SCOTUS: Wilcox to Remain Off NLRB. On May 22, 2025, the Supreme Court of the United States issued a decision blocking NLRB Board Member Gwynne Wilcox’s reinstatement to the NLRB while her challenge makes its way through the courts. The stay will remain effective through the appeals stage and until the Supreme Court declines to review the case or issues a decision on the merits. 

House Passes Massive Tax Passage. Lawmakers in the U.S. House of Representatives this week passed a far-reaching tax and spending package by a narrow 215–214 vote. The bill would extend provisions of the 2017 Tax Cuts and Jobs Act, provide additional funding for national security and immigration enforcement, roll back green energy tax incentives, and add Medicaid work requirements. On the labor and employment policy front, the bill includes provisions to allow deductions for income earned as tips or overtime pay. Now it is the U.S. Senate’s turn, where some Republicans have expressed some skepticism about the bill, so any final legislation that the U.S. Congress may pass will likely be different than what the House passed this week.

Senate Says “Yes” to “No Tax on Tips.” In a surprise move, the U.S. Senate this week passed the No Tax on Tips Act (S.129). Democratic Senator Jacky Rosen (NV), a cosponsor of the bill, asked that the bill be passed via the Senate’s unanimous consent mechanism, and no one objected. Passage of a bill this significant in this manner is unusual. Here are the details:

• The bill would allow individuals a 100 percent tax deduction on income from qualified tips, up to $25,000.
• Individuals claiming the tip deduction must be employed “in an occupation which traditionally and customarily received tips,” as set forth in a pending list to be published by the secretary of the treasury.
• The deduction is available to individuals earning $160,000 or less in 2025, with this amount being adjusted for inflation going forward.

Language in the Senate-passed No Tax on Tips Act is similar in concept to the provisions included in the tax package described above. However, there are some significant differences in the details. It is unclear at this time how this will be resolved, but some form of “no tax on tips” has a very good chance of being enacted in this Congress.

2024 EEO-1 Data Collection Opens, With Warning From Acting Chair. The U.S. Equal Employment Opportunity Commission’s (EEOC) 2024 EEO-1 Component 1 data collection opened this week (May 20, 2025) with covered employers having until June 24, 2025, to file. In a statement accompanying the announcement of the opening of the data collection, EEOC Acting Chair Andrea Lucas wrote, “Your company or organization may not use information about your employees’ race/ethnicity or sex—including demographic data you collect and report in EEO-1 Component 1 reports—to facilitate unlawful employment discrimination based on race, sex, or other protected characteristics in violation of Title VII.

House Committee Examines “Modern Workers.” On May 20, 2025, the House Committee on Education and the Workforce’s Subcommittee on Workforce Protections held a hearing entitled “Empowering the Modern Worker.” The hearing focused on the benefits of worker flexibility, practical problems associated with the “ABC” worker classification test (as embodied in California’s A.B. 5), and the value of portable benefits, as set forth in the Modern Worker Empowerment Act (H.R. 1319). The hearing follows on the heels of a March 25, 2025, hearing about the application of the Fair Labor Standards Act to the modern workplace.

DOL, MSHRC Nominees on the Move. On May 22, 2025, the Senate Health, Education, Labor, and Pensions (HELP) Committee advanced the following nominations en bloc by a party-line vote of 12–11:

• Julie Hocker to serve as assistant secretary of labor and head the U.S. Department of Labor’s (DOL) Office of Disability Employment Policy
• Marco Rajkovich to serve as a commissioner of the Mine Safety and Health Review Commission (MSHRC)
• Wayne Palmer to serve as assistant secretary of labor for mine safety and health, leading the DOL’s Mine Safety and Health Administration
• Henry Mack III to serve as assistant secretary of labor, leading the DOL’s Employment and Training Administration

The nominations now move to the Senate floor.

NLRB Acting GC Issues New Guidance on Settlement Agreements. On May 16, 2025, National Labor Relations Board (NLRB) Acting General Counsel William B. Cowen issued a memorandum entitled, “Seeking Remedial Relief in Settlement Agreements.” The memorandum follows on Cowen’s rescission of various memoranda issued by his predecessor that instructed NLRB regional offices to expand the scope of remedies in settlement agreements (e.g., reimbursement of car loan payments, letters of apology, etc.). Cowen’s latest memo provides regional directors with more discretion in approving settlement agreements, and it reminds them that they should seek make-whole relief in settlement agreements, but “should be mindful of not allowing our remedial enthusiasm to distract us from achieving a prompt and fair resolution of disputed matters.” 

SCOTUS Permits Cancelation of Venezuela TPS. In an 8–1 order issued this week, the Supreme Court stayed a March 31, 2025, decision by a federal court to preliminarily block the U.S. Department of Homeland Security’s (DHS) January 28, 2025, notice of termination of the 2021 and 2023 Temporary Protected Status (TPS) designations for Venezuela. While both the Supreme Court’s order and U.S. Citizenship and Immigration Services’ (USCIS) TPS website are unclear as to the ruling’s impact on stakeholders, it appears that applicable dates for termination of the 2023 TPS designation reverts to April 7, 2025, while the 2021 TPS designation will remain in effect until September 10, 2025. Because the Supreme Court’s decision only concerns the lower court’s grant of a preliminary injunction, the underlying legal challenge to the TPS termination decision will continue.

Administration Pauses Enforcement of Mental Health Parity Regs. Last week, at the request of the U.S. Departments of Health and Human Services, Labor, and the Treasury, the U.S. District Court for the District of Columbia stayed a lawsuit challenging 2024 changes to regulations implementing provisions of the Mental Health Parity and Addiction Equity Act (MHPAEA). As a result, the departments issued a statement noting that they will not enforce the 2024 regulatory changes and will “reconsider the 2024 Final Rule, including whether to issue a notice of proposed rulemaking rescinding or modifying the regulation through notice and comment rulemaking.” 

Memorial Day. This weekend, the Buzz will take time to remember the brave men and women who died in service to our country. We wrote about the cultural and legislative origins of Memorial Day several years ago.