Insights on Labor, Employment & OSHA

In 2025, the retail and fashion industries are bracing for a transformative year, heavily influenced by the policies of the new Trump Administration. These policies promise rapid and significant changes, particularly in areas such as trade, tariffs, and immigration, which will profoundly affect global supply chains and labor dynamics.

ArentFox Schiff represented Triumvirate Environmental, Inc. in its recently completed transaction with Boston-based private equity firm, Berkshire Partners, pursuant to which Berkshire made a significant growth investment in Triumvirate, based upon a company valuation of $1.8 billion.

On December 21, 2024, New York Governor Kathy Hochul signed into law the New York State Fashion Workers Act, which imposes new regulatory obligations on fashion companies, advertising agencies, model management companies, and other entities that work with fashion models.

Many parties are rightly concerned about the impact of yesterday’s announcement that nearly all federal funds will be frozen for an indeterminate period. Minutes before it was intended to go into effect today, a federal judge in Washington, DC, temporarily ordered the freeze to be lifted until at least Monday February 3, when a full hearing will occur as to whether the freeze is permissible under federal administrative procedure laws and the First Amendment.

ArentFox Schiff is pleased to announce the addition of Partner Andrew S. Wong to its Complex Litigation practice in the firm’s Los Angeles office.

On January 14, the US Department of Labor’s (DOL) Wage and Hour Division (WHD) published two opinion letters, FLSA2025-1, which addresses tip pooling under the Fair Labor Standards Act (FLSA), and FMLA2025-1-A, which provides guidance on how employers may coordinate paid family leave benefits with leave taken under the Family Medical Leave Act (FMLA).

Following his inauguration on January 20, President Trump signed a slew of executive orders, including a handful related to Diversity, Equity, and Inclusion (DEI) initiatives.

Educating employees about sexual harassment — what it is, that it is unlawful, that your organization won’t tolerate it, how to prevent it, how to respond to it, etc. — can contribute to safer and more productive workplace, plus reduce exposure to successful harassment claims. Recognizing that, on their own, many employers have implemented sexual harassment prevention training programs.

Employers are paying close attention to pay transparency laws, which are the latest trend in employment legislation. Often expanding on existing pay equity laws, many state and local governments have enacted or proposed legislation with the stated goal of reducing pay inequity and combating wage discrimination.

On June 27, 2023, the Pregnant Workers Fairness Act (PWFA), a federal law enforced by the US Equal Employment Opportunity Commission (EEOC), went into effect. The PWFA mandates that employers with at least 15 employees, along with other covered entities, provide reasonable accommodations for employees with known limitations related to, affected by, or arising out of pregnancy, childbirth, or related medical conditions.

Beginning on January 1, 2025, New York employers in the private sector will be required to provide up to 20 hours of paid leave during any 52-week period for employees to attend prenatal appointments or obtain health care services related to their pregnancy.

Employment arbitration agreements are an important tool for employers who wish to resolve workplace disputes in a more streamline fashion and, more importantly, avoid class and collective actions. However, enforcing arbitration agreements can become challenging and complex, especially when multiple related entities and non-signatories are involved.

ArentFox Schiff is pleased to announce the election of 15 new partners, effective January 1, 2025.

The National Labor Relations Board (NLRB) has reinstituted a union-friendly standard for determining whether an employer’s unilateral changes to the terms and conditions of employment violate the National Labor Relations Act (NLRA). Going forward, an employer acting unilaterally must show that the union surrendered its right to bargain through a “clear and unmistakable waiver.” This significantly raises the bar employers must clear to act unilaterally, while providing unions with more avenues to challenge employer actions.

ArentFox Schiff’s Rob Carrol, Lynn Fiorentino, Jeffrey Weston, Noah Woo, Brett Young, Alex Rafuse, Marissa Rael, and Sai Paspulati provided an overview of new California employment laws that will go into effect next year, recent regulatory changes, and a recap of noteworthy legal developments this year.

On November 4, 2024, New York City Mayor Eric Adams signed into law the Safe Hotels Act, establishing a licensing requirement for hotels that operate in New York City. The Act requires most new and existing hotels to implement consumer safety and cleanliness protocols, maintain continuous front desk coverage, directly employ certain “core” employees, and train its employees to identify and combat human sex trafficking.

On November 16, New York’s Clean Slate Act took effect. The purpose of the Act is to aid in curbing discrimination in the workplace against individuals with certain New York State criminal convictions. As discussed below, the Act will limit the types of criminal convictions that employers can access and dictates how they must handle the information that they are made aware of when considering it in connection with employment actions, such as hiring or continued employment.

In Rodriguez v. Lawrence Equipment, Inc., Case No. B325261 (Nov. 8, 2024), the California Court of Appeal held that an employee who loses their Labor Code claims in an individual arbitration no longer has standing to pursue a claim on behalf of others in court under the Private Attorneys General Act (PAGA).

Employers wanting to create a more equitable and legally compliant workplace while also reducing their risk of litigation may want to pay particular attention to the California Court of Appeal’s recent decision in Wawrzenski.

ArentFox Schiff has been nationally recognized with 35 top rankings in the 2025 edition of Best Law Firms®, which honors firms for professional excellence based on consistently positive ratings from clients and peers.

AFS successfully represented Sutil Group, a leading Chilean agricultural business group, in the acquisition of California-based Sunshine Raisin Corporation, one of the top processors of premium-quality dried fruits in the United States.

Effective November 21, Massachusetts employees will be permitted to use their sick time to “address the employee’s own physical and mental health needs, and those of their spouse, if the employee or the employee’s spouse experiences pregnancy loss or a failed assisted reproduction.”

On September 30, California Governor Gavin Newsom signed into law SB 399, the “California Worker Freedom from Employer Intimidation Act.”

In a rare positive decision for employers in Massachusetts, one of the Commonwealth’s district appellate courts held that a retention bonus is not a wage under the Massachusetts “Wage Act” (G.L. c. 149, § 148).

On August 28, the US Department of Justice (DOJ) Antitrust Division, which enforces the US antitrust laws including the Sherman Act and Clayton Act, and the Federal Trade Commission (FTC) announced that they entered into a Memorandum of Understanding on Labor Issues in Merger Investigations (MOU).