Labor & Employment Law Update

It is becoming more common for employees to claim “bullying” or “harassment” when a supervisor enforces rules, sets boundaries, or addresses underperformance. While it is important to take every complaint seriously, company leadership must also recognize the distinction between inappropriate conduct and the normal exercise of managerial responsibilities.

Earlier this month, the Sixth Circuit issued a decision in Bivens v. Zep that significantly narrows when an employer can be held liable under Title VII for harassment committed by a third party, such as a customer or client. The court held that an employer may only be liable in this scenario if the employer intended for the harassment to occur. This ruling departs from the EEOC’s longstanding interpretation of Title VII as well as from the majority of other federal appeals courts that have considered the issue.

On September 3, 2025, in Minnesota Chapter of Associated Builders and Contractors v. Ellison, et al., the U.S. Court of Appeals for the Eighth Circuit, in a 2-1 ruling, dismissed a lawsuit challenging Minnesota’s captive audience speech law (aka the “Employer-Sponsored Meetings or Communication Act” or the “Act”).  In short, the Eighth Circuit’s decision means that the Act remains in effect and is enforceable against Minnesota employers. 

Governor Pritzker recently signed yet another amendment to the Illinois Prevailing Wage Act (“IPWA”). While this latest change does not directly impact non-union/merit shop contractors, it does have an immediate impact on certain union signatory contractors. Courtesy of HB2488, effective June 30, 2025 forward, all contractors must ensure that their apprentices are paid full journeyworker fringe benefits—regardless of the terms in the underlying prevailing union contract.

As employers keep their eye on compliance, here are some notable employment law changes that will be effective in the coming months.

On August 14, 2025, Governor J.B. Pritzker signed Illinois House Bill 1189, which amends the Illinois Prevailing Wage Act (IPWA) in a way that impacts how “public work” projects are defined and labor hours are paid on federal construction projects in Illinois.

A recent decision from the Fourth Circuit Court of Appeals tackled the question of when an employer is obligated to provide leave as a disability accommodation when the leave request is for an indefinite length of time. In Coffman v. Nexstar Media Inc., the Fourth Circuit upheld the dismissal of a former employee’s claims under the West Virginia Human Rights Act  and the Family and Medical Leave Act, finding that her request for additional leave after a six-month absence and no definite return date was not a reasonable accommodation. The Fourth Circuit’s ruling highlights that while employers must provide reasonable accommodations for disabilities, they are not required to grant open-ended or indefinite leave to satisfy their obligations.

Join Amundsen Davis for a complimentary webcast series, Breakfast Briefing, on August 20 for a timely discussion on managing today's remote workforce, including multi-state team members, while staying compliant with national and state law.

On July 15, 2025, the U.S. Department of Homeland Security (“DHS”) released updated E-Verify compliance information related to revoked Employment Authorization Documents (“EADs”) for certain noncitizens whose parole status under the CHNV (Cuba, Haiti, Nicaragua, and Venezuela) parole program has been terminated.

This stems from a decision on May 30, 2025, in which the U.S. Supreme Court allowed DHS to terminate CHNV parole and revoke the work authorization status for individuals in the program. As a result, DHS indicated that it is revoking the EADs to individuals on a case-by-case basis. DHS indicated it has issued direct notifications informing affected individuals of the termination of their parole and revocation of their parole-based EADs. E-Verify employers must be aware of and understand these new compliance obligations related to revoked EADs.

2025 is halfway over, and already, there has been significant activity and legal developments throughout the U.S. on the state and local level.  Below is a recap of notable laws enacted throughout the U.S. that have become effective within the first half of 2025.