February 25, 2025

February 2025 Newsletter

Each month, Optimum Employer Solutions gathers the latest updates and changes to federal and state employment law. Read on to learn how these changes may affect you, and how Optimum can help you ensure compliance.


Federal Updates
DOJ Effectively Pauses Its Civil Rights Division’s Litigation, Which May Impact IER’s Pursuit of New Claims
The U.S. Department of Justice issued a directive to its Civil Rights Division, freezing all ongoing or new litigation. The specifics of the freeze are not clear; however, it appears to freeze new claims presented to the DOJ’s Immigrant and Employee Rights Section. Read more here.

Employers Administering PFML Programs Receive Essential Guidance from the IRS
In a significant development for employers managing Paid Family and Medical Leave (PFML) programs, the IRS has issued new guidance clarifying the federal income and employment tax treatment of contributions and benefits under state-funded PFML programs. This guidance, detailed in Revenue Ruling 2025-4, addresses key tax implications for both employers and employees, ensuring compliance and proper reporting. Employers are encouraged to review this guidance to align their payroll and finance practices accordingly. Read more here.

Executive Order Targets Prohibitions Against Sexual Orientation and Gender Expression Discrimination
On his first day in office, President Trump issued an Executive Order titled, “Defending Women From Gender Ideology Extremism and Restoring Biological Truth to the Federal Government.” Read more for how this may impact your workplace.

President Trump Rescinds Executive Order 11246, Impacting Federal Contractor Affirmative Action Requirements
On January 21, 2025, President Donald Trump signed an Executive Order entitled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” In section 3 of the EO, President Trump rescinded Executive Order 11246, the decades-old executive order relating to federal contractor affirmative action obligations. Read more here.

Seventh Circuit Clarifies Plaintiffs’ Evidentiary Burden in FLSA Cases
In Osborn v. JAB Management Services, Inc., No. 24-1573 (January 22, 2025), the U.S. Court of Appeals for the Seventh Circuit affirmed a district court’s entry of summary judgment in favor of an employer on a former employee’s overtime claims under the Fair Labor Standards Act (FLSA), finding her testimony regarding the hours she worked insufficient to raise an issue of material fact. Read more here.

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Compliance