At a glance
- US employers continue to see new developments at the federal level. We highlight some recent federal proclamations and agency actions in this update.
- Recent federal developments include changes to the H-1B visa program, new tax regulations, and updates on heat standards and non-competition agreements.
- H-1B visa program: New proclamation requires a USD100,000 payment for new H-1B applications and proposes a weighted selection process favoring higher-skilled workers.
- No tax on tips: Proposed regulations list jobs eligible for the new 'No Tax on Tips' deduction and define 'qualified tips'.
- Heat standard: Occupational Safety and Health Administration (OSHA) extended the deadline for comments on the proposed rule for heat injury and illness prevention.
- Non-competition agreements: The Fair Trade Commission (FTC) dismisses appeals against the Biden-era rule banning most non-competes, opting for targeted enforcement actions instead.
- Department of Labor regulatory agenda: The Department of Labor (DOL) announced its Unified Agenda of Regulatory and Deregulatory Actions, including high-priority actions designed to reduce unnecessary burdens on employers and employees.
- Diversity, Equity, and Inclusion: The US Attorney General issued a memorandum to federal agencies providing guidance on unlawful discrimination and best practices for compliance.
- DOL PAID program: The DOL announced the return of its Payroll Audit Independent Determination program to help employers resolve potential minimum wage and overtime violations.
- Religious accommodation: The US Office of Personnel Management issued memoranda addressing religious accommodations and religious expression in the federal workplace
US employers continue to see new developments at the federal level. We highlight some recent federal proclamations and agency actions below.
H-1B visa program
On September 19, 2025, President Donald Trump signed a proclamation, 'Restriction on Entry of Certain Non-immigrant Workers,' requiring a USD100,000 payment to accompany or supplement new applications for H-1B petitions 'to curb abuses that displace U.S. workers and undermine national security.' The proclamation also calls for limits on visa issuance and changes to the prevailing wage levels for the H-1B program. The proclamation’s stated goal is to make sponsoring H-1B workers more expensive for employers. On September 20, 2025, the United States Citizenship and Immigration Services (USCIS) issued new guidance intended to clarify the proclamation. Read more here.
On September 23, 2025, the Administration proposed to amend regulations governing the process for H-1B visas to implement a weighted selection process that would generally favor the allocation of H-1B visas to higher skilled and better paid aliens.
No tax on tips
On September 22, 2025, the Internal Revenue Service issued proposed regulations listing approximately seventy jobs that may be eligible for the new 'No Tax on Tips' deduction, which was enacted as part of the One Big Beautiful Bill Act. The proposed regulations also provide a definition of 'qualified tips' for purposes of the income tax deduction.
Heat standard
On September 17, 2025, the OSHA extended the deadline to submit post-hearing comments on the Agency’s proposed rule for Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings to October 30, 2025.
DOL regulatory agenda
On September 4, 2025, the US Department of Labor (DOL) announced its Unified Agenda of Regulatory and Deregulatory Actions, including high priority actions designed to 'reduce unnecessary burdens on employers and employees.' These include issues surrounding independent contractors, joint employer status, heat injury and prevention, exemptions for salaried employees from Fair Labor Standards Act minimum wage and overtime requirements, prudence and loyalty in selecting retirement plan investments and exercising shareholder rights, and transparency into pharmacy benefit manager fee disclosure. Consistent with its May announcement that it would not enforce or apply the Biden Administration’s 2024 final independent rule, which made it more difficult to classify workers as independent contractors at the federal level, the DOL announced its intention to rescind the rule.
Non-competition agreements
On September 5, 2025, the FTC announced it was dismissing its appeals in Ryan, LLC v. FTC, No. 24-10951 (5th Cir.), and Properties of the Villages v. FTC, No. 24-13102 (11th Cir.), acceding to the vacatur of the Biden-era rule banning most non-competes. FTC Chair Andrew Ferguson has indicated that the agency will instead regulate non-competes through targeted enforcement actions. While opposing the blanket ban, Chair Ferguson established a Joint Labor Task Force earlier this year to pursue case-by-case enforcement against specific non-compete abuses.
Diversity, equity and inclusion
On July 29, 2025, United States Attorney General Pam Bondi issued a memorandum to all federal agencies titled, 'Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination.' While not legally binding, the memorandum offers insight into how the United States Department of Justice (DOJ) will interpret federal anti-discrimination law, including by outlining 'Best Practices' to help federal funds recipients 'comply with federal antidiscrimination laws and avoid legal pitfalls.' While the memorandum is consistent with prior DOJ and Equal Employment Opportunity memoranda and guidance, it provides additional information on practices deemed unlawful under Title VII and other civil rights laws.
DOL PAID program
The DOL announced the return of its Payroll Audit Independent Determination program to help employers resolve potential minimum wage and overtime violations under the Fair Labor Standards Act, as well as certain potential violations under the Family and Medical Leave Act.
Religious accommodation
In July 2025, the US Office of Personnel Management issued two memoranda addressing religious accommodations and religious expression. A memorandum entitled “Reasonable Accommodations for Religious Purposes” encourages federal agencies 'to adopt a generous approach to approving religious accommodations, prioritizing employee needs while maintaining operational efficiency' and lists examples of religious accommodations. A second memorandum to federal agencies entitled 'Protecting Religious Expression in the Federal Workplace' provides that 'agencies should allow personal religious expression by Federal employees to the greatest extent possible unless such expression would impose an undue hardship on business operations ….' The memo also includes examples of conduct for which agencies cannot discipline or fire a federal worker. While these memos apply only to federal agencies, the U.S. Equal Employment Opportunity Commission is prioritizing religious discrimination and accommodation issues and may adopt similar guidance in the future.
Please reach out if you have any questions about US federal developments and their implications for your workforce and business.
