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

Sam Blum

hr-brew.com

Business people in suits signing contracts. 

Joe Biden's FTC wants to ban non-compete clauses 

Under the Biden administration, the FTC is dipping its toes into federal labor rules. 

The FTC wants to ban non-compete clauses, allowing roughly 30 million workers to make more money

A Starbucks cup is stuffed full of union voting ballots.

We spoke to a labor lawyer about the legal protections employees have when organizing.

High-profile union campaigns offer a learning opportunity for HR

Picket signs that read "Fed up" "Pay us more" "Higher wages now"  "forced overtime"

New research from Harvard Business School may help employers keep workers. 

The key to retaining low wage workers? Opportunity for growth, survey says

Employee working at his laptop with manager over shoulder

Labor

An illustration of reporter Courtney Vinopal's headshot.

Courtney Vinopal

The Department of Labor (DOL) is expanding a series of programs that allow employers to report and correct workplace violations to avoid formal investigations or lawsuits.

The Biden administration had discontinued one such program, which focuses on payroll violations, over concerns it violated workers’ rights and disincentivized employers from following the law. That program will now be revived, giving employers the opportunity to resolve violations under both the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA).

Why the Trump administration is encouraging self-audits. 

The DOL highlighted six agencies under its direction that are launching, continuing, or expanding self-audit programs, including the Employee Benefits Security Administration, the Occupational Safety and Health Administration (OSHA), and the Wage and Hour Division (WHD).

 issued regarding the agency’s self-audit programs, Deputy Secretary of Labor Keith Sonderling said the programs were intended to give employers the tools “to correct potential violations proactively.” The practice of self-auditing, he added, is “one of the most effective ways to build a culture of compliance and trust.”

Payroll Audit Independent Determination (PAID)

 program, which launched in 2018, allows employers to identify potential minimum wage, overtime, and leave violations. If they report violations to the WHD and correct them by paying workers back wages, for example, they may avoid formal investigations or litigation, according to the DOL.

When the Biden administration discontinued the PAID program in January 2021, Wage and Hour Division Principal Deputy Administrator Jessica Looman cited concerns that the program barred workers from suing their employers over such violations. “The Payroll Audit Independent Determination program deprived workers of their rights and put employers that play by the rules at a disadvantage,” she said 

The revived PAID program allows employers to report and correct a broader range of violations, as it applies to both the FLSA and

the FMLA (the latter wasn’t previously covered).

Only employers without a history of FLSA or FMLA violations within the last three years may participate in the program, 

. They also can’t be subject to any investigations or lawsuits alleging violations of these laws, and must inform the WHD of any complaints they’ve received from workers regarding potential violations. Businesses participating in the PAID program must pay back wages owed to their workers within 15 days after receiving a summary of unpaid wages from the DOL, and also provide proof they have done so to avoid a formal investigation or litigation.

While this program provides an opportunity for HR teams to get ahead of potential payroll or leave violations at their workplaces, it’s important to note that it doesn’t supersede state or local laws. In states where the statute of limitations for wage claims is longer—such as New York or Massachussetts—businesses could open themselves up to lawsuits by disclosing violations to the federal government, Fisher Phillips attorneys 

This marks the latest move by the DOL to ostensibly encourage compliance while easing up on penalties for employers. In June, the agency announced it 

 its opinion letter program to guide employers on compliance, and in July the DOL said it would make it easier for small businesses 

 it will no longer seek liquidated damages in settlements concerning wage or overtime violations under the FLSA.

Legislative Lowdown recurring feature illustration

Trump DOL revives self-audit program for wage violations

A program for correcting wage-and-hour violations is being revived after it was discontinued by the Biden administration. 

Legislative lowdown: Labor Department expands programs allowing employers to avoid investigations

An illustration of a photo of HR Brew reporter Paige McGlauflin.

Paige McGlauflin

The labor market is like those slimy pests that love eating the tomato plants growing in your garden: sluggish.

 that existing economic uncertainty and new turmoil driven by President Trump’s ongoing tariff threats could send the labor market into a tailspin. While that hasn’t occurred, the latest

 (JOLTS) data for June from the Bureau of Labor Statistics suggests that the labor market is continuing its slow but steady cooldown.

In some ways, it’s a blessing and a curse: While the job market hasn’t gone off the deep end, its continual stagnation is also creating its own problems. For example, as fewer opportunities open up externally, employees will be less likely to quit, stalling internal mobility opportunities.

“The story is not one of a job market that is collapsing. Instead, we see much like we’ve seen in the last few months, that the job market is cooling gradually,” said Daniel Zhao, Glassdoor’s lead economist. “But we are still seeing the same pattern in the JOLTS data that has helped explain why workers feel so sour about the current job market.”

Employers had 7.4 million job openings posted at the end of June, a decline of 275,000 from the previous month. Accommodation and food services saw the biggest drop in openings, declining by 308,000 to 754,000 in June. That was followed by healthcare and social assistance (declining 244,000) and finance and insurance (down 142,000).

Meanwhile, retail trade increased by 190,000 to 656,000 job openings, the highest monthly increase for the June data, followed by professional and business services increasing by 156,000, and information by 67,000.

Meanwhile, organizations made 261,000 fewer hires month over month, recording just 5.2 million hires in June. Professional and business services recorded the steepest monthly drop in hires between May and June, reporting 936,000 total hires, a decline of 133,000 month over month. That was followed by accommodation and food services (declining 106,000), and arts, entertainment, and recreation (falling 42,000).

The number of employees quitting declined by 128,000 to 3.1 million, while layoffs and discharges remained relatively unchanged at 1.6 million in June. With total separations, professional and business services declined by 56,000 to a total of 944,000 for the month. Meanwhile, retail trade recorded the highest spike in separations, increasing by 31,000 to 612,000 in June—of that total, 440,000 were employees quitting.

As speculation over whether AI is replacing white-collar jobs mounts, including in professional services and finance, 

 that the technology could be a factor in job turnover plummeting for these sectors.

 prompting cost-cutting measures, including offshoring jobs and layoffs, are what’s really driving a slowdown in these fields. While some jobs, such as administrative services, might be more susceptible to employers wanting to replace workers with AI, this interest is still being driven primarily by cost savings, Zhao said.

“I think it’s hard to see evidence that AI is specifically driving the slow down in jobs growth that we’re seeing. Instead, I suspect it’s a little bit reversed where, right now, jobs growth in general is slow, and that’s being driven by macroeconomic factors rather than AI,” Zhao added.

As economic uncertainty persists, employers will have to be prepared for the labor market to shift in any direction. That’ll mean continuing to plan for a myriad of scenarios, according to Zhao.

“Given how much uncertainty there is right now, it would be irresponsible to stick our heads in the sand and pretend that there is only one path forward.”

HR leaders will want to keep an eye on their workers as well. With fewer opportunities opening up internally and externally, workers are more and more susceptible to resentment and disengagement, Zhao claims.

“I think it’s important for HR leaders to recognize that employee disengagement is likely to be a significant problem right now, and might even be worse than in other job market contexts,” Zhao said, “because so many workers are prioritizing job security and would rather sit in place in a job where they are disengaged and unhappy rather than test the waters on the open market.”

a graphic of a cartoon man walking on a stock market chart

Why June’s sluggish labor turnover data spells trouble for employers

Employee resentment could climb as high as these heat wave temps.

June’s sluggish labor turnover data could spell trouble for employers

 a Biden-era opinion letter on July 21 that had indicated a racial equity program proposed by Citibank would be lawful.

A program to pay the investment fees for “diverse asset managers” was never implemented, according to Citi, but the DOL nevertheless cautioned the bank against carrying it out.

The DOL’s decision to rescind an advisory opinion that was favorable of the proposed program shows how the administration is scrutinizing private firms for “illegal” DEI practices.

Why the DOL targeted Citi’s DEI efforts. 

, issued by the DOL in 2023, referenced a racial equity program that was part of Citi’s broader efforts to close the racial wealth gap.

As part of the racial equity program, Citi would pay all or part of the investment management fees for “diverse managers” retained by employee benefit plans—such as defined benefit or defined contribution plans—sponsored by the bank. The opinion noted that asset managers from diverse backgrounds tend to be underrepresented in the market, even though they “perform as well or better than median performers.”

Covering fees for managers from underrepresented backgrounds, the bank asserted, would “help address such systematic disadvantages in the context of Citi’s own employee benefit plans,” a DOL official with the Biden administration wrote.

While the Biden-era DOL indicated that such a program would be legal, and offered insight on how the bank could act as a responsible fiduciary to that end, the agency now asserts “its allocation of benefits on the basis of race clearly and unambiguously violates the civil rights laws,” according to the letter issued July 21.

A separate DOL official cited a number of legal cases, including the 2023 Supreme Court ruling 

Ames v. Ohio Department of Youth Services 

allowing a reverse discrimination case to proceed, when explaining why the agency believed the Citi program was illegal.

“Citi should take immediate action to end all illegal activity within its Racial Equity Program and any other initiative, plan, program, or scheme it operates under the banner of diversity, equity, and inclusion,” the official wrote.

What this means for DEI in the private sector. 

Citi told HR Brew via email that it never implemented the hypothetical program called out by the DOL, and doesn’t have plans to do so.

Nevertheless, the July 21 letter seems to indicate what types of programs or practices the Trump administration may scrutinize as it seeks to combat “illegal” DEI in the public and private sectors. A Jan. 21 executive order 

 calls on measures to encourage private-sector employers to end “illegal DEI discrimination and preferences,” and a number of companies 

 on their DEI efforts in light of this scrutiny.

The order also directed federal agencies to “identify up to nine potential civil compliance investigations” related to DEI programs at publicly traded companies, large nonprofits, or universities, though the DOL didn’t say whether it’s investigating Citi as a result of this program.

 for rebranding their efforts to avoid legal issues in a Senate Judiciary Committee hearing last week, HR Brew recently reported. But Sen. Mazie Hirono, a Democrat, noted the Constitution “does not bar diversity, equity, and inclusion,” adding, “programming relating to diversity is not illegal just because Donald Trump says so."

Labor Department targets DEI at Citibank with opinion letter

 Citi says it never implemented a program to reward asset managers from underrepresented backgrounds, but the DOL still warned the bank to “end all illegal activity” tied to it.

Legislative lowdown: Labor Department rescinds Biden-era opinion letter on Citi’s proposed racial equity program

The Department of Labor (DOL) has announced plans to make it easier for small businesses to reduce fines they may incur for violating workplace safety regulations.

More small businesses will be eligible to receive a 70% penalty reduction from the Occupational Safety and Health Administration (OSHA) when they “invest resources in compliance and hazard abatement,” according to a DOL 

This reduction was previously available to employers with 10 or fewer employees. It now applies to businesses with up to 25 workers.

Employers that act immediately “to address or correct a hazard” may be eligible for a 15% penalty reduction, according to new guidelines published in OSHA’s 

The DOL is also easing penalties for businesses without a significant history of OSHA inspections. Employers that have been inspected by a federal or state OSHA plan in the last five years, but have “had no serious, willful, or failure-to-abate violations,” can apply for a 20% penalty reduction. Those that have never been inspected are also eligible for this reduction.

“Small employers who are working in good faith to comply with complex federal laws should not face the same penalties as large employers with abundant resources,” Deputya of Labor Secretary Keith Sonderling said in a statement. The idea behind lowering penalties for some employers, he added, is to help drive the economy while holding business owners accountable for ensuring worker safety.

Employers facing OSHA fines issued after July 14 may now seek out these additional reduced penalties.

HR teams should note, though, that states with their own OSHA plans may opt not to implement these changes being taken at the federal level right away, 

The policy change comes as the Trump administration is 

 OSHA’s budget by 8% in fiscal year 2026, and have the agency perform nearly 10,000 fewer worksite inspections compared to FY2023.

 that further reducing OSHA penalties will disincentivize employers from protecting the health and safety of their workers in accordance with state and federal laws.

Already, some businesses have proven adept at navigating the penalty reduction system: A 

 by the Boston CBS News affiliate found that many Massachusetts-based companies cited for worker deaths received penalty reductions. Meanwhile, Seattle-based Cascade PBS 

 more than one-third of health and safety penalties issued in Washington state were lowered after businesses appealed them.

More small employers may see their OSHA fines reduced

The policy change comes as the Trump administration seeks to slash OSHA’s budget and reduce the number of worksite inspections the agency performs.

Legislative lowdown: DOL expands OSHA penalty reductions for small employers

Workers in Alaska, Oregon, and Washington, DC will be entitled to a higher minimum wage starting on July 1.

Alaska’s minimum wage will increase to $13 an hour, from $11.91, while Washington, DC’s will rise to $17.95 per hour, from $17.50.

Oregon’s minimum wage differs by region, so workers in the Portland metro area must earn at least $16.30 an hour, up from $15.95, by July 1. Those in non-urban counties will be entitled to $14.05 an hour, up from $13.70, while workers in all other regions will see the minimum wage go up to $15.05, from $14.70.

Chart showing minimum wage increases effective July 1, 2025

New minimum wage rates will also take effect in a host of cities and counties starting July 1, including Los Angeles ($17.87), Chicago ($16.60), and Montgomery County, Maryland (at least $15.50), which includes many DC suburbs and is the state’s largest county.

Employees in the healthcare and hospitality industries will also be covered by higher minimum wage rates taking effect in California.

 in 2023 will gradually raise the minimum wage for healthcare workers in the state to $25 an hour. The first rate increases 

 in October 2024. As of July 1, the minimum wage will go up to $24 an hour for employees of certain types of healthcare facilities (e.g. hospitals with 10,000 or more workers), and to $18.63 an hour for others (e.g. safety net hospitals).

 to give raises to workers in the tourism industry, hotel workers in LA will be eligible for an hourly minimum wage of $22.50 starting on July 1.

California’s state-wide minimum wage is $16.50 an hour, but many other cities in the Golden State go higher, including San Diego, San Jose, San Francisco and Santa Clara.

Alaska and Oregon are among 23 states raising their minimum wage this year, with most hikes having already taken effect this past January.

Complying with new minimum wage rates can create complicated secondary or indirect effects for HR teams, such as wage compression or higher health insurance premiums, as HR Brew 

. To get ahead of such challenges, HR leaders might want to consider reviewing their company’s pay grade structure, as well as assess any potential costs that could arise from wage hikes.

Even as dozens of states and localities are moving to raise their minimum wages, the federal minimum wage remains at $7.25 an hour, which hasn’t changed since 2009. However, employees are entitled to the highest minimum wage rate in effect where they work (often the state or local rate).

A business person with a laptop, calendar and calculator and a pile of coins

Where the minimum wage goes up on July 1

Chicago, Los Angeles, and Washington, DC are among those enacting a higher minimum wage this summer. 

Minimum wage goes up in multiple states, cities and counties on July 1

The Department of Labor (DOL) is expanding efforts to assist employers with compliance matters by issuing opinion letters, according to a 

Five enforcement agencies within the DOL will be involved with the expanded program, including the Wage and Hour Division (WHD), Occupational Safety and Health Administration (OSHA), and the Employee Benefits Security Administration. Some agencies may provide other forms of guidance, such as advisory opinions or letters of interpretation, as part of the program.

Opinion letters explain how these agencies enforce federal laws and regulations in the case of specific workplace situations. Though the first Trump administration relied heavily on opinion letters—the Wage and Hour Division issued 80 during his first term, 

 Littler Mendelson—the Biden administration was less dependent on this type of guidance, with the WHD issuing just eight.

“Opinion letters are an important tool in ensuring workers and businesses alike have access to clear, practical guidance,” Deputy Secretary of Labor Keith Sonderling said in the DOL’s announcement. “Launching this program is part of our broader effort to empower the public with the information they need to understand and comply with the laws the department enforces.”

How to submit an opinion letter request. 

 to submit a request for this type of guidance. To help the agency better understand why a question is relevant, the DOL recommends doing the following:

“Reference any specific laws, regulations or other guidance that you think is relevant.

Include an accurate and complete description of the facts, such as job duties, work schedules or pay structure.

Confirm that the request is not related to an existing matter that requires the interpretation of federal law. Note that we do not issue letters for use in any investigation or litigation matter that existed before submitting your request.

Do not include sensitive personal or confidential business information – responses may be published publicly on our website.

Include your phone number in case we need to follow up.”

The first Trump administration’s reliance on this type of guidance, coupled with this expanded program, suggests the number of opinion letters issued by the DOL will likely increase in the coming months.

Thus far, during Trump’s second term, the DOL has issued 

 (May 2025) reinstating the agency’s previous stance on the independent contractor status of service providers working for a virtual marketplace company. The WHD issued a letter in 2019 explaining why it believed these workers would be considered independent contractors under the Fair Labor Standards Act. The Biden administration withdrew that letter in 2021, but the latest opinion letter puts it back in effect once again.

Even as the DOL is putting additional resources toward helping employers comply with federal labor laws, it has pulled back on other types of enforcement mechanisms. A Jan. 24 directive 

 the Office of Federal Contract Compliance Programs (OFCCP), which oversaw federal contractors’ compliance laws and regulations. The OFCCP’s oversight has since narrowed to focus on preventing discrimination against disabled people, as well as promoting affirmative action of Vietnam veterans, rather than looking at potential systemic discrimination across the board, 

DOL doubles down on opinion letters to guide employers

The enhanced program likely means Trump’s DOL will issue more opinion letters than the Biden administration.

Legislative lowdown: Department of Labor announces expanded opinion letter program

The Trump administration is reconsidering a Biden-era rule that would’ve extended overtime pay to millions of workers.

, the Department of Labor (DOL) asked the 5th Circuit Court of Appeals to temporarily suspend its appeals in two cases challenging the rule, which was finalized in April 2024.

The DOL said it was moving to hold off on these appeals pending the agency’s reconsideration of the rule challenged in these cases.

 for white-collar (i.e. executive, administrative, and professional) employees to qualify for overtime from $35,568 to $58,656. The change was 

 overtime pay to an additional 4 million workers.

While the federal government expected to fully implement the new rule by Jan. 1, 2025,a federal judge in Texas 

 it from taking effect this past November. The judge ruled that the DOL overstepped its authority in issuing a rule that prioritized salary over job duties in determining the overtime threshold for these workers, and returned the threshold to $35,568.

In a separate case, a different federal judge in Texas sided with a marketing agency that had challenged the Biden overtime rule, vacating it in a decision issued in December 2024.

The DOL appealed both of those cases to the 5th Circuit.

Trump’s DOL looks likely to drop the rule. 

While the first iteration of the rule took effect on July 1, 2024—bumping the overtime threshold up to $43,888—employers only had to comply with this policy for a few months before the 2019 overtime threshold of $35,568 returned.

Under the Biden-era rule, covered employers had to determine if they had the budget to raise workers’ salaries above the new threshold, or otherwise reclassify them as non-exempt hourly employees, 

. It appears unlikely, though, that HR teams will have to resume this process under the Trump administration.

The DOL could, of course, move to change the overtime threshold from the current minimum of $35,568, so compliance pros should continue keeping an eye out for updates.

A number of the Biden administration’s labor and employment policies were 

 legal challenges last year, and seem unlikely to survive much longer in light of the presidential transition. The DOL also recently announced its staff will 

 Biden’s independent contractor rule in enforcement matters.