On January 9, 2024, the Department of Labor (DOL) issued its final Independent Contractor Rule, which became effective on March 11, 2024. This rule replaced the 2021 version and introduced six criteria to assess independent contractor status: opportunity for profit or loss, business investment, permanence of the relationship, employer control, whether the work is integral to the business, and the skill and initiative required. The rule has been challenged in several courts. A group of freelance writers filed a lawsuit on January 16, 2024, which was dismissed in October for lack of standing; an appeal is now pending in the 11th Circuit. Another challenge filed in Louisiana on February 8, 2024, was initially denied emergency relief. The case has since been stayed pending DOL reconsideration of the rule. In a separate Texas case, the court stayed proceedings until after a scheduled April 14, 2025, status conference to allow new DOL leadership time to review the issues.

On April 1, 2024, the DOL announced a final rule titled the “Worker Walkaround Representative Designation Process,” which allows employees to select third-party representatives to accompany OSHA during workplace inspections. The rule took effect May 31, 2024, and has faced opposition from employer groups who argue that it infringes on property rights by allowing non-employees on job sites. A coalition of business groups, including the U.S. Chamber of Commerce, filed a lawsuit in May 2024 challenging OSHA’s authority to implement the rule. As of this report, motions for summary judgment and dismissal have been filed, and the case remains pending.

On April 16, 2025, OSHA announced that it will hold a virtual public hearing on its proposed rule aimed at preventing heat injury and illness in both indoor and outdoor work environments. The hearing is scheduled for June 16, 2025, at 9:30 a.m. EDT, and will continue on subsequent weekdays if necessary. This hearing concerns the Notice of Proposed Rulemaking on Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings.

Anyone wishing to speak at the hearing must submit a Notice of Intention to Appear by May 2, 2025. The hearing will also be available for public viewing online without registration. Details and links to view the hearing will be posted on OSHA’s rulemaking webpage.

Importantly, this hearing announcement does not clarify whether the proceedings will be affected by President Trump’s Executive Order pausing rulemaking activities at Executive Branch agencies.

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The EEOC issued final regulations for the Pregnant Workers Fairness Act on April 15, 2024, with an effective date of June 18, 2024. A group of 19 states filed a lawsuit opposing the regulations, while 23 other states submitted a brief in support. On February 20, 2025, the Eighth Circuit Court of Appeals ruled that the states had standing to bring the lawsuit and sent the case back to the U.S. District Court for the Eastern District of Alaska for further proceedings.

A final rule expanding overtime protections for lower-paid salaried workers was announced on April 23, 2024. The rule was struck down by the U.S. District Court for the Eastern District of Texas on November 15, 2024, in a case brought by the Plano Chamber of Commerce. The Department of Labor filed an appeal, and on February 26, 2025, the Fifth Circuit Court of Appeals granted an unopposed motion to extend the deadline for the DOL’s opening brief, which is now due on May 6, 2025.

The Biden administration released AI principles on May 16, 2024, focused on ethical development, worker empowerment, oversight, and transparency. These principles were reversed by President Trump’s Executive Order 14148 on January 20, 2025, which rescinded Biden-era executive actions, including EO 14110 on AI development. The order also rescinded directives aimed at inclusion and non-discrimination in federal workplaces.

The FTC’s rule banning non-compete clauses, scheduled to take effect on September 4, 2024, was challenged in court. A lawsuit filed in the Northern District of Texas resulted in a stay of the rule. A final judgment in October 2024 blocked the rule from taking effect, and an appeal is now pending in the Fifth Circuit. On March 12, 2025, the court granted the FTC’s request to pause the case for 120 days due to the change in administration, with a status report due July 10, 2025. The rule remains blocked nationwide.

On January 16, 2025, the FTC and DOJ jointly issued new antitrust guidelines replacing the 2016 HR guidance. The update clarifies how enforcement agencies evaluate business practices affecting workers, such as the use of non-competes and wage information sharing among competing employers.

On January 17, 2025, the ERISA Industry Committee filed a lawsuit challenging a September 2024 final rule issued by the DOL, HHS, and Treasury under the Mental Health Parity and Addiction Equity Act. The case is pending, and the deadline for the federal agencies to respond has been extended to May 12, 2025.

President Trump issued Executive Order 14151 on January 20, 2025, instituting a regulatory freeze. The order prohibits federal agencies from issuing or implementing new rules without review by the administration's new leadership. Unpublished rules, such as OSHA’s proposed HIIPP rule, are delayed or withdrawn. Other executive orders issued in early 2025 reversed Biden administration actions on diversity, equity, and inclusion (DEI), labor standards, and minimum wage increases. EO 14236, issued March 14, 2025, rescinded 18 executive orders including those that expanded apprenticeships, supported union-backed training, raised minimum wages for contractors, and promoted worker rights in international policy.

Executive Order 14168 directs the EEOC to rescind its April 2024 workplace harassment guidance. However, the EEOC has indicated that such guidance can only be modified or withdrawn by a majority vote of the Commission. Meanwhile, Executive Orders 14151 and 14173 targeting DEI programs are facing litigation. A nationwide injunction against enforcement of the orders was lifted, and an appeal is now moving forward in the Fourth Circuit. FTC Chair Ferguson publicly announced that DEI initiatives have ended at the FTC.

Executive Order 14179, issued January 23, 2025, titled “Removing Barriers to American Leadership in Artificial Intelligence,” directs federal agencies to develop AI plans free from ideological or social justice considerations, marking a significant shift in federal AI policy.

A Michigan contractor recently raised a question about the Michigan Earned Sick Time Act, which mandates that employees accrue one hour of paid sick leave for every thirty hours worked, with rollover allowances and frontloading options. This law applies only in Michigan, though similar laws exist in at least 21 other states. Additionally, Executive Order 13706—still in effect—requires federal contractors to provide up to seven paid sick days per year.

In the case of Smith v. Newport Utilities, decided February 27, 2025, the Sixth Circuit ruled in favor of the employer. The plaintiff, who suffered from seizures, was placed on FMLA leave and was not accommodated due to the essential nature of standby work. Although the employer did not engage in the ADA’s interactive process, the court concluded that accommodation was not feasible and upheld summary judgment for the employer.

In Bashaw v. Majestic Care of Whitehall, LLC, decided March 5, 2025, the Sixth Circuit ruled that the termination of an employee for excessive absenteeism and unauthorized recording was not retaliatory. The employee, who had complained of harassment and recorded conversations, claimed the reasons for termination were pretextual. The court found that the absence of a formal policy against recording was not sufficient to prove pretext, and summary judgment for the employer was affirmed.