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Beltway Buzz, March 21, 2025
Friday, March 21, 2025

The Beltway Buzz™ is a weekly update summarizing labor and employment news from inside the Beltway and clarifying how what’s happening in Washington, D.C., could impact your business.

DEI EOs “Unblocked.” T. Scott Kelly and Zachary V. Zagger have the details on a decision by the U.S. Court of Appeals for the Fourth Circuit that will allow the federal government to enforce its DEI-related executive orders (EO) (EO 14151 and EO 14173) while a decision on the merits awaits appeal. This means that the federal government can once again, for example, require federal contractors to certify that they do not operate diversity, equity, and inclusion (DEI) programs that violate federal antidiscrimination laws. It also means that the U.S. attorney general can pursue legal challenges to private-sector DEI programs “that constitute illegal discrimination or preferences.” Other legal challenges to the DEI executive orders are still pending.

EEOC Issues Technical Assistance on DEI. The U.S. Equal Employment Opportunity Commission (EEOC) this week issued two technical assistance documents, “What You Should Know About DEI-Related Discrimination At Work” and “What To Do If You Experience Discrimination Related To DEI At Work.” The first document, in particular, cautions employers that an “initiative, policy, program, or practice may be unlawful if it involves an employer or other covered entity taking an employment action motivated—in whole or in part—by race, sex, or another protected characteristic.” The document then provides examples of DEI-related workplace policies and practices that the EEOC believes may violate Title VII of the Civil Rights Act of 1964. In addition to discrimination in hiring, firing, and compensation, the document notes that job duties, access to training, mentorship programs, and employee resource groups should also not be motivated in whole or in part on race, sex, or other protected characteristics. Nonnie L. Shivers has the specifics.

Secretary of State Asserts Control Over Immigration Rulemaking Process. On March 14, 2025, Secretary of State Marco Rubio published a notice in the Federal Register that will likely have a significant impact on the Trump administration’s immigration-related rulemaking protocols. In the notice, Secretary Rubio states that his primary foreign affairs duty is “to protect the people of the United States from any threats originating from foreign actors or from foreign soil” which includes policies related to the “protection and travel of U.S. citizens overseas, visa operations and visa issuance.” Rubio concludes with the following:

I hereby determine that all efforts, conducted by any agency of the federal government, to control the status, entry, and exit of people, and the transfer of goods, services, data, technology, and other items across the borders of the United States, constitute a foreign affairs function of the United States under the Administrative Procedure Act, 5 U.S.C. 553, 554. (Emphasis added.)

The “foreign affairs” exemption in the Administrative Procedure Act allows the federal government to avoid the normal notice and comment requirements of the rulemaking process. The U.S. Department of State has claimed this exemption regularly over the years, usually when going through the standard rulemaking process would result in some undesirable international consequence. Moreover, during Donald Trump’s first presidency, the administration also claimed this exemption relating to certain policy changes but was rejected by at least two federal courts. Secretary Rubio’s notice, at least on its face, would try to expand the use of this exemption beyond the State Department and extend it to other agencies involved in immigration rulemaking processes, such as the U.S. Department of Labor (DOL) and U.S. Citizenship and Immigration Services (USCIS).

Democratic FTC Commissioners Fired. This week, President Trump fired Alvaro Bedoya and Rebecca Kelly Slaughter, the two remaining Democratic commissioners on the Federal Trade Commission (FTC). FTC Chair Andrew Ferguson and fellow Republican Melissa Holyoak remain on the Commission, which can still bring cases, even with three vacant commissioner seats. Like the firings of NLRB member Gwynne Wilcox and EEOC commissioners Charlotte Burrows and Jocelyn Samuels, the removal of Bedoya and Slaughter is a further example of the administration’s efforts to assert executive branch authority over federal agency commissions and boards.

Trump Rescinds More Biden-Era EOs. On March 14, 2025, President Trump issued an executive order entitled, “Additional Rescissions of Harmful Executive Orders and Actions,” which rescinds eighteen executive orders, memoranda, and determinations issued by President Joe Biden. The rescinded EOs relating to employment policy are as follows:

  • “Increasing the Minimum Wage for Federal Contractors” (EO 14026, April 27, 2021). This EO set the minimum wage applicable to covered federal contractor employees at $17.75 per hour as of the beginning of this year (pursuant to a provision that provides for annual increases based on the Consumer Price Index). However, President Barack Obama’s Executive Order 13658, which also increases the minimum wage for covered contractors, remains in place. While still unclear at this time, federal minimum wage requirements could be $7.25 per hour or $13.30 per hour, depending on whether the contract was covered under the Biden or Obama EO. Clarification from the DOL on this would be helpful.
  • “Advancing Worker Empowerment, Rights, and High Labor Standards Globally” (Presidential Memorandum, November 16, 2023). This memorandum encouraged the promotion of workers’ rights (e.g., collective bargaining, safe workplaces, wage and hour protections, and prohibiting forced labor ) as they related to the United States’ “foreign, international development, trade, climate, and global economic policy priorities.”
  • “Scaling and Expanding the Use of Registered Apprenticeships in Industries and the Federal Government and Promoting Labor-Management Forums” (EO 14119, March 6, 2024 ). This EO directed federal agencies to promote opportunities to contract with employers that participated in union-supported registered apprenticeship programs.
  • “Investing in America and Investing in American Workers” (EO 14126, September 6, 2024). This EO encouraged federal agencies to include certain labor and employment standards in federal grants and contracts. This came to be known colloquially as the “Good Jobs” executive order.

FMCS on the Brink. Also, on March 14, 2025, President Trump issued an executive order entitled, “Continuing the Reduction of the Federal Bureaucracy,” that “continues the reduction in the elements of the Federal bureaucracy that the President has determined are unnecessary.” The Federal Mediation and Conciliation Service (FMCS) is one of seven agencies ordered to eliminate its “non-statutory components and functions … to the maximum extent consistent with applicable law.” Pursuant to the EO, the FMCS (as well as the other agencies listed) must “submit a report to the Director of the Office of Management and Budget confirming full compliance with this order and explaining which components or functions of the governmental entity, if any, are statutorily required and to what extent” by March 21, 2025. The FMCS homepage currently displays the following message: “We are reviewing recent Executive Orders for immediate implementation. The requirements outlined in these orders may affect some services or information currently provided on this website.”

House Committee Gets Its Start. On March 21, 1867, the U.S. House of Representatives did something that is near and dear to our hearts here at the Buzz: it established the Committee on Education and Labor. Following the Civil War, Congress created the committee to address issues arising from the country’s rapid industrial growth. In 1883, the committee was divided into two separate committees, the Committee on Education and the Committee on Labor. After several decades, the Legislative Reorganization Act of 1946 joined the two committees together again as the Committee on Education and Labor. The committee has existed in that form ever since, though beginning in 1995, the name has been tweaked depending on the party in the majority. When Democrats are in the House majority, it is called the “Committee on Education and Labor.” When Republicans are in the House majority, the committee is referred to as the “Committee on Education and the Workforce.”

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