Compliance Stuff

On February 21, 2025, the United States District Court for the District of Maryland issued a nationwide preliminary injunction halting the enforcement of three key provisions of President Trump’s Executive Orders intended to eliminate diversity, equity, and inclusion (DEI), in the federal government and beyond.   See National Association of Diversity Officers in Higher Education et al. v. Trump et al. , No. 1:25-cv-00333 (D. Md. Feb. 21, 2025).   These Executive Orders, titled, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” and “Ending Radical Government DEI Programs and Preferencing,” which target federal programs tied to DEI and seek to influence private sector programs, have sparked legal challenges from national organizations who argue that the orders are unconstitutional. The three key provisions of the Executive Orders addressed in the court’s ruling are as follows: The “Termination Provision,” which directed all executive agencies to “ terminate…...

What are we craving right now? The Rule of Law! Let me tell you, the American Bar Association delivered this past week! Every spring, the ABA’s Labor and Employment Section Wage and Hour Committee  publishes a comprehensive report of FMLA decisions handed down by the federal courts in the previous year. Although our little FMLA blog catches some of the key FMLA cases as they occur throughout the year, the ABA’s annual report includes every FMLA decision issued in the 12-month period ending October 31, 2024. Every. Single. One. Of. Them. This year’s report was just released and can be accessed  here  (pdf). I highly recommend it as a key FMLA resource for HR professionals and employment attorneys . I refer to it throughout the year. All the credit goes to  Bridget Penick ,  Diana Nobile  and  Bethany Hilbert , who helped spearhead the annual summary this year with a few other employment attorneys. I’ll be covering a ton of these new FMLA cases at m...

The National Urban League, National Fair Housing Alliance, and AIDS Foundation of Chicago have come together to challenge a series of Executive Orders (EO) issued by President Trump including EO 14151, “Ending Radical and Wasteful DEI Programs and Preferencing;” EO 14168, “Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government;” and EO 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” Defendants include the President, the Office of Management and Budget (OMB), OMB Director Russell Vought, Office of Federal Contract Compliance Programs (OFCCP), Acting OFCCP Director  Michael Schloss , the Department of Labor, Acting Secretary of Labor Vince Micone, and other departments such as Health and Human Services (HHS) and respective department heads, such as Robert F. Kennedy, Jr. The plaintiffs argue that the Executive Orders are not only unconstitutional but also undermine the principles of equality and justice—wh...

  President Trump issued two anti-DEI executive orders at the start of his second term that shook up the workplace and left federal contractors and private employers wondering how to comply. Employers grappled with understanding what was meant by “illegal DEI” programs that could lead to a loss of federal funding or future enforcement activities. A recent lawsuit filed in Maryland federal court argued that the orders were vague and that the key terms were undefined – and the court agreed. The judge issued an order on February 21 temporarily blocking enforcement of the executive orders while the lawsuit plays out. What does this mean for employers’ diversity, equity, inclusion, and accessibility (DEIA) programs? Here’s what federal contractors and other private employers need to know about this development and five steps you should consider taking next. How Did We Get Here? During the first two days of the new administration, President Trump  issued two executive orders ...

  In a recent development, America First Legal (AFL) has   formally requested   the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) to investigate federal   contractors that allegedly have illegal diversity, equity, and inclusion (DEI) policies . Stephen Miller, the White House Deputy Chief of Staff for Policy and a close confidant of President Trump, co-founded AFL and is likely aware (and perhaps directed the writing) of  the letter requesting OFCCP action . In the letter, which was sent on February 14, 2025, AFL stated that the authority for OFCCP to conduct these investigations is the Equal Opportunity Clause (41 C.F.R. § 60-1.4(a)) and President Trump’s  Executive Order “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.”  Specifically, AFL stated the following: … [OFCCP] should go further and immediately surge available resources to investigations of open and notorious prohibited discrimination....

  The Maryland Department of Labor is proposing delaying implementation of the Family and Medical Leave Insurance (FAMLI) program . Under the new recommended plan, payroll deductions would begin January 1, 2027 and benefits would become available on January 1, 2028. This proposed change will need to be approved by the General Assembly. In light of the anticipated delay, MDOL will halt any previously announced regulatory timelines for FAMLI. Read more about the potential delays here:  Delays Ahead: Maryland DOL Proposes Pushing Back FAMLI Program Implementation by 18 Months . Source(s):  McGinley, K. A. (2025, February 26).  Maryland DOL Proposes Delaying FAMLI Program . Disability, Leave & Health Management Blog. https://www.disabilityleavelaw.com/2025/02/articles/fmla/maryland-dol-proposes-delaying-famli-program/ ‌

A Feb. 19 executive order, “ Ensuring Lawful Governance and Implementing the President’s ‘Department of Government Efficiency’ Deregulatory Initiative ” calls on agencies to review all their regulations “for consistency with law and administration policy.” The executive order seeks to end “federal overreach” by ordering agency heads to, in consultation with the attorney general, identify:  Unconstitutional rules. Regulations based on unlawful delegations of legislative power. Regulations based on “anything other than the best reading of the underlying statutory authority or prohibition.”  Rules that implicate matters of social, political, or economic significance that are not authorized by clear statutory authority. Regulations that impose significant costs on private parties that are not outweighed by public benefits. Regulations that harm the national interest by “significantly and unjustifiably impeding technological innovation, infrastructure development, disaster response...

  Puerto Rico has recently relaxed its requirements for remote work, implementing significant changes. The first set of changes occurred in 2022 with the enactment of Law 52-2022. In January 2024, further reforms were enacted with the signing of Law 27-2024 by then-governor Pedro Pierluisi. Quick Hits Puerto Rico has relaxed its  remote work requirements  with Law 52-2022, which exempts foreign employers without a nexus to Puerto Rico from making income tax withholdings for employees working remotely in Puerto Rico, provided certain conditions are met. Law 27-2024, effective January 2024, clarifies that nondomiciled employees temporarily residing in Puerto Rico are exempt from Puerto Rican employment laws and contributions, with their employment governed by their domiciles’ laws. Puerto Rico’s new remote work regulations have provided increased flexibility for foreign employers and employees, allowing remote work without the burden of local employment laws and tax obligat...