The summer brought more activity in federal government labor and employment arenas, but no new laws or significant regulations. Instead, federal government agencies are using policy changes and existing laws and regulations to further the Trump administration’s shift in priorities from the prior administration.
Some state legislatures are beginning to pass laws and regulations based on federal government actions, as well as the priorities of their own governments. As the federal government changes its focus, some states will pass new laws and regulations to respond to federal changes.
In the past ninety days, the following activities happened in labor and employment laws and regulations:
United States Department of Labor priorities announced
On September 4, 2025, the Secretary of Labor, Lori Chavez-DeRemer announced the semi-annual Department of Labor (DOL) regulatory agenda that will guide the DOL’s actions for the next six months. The DOL is making the following issues a priority which, if they happen, will affect the printing industry:
- Revised the Joint Employer Rule under the Fair Labor Standards Act (FLSA) to reflect a more business-friendly test that narrows the current standards that determine when a company is a joint employer of a worker.
- Rescind the Independent Contractor classification under the FLSA, which was finalized in 2024. The DOL is currently not enforcing the 2024 standards and will be issuing a proposal that will map out the administration’s strategy about how to provide standards for companies that will offer more certainty about how to categorize workers.
- A long-term plan to increase the threshold salary under the FLSA that is part of the overtime exemption analysis. A Biden administration increase to the threshold salary level was blocked by a federal court, and the Trump administration has been considering its strategy for raising it. Per that court decision, the current threshold salary reverts to the 2019 amount, which is $684 / week, which works out to $35,568 per year.
Federal taxes on overtime
The federal government, as part of the omnibus legislation passed in July, will not collect taxes on an individual worker’s first $12,500 of overtime wages. This is immediately effective for the 2025 tax year, and should help employers persuade employees to work overtime, which will help with workforce shortages. The deduction is gradually reduced for taxpayers who have a modified adjust gross income of more than $150,000.
Equal Employment Opportunity Commission announces three appointments
The Acting Chairperson of the EEOC, Andrea Lucas, announced that the Chief Operating Officer, Chief of Staff, and Director of Communications roles have been filled. The EEOC still has only two of five commissioners, and as a result, does not have a quorum. Without a quorum, the EEOC cannot make any major changes in policy or decide new cases. President Trump nominated Brittany Panuccio to the Commission in May, however, Ms. Panuccio has not been confirmed by the Senate.
National Labor Relations Board appointees
The NLRB now has only one Board member, David Prouty. Two nominees are awaiting Senate confirmation: Scott Mayer and James Murphy. The Board, which typically has five members, continues to not have a quorum and as a result, is unable to undertake any significant business or make any major policy changes.
National Labor Relations Board decision about an Iowa screen printer
The NLRB in Minnesota decided a case on August 28, 2025, involving a screen printing company, its employees, and union organizing activities. The decision is relevant to many screen printers because it involves a scenario in which many may find themselves due to the casual nature of many screen printing businesses.
The NLRB considered a situation where the manager of the two-person screen printing business in Iowa was a supervisor as defined by the National Labor Relations Act. The shop had only two permanent employees and occasionally hired people to work during busy times on a temporary or occasional basis. The NLRB determined that because the manager did not have independent authority for hiring, was not accountable for several types of operational decisions, and did not have independent authority for performing employee-management functions such as performance evaluations, or determining wages and bonuses, the manager was not a supervisor and could be part of a union bargaining unit.
The cautionary lesson here for small printing businesses is that even though the shop may be small, the roles of the employees should be carefully defined. In this instance, because there were two employees who could be part of a bargaining unit, the union was able to organize, in this case, the International Union of Painters and Allied Trades.
Noncompete Agreements: Not banned, but still carefully monitored
The Federal Trade Commission (FTC) withdrew its appeals of federal district court rulings that blocked the 2024 ban on noncompetition agreements (noncompetes). Although the FTC is no longer pursuing a national ban on noncompetes, Chairman Andrew Ferguson stated that the FTC will continue to investigate noncompetes in situations that violate antitrust laws and bring enforcement actions against violating companies.
Labor Statistics
The annual unemployment rate information for 2024 was released. At the end of last year, that rate was 4.2%, which is an increase from 3.8% at the end of 2023. The rate of employment to the population is 60%, which means 40% of the population is not in the workforce. This would include young people, older people, and those who are unable to work for whatever reason. Also released was the labor force participation rate, which looks at the number of people 16 or over who can work and are in the workforce whether employed or unemployed. That rate is 62.5%. Which means that 37.5% of eligible workers are not working or seeking employment. That number includes students who may not be seeking employment while in school.
Federal Contractors subject to DEI investigations
The Department of Justice (DOJ) is formally looking into the diversity, equity, and inclusion (DEI) practices of federal contractors. DOJ is issuing Civil Investigative Demands specifically geared toward ending DEI initiatives by companies with federal contracts. The actions are derived from Executive Order 14173 issued by President Trump in January, and are part of the DOJ Civil Rights Fraud Initiative, which is enforcing civil rights laws based on violations of the False Claims Act. Companies who receive a Civil Investigative Demand should immediately consult with an attorney about how to respond.
Federal Contractor compliance with the Vietnam Era Veterans’ Readjustment Assistance Act
On July 2, Labor Secretary Lori Chavez-DeRemer issued Secretary's Order 08-2025 related to the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA).
- The Secretary’s directive lifted a pause on Office of Federal Contract Compliance Programs (OFCCP) enforcement of Section 503 and VEVRAA obligations. The pause was made in January by the acting secretary (order 03-2025). Section 503 and VEVRAA obligations involve affirmative action and non-discrimination for people with disabilities and protected veterans.
- The law requires active recruitment, hiring, and promoting for qualified individuals from these groups. They cannot be discriminated against in any aspect of employment.
- Section 503 requires that federal contractors with 50 or more employees and contracts of $50,0000 or more must develop and implement a written Affirmative Action Program (AAP).
- VEVRAA prohibits discrimination against protected veterans in all aspects of employment.
Illinois Workers’ Rights and Worker Safety Act takes effect
Governor JB Pritzker signed into law legislation that prohibits any Illinois state agency from changing its protection of workers’ rights and/or worker safety rules to be less strict than what is required under federal law. The law was signed on August 14 and went into effect immediately. The state can make protections more stringent than federal requirements, as long as doing so does not violate federal law.
New Jersey Approves Captive Audience Ban
On September 3, New Jersey passed captive audience legislation (AB 4429). The bill prohibits employers from requiring employees to attend meetings or listen to communications about political matters. The bill also expands the definition of political matters, establishes a religious organization exemption, and requires employers to post a notice of employee rights. The bill will take effect on December 2, 2025.
NY Governor Signs Labor Relations Bill into Law
On September 5th, Governor Kathy Hochul signed New York S 8034/A 8590, the New York Labor Relations Act, into law. Chapter 365 of the law, which takes effect immediately, can be found here. The law expands the state’s Public Employment Relations Board – which has jurisdiction over public employee union activity – to also assume responsibilities for private employer union activity.
Previously, the state did not assert jurisdiction over any employer that was covered by the federal National Labor Relations Act, and consequently, the NLRB. Notably, the press release cites the absence of a functional NLRB as a reason for New York to take “strong action to protect worker rights”.
Massachusetts and California have similar bills under consideration in their state legislatures.
Health plan costs are rising – it may be time to consider alternative strategies
Healthcare costs are expected to rise much higher than in the past five years, so it may be time for some employers to consider offering Individual Coverage Health Reimbursement Arrangements (ICHRAs), rather than a traditional health care plan.
Since 2020, employers have had the option to offer employees pre-tax dollars that can be used to purchase health plans on the individual market, rather than contribute to a traditional group healthcare plan.
ICHRAs are one of the less common ways of offering health benefits, however, with increasing costs of group healthcare plans, ICHRAs are becoming more prevalent. The share of employers with 50 or more workers offering ICHRA plans increased 34% from 2024 to 2025, according to the Health Reimbursement Arrangement Council. Check with benefits consultants or third party ICHRA administrators to determine eligibility and whether an ICHRA would be a way to hold down the company’s health plan costs while still providing good health care options for employees.
In this article Adriane Harrison, VP of Human Relations Consulting, PRINTING United Alliance, provides an update on recent labor and employment related actions. Adriane also provides information about labor and employment laws and regulations at the Center for Human Resources Support or reach out to Adriane directly if you have additional questions specific to HR issues that may affect your business at: aharrison@printing.org.
To become a member of the Alliance and learn more about how our subject matter experts can assist your company with services and resources such as those mentioned in this article, please contact the Alliance membership team: 888-385-3588 / membership@printing.org.