From recruiting and retention to company culture and the latest in HR tech, HR Brew delivers up-to-date industry news and tips to help HR pros stay nimble in today’s fast-changing business environment.

HR Brew

Courtney Vinopal

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Legislative Lowdown recurring feature illustration

DOL’s independent contractor rule takes effect 

The rule takes aim at worker misclassification, and is expected to make it more difficult for companies to categorize workers as independent contractors, rather than employees. 

Legislative lowdown: Independent contractor rule takes effect 

Adam DeRose

Outside of the US Supreme Court building surrounded by the Christian cross, symbol of Islam, and Star of David

More religious accommodation requests following the Groff v DeJoy Supreme Court decision

HR Brew speaks with an employment attorney about best practices under the clarified standard.

Following the Supreme Court’s decision on religious accommodations, more requests have found their way into the courts

Kristen Parisi

The top of a globe with a phone, notebook, laptop, glasses, iPad and coffee cup floating above it

Right to disconnect from work in Australia

Employers who violate the law could face financial penalties.

World of HR: Australia passes right to disconnect law

A clipboard with a checkmark icon denoting HR compliance

Compliance

An illustration of reporter Courtney Vinopal's headshot.

Democratic lawmakers reintroduced a bill on Sept. 16 that would provide up to 12 weeks of paid family and medical leave to US workers.

The bill, known as Family and Medical Insurance Leave (FAMILY) Act, was first introduced by Sen. Kirsten Gillibrand and Rep. Rosa DeLauro in 2013, but never gained enough traction to see passage, regardless of the parties controlling Congress.

 comes at a time when mothers of young children are leaving the workforce at the highest level in four decades, according to a 

 from the University of Kansas of federal data. Guaranteeing paid leave to workers who need time off for a major life event could end the “devastating choices” Americans face “between their livelihood and the health of themselves or their families,” Sen. Gillibrand said 

Though the bill is unlikely to be passed in the current Republican-majority Congress, state-level paid family and medical leave programs have 

 some employers to enhance their benefits.

Most US workers would be eligible to take paid leave under this latest version of the bill, which would grant benefits on a sliding scale basis. This means a minimum-wage worker would see 85% of their average monthly earnings replaced, while those earning the median weekly US wage would receive 67% of their earnings while on leave.

Unlike previous versions of the legislation, the 2025 bill would create a dedicated trust fund to pay out benefits, rather than funding the program through payroll contributions.

Workers would be eligible to take leave for reasons covered by the 

, including caring for a new child following its birth, adoption, or placement from a foster agency, as well as caring for a serious health condition for oneself or a loved one.

The authors of the bill take an expansive view of caregiving, as workers would be able to take leave to care for a child of any age, a step-parent, a parent-in-law, and “any other individual who is related by blood or affinity whose association is the equivalent of a family relationship.” This latest bill also includes a provision that would cover “safe leave” for workers experiencing events such as domestic violence or sexual assault.

More than a dozen states now have their own paid family and medical leave programs in place, creating complexities for HR teams overseeing benefits for workers across multiple jurisdictions.

Enacting a federal program “would certainly make things a lot easier” for these employers, Ashley Brightwell, a partner in the labor and employment practice of Atlanta-based law firm Alston + Bird, told HR Brew. It’s unlikely the FAMILY Act will move past the introduction stage this time around, though, as it lacks support from Republicans who control both chambers of Congress.

In the meantime, “you’re going to see more and more states start filling in those gaps,” Brightwell predicted.

A number of employers, including Levi Strauss & Co., Patagonia, and Etsy, 

 to members of Congress in support of the FAMILY Act. In a 

, Levi Strauss & Co.’s chief human resources officer, Bernard Bedon, spoke to the link between paid leave and productivity.

“We have seen firsthand that providing access to paid leave is critical for supporting healthy and successful employees and their families, which in turn allows them to perform better at work,” he said of the company, which provides 20 weeks of paid leave to workers who give birth to a new child.

Sen. Kirsten Gillibrand speaks at a 2021 event outside the US CApitol.

Democratic lawmakers reintroduce paid family leave legislation

Though the bill is unlikely to be passed in the current Congress, state-level paid family and medical leave programs have already spurred some employers to enhance their benefits. 

Lawmakers push for paid family leave, again, with Levi’s and Patagonia on board

The Trump administration recently moved to curtail the H-1B visa program, which allows companies to employ highly-skilled workers from other countries when they can’t obtain such talent in the US.

As of Sept. 21, the administration is imposing a $100,000 fee on new H-1B visa petitions, according to a 

 issued on Sept. 19. The Department of Labor also launched a program to target companies that aren’t in compliance with laws regarding H-1B employment.

This crackdown seems likely to complicate the recruitment process for employers that rely heavily on foreign workers through the H-1B visa program.

What HR should know about H-1B visa fees. 

Under the new policy, any H-1B visa petitions submitted after 12:01 a.m. ET on Sept. 21 will require a one-time, $100,000 payment, according to 

 from US Citizenship and Immigration Services (USCIS). The fee requirement doesn’t apply to H-1B renewals or H-1B petitions that have already been filed, and doesn’t restrict current H-1B visa holders from traveling in or outside of the US.

In his proclamation, President Donald Trump argued that employers take advantage of the H-1B visa program to hire highly skilled workers at a lower cost than they would pay for American workers with a similar profile, though the H-1B program requires workers to be paid equally to their US colleagues in the same position, not less.

“It is therefore necessary to impose higher costs on companies seeking to use the H-1B program in order to address the abuse of that program while still permitting companies to hire the best of the best temporary foreign workers,” he wrote.

On the same day that the White House announced the new H-1B fee, the Department of Labor (DOL) 

 “Project Firewall,” a program aimed at investigating employers that are abusing the visa process.

Secretary of Labor Lori Chavez-DeRemer is expected to oversee investigations with the goal of ensuring “that highly skilled jobs go to Americans first,” she said in a statement.

 in order to participate in the H-1B program, including paying these workers a “required wage rate,” offering them working conditions and benefits that are similar to those US workers receive, and providing them a copy of the Labor Condition Application required to employ such nonimmigrant workers.

The DOL didn’t specify what types of violations it will be investigating, but said the discovery of H-1B violations could result in penalties such as being barred from using the H-1B program for a period of time.

The move seems likely to affect companies in industries like tech, engineering, and healthcare that have historically relied on the H-1B program to source talent. Prior to the imposition of the $100,000 fee, private employers 

 a $780 fee to sponsor an H-1B visa petition, 

 suggested early-stage startups may be hardest hit by the change, as they have fewer resources to absorb these new costs.

The H-1B visa shakeup is part of a broader effort by the administration to limit programs including 

, which applies to nonimmigrant workers in the agricultural sector, and 

, which previously allowed migrants from countries like Venezuela and Haiti to live and work legally in the US. Despite this crackdown, employers are still more willing to provide visa sponsorship to their workers than they were five years ago, HR Brew 

Everything HR should know about Trump’s H-1B visa shakeup 

The move seems likely to affect companies in industries like tech, engineering, and healthcare that have historically relied on the H-1B program to source highly-skilled talent. 

Legislative lowdown: Trump administration moves to curtail H-1B visa program 

The Department of Labor (DOL) recently announced its intention to roll back a number of Biden-era policies in a recently published 

Among the policies that the DOL is set to revisit are a 2024 rule for determining workers’ independent contractor status, regulations for determining joint-employer liability, and protections for nonimmigrant workers in the agricultural sector.

“This regulatory agenda reflects our steadfast commitment to restoring economic opportunity by fostering innovation and reducing unnecessary burdens on employers,” Keith Sonderling, deputy secretary of labor, said in a statement.

Here are three areas to keep an eye on as the DOL carries out its agenda.

The DOL said it intends to rescind a rule for determining independent contractor status that 

That rule restored a “multifactor economic reality test” for determining if an employee is an independent contractor, directing businesses to take into account a number of considerations, without any one factor taking precedence over another. It was expected to make it harder for companies to classify workers as independent contractors—a status that typically lacks benefits such as minimum wage, overtime, and unemployment insurance.

The DOL cited five legal challenges concerning the rule, and said it was “considering how it will proceed” with regard to this classification under the Fair Labor Standards Act going forward.

When Joe Biden was in office, the National Labor Relations Board (NLRB) tried unsuccessfully to 

 that would’ve made it easier for two businesses to be considered a joint-employer of a group of employees. It was expected to have a significant impact on franchisors and businesses that hire through staffing firms, with particular implications for union organizing efforts.

The NLRB ultimately dropped the rule after a federal judge in Texas 

Now, the DOL said it’s considering rulemaking to address circumstances when a business can be held liable as a joint employer, with an eye toward helping “promote greater uniformity among court decisions nationwide.”

 that seeks to rescind Biden-era regulations designed to enhance labor protections for agricultural workers who are employed under the H-2A visa program—typically “temporary foreign” workers under a nonimmigrant status.

The DOL is seeking to rescind a provision of a rule 

 that required employers to meet certain conditions in order to fire an H-2A worker “for cause,” as well as a section that broadened the types of workplace activities such workers may engage in without being retaliated against, among others.

In its statement, the DOL called such requirements “burdensome,” and noted that some have been blocked by the courts.

The comment period for this proposed rule ended on Sept. 2.

DOL looks to rescind Biden-era independent contractor rule 

The Department of Labor said it intends to overturn the Biden-era independent contractor rule, revisit joint-employer liability. 

Legislative lowdown: 3 areas to watch as DOL carries out its regulatory agenda 

The Federal Trade Commission (FTC) moved to 

 on Sept. 5 that it had filed in response to lawsuits challenging a proposed ban on most noncompete agreements. With the dismissal, the FTC signaled it will no longer go forward with the ban, 

 via a final rule in April 2024, when President Joe Biden was in office.

Andrew N. Ferguson, who President Donald Trump appointed to serve as FTC chairman in January, was among the commission members who dissented the ban in 2024, arguing the agency didn’t have the statutory authority to issue such a rule. In a 

 regarding the decision to withdraw one of its appeals, Ferguson said the Biden-era rule’s “illegality was patently obvious.”

Though the FTC’s decision puts an end to legal back-and-forth over a ban that never took effect, Ferguson said the agency will continue to target unlawful noncompete agreements.

The rule issued in 2024 would’ve had a significant impact on employers that rely on noncompete agreements, affecting some 30 million workers,

 last year. Noncompetes typically prevent workers from joining a competing firm for a certain period of time, and are common in industries like warehousing and medicine. In recent years, this practice drew criticism due to concerns it may limit workers’ salary potential and career mobility, as well as hamper competition.

The rule would have banned nearly all such contracts, and invalidated those currently in effect, except for noncompetes applying to certain senior executives. The US Chamber of Commerce immediately sued to block the ban, though, and it never took effect due to 

Though HR departments no longer have to prepare to comply with a federal noncompete ban, these contracts are already heavily regulated at the state level. Four states—California, North Dakota, Oklahoma, and Minnesota—fully 

, while others restrict the circumstances when employers can use them (i.e. only in contracts with highly compensated employees).

As such, it’s likely compliance pros already have this issue on their radars. The FTC is asking the public to submit information about the “scope, prevalence, and effects” of noncompetes as part of its efforts to investigate and enforce the law against “bad actors,” Ferguson said in his statement.

Employers may have legitimate reasons for using noncompetes, such as protecting trade secrets or client relationships, but they should be clear about why they’re asking workers to enter into such an agreement, HR Brew 

. Should a noncompete be potentially unlawful, they can consider including other types of restrictive covenants in employment contracts to ensure such protections.

FTC drops appeals over noncompete ban 

The decision puts an end to legal back-and-forth over a rule that would have banned most noncompete contracts in the US.

Legislative lowdown: FTC dismisses appeals over noncompete ban

A program providing paid family and medical leave (PFML) to Maine-based workers has been upheld by the state’s Supreme Court.

Bath Iron Works, a Navy ship manufacturer based in Bath, Maine, along with the Maine State Chamber of Commerce, sued the state’s Department of Labor (MDOL) in January. The Maine Supreme Court sided with the Department of Labor in an 

, allowing the rules for implementing the state’s PFML program to stand.

The plaintiffs argued Bath Iron Works shouldn’t be subject to mandatory quarterly taxes that started in January to fund the program, as it intends to offer a private leave program in lieu of the state-funded one. While the law establishing PFML says that employers with private plans approved by the state may be exempt from this tax, the MDOL didn’t start reviewing such plans until April. This means that in the interim, Bath Iron Works is still required to pay into the state’s PFML program.

The plaintiffs also argued the rules for implementing the state-sponsored program constitute “a taking of private property for public use” under Maine’s constitution. The Maine Supreme Court disagreed with both of these arguments.

The decision means the MDOL will continue to collect payroll contributions from employers in the state for PFML, with workers entitled to start receiving benefits in May 2026. Contribution 

 depending on the size of the employer; businesses that employ 15 or more Maine employees must contribute a premium equivalent to 1% of workers’ wages, and have the option to withhold half of that premium from workers’ paychecks.

Maine businesses that intend to provide leave benefits through a private plan, rather than the state’s program, may apply to be exempt from the payroll tax through the state’s paid leave 

. The substitute plan must meet a number of criteria to qualify for this exemption, providing benefits that are “substantially equivalent” to Maine’s PFML plan.

Most Maine workers will be eligible to take up to 12 weeks of paid leave when the program is fully rolled out next year, as the law applies to employers of any size, and extends to self-employed workers, as well. The leave can be used for a variety of reasons, including bonding with a child following a birth, fostering or adoption, as well as caring for oneself or a family member dealing with medical needs.

 in 13 states and Washington, D.C. Minnesota’s PFML program, like Maine’s, 

 from some members of the business community, but is nevertheless 

Meanwhile, the start of a paid family leave program in Maryland has been delayed several times, most recently 

 about changes affecting the federal workforce. Employers and workers are now expected to begin contributing to that program in January 2027.

Even in states that subsidize paid leave, workers still rely primarily on their employer to navigate information about these benefits, HR Brew 

. In light of this, HR leaders can educate themselves about new laws coming into effect, as well as what benefits employees are entitled to under these programs. They can also foster a culture where workers are encouraged to take time off to bond with a child, for example, as research shows some parents leave the benefit on the table due to fears of job loss or career setbacks.

Maine Supreme Court allows paid family leave to stand

A business and the state’s chamber of commerce sued over Maine’s paid family leave program, arguing employers shouldn’t be taxed if they intend to use a private option. 

Legislative lowdown: Maine’s high court upholds paid family leave program

A policy that was embraced by both the Democratic and Republican candidates during the 2024 presidential campaign made it into the final version of the recently enacted tax and budget bill, and will affect employers in the service industry starting next year.

The provision in President Donald Trump’s “One Big Beautiful Bill,” called “No Tax on Tips,” will allow eligible tipped workers to deduct up to $25,000 from their tipped income each tax year from 2025 to 2028.

The Internal Revenue Service (IRS) recently published a draft W-2 form taking this policy change into account, and said it would publish a list of occupations that may be eligible to take advantage of the tax break in early October.

How taxes will change for tipped workers in 2026. 

Federal law allows employers to pay their tipped workers as little as $2.13 an hour provided that amount, combined with tips, comes out to $7.25 (the federal minimum wage).

Workers that receive at least $20 a month in tips have to report these earnings to the IRS, and pay taxes on them if their gross income reaches a certain level. President Trump 

 this practice, as did his Democratic opponent, Kamala Harris.

The final “No Tax on Tips” provision that made it into the Republican tax bill will allow workers in jobs that “customarily and regularly received tips” on or before Dec. 31, 2024 to claim the deduction. Workers who report $150,000 or more in gross income will see the deduction reduced and ultimately phased out.

The policy is unlikely to affect the entire tipped worker population (roughly 2.5% of all workers), as more than one-third (37%) of workers 

tax for this reason, according to The Budget Lab.

What this means for employers with tipped workers. 

 published by the IRS on Aug. 15 includes a section for employers to report employees’ “qualified tips” using the code “TP,” as well as a place to report an employee’s “tipped occupation code.”

It’s not yet clear what type of work will fall under the provision. The IRS is required to publish a list of occupations that fall under the “customarily and regularly received tips” category by Oct. 2.

Additionally, the IRS is expected to give employers additional guidance on how to calculate the amount of “qualified tips” a worker earned. For the purpose of this deduction, tips paid voluntarily via cash or credit card should count, but it’s 

 whether automatic charges such as mandatory gratuities will fall under this category.

 it would provide “transition relief” to workers claiming the deduction, as well as employers, in light of the new reporting requirements.

The draft W-2 also includes modifications linked to additional provisions from the tax bill that are set to change the way employers report on workers’ earnings.

 for a tax deduction on their overtime pay, so businesses will need to report overtime compensation if they have workers that qualify for that deduction. Additionally, employers will have the option to 

 on behalf of their employees’ kids starting next year—a benefit that will also need to be reported on a W-2 form.

IRS’s draft W-2 for 2026 incorporates “No Tax on Tips”

Employers with tipped workers are set to see reporting requirements change as a result of a new tax deduction, but some details are still being worked out.  

Legislative lowdown: IRS publishes draft W-2 for 2026 incorporating “No Tax on Tips”

The Department of Labor (DOL) recently rescinded a supplement statement issued in December 2021 that said most plan fiduciaries were “not likely suited to evaluate the use of [private equity] investments” in individual account plans such as 401(k) accounts.

This rescission was made in response to an 

 seeking guidance for more employers to offer “alternative assets,” such as private equity and cryptocurrencies, as an investment option in 401(k) accounts. With the executive order, President Donald Trump’s administration is resuming efforts to increase the presence of such investments in workers’ retirement accounts, which started during his first term.

 in response to a query from a law firm representing Pantheon Ventures and Partners Group, which have both advocated for offering private equity as an investment option in 401(k) accounts.

An official with the DOL wrote that offering private equity as a “designated investment alternative” in a retirement plan would not necessarily violate the Employee Retirement Income Security Act (ERISA), which requires fiduciaries to act in the best interests of their plan participants, as well as select investments that are prudent.

After President Joe Biden took office, though, the DOL expressed concern in a 

 that the 2020 letter might prompt plan fiduciaries to misread “the letter as saying that PE [private equity]—as a component of a designated investment alternative—is generally appropriate for a typical 401(k) plan.” The statement further expressed concern about most plan fiduciaries’ ability to evaluate private equity investments in this context.

The DOL rescinded this statement on Aug. 12. In a 

, Deputy Secretary Keith Sonderling said Americans’ ability to save for retirement had been hampered by “unnecessary government overreach,” and suggested repealing this guidance could help build “a future where innovative retirement products can deliver increased upside, diversification, and security to the American worker.”

What Trump’s push for alternatives could mean for workers. 

Just 2.4% of retirement plans include private equity as an investment option, but the private equity industry is 

Part of employers’ hesitation around incorporating private equity into their 401(k) plans stems from the fact that such investments 

 than public stocks, and have higher fees associated with them. Such fees have gotten some employers into hot water—Intel, for example, was sued in 2015 by employees who alleged the company violated its fiduciary duties by including alternative assets, including private equity, in its retirement plans. The case was dismissed by a federal court in California, though, and that dismissal was 

The Aug. 7 executive order issued by the Trump administration seeks to reduce “regulatory burdens and litigation risk” associated with these investments, so HR leaders may expect to see additional actions to that end in the near future. The order calls on the DOL to develop guidance regarding a fiduciary’s duties under ERISA when it comes to making alternative assets available to retirement plan participants, as well as clarify its position on alternative assets, within 180 days.

Even though the Trump administration has voiced its support for employers that want to offer assets like 

 or private equity in 401(k) plans, making such options available would still require companies to undergo a robust fiduciary process, HR Brew 