Welcome to the latest edition of AlphaStaffHCM’s Monthly Compliance Updates!
We are pleased to provide you with this September edition of the AlphaAdvisor featuring federal and state legal updates. This edition features guidance on the new $100,000.00 payment for H1-B Visas, political speech in the workplace, and more. This edition also includes highlighted resources provided by some of AlphaStaffHCM’s trusted legal partners, to guide and help keep you in compliance.
For additional resources and compliance guidance, please explore our webinar series. Here is a link to our webinars this past month, including a deep dive into current immigration issues and updates on Temporary Protected Status with one of legal partners, Ogletree Deakins.
Note: The information contained in this Compliance Update should not be relied upon as legal advice.
Federal Law Updates
Department of Labor Regulatory Updates
Under Trump’s administration, various government agencies have signaled a retreat on Biden era final rules. The following is the latest guidance regarding the Department of Labor’s (“DOL”) current position regarding important topics for employees:
2024 Minimum Salary Exemptions:
There has been no movement in the litigation on the overturn of the rule increasing the minimum salary threshold for exempt status. It appears the issue may never reach the Supreme Court as lower federal courts have held the DOL had no authority to impose any salary level. Currently, the minimum salary level for the white-collar exemption is $684 per week ($35,568 per year), set by the 2019 rule. For the highly compensated employee exemption, the minimum salary is $107,432. Pursuant to the litigation the DOL must provide updates on the status of the rulemaking.
In its August 29, 2025 status report, the DOL told the court that it “has deliberated and concluded that the Department will undertake further regulatory action (…). The details of that further regulatory action, and the scope of its effect on the challenged rule, will be made public through the regulatory process,” indicating that the DOL will likely impose a new minimum salary threshold rule in the future.
Federal Contractor Minimum Wage:
Similar to the overturn of the rule increasing the minimum salary requirement, under the Trump administration, the minimum wage reverts to $13.30 per hour for federal contractors. Rescinding the Biden era increase also effectively restores the exclusion for recreational services contractors, so the standard federal minimum wage rate ($7.25 per hour) applies to these businesses.
For now, the DOL rule implementing the increase remains legal, but DOL has announced it will not enforce the rule and intends to rescind it, which will require formal rulemaking. The open question is whether Trump will maintain the $13.30 federal contractor minimum wage rate or issue an Executive Order adjusting the minimum wage.
Independent Contractor versus Employee Rule:
There has been ample back and forth regarding the application of the 2024 independent contractor rule which rescinded the Trump administration’s previous test and replaced it with the “economic realities” test. With the nation returned to Trump’s second term, there are five legal challenges pending on the 2024 rule. DOL has stated that it will not enforce the 2024 rule and will revert to the 2008 fact sheet for now.
Although DOL will not enforce the 2024 rule, the DOL has made no formal move to rescind it. The rule remains in effect on a technical basis for purposes of litigation between private parties relating to independent contractor status under the FLSA, opposed to regulatory action taken by the DOL. However, courts and judges will likely not rely on the 2024 rule given the DOL’s refusal to enforce the rule, the DOL’s changing positions on the issue, and the agency’s likely intent to rescind the rule, creating an unclear standard of law for employers to follow.
As we await the DOL’s next move, there’s good reason to assume the DOL will rescind its 2024 final rule and perhaps restore its 2021 rule, or some modified version of it to address prior challenges to the rule.
“Dual Jobs” Rule for Tipped Workers:
The “dual jobs” for tipped employees under the Biden Era limited “nontipped” work to 20% (or 80/20 rule) impacting how much time an employee who is receiving tips and being paid at a lower minimum wage (“tip credit”) can work on “nontipped work” to 20%, spending 80% of their job engaging in work that allows them to receive tips. With a federal court’s decision to vacate the 2021 rule, the DOL enforced the “dual jobs regulation” resulting in no brightline time restrictions on nontipped work.
DOL has indicated their plan to rescind the dual jobs regulation, meaning employers of tipped workers may soon face a regulatory black hole. Because courts will have no regulatory guidance, courts that adopted the 80/20 rule may continue to impose it even in the absence of a regulation. After the Fifth Circuit vacated the Biden rule, several courts outside the Fifth Circuit have continued to apply the 80/20 rule. Employers should tread carefully to avoid unclear litigation until the DOL issues a workable replacement rule, or Congress revises the FLSA’s tip credit provisions to provide clear criteria for when employers may take the tip credit against minimum wage.
FLSA Exemption Status for Home Healthcare Workers Employed by Third Parties:
In July 2025, the DOL issued a proposed rule to restore application of exemption for “companionship services” from minimum wage and overtime to third-party agencies that employ home healthcare workers. In 2013, the Obama Administration issued a rule excluding third-party employers from claiming the exemption, meaning the exemption would apply only to workers hired directly by the individual for whom the employee is providing home care services. In July 2025, the Wage and Hour Division issued a bulletin advising staff to discontinue enforcement of the 2013 rule, including for open cases, take no enforcement against third-party employers claiming the exemption, and give no consideration to limits on the time home care workers spend providing “care” when determining whether a home care worker is providing companionship services for purposes of the exemption.
Read more on the DOL’s latest updates and how employers may comply with these issues here.
EEOC Cracks Down on Pregnant Workers Fairness Act Compliance
The Equal Employment Opportunity Commission (“EEOC”) recently announced a settlement including $47,480 in damages and revision to policies and procedures to resolve a discrimination charge alleging an employer terminated a pregnant employee after she requested a reasonable accommodation to attend medical appointments. This settlement reminds employers to educate managers on the Pregnant Workers Fairness Act (“PWFA”) and how it mirrors Americans with Disabilities Act (“ADA”) compliance. Read more about how employers can comply with the PWFA and accommodate pregnant employees, here.
FTC’s Withdrawal on Non-compete Ban
The 2024 Biden era Federal Trade Commission issued a rule that all non-competes were banned due to limiting the freedom of workers’ rights to change jobs. Now, in a 3-1 commissioner majority decision, the FTC has dropped all appeals to uphold that decision and withdraws the non-compete ban. However, the FTC will still enforce unlawful non-competes. Employers should ensure compliance with the numerous state noncompete laws but also should work with counsel to develop a restrictive covenant program tailored down to the various job duties within their organization. Read more here. Employers can also read more about some of the industries the FTC may specifically target, like healthcare, here.
How Employers Should Handle Free Speech in a Volatile Climate
In the present-day culture of social media, doxxing, and “canceling”, employers may feel forced to respond to employee’s politically charged rants, but taking disciplinary action against employees may result in risk. The First Amendment’s freedom of speech does not apply to private employers, but employers should be aware of state laws that may protect off-duty behavior. Many states, including California, New York, and Colorado, have statutes protecting employees from retaliation for lawful off-duty conduct. Minnesota, Connecticut, Louisiana, South Carolina, and Wyoming are among the states that specifically protect off-duty political activity. The National Labor Relations Act may also protect employees if the language relates to employment conditions. Learn more about what employers can do, here.
New Cost for H-1B Visas
Beginning September 21, 2025, the United States Citizenship and Immigration Services will require a $100,000.00 payment to accompany new applicant H-1B visas. This will not impact current H-1B visa holders but will apply to applicants submitting on or after September 21, 2025. Based on how H-1B visas work and some additional guidance from the Department of State, it appears this may practically go into effect in the 2026 lottery. Although timing is unclear and litigation is certainly expected, employers should plan to pay $100,000.00 for new applicants. Read more about next steps employers can take, here.
State Law Updates
Florida Lifts Open Carry Ban, Potential Impact on Employers
A Florida appeals court has found the state’s ban on open carry of firearms unconstitutional, and Florida Attorney General has confirmed open carry of firearms is now legal statewide. Private employers can still ban the possession of firearms in the workplace, but the decision raises questions about the impact on employer policies and procedures given the new law. Read more about the potential impact on employers here.
Florida Planned Minimum Wage Increase September 30, 2025
As part of a previously approved (by voters) constitutional amendment, the state of Florida will increase minimum wage for most non-exempt workers to $14.00 per hour on September 30, 2025. Minimum wage on tipped wages will increase to $10.98 per hour on September 30, 2025. Failure to comply can result in damages and a $1,000 fine per violation. Read more about how employers should comply and the raises for 2026 here.
Action Item: AlphaStaffHCM will automatically adjust pay rates pursuant to this minimum wage increase for applicable employees of our payroll clients with employees in Florida.
Illinois Amends Mothers in the Workplace Act
Effective January 1, 2026, Illinois employers must provide reasonable paid break time to employees who need to express breast milk for their nursing infant for up to one year after the child’s birth. That paid break time may run concurrently with any break time already provided to the employee. To ensure compliance, employers should review and revise their lactation accommodation policies. Employers should also consider the federal PUMP for Nursing Mothers Act (PUMP Act) and Pregnant Workers Fairness Act when reviewing these policies. Read more about how employers can comply and plan to amend their policies, here.
Get Calendar and Email Reminders
Minnesota’s Paid Family and Medical Leave Law
Minnesota Department of Employment and Economic Development has published the final rule on Minnesota’s Paid Family and Medical Leave Law going into effect on January 1, 2026. Employers are to provide notice of the new law to all employees by December 1, 2025. Eligible employees can take up to 12 weeks of medical leave and 12 weeks of family leave. The paid Leave provides job protection and partial wage replacement to employees who take leave for a qualifying condition. The benefits are paid by the state and funded by premiums contributed by employers and employees. Read more about the employer premiums and how Minnesota employers can comply with the new law here.
Action Item: For our clients, AlphaStaffHCM will update all onboarding documents for new employees and provide Minnesota employers with updated notice documents for existing employees.
Get Calendar and Email Reminders
Contact AlphaStaffHCM if you would like to learn more about compliance support and solutions available.