Labor & Employment Developments Blog

Recently, a federal court in the Northern District of California issued an important ruling in the closely followed Mobley v. Workday putative class action lawsuit alleging that Workday, a cloud-based software vendor specializing in financial management and human capital management, violated federal discrimination laws. In the lawsuit, the plaintiffs claim Workday’s AI hiring platform screens out applicants over age 40 in violation of the Age Discrimination in Employment Act (“ADEA”).

On July 4, 2025, President Donald Trump signed the “One Big Beautiful Bill” into law. Among its sweeping provisions are two significant changes for wage and hour compliance that employers should be aware of: the creation of federal income tax deductions for employee tips and certain overtime compensation. Both changes are poised to impact businesses and workers beginning in the 2025 tax year and lasting until 2028

On May 20, 2025, the Occupational Safety and Health Administration (OSHA) updated its Site-Specific Targeting (SST) inspection program. The SST inspection program is OSHA’s primary planned inspection initiative for non-construction workplaces with 20 or more employees. The updates are expected to increase on-site inspections in highly regulated sectors, such as warehousing, transportation, distribution, and healthcare. For non-construction workplaces, this update marks a significant shift in how OSHA prioritizes enforcement, relying more heavily on employer-reported injury and illness data or the lack thereof.

Over the course of the last year, employers have faced increased claims from employees testing what constitutes an actionable adverse action under the anti-discrimination provision of Title VII of the Civil Rights Act of 1964 (“Title VII”). Emboldened by the Supreme Court’s decision in Muldrow v. City of St. Louis, 601 U.S. 346 (2024), employees have alleged that common employment practices from performance improvement plans (“PIPs”) to negative performance reviews left them “worse off,” and thus, constitute actionable adverse employment actions under Title VII. These claims have caused many employers to reconsider their past practices and policies. 

April marks Workplace Violence Awareness Month, a time dedicated to emphasizing the risks of workplace violence and necessary steps for prevention. This month serves as a crucial opportunity for employers to reassess their workplace violence policies, ensure compliance with evolving laws and regulations, and minimize liability.

On March 10, 2025, Justice Clarence Thomas issued a dissent following the Supreme Court’s denial of certiorari for Ronald Hittle v. City of Stockton, California, 604 U.S.  ___ (2025), a religious discrimination case involving a fire chief terminated after attending a leadership conference at a church. In his dissent, Thomas, joined by Justice Neil Gorsuch, questioned whether it is time for the Court to revisit the longstanding McDonnell Douglas framework used in employment discrimination cases. 

Recent executive orders have caused the Equal Employment Opportunity Commission (EEOC) to abandon litigation and guidance on LGBTQ+ protections and other areas that were priorities during the Biden administration