Labor & Employment Law Update

2025 is halfway over, and already, there has been significant activity and legal developments throughout the U.S. on the state and local level.  Below is a recap of notable laws enacted throughout the U.S. that have become effective within the first half of 2025. 

A little less than a year ago, businesses were scrambling to get ready for the then-impending Federal Trade Commission’s (FTC) final rule that would have blocked nearly all non-compete agreements between employers and employees. A Texas federal district court put all of that on hold in August 2024, holding that the FTC didn’t have the authority to issue the non-compete rule.

Since then, the issue has largely faded from headlines as businesses continued on as before the FTC rule. Questions remain, though, about the status of the rule and steps states are taking to regulate (or not) this popular tool in employers’ arsenals to protect their hard-earned goodwill and prevent unfair competition in the market.

In our recent webcast, “Terminating the Problem Employee,” Labor & Employment Partner Jeff Risch shared key considerations for employers looking to terminate a “problem employee” while avoiding controversy and litigation. Here are our key takeaways from the event.

In handling thousands of disputes and controversies under Illinois’s ever-expanding prevailing wage law for 25 years, we have seen the Illinois Prevailing Wage Act (IPWA) expanded to include very specific non-construction related tasks as “public works”—and thus, covered work under the state’s notorious prevailing wage law. However, the latest change is a real head-turn! For the first time, prevailing wage mandates under the IPWA specifically include workers who simply inspect a fixture/structure.

The IPWA becomes more complex and complicated by the day. Construction contractors must have an intimate understanding of all substantive and technical requirements of the law. Learn about the new liabilities, fines and penalties effective June 2025.

Most Illinois businesses well are aware of Illinois Biometric Information Privacy Act and the hundreds of lawsuits and multimillion dollar settlements it triggered. But there’s another Illinois privacy law quietly making waves for employers: The Illinois Genetic Information Privacy Act (GIPA). With steep penalties and accelerating litigation, it is important—now more than ever—for employers to be in compliance.

The Big Beautiful Bill, signed into law by President Trump on July 4, 2025, spans nearly 900 pages and touches numerous aspects of federal policy. Nestled within this lengthy legislation are employee benefits provisions that will require employers to navigate new rules, opportunities, and compliance requirements.

From additional tax deductions for workers to new savings vehicles for children, the benefits-related sections introduce changes that span traditional compensation structures, family support programs, and organizational compliance obligations.

Amundsen Davis's Breakfast Briefing Series continues on Wednesday, July 16 at 8:00 AM CT. Join Labor & Employment Partner Jeff Risch for a timely presentation dedicated to terminating the problem employee while diminishing legal risks.