Federal contractor minimum wage executive order revoked: President Trump rescinded the executive order increasing the minimum wage for federal contract workers to $15 an hour, leaving an uncertain future for the U.S. Department of Labor rule implementing the order and ongoing court challenges to the rule. Trump's action said the "rescissions are necessary to advance the policy of the United States to restore common sense to the federal government and unleash the potential of American citizens." Biden's Executive Order 14026 called for increasing the minimum wage for federal contract workers to $15 an hour. The DOL subsequently proposed and then finalized a rule implementing the order, effective January 2022. Since then, the rate had increased to $17.75 an hour because of adjustments for inflation. Eric Leonard of Cozen O'Connor, who represents government contractors, said there appeared to be tension between the DOL's defending the rule in court as recently as Thursday and its rescission of the underlying order a day later. "It's a tricky situation now for the Trump DOL and the Trump lawyers defending some of the cases," Leonard said. "You do have this interim period where the EO has been rescinded, but the rule is still in place." Three lawsuits concerning this rule are still pending in the 5th, 9th and 10th U.S. Appellate Courts. Source: Law360 3/17/25
New role for OFCCP – investigate illegal DEI policies? America First Legal (AFL) has called on the U.S. Department of Labor and its Office of Federal Contract Compliance Programs (OFCCP) to investigate certain federal contractors for potentially unlawful diversity, equity, and inclusion (DEI) policies. AFL contends these policies may violate the Equal Opportunity Clause and an Executive Order issued by former President Trump titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” The Executive Order prohibits the OFCCP from promoting diversity or mandating affirmative action among federal contractors. It also disallows workforce balancing based on race, color, sex, sexual preferences, religion, or national origin. AFL's request is supported by findings from litigation and independent investigations. The organization has identified eight prominent federal contractors whose DEI programs might not comply with federal law or the aforementioned Executive Order. AFL urges the Department of Labor and OFCCP to review these companies' DEI practices for adherence to civil rights laws. Source: Legal Newsline 2/24/25
Work from home is a benefit that some employees are willing to take a pay reduction for: U.S. workers are willing on average to accept a pay cut of up to 25% to secure a partially or fully remote job rather than in-office work, according to a paper published by the National Bureau of Economic Research. The size of the tolerated pay reduction is three to five times the amount measured by previous studies, researchers found in a study of preferences among technology workers. “We attribute this discrepancy partly to methodological differences, suggesting that existing methods may understate preferences for remote work,” the researchers said. Nationwide, U.S. workers aged 20 to 64 spent one out of four paid workdays at home from 2023 to 2025, according to another recently published NBER working paper. Women and workers with children under eight are more likely to pursue the work-from-home option, according to the researchers. Source: HR Dive
To pay for proposed tax cuts, employees’ benefits may be hit: To pay for the tax cut, sacrifices have to be made. This could mean getting rid of certain employee benefits amounting to $157 billion over 10 years. Fringe benefits are perks offered to employees in addition to salary. While salaries are always taxed, not all fringe benefits are taxable on your federal return. For instance, certain fringe benefits may be partly or fully excluded from your IRS taxable income: athletic facilities, lodging on business premises, meals, and commutes (transportation benefits). Some fringe benefits can also be subject to specific rules to qualify for tax exclusion. For instance, on-site gym access cannot be sold to the general public if the facility is tax-free to employees. Data shows that about a third of organizations provide onsite fitness centers or subsidized gym memberships to employees for reasons like employee morale and physical fitness. However, these may become taxable to all employees (included in their salaries). Some employer-provided transportation benefits can be excluded from employee income up to a certain amount, but they may become taxable under the proposed law. Same with lodging and travel, but not the mileage reimbursement. HR needs to deal with this issue of taxable employee benefits as it will play a major role in employee morale and planning. Source: Kiplinger 2/18/25
Will President Trump’s healthcare transparency EO reduce healthcare costs in future? President Donald Trump has signed an executive order aiming to make healthcare costs more transparent for patients. The ruling directs regulators to force healthcare providers and insurers to publicly disclose their prices, the idea being to make it easier for consumers to shop around for better deals. The move marks a more aggressive approach to boost compliance with regulations Trump introduced in 2019, which providers have only half-heartedly been following. Trump has long advocated for insurers to tell consumers up front the actual prices for common tests and procedures, believing it will drive down costs. Healthcare prices have traditionally been veiled in secrecy, determined through private negotiations among doctors, hospitals, pharmaceutical companies, and insurers. Those involved have fiercely guarded these figures, arguing confidentiality is essential to the bargaining process. Andrew Bremberg, former assistant to Trump and director of the Domestic Policy Council at the Trump White House, said in a statement: “This price transparency executive order is a major statement from President Trump. Healthcare price transparency will help millions of Americans and will be a cornerstone in President Trump's healthcare legacy.” Source: Daily Mail 2/25/25