Sophia is a student at Harvard Law School and a member of the Labor and Employment Lab.
In today’s news and commentary, the Department of Labor scraps a Biden-era proposed rule to end subminimum wages for disabled workers; millions will lose access to Medicaid and SNAP due to new proof of work requirements; and many states have stepped up in the noncompete agreement policy space.
The Wage and Hour Division of the Department of Labor (DOL) announced that it was withdrawing its notice of proposed rulemaking published in December 2024, during Biden’s final full month in office, to end the issuance of subminimum wage certificates under Section 14(c) of the Fair Labor Standards Act (FLSA). By tossing this Biden-era proposed rule, the DOL under Trump is allowing certified employers to continue to lawfully pay below minimum wage to certain workers with disabilities. Many states, businesses, members of Congress, and disability advocates have pushed to end the 14(c) labor certificate program, arguing that it constitutes legalized discrimination.
This afternoon President Trump is expected to sign the Republicans’ domestic policy bill into law. Showing proof of work is not necessary to receive access to Medicaid currently, but this bill would require, by the end of 2026, that most adults record at least 80 hours of work, volunteering, or training per month in order to access Medicaid. The Congressional Budget Office estimates that roughly 5 million Americans will become uninsured by 2034 due to the new strict work requirement. Trump’s “Big, Beautiful Bill” also imposes a proof of work requirement on those ages 18 to 65 in order to qualify for the Supplemental Nutrition Assistance Program (SNAP). Currently, about 42 million people depend on SNAP, but millions will lose their benefits entirely as a result of the Republicans’ bill, which imposes the biggest cut to SNAP since the food stamp program started in 1939.
The Federal Trade Commission (FTC) faces a looming deadline over whether to continue defending a ban on noncompete agreements issued under former FTC chair Lina Khan. In late August of 2024, Judge Ada E. Brown of the U.S. District Court for the Northern District of Texas set aside enforcement of the noncompete rule. The FTC under the previous Biden administration appealed the district court’s ruling to the Fifth Circuit. After Trump took office, the FTC under newly appointed chair Andrew Ferguson filed a motion in March to put the case in abeyance. Ferguson spoke out against the ban when it was finalized last year, so it seems unlikely that he will fight to keep the ban alive after the abeyance ends on July 10, 2025. However, states have stepped up amidst the uncertainty with noncompetes at the federal level. California, Minnesota, North Dakota, and Oklahoma all have full bans on noncompete agreements. Nine states (Washington, Oregon, Colorado, Illinois, Virginia, Maryland, Rhode Island, New Hampshire, and Maine) have enacted bans that permit noncompetes only for workers above a certain income level. Louisiana limits noncompetes to a two-year maximum and Nevada prohibits noncompetes on hourly workers.
Daily News & Commentary
Start your day with our roundup of the latest labor developments. See all
December 2
Fourth Circuit rejects broad reading of NLRA’s managerial exception; OPM cancels reduced tuition program for federal employees; Starbucks will pay $39 million for violating New York City’s Fair Workweek law; Mamdani and Sanders join striking baristas outside a Brooklyn Starbucks.
December 1
California farmworkers defend state labor law, cities consider requiring companies to hire delivery drivers, Supreme Court takes FAA last-mile drivers case.
November 30
In today’s news and commentary, the MSPB issues its first precedential ruling since regaining a quorum; Amazon workers lead strikes and demonstrations in multiple countries; and Starbucks workers expand their indefinite strike to additional locations. Last week, the Merit Systems Protection Board (MSPB) released its first precedential decision in eight months. The MSPB had been […]
November 28
Lawsuit against EEOC for failure to investigate disparate-impact claims dismissed; DHS to end TPS for Haiti; Appeal of Cemex decision in Ninth Circuit may soon resume
November 27
Amazon wins preliminary injunction against New York’s private sector bargaining law; ALJs resume decisions; and the CFPB intends to make unilateral changes without bargaining.
November 26
In today’s news and commentary, NLRB lawyers urge the 3rd Circuit to follow recent district court cases that declined to enjoin Board proceedings; the percentage of unemployed Americans with a college degree reaches its highest level since tracking began in 1992; and a member of the House proposes a bill that would require secret ballot […]