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Showing posts with the label 2025-01-25 Digest

Trump Orders Feds to Combat “Illegal” Corporate DEI Programs: 5 Takeaways for Private-Sector Employers + What You Should Do Now

President Trump just issued a far-reaching executive order targeting diversity, equity, and inclusion (DEI) initiatives in not only the federal government but also the private sector. The order directs federal agencies to “combat illegal private-sector DEI preferences, mandates, policies, programs, and activities” and to encourage private employers to instead implement the Trump administration’s policy of “individual initiative, excellence, and hard work.” While the order creates many unanswered questions and will likely face legal challenges, this Insight will explain what private employers need to know about these new federal anti-DEI initiatives and what you should do now.  5 Takeaways for Private-Sector Employers Here’s how Trump’s  January 21 executive order  impacts employers in the private sector. (To read about the order’s sweeping impact on federal contractors and subcontractors, click  here .) 1. Employers Are Under Federal Pressure to End Certain DEI Progr...

Trump Rescinds Biden’s AI Executive Order

  President Donald Trump on Jan. 20 rescinded former President Joe Biden’s October 2023 executive order on artificial intelligence , which sought to develop security standards for AI and introduce consumer and worker protections. The executive order directed the federal government to assess the impact of AI on the workforce, prevent discrimination resulting from the use of AI tools, and support upskilling programs that help workers develop the skills and knowledge they need to succeed in the AI economy. Much of the implementation of the governance requirements has already occurred across federal agencies, but there is no longer a requirement for developers of advanced AI models to share the results of safety testing with the government. It’s unclear what, if anything, the Trump administration will issue in place of Biden’s order, which was criticized by some technology firms and Republicans as hindering AI innovation. We’ve rounded up articles from SHRM to provide more context...

Top 10 Employer Takeaways as New Jersey Cracks Down on AI Discrimination

  New Jersey recently put employers on notice: AI-driven bias is illegal discrimination. The state’s January 9 guidance on algorithmic discrimination makes it clear that the New Jersey Law Against Discrimination (LAD) applies to AI-powered decision-making in hiring and beyond . At the same time, the state launched a Civil Rights Innovation Lab to monitor AI compliance, enforce violations, and educate businesses on AI risks. This means that New Jersey employers using AI-driven tools – including those you purchased from third-party vendors – must now proactively ensure these systems don’t create discriminatory outcomes. Here are the top 10 takeaways employers need to know to stay compliant under New Jersey’s new AI enforcement push. 1. AI Bias is Illegal Under New Jersey’s Law Against Discrimination The NJ LAD explicitly prohibits algorithmic discrimination, treating AI-driven bias the same as traditional discrimination. This applies to employment, housing, public accommodations, cre...

Incoming Administration Rescinds “Right of First Refusal” Requirements for Certain Employees of Federal Contractors

  Among the first actions taken by the incoming administration was to rescind   Executive Order (EO) 14055 . Titled “Nondisplacement of Qualified Workers Under Service Contracts,” EO 14055 required certain federal contractors to offer jobs to their predecessor’s employees. The EO had proven controversial among the business community and was widely expected to be rescinded. Now that it has, federal contractors will not have to offer jobs to their predecessor’s employees before hiring new workers. What was EO 14055? In 2009, the Obama administration issued  EO 13495 , which would have applied to federal contractors covered by the  Service Contract Act . Under the EO, any covered contractor who won new work from the government would have had to give a “right of first refusal” to certain employees of its predecessor. That order, however, was rescinded by the first Trump administration. Then, in 2021, the Biden administration issued EO 14055. That EO effectively revived...

President Trump Revokes 60-Year-Old Executive Order Requiring Equal Employment Opportunity in Government Contracting

  On January 21, 2025, President Trump issued an executive order titled, “ Ending Illegal Discrimination and Restoring Merit-Based Opportunity .” The order is targeted at what the president describes as “illegal” diversity, equity, inclusion, and accessibility policies that:  . . . not only violate the text and spirit of our longstanding Federal civil-rights laws, they also undermine our national unity, as they deny, discredit, and undermine the traditional American values of hard work, excellence, and individual achievement in favor of an unlawful, corrosive, and pernicious identity-based spoils system. The order declares that it is the policy of the United States: to protect the civil rights of all Americans and to promote individual initiative, excellence, and hard work. I therefore order all executive departments and agencies (agencies) to terminate all discriminatory and illegal preferences, mandates, policies, programs, activities, guidance, regulations, enforcement acti...

IRS Ruling Clarifies Employment Tax Implications of Paid Family and Medical Leave Programs

  The IRS’s recently released   Revenue Ruling 2025-4   provides significant guidance on the employment tax treatment of contributions to and benefits paid under state paid family and medical leave (PFML) programs . This has been an area of concern as states have enacted various paid leave laws without providing guidance about how to tax such benefits. The revenue ruling clarifies key points and highlights important distinctions among the treatment of contributions and benefits for FICA, FUTA, and income tax withholding purposes. These distinctions are significant for employers and require careful attention to ensure compliance with federal tax and reporting requirements. Overview of the Ruling Rev. Rul. 2025-4 clarifies how contributions and benefits under state PFML programs interact with federal employment taxes: Contributions to PFML Programs Employer Contributions : Contributions made by employers to a state PFML program are generally excluded from an employee’s gros...

OSHA Withdraws Proposed Rules Involving COVID-19 and Infectious Diseases

  Last week, OSHA published a   notice   in the   Federal Register   that it was withdrawing its proposed rule,   Occupational Exposure to COVID-19 in Healthcare Settings , effective immediately. OSHA explained it was withdrawing the proposed rule because it intended to focus instead on an infectious disease standard for healthcare workers rather than “a disease-specific standard.” The agency explained that completing an infectious disease rulemaking was a better use of the agency’s time and resources. In support of that approach, in November 2024, OSHA transmitted a proposed Infectious Diseases rule to the White House’s Office of Information and Regulatory Affairs (OIRA) for review. OIRA held two separate meetings with stakeholder groups regarding the pending proposal. OIRA concluded its review of the proposed rule on January 14, 2025, but information on the status of the  proposed Infectious Diseases rule  shows it has been withdrawn. OIRA’s we...

Another Year in The Books – OSHA’s Top Ten Safety Violations for Fiscal Year 2024

  OSHA enforces almost 1,000 standards and tens of thousands of individual regulations related to General Industry, Construction, Maritime, and other industries. Once again, OSHA released its preliminary data for the top ten most frequently cited standards for FY 2024 at the   National Safety Council Safety Congress & Expo . Final FY 2024 data will be released in early-April 2025 to allow inspection data to close following the end of the fiscal year on September 30, 2024. Reflecting OSHA’s 2024 focus on falls, fall protection general requirements in construction again tops the list. Respiratory protection saw the biggest relative increase in position, demonstrating a greater focus of airborne hazards in General Industry workplaces. To reduce the risk of incidents and OSHA citations, employers and safety managers would be wise to focus on the safety hazards associated with these standards. Fall Protection – General Requirements (1926.501): 6,307 violations Hazard Communicat...

President Trump Revokes Executive Order 11246

  Last night, President Trump revoked Executive Order 11246 with a new Order titled,  “Ending Illegal Discrimination and Restoring Merit-Based Opportunity ."   This new Order effectively ends affirmative action  in employ ment  while  allowing federal contractors  and subcontractors  to  continue to  comply with  the regulatory scheme in effect on January 20, 2025,  for an  additional 9 0   days .  T he new  o rder  focuses on non-discrimination in employment and illegal or unlawful D EI  practices.   T he White House also issued an accompanying  Fact Sheet ,   which  outlines  the administration’s  priorities around  streamlining  the federal  contracting  process ,  increasin g  e fficiency   and barring the  Office of Federal Contract  Compliance  Programs (OFCCP)  from “pushing  contractors  to  ...

Puerto Rico Supreme Court Clarifies National Origin Discrimination

  On January 14, 2025, the Supreme Court of Puerto Rico had the opportunity to address the “national origin” protected category under the anti-discrimination provisions of Puerto Rico Act No. 100 of June 30, 1959, as amended (“Act 100”).  In   Roberto Jiménez Soto v. Carolina Catering Corp. (Sky Caterers),   the Court held that this category does not include discrimination based on the employee’s citizenship or immigration status. The plaintiff, a citizen of the Dominican Republic and a U.S. legal permanent resident, f iled suit against his employer after being terminated from employment following the expiration of his permanent residence card (green card). According to the plaintiff, his employer unlawfully terminated him due to his national origin because he was perceived and treated as an illegal immigrant. The employer, in turn, alleged that because the plaintiff failed to present a renewed green card, as required by airport security regulations in order to gain ...