On March 29, United States embassies across Europe began sending letters and an accompanying “Certification regarding compliance with applicable federal anti-discrimination law” to companies in Belgium, Bulgaria, Denmark, France, Italy, Luxembourg, and Spain.  This certification purports to apply Executive Order (“EO”) 14173 (“Ending Illegal Discrimination and Restoring Merit-Based Opportunity”) to U.S. government suppliers and contractors based in Europe “regardless of their nationality and the country in which they operate.”  As we wrote in a prior alert, the Trump administration intends for EO 14173 to end what it considers to be “illegal preferences and discrimination” including those “under the guise of so-called ‘diversity, equity, and inclusion’ (DEI) or ‘diversity, equity, inclusion, and accessibility’ (DEIA)” programs by prescribing required provisions for federal contracts. Continue Reading European Companies Wrestle with U.S. Government’s Anti-DEI Push

The German Federal Labor Court (Bundesarbeitsgericht – BAG) has issued two new decisions impacting virtual stock option plans (VSOPs).  In a March 19, 2025 decision (BAG, March 19, 2025 – 10 AZR 67/24), BAG ruled that virtual stock options (“phantom shares”) are not speculative options/opportunities, but rather part of the remuneration already earned and, therefore, forfeiture clauses in VSOPs are invalid.  The new decision is a reversal of the court’s prior position on these virtual shares.  In the other new decision, issued on March 27, 2025 (BAG, March 27, 2025 – 8 AZR 63/24), BAG ruled that phantom shares exercised while an employee is still employed have to be considered when calculating the compensation owed for the employee’s compliance with a post-contractual non-compete covenant.  Below is an overview of the new cases and steps employers can take to ensure their plans are in compliance.Continue Reading German Federal Labor Court Rules on Phantom Shares; What Employers Need to Know

On March 19, 2025, the Equal Employment Opportunity Commission (“EEOC”) released two “technical assistance” documents titled, “What You Should Know About DEI-Related Discrimination at Work” and “What To Do If You Experience Discrimination Related to DEI at Work” (“technical assistance”).  The technical assistance follows President Trump’s issuance of Executive Order 14173 (“Ending Illegal Discrimination and Restoring Merit-Based Opportunity”) on January 21, 2025, in which the president called for “ending illegal discrimination and preferences, including DEI” in the private sector.  The EEOC and Department of Justice announced in a press release that the purpose of the technical assistance is “to help educate the public about how well-established civil rights rules apply to employment policies, programs, and practices—including those labeled or framed as ‘DEI.’”Continue Reading EEOC Technical Assistance: “What You Should Know About DEI-Related Discrimination at Work”

As explained in a prior blog post, on January 21, 2025, President Trump signed Executive Order 14173 (“Ending Illegal Discrimination and Restoring Merit-Based Opportunity”) (the “EO”), establishing new requirements for federal contractors and grant recipients to agree that their compliance with federal anti-discrimination laws is “material to the government’s payment decisions” for purposes of the False Claims Act (“FCA”) and to certify that they do not operate any “programs promoting DEI that violate any applicable Federal anti-discrimination laws.”  On February 21, a federal judge in the District of Maryland granted a preliminary injunction to block these and other portions of the EO, including potential FCA enforcement actions based on the certification provision, as well as a provision of Executive Order 14151 (“Ending Radical and Wasteful Government DEI Programs and Preferencing”).Continue Reading Federal Appeals Court Reinstates Provisions of DEI Executive Orders

On January 21, 2025, President Trump issued the Ending Illegal Discrimination and Restoring Merit-Based Opportunity Executive Order (the “EO”), which revokes Executive Order 11246, a 60-year-old Civil Rights-era directive that prohibited federal contractors from discriminating on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin, and required federal contractors to take affirmative action to provide equal opportunity in employment. The EO seeks to “end[] illegal preferences and discrimination” and “promote individual initiative, excellence, and hard work” by ending the use of “dangerous, demeaning, and immoral race- and sex-based preferences under the guise of so-called ‘diversity, equity, and inclusion’ (DEI) or ‘diversity, equity, inclusion, and accessibility’ (DEIA)” programs. The EO does so by prescribing required contract provisions for federal contracts and by requiring specific reports from the heads of federal agencies, including identification of private entities for potential investigation, as described further below. The provisions of the EO do not apply to federal or private sector employment and contracting preferences for veterans. Federal contractors and grant recipients have until April 21, 2025 to comply with the EO’s revocation of affirmative action requirements. However, federal contractors, subcontractors, and grant recipients may become subject to the new contract provision requirements imposed by the EO without delay.1Continue Reading President Trump’s “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” Executive Order Targets Federal Contractors and the Private Sector

Five states have joined the growing number of states with pay transparency laws requiring employers to include compensation information in job postings.  An Illinois law and a Minnesota law took effect on January 1, 2025, and New Jersey, Vermont, and Massachusetts laws will take effect later this year.  While the new laws differ in their specific requirements, they generally mirror pay transparency statutes passed in recent years in other states, including California, Colorado, and New York, that require employers to disclose pay ranges, and sometimes benefits information and other compensation, in job postings.  Continue Reading New Pay Transparency Laws Effective in 2025

Pursuant to the New York Paid Prenatal Leave Law (the “PPL Law”), beginning on January 1, 2025, New York employers must provide employees with 20 hours of paid leave for prenatal healthcare service appointments during their pregnancy or related to pregnancy (“Paid Prenatal Leave”) in a 52-week period. The PPL Law amends the New York State Sick Leave Law.Continue Reading New York Employers Required to Provide Paid Prenatal Leave

As discussed in our prior post, the U.S. Department of Labor (DOL) issued a final rule earlier this year that increased the salary thresholds required to classify certain employees as exempt from overtime pay requirements under the Fair Labor Standards Act (FLSA).  On November 15, 2024, the federal district court for the Eastern District of Texas blocked the rule nationwide just weeks before the second phase of the salary threshold increases were scheduled to take effect.  The decision reinstates the salary thresholds in effect prior to the DOL’s 2024 rule, which represent a nearly 65% decrease from the thresholds set in the 2024 rule. Continue Reading Federal District Court Vacates Biden’s DOL Overtime Rule

California Governor Gavin Newsom recently signed into law a number of employment-related assembly bills (“AB”) and senate bills (“SB”), once again altering the landscape of workplace regulation in California.  With several key new laws taking effect as soon as January 1, 2025, now is the time for employers to prepare for compliance.Continue Reading It’s That Time Again: New California Workplace Laws for 2025

National Labor Relations Board General Counsel (“GC”) Jennifer Abruzzo recently issued Memorandum GC 25-01 (“Memorandum”), suggesting new remedies for non-competes found to violate the National Labor Relations Act (“NLRA”) and proposing that the National Labor Relations Board (“NLRB”) presume “stay-or-pay” provisions to be unlawful.  Although the Memorandum is not binding law, employers should expect GC Abruzzo to direct the NLRB’s regional offices to bring complaints and seek remedies consistent with the Memorandum.  The NLRA generally only extends protections to nonsupervisory and nonmanagerial employees, and therefore the Memorandum is not applicable to non-compete or stay-or-pay provisions for employees who are supervisors or managers under the NLRA. Continue Reading NLRB General Counsel: “Make-Whole Relief” for Non-Competes and No More “Stay-or-Pay”