Labor & Employment Developments Blog

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 ...

Social media has become an unavoidable part of society and an unavoidable issue in the workplace. While online posts may seem personal, a single tweet, post, or comment can quickly escalate into a workplace issue. With more than 70% of Americans active on at least one social media platform, employers should ensure their social media policies are carefully drafted to protect business interests while preserving employee rights.

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”).

Most employers understand their obligation to prevent discrimination and harassment at work, and the significant consequences that can come if such treatment is allowed to occur. But what if an employee alleges harassment not from a co-worker, but from a company’s customer or other non-employee? In a decision announced last week, the 6^th Circuit (covering Kentucky, Michigan, Ohio, and Tennessee) announced a new framework for reviewing these claims, one which conflicts with official agency guidance and other courts across the country.

Bivens v. Zep, Inc. involved claims ...

From resume screening bots to AI tools that assess facial expressions in interviews, artificial intelligence is rapidly changing how employers make decisions about candidates and employees. Artificial intelligence (AI) and automated decision systems (ADS) are reshaping the entire employment lifecycle, from the moment a job posting goes live to the day of separation.