W-2s and 1099s will not have new fields this year, but the IRS has now provided guidance on how employees can still claim tax deductions for tips and overtime pay.
This is our fourth update on the evolving tips and overtime tax deductions under the One Big Beautiful Bill Act (OBBBA). We’ve previously covered the overall impact on your compensation strategy, the proposed rules on qualified tips, and the initial transition relief on reporting requirements.
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A strong workers’ compensation defense strategy begins long before a claim is filed. After all, an unexpected claim can costly regardless of industry. Strategic and proactive measures to prevent accidents coupled with an understanding of how to manage the claims that do arise are indispensable tools for businesses.
In a recent webcast, two of our workers’ compensation attorneys shared their insights and best practices to help employers confidently manage claims and achieve favorable outcomes.
Key takeaways from this presentation
Several changes impacting employers in jurisdictions across the nation on the federal and state level are summarized below in our latest blog post.
Federal Law Updates
New Updates on the H-1B Visa
On Sept. 19, 2025, President Trump
Continue Reading Federal and State Employment Law Update
The U.S. Equal Employment Opportunity Commission (EEOC), the agency charged with the administration of federal workplace laws, including Title VII of the Civil Rights Act, recently regained a voting quorum. As a result, the agency can now enact sweeping policy changes in line with President Trump’s second term agenda. Employers can expect increased scrutiny of DEI practices and an increase in charges surrounding religious accommodations.
Background: The EEOC Regains a Voting Quorum
Shortly after he took office in January,
Continue Reading EEOC Regains Quorum: What Employers Can Expect
Illinois Amends the Prevailing Wage Act (Again) to Delay Implementation of Full Fringe Benefit Mandate for Apprentices Until July 1, 2026
The Illinois legislature recently passed House Bill 1437 (H.B. 1437), which delays implementation of the fringe benefit payment mandates for apprentices on projects subject to the Illinois Prevailing Wage Act (“IPWA”).
As some may recall, Governor Pritzker signed House Bill 2488 (H.B. 2488) into law effective June 30, 2025. H.B. 2488 requires the payment of “full journeyman annualized
The clock is ticking on 2025 payroll reporting, but the IRS just threw employers a lifeline.
If your organization has been struggling to understand how to implement the new tips and overtime reporting requirements from the One Big Beautiful Bill Act (OBBB), you can breathe a temporary sigh of relief. The IRS has issued Notice 2025-62, providing penalty relief for the 2025 tax year while employers adapt to the tax reporting changes.
What Changed With the OBBB
When
Although the Federal Trade Commission (FTC) has vacated its rule banning noncompete agreements nationwide, the FTC continues to scrutinize such agreements and is focusing on the health care setting.
Indeed, in September FTC Chairman Andrew N. Ferguson sent letters to several large health care employers and staffing firms urging them to conduct a comprehensive review of their employment agreements—including any noncompetes or other restrictive agreements—to ensure they are appropriately tailored and comply with the law.
According to the FTC
Continue Reading Health Care Noncompete Agreements: The FTC Is Watching
On August 15, 2025, Governor Pritzker signed House Bill 3638 (H.B. 3638) into law, which amends the Illinois Workplace Transparency Act (the “Act”) to provide current, former, and prospective employees with greater rights and protections when executing employment agreements with an employer. The amendments under H.B. 3638 take effect on January 1, 2026, and apply to employment contracts entered into, modified, or extended on or after January 1, 2026, except for collective bargaining agreements. Accordingly, employers need to carefully
Continue Reading Illinois Employers, It’s Time to Review and Revise Your Employment Agreements
Read Part 1: AI in Employment-Related Decisions Part 1: Big Tech and Federal Power
Across the country, state lawmakers are recalibrating their approaches to regulating the use of AI in employment decisions. This is in direct response to pressure from the technology industry and the Trump administration.
California initially considered broad mandates on AI use in hiring that would have imposed strict notice and impact assessment requirements on employers. Following pushback from industry groups and concerns about federal overreach,
State lawmakers across the country have been busy this year trying to curb the most consequential uses of AI in employment-related decisions. As those attempts moved from idea to legislation, two powerful forces have pushed back.
The tech industry is concerned about a patchwork of state rules, and the Trump administration has prioritized removing barriers to AI use. States are reacting by shifting their strategies to narrow, revise, and/or delay legislation. Employers would be wise to stay abreast of
Continue Reading AI in Employment-Related Decisions Part 1: Big Tech and Federal Power
On September 19, 2025, the U.S. Department of Labor (DOL) announced the launch of Project Firewall, described as “an H-1B enforcement initiative that will safeguard the rights, wages, and job opportunities of highly skilled American workers by ensuring employers prioritize qualified Americans when hiring workers and holding employers accountable if they abuse the H-1B visa process.”
Compliance and Penalties Under Project Firewall
Through Project Firewall, where there is reasonable cause that an H-1B employer is not in compliance, the
Continue Reading Project Firewall Targets H-1B Employers: Best Practices for Compliance
On August 19, 2025, the Fifth Circuit Court of Appeals upheld injunctions barring the National Labor Relations Board (NLRB) from prosecuting unfair labor practices (ULP)/charges against three employers, including Space X. This decision stems from the constitutional challenges to the way the NLRB is structured and raises broader questions about the current structure of the NLRB.
The recent appellate decision can be traced back to June 2024, when the U.S. Supreme Court issued its landmark decision in SEC v.
Below are the key state employment law changes that have occurred in September 2025. Employers should review these updates to ensure compliance with new leave rights, posting requirements, and employee protections across multiple states.
California
Continue Reading National State Employment Law Update – September 2025 Changes
On Friday, September 19, 2025, the Internal Revenue Service (IRS) issued proposed regulations clarifying the “no tax on tips” provisions under President Trump’s One Big Beautiful Bill Act (OBBBA).
Starting January 1, 2026, eligible tipped workers can deduct up to $25,000 each year in “qualified tips” from their federal taxable income through December 31, 2028. This will allow eligible tipped workers to take home more income each year. The deduction is retroactive to the beginning of the 2025 tax
In workplaces today, managers face a delicate balancing act. On one hand, they are responsible for enforcing company policies, maintaining productivity, and holding employees accountable for performance. On the other, they must manage in a way that fosters trust, engagement, and respect. Increasingly, however, employers are seeing a rise in employee complaints that blur the line between legitimate concerns and simple aversion to being managed.
It is becoming more common for employees to claim “bullying” or “harassment” when a
Earlier this month, the Sixth Circuit issued a decision in Bivens v. Zep that significantly narrows when an employer can be held liable under Title VII for harassment committed by a third party, such as a customer or client.
The court held that an employer may only be liable in this scenario if the employer intended for the harassment to occur. This ruling departs from the EEOC’s longstanding interpretation of Title VII as well as from the majority of
Continue Reading Sixth Circuit Provides Employers Protection in Customer Harassment Cases