Labor & Employment Developments Blog

The U.S. Equal Employment Opportunity Commission (EEOC) has voted to rescind its anti-harassment guidance that previously stated misgendering employees could constitute unlawful discrimination under Title VII of the Civil Rights Act of 1964. The decision marks a significant rollback of Biden-era workplace protections for LGBTQ+ employees and continues a broader shift in federal enforcement priorities under the second Trump administration.

The Equal Employment Opportunity Commission (EEOC) has eliminated any remaining uncertainty about its 2026 enforcement priorities regarding diversity, equity, and inclusion programs. In a December 18, 2025 interview with Reuters, EEOC Chair Andrea Lucas emphasized the EEOC’s position that workplace initiatives using race, sex, or other protected characteristics as “motivating factors” in employment decisions are unlawful under Title VII of the Civil Rights Act. Chair Lucas also clearly signaled that employers maintaining such initiatives can expect to be subject to investigations, enforcement actions, and litigation throughout 2026. This announcement is in furtherance of executive orders issued by President Trump and guidance released by the EEOC and the Department of Justice (DOJ) in 2025, which effectively outlawed the majority of DEI programs.

The United States Department of Labor (DOL) has resolved a long-standing and frequently litigated issue under the Family and Medical Leave Act (FMLA): whether intermittent FMLA leave includes time spent traveling to and from approved medical appointments. In a January 2026 opinion letter, the DOL confirmed that such travel time is FMLA-protected. 

As the new year begins, employers once again face a shifting labor and employment legal landscape. With Congress continuing to delay adoption of a comprehensive federal paid family and medical leave framework, states and local governments have accelerated their own efforts. In 2026, several state-mandated paid leave laws will take effect for the first time, while others will expand in scope, duration, or eligibility. For employers, particularly those operating in multiple jurisdictions, these developments increase compliance obligations, administrative complexity, and litigation risk.

A long-standing federal hiring incentive is coming to an end in 2025. Unless extended by Congress, the Work Opportunity Tax Credit (“WOTC”), a program that has provided employers with a predictable tax credit for hiring individuals facing significant barriers to employment, will expire on December 31, 2025.[1] This credit has been part of many employers’ staffing, budgeting, and tax-planning strategies for nearly three decades. Its potential sunset will require employers to evaluate current practices and prepare for changes to their 2026 cost structures.

On November 21, 2025, the Internal Revenue Service (IRS) issued Notice 2025-69, providing guidance and clarification on the new federal income tax deductions for employee tips and certain overtime compensation taking effect in tax year 2025.

In November 2025, the U.S. Equal Employment Opportunity Commission (EEOC) released a new technical assistance document titled “Discrimination Against American Workers Is Against the Law” and updated its webpage on the topic.  The new materials underscore the EEOC’s position that Title VII of the Civil Rights Act protects all workers from discriminatory conduct including American workers.  Further, the new release is consistent with the recent focus on perceived anti-American bias.  

On September 29, 2025, Ohio’s version of the Worker Adjustment and Retraining Notification Act (“Ohio WARN Act”) officially went into effect. The enactment of this law makes Ohio the latest state to join the growing list of jurisdictions with so-called “mini-WARN” statutes. Although the Ohio WARN Act closely tracks the federal WARN Act, it is not the same and introduces key ambiguities that employers must navigate carefully to avoid costly penalties.  

The Equal Employment Opportunity Commission (“EEOC”) is poised to elevate its focus on religious discrimination in the workplace and employers should be alert. With its newly restored quorum allowing Acting Chair Andrea Lucas to move forward with more aggressive enforcement, the agency is expected to pursue a broader litigation agenda emphasizing religious accommodation rights under Title VII. In 2025 alone, the EEOC filed 11 religious discrimination suits, the highest in nearly a decade. Lucas credited the agency’s “tremendous wins” in defending religious ...

A recent $24.75 million class action settlement in Lawson v. Grubhub, Inc., marks yet another milestone in the ongoing debate over gig-economy worker classification. This settlement serves as a reminder to companies of all sizes that how they classify workers can carry significant legal and financial consequences.

Case Overview

Grubhub recently settled a decade-long class action lawsuit in California, in which a former delivery driver accused it of misclassifying him as an independent contractor rather than an employee. After years of litigation, including multiple appeals ...