) into law, which amends the Illinois Workplace Transparency Act (the “Act”) to provide current, former, and prospective employees with greater rights and protections when executing employment agreements with an employer. The amendments under H.B. 3638 take effect on January 1, 2026, and apply to employment contracts entered into, modified, or extended on or after January 1, 2026, except for collective bargaining agreements. Accordingly, employers need to carefully review their existing employment agreements and ensure they comply with the new requirements under H.B. 3638 by January 1, 2026. 
Continue Reading Illinois Employers, It’s Time to Review and Revise Your Employment
Agreements

Across the country, state lawmakers are recalibrating their approaches to regulating the use of AI in employment decisions. This is in direct response to pressure from the technology industry and the Trump administration. The result is a more incremental approach to AI regulation in employment shaped as much by political dynamics as by policy concerns. Employers need to pay close attention to legislative developments and agency-level regulatory actions, which may introduce new compliance expectations.
Continue Reading AI in Employment-Related Decisions Part 2: State Strategies to Address
Pressure and What It Means for Employers

State lawmakers across the country have been busy this year trying to curb the most consequential uses of AI in employment-related decisions. As those attempts moved from idea to legislation, two powerful forces have pushed back. The tech industry is concerned about a patchwork of state rules, and the Trump administration has prioritized removing barriers to AI use. States are reacting by shifting their strategies to narrow, revise, and/or delay legislation. Employers would be wise to stay abreast of these evolving strategies to ensure compliance in a rapidly shifting regulatory landscape.
Continue Reading AI in Employment-Related Decisions Part 1: Big Tech and Federal Power

On September 19, 2025, the U.S. Department of Labor (DOL) announced the launch of Project Firewall, described as “an H-1B enforcement initiative that will safeguard the rights, wages, and job opportunities of highly skilled American workers by ensuring employers prioritize qualified Americans when hiring workers and holding employers accountable if they abuse the H-1B visa process.”
Continue Reading Project Firewall Targets H-1B Employers: Best Practices for Compliance

On August 19, 2025, the Fifth Circuit Court of Appeals upheld injunctions barring the National Labor Relations Board (NLRB) from prosecuting unfair labor practices (ULP)/charges against three employers, including Space X. This decision stems from the constitutional challenges to the way the NLRB is structured and raises broader questions about the current structure of the NLRB.
Continue Reading Will SEC v. Jarkesy Reshape How the NLRB Operates? Fifth Circuit Bars NLRB
From Prosecuting Unfair Labor Practices: Implications for Employers

On Friday, September 19, 2025 the Internal Revenue Service issued proposed regulations clarifying the “no tax on tips” provisions under President Trump’s One Big Beautiful Bill Act.  Starting January 1, 2026, eligible tipped workers can deduct up to $25,000 each year in “qualified tips” from their federal taxable income through December 31, 2028. This will allow eligible tipped workers to take home more income each year. The deduction is retroactive to the beginning of the 2025 tax year, meaning it can be used by tipped workers to deduct qualified tips in the 2025 tax year. But the catch is that…
Continue Reading IRS Issues Proposed Rules Clarifying the “No Tax On Tips” Provisions Under
President Trump’s One Big Beautiful Bill

It is becoming more common for employees to claim “bullying” or “harassment” when a supervisor enforces rules, sets boundaries, or addresses underperformance. While it is important to take every complaint seriously, company leadership must also recognize the distinction between inappropriate conduct and the normal exercise of managerial responsibilities.
Continue Reading When Accountability Is Labeled as Bullying: Navigating Employee Complaints
About Being Managed

Earlier this month, the Sixth Circuit issued a decision in Bivens v. Zep that significantly narrows when an employer can be held liable under Title VII for harassment committed by a third party, such as a customer or client. The court held that an employer may only be liable in this scenario if the employer intended for the harassment to occur. This ruling departs from the EEOC’s longstanding interpretation of Title VII as well as from the majority of other federal appeals courts that have considered the issue.
Continue Reading Sixth Circuit Provides Employers Protection in Customer Harassment Cases