Articles by Our Attorneys

The Trump administration continues to cause upheaval in the world of employment law in February 2025. See the latest developments below.

EEOC Drops Seven Transgender Discrimination Lawsuits Following Executive Order

The U.S. Equal Employment Opportunity Commission (EEOC) has withdrawn seven lawsuits alleging workplace discrimination against transgender and nonbinary employees. The agency cited a conflict with President Donald Trump’s executive order recognizing only two genders, which was issued on January 20.

The EEOC stated in court filings that continuing the lawsuits may be inconsistent with the order and subsequent guidance from the Office of Personnel Management. As a result, affected workers must seek private legal representation if they wish to continue their cases.

Among the dropped cases was a lawsuit against a Chicago pizza chain, where a Black transgender employee was allegedly harassed and fired after being outed. Another involved a hotel franchisee accused of misgendering and firing a transgender housekeeper. Additional cases included claims of workplace harassment and discrimination at an Illinois hog farm, a fast-food franchise, and other businesses.

While the EEOC’s decision halts its legal action, the impacted employees still have the option to pursue justice through private lawsuits.

NLRB Acting General Counsel Rescinds Prior Policy Memoranda

On February 14, 2025, William Cowen, the Acting General Counsel for the National Labor Relations Board (NLRB), rescinded over a dozen policy memoranda issued by his predecessor, Jennifer Abruzzo. This action signifies a notable shift in labor policy, as the rescinded memoranda had addressed various issues, including expanded remedies, noncompete agreements, and severance agreements. Cowen’s rescission effectively “wipes the slate clean,” allowing for the establishment of a new labor policy agenda at the NLRB. That being said, the action does not overturn existing NLRB decisions made in recent years.

DOJ Initiates Enforcement Against DEI Initiatives

On February 5, 2025, Attorney General Pam Bondi issued memoranda signaling the Department of Justice’s (DOJ) intent to enforce President Trump’s Executive Order 14173, titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” This executive order aims to eliminate certain diversity, equity, and inclusion (DEI) initiatives deemed inconsistent with merit-based principles. The DOJ’s enforcement efforts reflect a broader governmental shift toward scrutinizing DEI programs within organizations, emphasizing adherence to traditional merit-based criteria in employment practices.

Jeff Burke is an attorney at MacElree Harvey, Ltd., working in the firm’s Employment and Litigation practice groups. Jeff counsels businesses and individuals on employment practices and policies, executive compensation, employee hiring and separation issues, non-competition and other restrictive covenants, wage and hour disputes, and other employment-related matters. Jeff represents businesses and individuals in employment litigation such as employment contract disputes, workforce classification audits, and discrimination claims based upon age, sex, race, religion, disability, sexual harassment, and hostile work environment. Jeff also practices in commercial litigation as well as counsels business on commercial contract matters.

The employment law update is back for the new year! In this edition, President Trump’s Executive Order has an immediate impact in EEO litigation, the Supreme Court gives a win to employers in wage and hour law, and Amazon runs afoul of labor relations law.  Read all about it in the January 2025 update. 

Federal Judges Halt Republican Attorneys General’s Challenges to EEOC Guidance and definition of Gender Dysphoria as Disability following Trump Executive Order 

A Tennessee federal judge rejected a motion by a coalition of Republican state attorneys general to pause U.S. Equal Employment Opportunity Commission (EEOC) guidance on workplace harassment. U.S. District Judge Charles E. Atchley Jr. ruled that a recent executive order from President Donald Trump may have rendered the legal challenge moot. 

The states’ lawsuit, filed in May, argued that the EEOC exceeded its authority by requiring employers to accede to workers’ preferred gender identities in pronoun use, bathroom access, and dress codes. However, Trump’s January 20 executive order rescinded the guidance, prompting the judge to deny the motion for a preliminary injunction without prejudice. 

Judge Atchley emphasized that the legal landscape had changed, necessitating new briefs to reflect the executive order’s implications. He allowed the states to refile their motion within 21 days if they wished to continue pursuing injunctive relief. 

While Trump’s administration moved to roll back LGBTQ protections, Democratic EEOC commissioners opposed the changes and vowed to uphold anti-discrimination mandates.  The case is State of Tennessee et al. v. Equal Employment Opportunity Commission et al., case number 3:24-cv-00224, in the U.S. District Court for the Eastern District of Tennessee. 

In a similar series of events, a Texas federal judge granted a stay in a Republican-led lawsuit challenging a Biden-era U.S. Health and Human Services (HHS) rule that defines gender dysphoria as a disability. U.S. District Judge James Wesley Hendrix paused the case after HHS requested more time to evaluate the impact of a new executive order restricting “gender ideology.” 

The lawsuit, led by Texas Attorney General Ken Paxton and 16 other Republican attorneys general, claims HHS exceeded its authority under the Rehabilitation Act and the Americans with Disabilities Act. The court ordered both parties to file a joint status report by Feb. 25. 

That case is State of Texas et al. v. Becerra et al., case number 5:24-cv-00225, in the U.S. District Court for the Northern District of Texas. 

Supreme Court Rejects Heightened Evidence Standard for FLSA Exemptions 

In a unanimous decision sure to please employers, the U.S. Supreme Court ruled that exemptions under the Fair Labor Standards Act (FLSA) do not require a heightened burden of proof. The case, EMD Sales Inc. et al. v. Carrera et al., centered on whether a “clear and convincing evidence” standard should apply when determining overtime exemption classifications. Instead, the Court reaffirmed that the lower “preponderance of the evidence” standard remains the default. 

Justice Brett Kavanaugh, writing for the Court, rejected arguments advocating for a stricter standard, emphasizing that other critical workplace laws, such as Title VII of the Civil Rights Act, also adhere to the preponderance standard. The ruling overturned a Fourth Circuit decision that had previously required EMD Sales Inc. to prove the outside sales exemption under the higher standard. 

The Court clarified that departures from the preponderance standard occur only in three instances: when a statute explicitly demands it, when the Constitution requires it, or when Supreme Court precedent mandates it in cases involving severe government action. The decision ensures that wage and hour disputes under the FLSA align with general civil litigation principles, impacting future classification disputes across industries. 

Amazon Violated Workers’ Rights with Restrictive Communication Rules, NLRB Judge Rules 

A National Labor Relations Board (NLRB) judge ruled that Amazon unlawfully restricted workers’ communications on its internal MyVoice platform. Judge Michael Rosas found that Amazon’s policies violated the National Labor Relations Act by discouraging employees from sharing workplace concerns or union-related messages. 

Amazon’s MyVoice rules included provisions that prevented employees from sharing personal details or passing information to unions, which Judge Rosas deemed overly broad and ambiguous. The judge noted that prohibiting employees from sharing their own medical information could stifle discussions about workplace safety. 

Additionally, Amazon was found to have illegally disciplined worker Anthony Mundorff at its Deltona, Florida, facility for writing “OSHA” and union-related phrases on a work cart. The judge ruled that these writings were protected speech under the NLRA and ordered Amazon to remove the disciplinary action from Mundorff’s record. 

As part of the ruling, Amazon must rescind the unlawful MyVoice rules and post notices nationwide informing employees of their rights. The decision reinforces workers’ rights to engage in protected workplace advocacy without fear of retaliation, setting a significant precedent for labor relations in the tech and e-commerce industry. 

Jeff Burke is an attorney at MacElree Harvey, Ltd., working in the firm’s Employment and Litigation practice groups. Jeff counsels businesses and individuals on employment practices and policies, executive compensation, employee hiring and separation issues, non-competition and other restrictive covenants, wage and hour disputes, and other employment-related matters. Jeff represents businesses and individuals in employment litigation such as employment contract disputes, workforce classification audits, and discrimination claims based upon age, sex, race, religion, disability, sexual harassment, and hostile work environment.  Jeff also practices in commercial litigation as well as counsels business on commercial contract matters.