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Policy Week in Review – September 19, 2025
At a Glance
The Policy Week in Review, prepared by Littler’s Workplace Policy Institute (WPI), sets forth WPI’s updates on federal, state, and local matters.
WPI Urges the Department of Justice to Block Anticompetitive Pay Regulations for App-Based Workers
In response to a request for information, WPI filed comments urging the Department of Justice to investigate and block pay regulations for app-based delivery workers. These kinds of regulations dictate the amount charged by independent delivery people who connect with customers through app-based platforms. The regulations have already been adopted in New York City and Seattle, and they have also been proposed in other cities and states. WPI’s comments explain that the regulations are preempted by federal transportation law because they regulate the “prices” and “services” of motor carriers. The comments urge DOJ to sue and block the schemes before they spread.
Treasury Releases Proposed Rule on Tipped Occupations and Notice of Public Hearing
The Department of the Treasury issued proposed regulations (RIN 1545-BR63) outlining those tipped occupations that qualify for a tax deduction. Pursuant to the enactment of the One, Big, Beautiful Bill Act (OBBBA) on July 4, 2025 and its “no tax on tips” provision, the proposal identifies a list of occupations that customarily and regularly received tips on or before December 31, 2024, and provides a definition of “qualified tips” for purposes of the income tax deduction for qualified tips. The extensive list of tipped occupations is grouped under general occupational categories, including Beverage and Food Service, Entertainment and Events, Hospitality and Guest Services, Home Services, Personal Services, Personal Appearance and Wellness, Recreation and Instruction, and Transportation and Delivery. Public comments are due 30 days after the proposed rule is published in the Federal Register. Treasury also notices a public hearing for October 23, 2025, at 10:00 a.m. ET.
National Paid Leave Legislation Introduced
On September 16, 2025, Senator Kirsten Gillibrand (D-NY) and Representative Rosa DeLauro (D-CT) reintroduced the Family and Medical Insurance Leave (FAMILY) Act. The bill would create a national paid family and medical leave program by allowing up to 12 weeks of partial income for workers who take leave for serious medical conditions and family events. The bill is cosponsored by 190 House Democrats and 37 Senate Democrats. There are currently no Republican cosponsors. The legislation would need strong bipartisan support to advance. Read here for the business endorsement letter.
House Committee on Education and Workforce Advances Legislation
On September 17, 2025, the House Education and Workforce Committee on Wednesday approved six bills, including the Tribal Labor Sovereignty Act, which would restore the standard that the National Labor Relations Act does not apply to businesses owned and operating on tribal land, which are instead subject to tribal jurisdiction; the EBSA Investigations Transparency Act, which aims to improve effective Committee oversight by amending the Employee Retirement Income Security Act (ERISA) to require the Employee Benefit Security Administration (EBSA) make an annual report to Congress detailing the status of enforcement cases and active investigations; the Balance the Scales Act, which would require EBSA to submit an annual report to Congress on any “adverse interest agreements” with outside private attorneys representing individuals in potential benefit-plan lawsuits and mandates such agreements be shared with affected parties including employers or plan sponsors; the Michael Enzi Voluntary Protection Program Act, which would require the Department of Labor to establish and carry out a voluntary protection program to recognize employers’ achievement of excellence in both the technical and managerial protection of employees from occupational hazards; Direct Seller and Real Estate Agent Harmonization Act, which would amend the Fair Labor Standards Act to clarify that the definition of employee does not include any direct seller or qualified real estate agent, recognizing their status as independent contractors; and the Retire Through Ownership Act, which would amend ERISA to provide a clear definition of adequate consideration for certain closely held stock, creating a “safe harbor” for fiduciaries to rely on IRS guidance for appraising shares in an Employee Stock Ownership Plan (ESOP).
OSHA Extends Deadline to Submit Post-Hearing Comments on Heat Rule
On September 17, 2025, the Occupational Safety and Health Administration (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. As this proposed rule is in the final stages of the rulemaking process, and in light of OSHA’s interest in proceeding expeditiously with this rulemaking, Chief Administrative Law Judge Steven Henley issued an order granting an extension of 30 days. The new deadline to submit post-hearing comments is now October 30, 2025. For further Littler analysis, read here.