As we close out the year, several important federal employment and benefits developments are worth employers’ attention. While not all changes require immediate action, they highlight areas where compliance awareness and proactive planning remain critical.
The U.S. Department of Labor (DOL) has moved to dismiss its own appeal defending the Biden administration’s 2024 fiduciary rule, which would have expanded fiduciary standards for advice related to 401(k) rollovers. The Employee Benefits Security Administration has indicated it no longer intends to defend the rule and plans to revisit and rewrite it under the Trump administration’s regulatory agenda.
For now, employers should note that the expanded fiduciary requirements are not moving forward in their current form. However, retirement plan sponsors should continue working with trusted advisors and ensure communications around retirement benefits remain clear and compliant as regulatory priorities evolve.
On November 15, 2024, a federal district court in Texas v. U.S. Department of Labor struck down the Biden administration’s proposed increases to the Fair Labor Standards Act (FLSA) salary thresholds for white-collar exemptions. The court ruled that the DOL exceeded its authority, invalidating both the July 1, 2024 increase to $844 per week and the planned January 1, 2025 increase to $1,128 per week.
As a result, the federal salary threshold reverts to $684 per week ($35,568 annually) nationwide. While an appeal is technically possible, a change in administration makes further action unlikely. Employers should remember that some states maintain higher salary thresholds, and any consideration of reversing previously implemented salary increases should be approached carefully due to potential employee relations concerns.
The Equal Employment Opportunity Commission (EEOC) recently released new guidance emphasizing that giving employment preferences to foreign workers over U.S. citizens may violate Title VII’s prohibition on national origin discrimination. The agency cautioned that job postings using language such as “H-1B preferred” or “H-1B only” may be unlawful, as are hiring or employment practices that place additional burdens on U.S. workers.
The EEOC also made clear that employers cannot justify favoring foreign workers based on cost, client preference, or perceived performance advantages. The guidance reinforces that Title VII protects all workers and signals increased scrutiny around what the agency describes as growing concerns over anti-American bias.
These updates underscore the importance of regularly reviewing pay practices, job postings, and benefit communications. Employers should stay informed, remain compliant with both federal and state requirements, and consult with their HR and PEO partners when questions arise.
PassioHR will continue monitoring regulatory developments and help clients navigate changes that impact compliance, compensation, and workforce management.
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