Labor & Employment Law Update

The Big Beautiful Bill, signed into law by President Trump on July 4, 2025, spans nearly 900 pages and touches numerous aspects of federal policy. Nestled within this lengthy legislation are employee benefits provisions that will require employers to navigate new rules, opportunities, and compliance requirements.

From additional tax deductions for workers to new savings vehicles for children, the benefits-related sections introduce changes that span traditional compensation structures, family support programs, and organizational compliance obligations.

Amundsen Davis's Breakfast Briefing Series continues on Wednesday, July 16 at 8:00 AM CT. Join Labor & Employment Partner Jeff Risch for a timely presentation dedicated to terminating the problem employee while diminishing legal risks.

On January 1, 2025, we saw the Illinois minimum wage increase from $14.00 to $15.00 per hour.  The City of Chicago is increasing its set minimum wage on July 1, 2025 for employers with four (4) or more employees.  Cook County’s minimum wage, on the other hand, will not increase on July 1, 2025, and will remain the same as the applicable statewide minimum wage.

Yesterday, the U.S. Supreme Court clarified in the case of Ames v. Ohio Dept. of Youth Services, that “the standard for proving disparate treatment under Title VII does not vary based on whether or not the plaintiff is a member of a majority group.” By unanimous decision, the U.S. Supreme Court reversed the Sixth Circuit Court of Appeals, which applied a standard of proof that required workers in a “majority group” to meet a more rigorous burden than others who have historically faced discrimination. By removing these extra hurdles, the Supreme Court made it easier for employees who are in the majority (i.e., white men and women and heterosexuals) to prove “reverse” discrimination claims.

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.