Policy Week in Review - February 21, 2025

The Policy Week in Review, prepared by Littler’s Workplace Policy Institute (WPI), sets forth WPI’s updates on federal, state, and local matters, as well as Littler’s published in-depth analyses of the prior week.

Congressional and Administrative News

Labor Secretary Gets Hearing; Deputy Secretary of Labor Hearing Scheduled

On February 19, the Senate Health, Education, Labor, and Pensions (HELP) Committee held a hearing on the nomination of Lori Chavez-DeRemer to be secretary of labor. DeRemer, who previously served one term as a U.S. Representative from Oregon, has drawn scrutiny from both sides of the aisle. While in Congress, she was the only Republican member of the House to support the so-called “PRO Act,” union-supported legislation dramatically reforming federal labor law to favor organized labor, and at least one Republican senator, Rand Paul of Kentucky, has publicly stated he will not support her nomination. Democrats in turn have focused on the question of whether Chavez-DeRemer would be sufficiently independent of the White House and safeguard the integrity of the agency. If Democratic senators on the Committee unanimously oppose her, a single Republican “no” vote would prevent her nomination from proceeding to the Senate floor for final confirmation. Separately, the HELP Committee announced that is has scheduled a hearing on the nomination of Keith Sonderling to be deputy secretary of Labor immediately following its vote on Chavez-DeRemer.

Weekly Labor and Employment News

Executive Order Tracker (Updated as of February 19, 2025)

Littler's Executive Order Tracker is your go-to resource for staying updated on all executive orders and actions issued by the Trump administration. We are tracking every order, analyzing its impact, and providing summaries to help you understand the changes and the implications to your business. Only those orders that impact compliance with labor and employment directives are identified with a topic. In the first 100 days, the Trump administration is also rescinding executive orders issued by previous administrations and those are available here.

Littler’s Workplace Policy Institute will keep readers apprised of relevant developments.

U.S. Department of Education’s New “Dear Colleague” Letter Targets DEI Programs and Signals New Era of Title VI Enforcement

On February 14, 2025, the U.S. Department of Education’s Office for Civil Rights released a “Dear Colleague” Letter (DCL) and emailed it to K-12 and post-secondary educational institutions around the country. The DCL states that its purpose is to “clarify and reaffirm the nondiscrimination obligations of schools and other entities that receive federal financial assistance from the United States Department of Education” under Title VI of the Civil Rights Act of 1964, the Equal Protection Clause of the United States Constitution, and “other relevant authorities.”

Title VI generally provides that no program or activity that receives federal financial assistance may discriminate against or deny benefits to any person because of race, color or national origin, which courts have interpreted to include ethnicity. We recommend educational institutions consider conducting a privileged review and audit of their remaining DEI programs to assess compliance risk relating to the DCL, EO 14173, Title VI, and other applicable laws and regulations.

GSA Announces FAR Deviations Consistent with the Revocation of Executive Order 11246 (Updated as of February 20, 2025)

On February 15, 2025, the director of the U.S. General Services Administration, in his capacity as chair of the Civilian Agency Acquisition Council (CAAC), issued a CAAC Letter authorizing executive agencies to deviate from existing provisions of the Federal Acquisition Regulations and procurement practices in order to implement President Trump’s Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity.

The Sixth Circuit Rules on Arbitration Clause Enforcement

The U.S. Court of Appeals for the Sixth Circuit has ruled that an arbitration provision in a plaintiff’s employment contract is binding and enforceable, even if the employer did not explain the provision or recommend the employee seek legal advice. In Gavette v. United Wholesale Mortgage, LLC, the appellate court confirmed once again that employees are subject to arbitration provisions to which they sign their name, regardless of their employer’s explanation of the terms—or lack thereof. Employers need not explain the provision or agreement, nor must they suggest or recommend the employee consult an attorney. In other words, an employee is held responsible for their own decisions and signature on a document that includes an arbitration provision.

Employment contracts and arbitration provisions are, still, particular and nuanced legal documents. An arbitration provision should be plain and obvious, and an employee must affirmatively assent to those terms for them to be enforceable, even in light of this recent ruling. They also should be signed by the parties, and not hidden away in employee handbooks, especially not in a handbook with the typical disclaimer that it is not a contract.

Rescission of NLRB General Counsel Memos on Non-Compete Agreements Indicates Shift in Enforcement Priorities

On February 14, 2025, National Labor Relations Board Acting General Counsel William Cowan rescinded several previously issued memos, including two related to restrictive covenants: (1) GC Memorandum 23-08, Non-Compete Agreements that Violate the National Labor Relations Act, and (2) GC Memorandum 25-01, Remedying the Harmful Effects of Non-Compete and Stay-or-Pay Provisions that Violate the National Labor Relations Act. The rescission of these memos issued by his predecessor, Jennifer Abruzzo, foreshadows a shift in the NLRB’s approach to restrictive covenants.

Upcoming Littler Events

February 25

2025 California Breakfast Briefing Series - Los Angeles

Live Event – A series of new employment law bills has been signed by California Gov. Gavin Newsom and will take effect next year. Our annual roundup of California employment laws will review each new law and offer practical compliance suggestions. This event provides a unique opportunity to understand the latest court cases, legislative and regulatory activities, and crucial developments affecting your workplace and responsibilities. As always, our team of Littler attorneys will guide you through these new developments.

Registration: 8:00 - 8:30 a.m.

Program: 8:30 - 10:30 a.m.

Q&A: 10:30 - 10:45 a.m.

A light breakfast will be provided.

Cost: $65.00

New York Retail Roundtable

Live Event – Littler attorneys and in-house counsel from some of the nation's top retailers present a highly engaging roundtable discussion. This interactive forum will allow industry colleagues to share how businesses are handling current legal challenges. Participants will explore practical and out-of-the-box approaches to address challenges they have faced, sharing ideas and strategies that have proven successful.

Topics that we expect to be discussed at this roundtable include:

  • NY Prenatal Leave
  • NY Retail Worker Safety Act
  • Predictions for changes in NLRB, EEOC and DOL enforcement in Trump administration
  • Addressing religious accommodation requests including prayer time and requests for Sabbath off
  • Issues arising from mandatory return to office policies
  • How retailers are making use of AI
  • Recommended practices for EEOC position statements

Registration and Breakfast: 8:30 - 9:00 a.m.

Program: 9:00 - 10:30 a.m.

February 26

Littler Edge Training Webinar

Webinar – In a world where information is everywhere, finding exactly what you need, when you need it, can be a challenge. And more time spent searching for answers to your employment and labor law questions means less time for you to respond to the critical needs of your organization. Littler Edge is designed to help you with your employment and labor law compliance efforts by providing access to the best of Littler's collective knowledge and experience, all in one location.

This webinar will demonstrate the capabilities of Littler Edge and the many benefits it can bring to your company.

Time:

9:00 - 9:45 a.m. PT

10:00 - 10:45 a.m. MT

11:00 - 11:45 a.m. CT

12:00 - 12:45 p.m. ET

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.