Compliance Stuff

Philadelphia employers now face more investigations and stiffer punishment under a new law the mayor approved last week. The POWER Act, signed on May 27 and taking effect immediately, adds sweeping worker protections concerning wages, paid sick leave, and retaliation for workplace complaints . It also enhances the Philadelphia Department of Labor’s enforcement powers while increasing penalties and damages against employers who violate the city’s worker protection laws. Here are five key provisions employers should review plus a four-step action plan for compliance. The Bigger Picture In the last decade, Philadelphia has granted more workplace protections to workers and heightened compliance requirements for employers, including  wage requirements , mandatory  paid sick leave , a “ fair workweek ” law , and a  domestic worker bill of rights . In 2020, the city created its own Department of Labor (DOL) and vested it with investigatory and enforcement powers. Now with the l...

DOL proposes to eliminate agency.  The U.S. Department of Labor released its  proposed budget  for Fiscal Year 2026, which runs from October 1, 2025 through September 30, 2026 . The budget proposal is the agency’s request to Congress for funding. In its proposed budget, DOL aims to eliminate the Office of Federal Contract Compliance Programs entirely . The OFCCP enforces the non-discrimination and affirmative action obligations of federal contractors. Since January 21 when  President Trump rescinded Executive Order 11246 , the OFCCP’s only responsibility has been enforcement of Section 503 of the Rehabilitation Act and t he Vietnam Era Veterans’ Readjustment Assistance Act. The OFCCP laid off the vast majority of its workforce due to its diminished oversight responsibilities. Under the DOL’s plan, enforcement of Section 503 would be transferred to the Equal Employment Opportunity Commission, and enforcement of VEVRAA would move to the Veterans’ Employment and Traini...

  The Trump Administration has asked the U.S. Court of Appeals for the Fifth Circuit to postpone oral argument in a lawsuit challenging President Joe Biden’s 2024 independent contractor rule. The U.S. Department of Justice filed a motion to pause oral argument in a legal challenge brought by trucking companies in order to give the incoming leadership at the U.S. Department of Labor (DOL) a chance to review the case and determine its next steps in the litigation. The appeals court granted the motion, tabling oral argument which had been scheduled for Feb. 5, 2025. ( Frisard’s Transp., LLC v. United States DOL , No. 24-30223, Jan. 24, 2025). The 2024 independent contractor rule, issued in January 2024, revised the DOL standard for determining whether a worker is an employee or independent contractor under the FLSA. The rule, which took effect March 11, 2024, formally adopted the six-factor “economic realities” test to determine whether a worker is an employee or independent contracto...

  WASHINGTON —  The U.S. Department of Labor today announced the release of comprehensive   Artificial Intelligence Best Practices   designed to ensure that emerging technologies such as AI enhance job quality and benefit workers when they are used in the workplace. The department’s AI Best Practices provide developers and employers with a detailed roadmap to implement the department’s  AI and Worker Well-being: Principles for Developers and Employers , which were released under President Biden’s  Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence   These guidelines further the department’s commitment to centering worker empowerment and well-being, particularly workers in underserved communities, as AI systems are increasingly used in the workplace. “We have a shared responsibility to ensure that AI is used to expand equality, advance equity, develop opportunity and improve job quality,” said Acting Sec...

 The DOL and the Partnership on Employment & Accessible Technology (PEAT), an outside organization funded by the DOL’s Office of Disability Employment Policy, have released the “Artificial Intelligence (AI) & Inclusive Hiring Framework.” A DOL press release describes the framework as “a new tool designed to support the inclusive use of artificial intelligence in employers’ hiring technology and increase benefits to disabled job seekers.” The framework, which does not have the force of law, lays out ten focus areas and related practices: (1) “Identify Employment and Accessibility Legal Requirements”; (2) “Establish Staff Roles, Responsibilities, and Training”; (3) “Inventory Technology and Classify the Technology”; (4) “Work With Responsible AI Vendors”; (5) “Assess Possible Positive and Negative Impacts”; (6) “Provide Accommodations”; (7) “Use Explainable AI and Provide Notices”; (8) “Ensure Effective Human Oversight”; (9) “Manage Incidents and Appeals”; and (10) “Monitor R...

 he Wage and Hour Division (WHD) of the U.S. Department of Labor (the Department) is issuing this notice to announce the applicable minimum wage rate for workers performing work on or in connection with Federal contracts covered by Executive Order 14026 , Increasing the Minimum Wage for Federal Contractors (the Executive Order or the order). Beginning on January 1, 2025, the Executive Order 14026 minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts will increase to $17.75 per hour . This minimum wage rate will apply to non-tipped and tipped employees alike. Contracts similar to those covered by Executive Order 14026 that were entered into, renewed, or extended prior to January 30, 2022, are generally subject to a lower minimum wage rate established by Executive Order 13658 of February 12, 2014, Establishing a Minimum Wage for Contractors. Source(s): Department of Labor (Wage and Hour Division) , received on Septembe...

 The Wage and Hour Division (WHD) of the U.S. Department of Labor (the Department) is issuing this notice to announce the applicable minimum wage rate for workers performing work on or in connection with Federal contracts covered by Executive Order 13658 , Establishing a Minimum Wage for Contractors (the Executive Order or the order), beginning January 1, 2025. Beginning on that date, the Executive Order 13658 minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts will increase to $13.30 per hour , while the required minimum cash wage that generally must be paid to tipped employees performing work on or in connection with covered contracts will increase to $9.30 per hour. Covered contracts that are entered into on or after January 30, 2022, or that are renewed or extended (pursuant to an option or otherwise) on or after January 30, 2022, are generally subject to a higher ...

  Last week, the Departments of Labor, Treasury, and Health and Human Services finalized   regulations   implementing the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA).  Although the final regulations step back from certain burdensome aspects of the proposed rules (which we blogged about   here ), compliance with the final rules w ill require action from virtually all group health plans that cover mental health and substance use disorder (MH/SUD ) benefits before the end of the year. How did we get here? MHPAEA requires that group health plans that provide MH/SUD benefits cover them in parity with medical and surgical benefits .  Evaluation of whether benefits are in parity is performed for each classification of benefits under the plan, and this analysis requires evaluating: (1) financial and other quantitative treatment limitations, and (2) non-quantitative treatment limitations (NQTLs).   At the end of 2020, Congress added a require...

Employee Retirement Income Security Act has protected benefits since 1974 WASHINGTON  – The U.S. Department of Labor today announced the launch of a  webpage that marks the 50th anniversary  of the  Employee Retirement Income Security Act  and reflects on the landmark law’s impact on the retirement security of America’s workers.  The webpage traces the history of ERISA and its protections of the health, retirement savings and other benefits plans of America’s workers. It also details how the department’s  Employee Benefits Security Administration  assists retirement plan beneficiaries and their families in claiming their benefits or reporting violations.  Signed in September 1974, ERISA was designed to protect the interests of employee benefit plan participants and their beneficiaries and has evolved to meet the changing retirement and healthcare needs of workers and their families. “The Employee Income Retirement Security Act became law on L...

  On September 9, the US Departments of Labor, Treasury, and Health and Human Services (the Departments) jointly r eleased a final rule to ensure that group health plans comply with the Mental Health Parity and Addiction Equity Act (MHPAEA) . The final rule, which spans over 530 pages, limits the ability of group health plans to restrict coverage for mental health and substance use disorders compared to medical and surgical care. The final rule largely tracks the Departments’ July 2023 joint proposed rule but includes some changes. A link to the final rule is  here .   As detailed in a prior  alert  addressing the proposed rule, the final rule outlines the requirements for group health plans to collect and analyze data related to nonquantitative treatment limitations (NQTLs). NQTLs refer to the nonnumerical tools that plans may use to limit access to care and benefits for mental health and substance use disorders. Examples of NQTLs include prior authorization ...

  In a major win for the Department of Labor, a federal appeals court just ruled that the agency has the power to set a salary basis floor in order for workers to be considered exempt from overtime pay. Yesterday’s ruling from the 5th Circuit Court of Appeals was by no means a slam dunk given the Supreme Court recently ripped a great deal of power from federal agencies and told federal judges they should exercise their own independent authority when ruling on these types of rules. But a three-judge panel from the conservative appeals court agreed with the agency and upheld the salary basis floor just months before a new rule takes effect on January 1 to raise the minimum salary level to about $59K . What do you need to know about the ruling and what should you do in the coming months to prepare for the impending effective date? What Were We Arguing About? Let’s start by taking a big step back. Congress passed a federal wage and hour law almost 90 years ago – the Fair Labor Standar...