Labor & Employment Law Update

On May 23, 2025, a federal court denied efforts to enjoin the Illinois Department of Labor (IDOL) from enforcing key provisions and amendments to the Illinois Day and Temporary Labor Services Act (the “Act”) that were signed into law by Governor Pritzker on August 9, 2024.

In a 9-0 decision authored by Justice Sonia Sotomayor, the U.S. Supreme Court overturned a ruling by the Wisconsin Supreme Court, which held that Catholic Charities Bureau Inc. (the “Charities) and its subsidiaries were not exempt from making payments to the state's unemployment insurance program. The Wisconsin Court held that the group’s work was not religious. The U.S. Supreme Court held that denying the exemption violates the First Amendment.

As government scrutiny of workplace immigration practices continues, employers need to be up-to-date with the latest compliance requirements to avoid legal penalties and costly litigation. Our recent webcast emphasizes why it is essential for businesses to have a clear, proactive plan in place before government agents show up unexpectedly and outlines best practices.

As modern workplaces grow increasingly diverse, employers must be prepared to accommodate employees’ religious practices and observations in a respectful, inclusive, and lawful manner. Title VII of the Civil Rights Act of 1964 (“Title VII”), requires employers with at least 15 employees to provide reasonable accommodations for an employee’s sincerely held religious beliefs, practices, or observances, unless doing so would create an undue hardship on the conduct of the employer’s business. This long-standing law is aimed at preventing employees from being forced to choose between their religious convictions and their job. 

On April 10, 2025, a federal court in Texas issued an opinion in the case of Faulk Co. v. Becerra that significantly impacts how the Affordable Care Act’s (ACA) employer mandate can be enforced. 

The ruling effectively prevents the Internal Revenue Service (IRS) from assessing penalties against employers that fail to provide affordable, minimum health insurance coverage to their employees as required by the ACA for companies with at least 50 full-time equivalent employees

As anticipated, the Missouri General Assembly passed House Bill 567 (H.B. 567), which repeals certain provisions of Proposition A—most notably, the entire Missouri paid sick time law. Governor Kehoe is expected to sign the bill into law in the coming days. Once signed, the paid sick time law will be repealed effective August 28, 2025.

On April 21, 2025, a California Court of Appeal held employees working six hours or less in a single workday can prospectively waive their mandatory meal periods. The ruling provided clarification on a long-standing question: whether a meal period waiver must be executed each time an employee chooses to skip their break, or if a single, advance waiver is legally sufficient under California law.

On May 1, 2025, the U.S. Department of Labor (DOL) announced it is reconsidering the 2024 Independent Contractor Rule (2024 Rule), which made it more difficult for businesses to classify independent contractors under the Fair Labor Standards Act (FLSA). This announcement signals the likelihood that the 2024 Rule will be rescinded under the new Trump Administration and may be replaced with a rule that applies a more business-friendly standard.

The Seventh Circuit recently ruled that a non-disabled employee can recover damages under the Americans with Disabilities Act (ADA) under certain conditions. Learn how this decision will impact employers in Illinois, Indiana, and Wisconsin.

On April 29, 2025, the Missouri Supreme Court issued an opinion upholding the state's paid sick time law and significant increase in minimum wage, otherwise known as Proposition A. Consequently, the law went into full effect for most Missouri employers on May 1, 2025. Accordingly, Missouri employers must ensure they are compliant with Proposition A’s minimum wage increase and paid sick time requirements.