employers Archives - Lake Effect HR & Law

EEOC Proposes Rescinding Employer Demographic Data Reporting

admin — Tue, 02 Jun 2026 01:28:24 +0000

On May 14, 2026, the Equal Employment Opportunity Commission (EEOC) submitted a proposed rule to the federal Office of Management and Budget (OMB) that would likely end employers’ annual obligation to collect and report race, sex, and ethnicity data about their employees. The full contents of the proposed rule, titled “Rescission of EEO-1, EEO-2, EEO-3, EEO-4, EEO-5, And Reporting Requirement Under Title VII, the ADA, GINA, and the PWFA,” have not been released to the public. However, the EEOC has publicly stated its stance on “DEI-Related Race and Sex Discrimination,” part of the Trump Administration’s regulatory priorities, and its chair, Andrea Lucas, previously cautioned employers against using EEO-1 data to “facilitate unlawful employment discrimination.”

The requirement to file a form EEO-1 currently applies to private sector employers with 100 or more employees, and some federal contractors with 50 or more employees. The other named reports impose similar obligations on local unions, state and local governments, and primary and secondary public schools with at least 100 employees. Currently, covered employers must submit data by job category, sex, race, and ethnicity on an annual or biannual basis.

If the proposal moves forward, it will be published for public review and comment before a final rule is issued. Since the rulemaking process will take some time, employers should plan to file their 2025 EEO-1 report consistent with past years. The EEOC has not opened the 2025 data collection process as of this writing. Last year’s portal opened on May 20, with a June 24 deadline. If you need assistance with the data collection process, the attorneys and HR professionals at Lake Effect can help.

The attorneys and HR professionals at Lake Effect can provide guidance on employment-related agency and legislative actions, employment laws, regulations, and agency guidelines. We continue to monitor important legal and HR developments, as well as other information that could impact the workplace. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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ICE Expands the Definition of “Substantive” Form I-9 Violations

admin — Thu, 30 Apr 2026 14:01:15 +0000

On March 16, the U.S. Immigration and Customs Enforcement (ICE) published a new Fact Sheet entitled “Form I-9 Inspection Under Immigration and Nationality Act § 274A,” that expands the types of violations that could result in employer fines. Of note, this is the first agency update of I-9 audit elements and penalties in years so employers should pay attention and recognize this is an area of focus for the current administration.

ICE has authority to inspect employers’ compliance with the I-9 employment verification system required by the Immigration Regulation and Control Act of 1986 (IRCA). Upon receiving a Notice of Inspection, employers must produce completed Form I-9s for all current and some former employees within three business days. Regular I-9 compliance self-audits can prepare employers for such inspections, making it more likely they will be able to provide records on such a short timeline.

If ICE finds “substantive” violations of the I-9 procedure during an inspection, they can issue either a Warning Notice, which will likely result in a subsequent inspection at a later date, or a Notice of Intent to Fine, which will result in a fine unless the employer successfully challenges ICE’s findings at a hearing conducted by the U.S. Department of Justice. Fines range from $288-$2,861 per form and are subject to adjustment up or down based factors such as the employer’s size, the seriousness of the violation, and the employer’s history of compliance. The law also recognizes that employers can have “technical or procedural” I-9 failures that will not be penalized if corrected within 10 business days of notice.

ICE’s new Fact Sheet specifies types of I-9 violations that will now be considered “substantive” failures to comply. Some of the listed substantive failures are consistent with past practice, such as failure to present a timely-completed I-9 for each employee. But the new list broadens the scope of substantive violations to include more, such as:

Using the Spanish language I-9 outside Puerto Rico
Using an electronic I-9 process that does not meet all the ICE standards
Omitting the employee’s full legal name, or the signature and date of signing for the employer representative
Omitting the employee’s date of birth, citizenship status, or employee’s signature and notation of the date of signing
For foreign nationals, omitting an employee’s Alien Registration Number, foreign passport number and country of issuance, and the expiration date for an employee’s work authorization
Failure to record information about the documents examined, disclose details of an authorized alternative procedure, or complete supplemental information
Failure to print the employer’s complete name and the employee representative’s title, and provide the date of hire.

All these are items that would likely be flagged in an employer’s I-9 self-audit.
The attorneys and HR professionals at Lake Effect can assist employers with conducting proactive I-9 compliance self-audits to ensure their readiness for a formal government inspection. We also provide guidance on employment-related administrative agency actions, as well as employment laws, regulations, and agency guidelines. We continue to monitor important legal and HR developments, as well as other information that could impact the workplace. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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EEOC Rescinds Harassment Guidance

admin — Wed, 28 Jan 2026 14:47:24 +0000

On January 22, 2026, the Equal Employment Opportunity Commission (EEOC) voted 2-1 to rescind its “Enforcement Guidance on Harassment in the Workplace” (Harassment Guidance), a 190-page document which had been approved in 2024.

Although the Harassment Guidance did not have the force of law, it aimed to help employers identify and prevent activities that could constitute unlawful harassment based upon race, color, religion, sex, national origin, age, disability, and genetic information. It specifically included guidance relating to gender identity discrimination and harassment of LGBTQ+ individuals.

The withdrawal of the Harassment Guidance is consistent with the Trump Administration’s prior Executive Order directing executive agencies to enforce federal laws based upon a recognition of two sexes, male and female, specifically excluding any concept of gender identify. It signals the EEOC’s intent to investigate and litigate a much narrower scope of sex discrimination claims.

The rescission of the Harassment Guidance does not alter Title VII or any other federal anti-discrimination statute. Employers should continue to comply with those statutes as written and as previously interpreted by courts. Employers are also bound by applicable state laws prohibiting discrimination and harassment, and they should take careful note of how those terms are defined under each state’s law. This also does not alter an employer’s responsibility to educate their employees on their organization’s respectful workplace policy through periodic training.

The attorneys and HR professionals at Lake Effect can provide guidance on agency guidelines, employment laws, and regulations. We continue to monitor important legal and HR developments, as well as other information that could impact the workplace. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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Trump Executive Order Vows to Eliminate Disparate Impact Liability

admin — Mon, 23 Jun 2025 14:18:03 +0000

The Trump Administration has directed a sweeping change to employment discrimination liability under Title VII in its recent executive order titled, “Restoring Equality of Opportunity and Meritocracy.” The EO announces a new policy to “eliminate the use of disparate-impact liability in all contexts to the maximum degree possible to avoid violating the Constitution, Federal civil rights laws, and basic American ideals.”

Under current law, established by the Supreme Court in 1971 and codified by Congress through a 1991 amendment to Title VII, plaintiffs can pursue employment discrimination claims under one of two theories: (1) disparate treatment, by claiming that an employer intentionally treats an individual differently based on membership in a protected class; or (2) disparate impact, by claiming that an employer has a facially neutral policy or practice that nevertheless has a disproportionately negative impact on individuals in a protected class. In the latter case, a plaintiff need not present evidence that the employer intended to adversely affect the plaintiff or the protected group. Disparate impact theory has historically been used to challenge such policies as minimum height requirements, education or degree requirements not closely tied to job-related skills, and aptitude/personality tests.

The Trump executive order announces that disparate impact liability “is wholly inconsistent with the Constitution and threatens the commitment to merit and equality of opportunity that forms the foundation of the American Dream.” The EO therefore directs that:

Federal departments and agencies deprioritize enforcement of all statutes and regulations to the extent that they include disparate impact liability.
The Attorney General (AG) and EEOC assess pending investigations and suits that rely on disparate impact theory and take action consistent with the EO.
Federal agencies review any consent judgments or permanent injunctions that rely on the disparate impact theory and take appropriate action;
The AG assess whether the new federal policy preempts state laws or regulations that impose disparate impact liability;
The AG and EEOC jointly issue new guidance or technical assistance to employers on appropriate methods to promote equal access to employment.

The practical implications of the executive order remain to be seen. The EO is not law, and it cannot override Supreme Court precedent or existing statutory regulations. While private plaintiffs may continue to pursue disparate impact discrimination claims, employers can assume that the EEOC will not investigate or pursue disparate impact claims moving forward. We may also see challenges to state and local laws that permit disparate impact claims on the basis that those laws are preempted by new federal policy. For now, employers should act consistent with current applicable federal and state laws, carefully reviewing neutral employment policies and practices to ensure that they do not have a disproportionately negative impact on members of any protected group.

The attorneys and HR professionals at Lake Effect can provide guidance on employment-related executive actions, employment laws, regulations, and agency guidelines. We continue to monitor important legal and HR developments, as well as other information that could impact the workplace. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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Federal Judge Blocks Nationwide Noncompete Ban

admin — Wed, 21 Aug 2024 14:45:57 +0000

Lake Effect previously blogged about the FTC’s ban on noncompetition agreements. In a game-changing decision for employers, a federal judge in Texas has blocked the FTC’s nationwide ban on noncompetes, which was scheduled to take effect on September 4, 2024. The judge ruled that the FTC lacked substantive rulemaking authority to address unfair methods of competition, and further found the rule to be “unreasonably overbroad without a reasonable explanation.”

On the heels of this decision, employers need not send out employee notices that had been required under the FTC rule. However, employers are well-advised to proceed with a thorough review of current noncompete agreements and related policies. As we recently reported, noncompete agreements remain under threat from other federal and state authorities. As detailed in recent NLRB decisions and General Counsel memoranda, noncompete and nonsolicit provisions aimed at curtailing the rights of non-supervisory employees will be closely scrutinized and potentially nullified under the National Labor Relations Act. In addition, numerous states across the country have completely banned or substantially restricted noncompete agreements, some imposing fines for noncompliance.

Although employers can enjoy a reprieve from the FTC’s nationwide ban, now is not the time to be complacent about the legal status and enforceability of your noncompete and nonsolicit agreements. Reach out to your partners at Lake Effect for assistance in reviewing these important agreements and related policies.

Lake Effect is here to answer all your questions about employment laws, regulations, and new agency guidelines. We continue to monitor important legal and HR developments, as well as other information that could impact the workplace. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253. 

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FTC Ban on Noncompetition Agreements Takes Effect

admin — Thu, 08 Aug 2024 00:39:30 +0000

As we previously reported, the Federal Trade Commission (“FTC”) issued its final rule on April 23, 2024, banning noncompetition agreements and related provisions. The rule will take effect on September 4, 2024, 120 days after publication in the Federal Register. As of September 4th, employers who have employees under existing noncompete agreements and related provisions, including nonsolicitation of employees and possibly provisions such as claw backs of training pay or a signing bonus , will be required to provide an explicit notice to those employees that their agreements and policies are no longer enforceable (see the FTC’s model notice here).

There is a narrow exception to the ban for senior executives who have existing agreements. Senior executives are defined as workers who earn more than $151,164 annually and who are in “policy-making positions” i.e., an organization’s president, CEO, or the equivalent, or a personal with final authority to make policy decisions controlling significant aspects of an entity. Noncompetes entered into pursuant to the bona fide sale of business entity are also excluded from the ban. There are also exemptions for certain entities, such as financial institutions and nonprofits.

To prepare for September 4th, Employers should review their existing agreements and policies to determine who will need to receive the required notice. Given pending legal challenges that could still delay or prevent enforcement of the ban, Lake Effect recommends waiting until closer to the deadline to send the notices.

In addition, employers should revise existing agreements and policies to ensure compliance going forward. Of note, employers may keep in place agreements that protect confidentiality and client relationships. However, any existing agreements that blend these permissible provisions with soon-to-be prohibited noncompetition and related provisions will have to be revised. Employers should also be mindful of applicable state laws on the matter which may impose more stringent requirements and/or penalties relating to noncompetition provisions.

As we quickly approach September 4, 2024, Lake Effect can help assess your existing agreements, customize FTC-required notices, and recommend revisions to your agreements or handbook provisions. We will do so consistent with your mission, culture, compensation philosophy, and commitment to your employees.

Lake Effect is here to answer all your questions about employment laws, regulations, and new agency guidelines. We continue to monitor important legal and HR developments, as well as other information that could impact the workplace. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

The post FTC Ban on Noncompetition Agreements Takes Effect appeared first on Lake Effect HR & Law.

Employers Must Implement First FLSA Exempt Salary Increases on July 1, 2024

admin — Fri, 28 Jun 2024 01:12:43 +0000

Barring a last-minute, successful legal challenge, the Department of Labor’s final rule mandating higher salary levels for exempt employees will take effect Monday, July 1, 2024. On that date, employees whose job duties meet the test for the FLSA’s “white collar exemptions” must be paid a fixed salary of at least $844 per week, or $43,888 per year, in order to retain their exempt status (an increase from the current salary threshold of $684 per week, or $35,568 per year). As detailed in Lake Effect’s April 24, 2024 and June 2, 2024 blog posts, this is the first in a two-step mandatory increase to minimum salary levels for exempt employees under the FLSA. The second step will take effect on January 1, 2025, when employees will have to be paid a minimum of $1,128 per week, or $58,656 per year to remain exempt from the FLSA’s overtime requirements.

Lake Effect can answer remaining questions about exempt status requirements and implementation of the new FLSA minimum salary requirements.

Lake Effect provides guidance on all employment laws, regulations, and agency guidelines. We continue to monitor important legal and HR developments, as well as other information that could impact the workplace. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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Be Ready on July 1: Initial Increase in Salary Level for Exempt Employees to Take Effect

admin — Sun, 02 Jun 2024 22:17:47 +0000

As we previously reported, on April 23, 2024, the US Department of Labor (DOL) issued a final rule that substantially increases the minimum salary levels for exempt employees under the Fair Labor Standards Act (FLSA). As a reminder, the Final Rule called for a 2-pronged increase in salary level threshold for both the “white collar exemptions” and “highly compensated employees,” first on July 1, 2024 and then again on January 1, 2025 (please see our prior post for further details). Further updates are scheduled to occur every three years thereafter.

Employer and business groups have raised concerns about the nature and methodology of the Final Rule and have challenged the rule on several bases. A collection of business groups filed a lawsuit to block implementation of the Final Rule in the U.S. District Court for the Eastern District of Texas. They have asked for expedited consideration of their complaint. We will continue to keep you apprised of the status of this challenge.

Until then, employers should keep the impending July 1^st deadline in mind and make preparations. As we noted in our prior blog, employers should identify those exempt employees whose current salaries do not meet DOL’s new thresholds ($43,880/year or $844/week for white collar exempt employees and $132,964/year with a base of at least $844/week for highly compensated employees). Employers should then assess whether they can maintain employees’ exempt status by increasing their salaries or whether they must convert employees to non-exempt status and comply with applicable overtime pay requirements. These decisions will require careful consideration of financial and budgetary constraints, operational needs, parity among positions and between pay grades, employee morale, and the need to attract high quality candidates with competitive compensation packages.

As we quickly approach the first effective date of July 1, 2024, Lake Effect can help assess your workforce and review your compliance options consistent with your mission, culture, compensation philosophy, and commitment to your employees. Let us help you navigate this challenging new landscape.

Lake Effect is here to answer all your questions about employment laws, regulations, and new agency guidelines. We continue to monitor important legal and HR developments, as well as other information that could impact the workplace. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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Updated EEOC Guidelines on Workplace Harassment

admin — Fri, 10 May 2024 15:57:29 +0000

On April 29, 2024, the Equal Opportunity Commission (“EEOC”) released its latest Enforcement Guidance on Harassment in the Workplace (the “Guidance”). The Guidance updates prior EEOC guidelines on: (1) legally protected characteristics; (2) how harassment must affect a “term, condition, or privilege of employment;” (3) and standards for establishing liability. Although the EEOC Guidance does not have the force or effect of law, it serves as a key resource for employers, employees, counsel, and EEOC agency staff.

Notable updates to guidance on legally protected characteristics include:

Sex-based harassment includes harassment based on pregnancy, childbirth, or related medical conditions including lactation, morning sickness, using or not using contraception, and deciding to have/not have an abortion.
Sex-based harassment includes harassment based upon sexual orientation or gender identity, including repeated use of a name or pronoun that is inconsistent with a person’s known gender identity or the denial of access to a bathroom or other sex-segregated facility consistent with an individual’s known gender identity.
Harassment based on social or cultural expectations, assumptions, or stereotyping about how persons of a protected group may act or appear is actionable.

Updates as to how alleged harassment must affect a “term, condition, or privilege of employment” confirm:

A hostile work environment claim may be based on conduct that occurs in a work-related context but outside an employee’s regular workplace, i.e., at an offsite training, employer-provided housing, or employer’s annual holiday party.
Harassment may occur in a virtual environment, i.e., via employer’s email system, message system, videoconferencing technology, intranet, etc.
Even non-work-related behavior can be unlawful harassment if it impacts an employee’s workplace. This can include electronic communications using private phones, computers, or social media accounts. However, social media posts alone generally will not contribute to a hostile work environment if they do not target the employer or its employees.

Key updates as to the standards for establishing liability specify:

An Employer can only defend against a harassment claim if it took adequate steps to prevent harassment in the first place. This requires a showing that the employer has an effective anti-harassment policy, complaint process, and training. The Guidance lists features of each component that must be present in order for that component to be deemed effective.
Even if its preventive measures are adequate, an employer may be liable for harassment if it fails to conduct a prompt and adequate investigation of an employee complaint. The investigation should be conducted by a well-trained, impartial party and seek information from all parties involved.

The EEOC’s updated Guidance reflects its renewed, laser focus on combatting workplace harassment of all types. Now is the time to review your anti-harassment policies, procedures, training, and investigation processes. Lake Effect can help improve these critical components of your comprehensive anti-harassment program to ensure that they serve your employees, meet the EEOC latest standards, and minimize exposure to future claims.

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US Department Of Labor Raises Salary Thresholds For Exempt Employees

admin — Thu, 25 Apr 2024 00:05:47 +0000

Employers wake up today to a daunting new landscape as they face higher salary requirements for their exempt employees. On April 23, 2024, the US Department of Labor (DOL) issued a final rule that substantially increases the minimum salary levels for exempt employees under the Fair Labor Standards Act (FLSA). If an employee’s job duties and fixed salary level meets specified requirements under the FLSA, they are deemed exempt, and employers are not required to pay them overtime under FLSA.

As set forth in the DOL’s final rule, the FLSA exempt salary thresholds will increase in two steps over the next 9 months. Effective July 1, 2024, employees whose job duties meet the test for the FLSA’s “white collar exemptions” must be paid a fixed salary of at least $844 per week, or $43,888 per year, in order to retain their exempt status (an increase from the current salary threshold of $684 per week, or $35,568 per year). Effective January 1, 2025, those employees must be paid a minimum of $1,128 per week, or $58,656 per year to remain exempt from the FLSA’s overtime requirements.

The DOL’s final rule also increases the minimum salary level for “highly compensated employees” under the FLSA. For this group of employees, the FLSA imposes a minimal, less detailed job duties test but a much higher compensation requirement to qualify for exempt status. Effective July 1, 2024, highly compensated employees must be paid a fixed salary of at least $132,964 per year, including at least $844 per week paid on a salary or fee basis in order to retain their exempt status (an increase from the current salary threshold of $107,432 per year, including at least $684 per week paid on a salary or fee basis). Effective January 1, 2025, these employees must be paid a minimum of $151,164 per year (including at least $1,128 per week paid on a salary or fee basis) to remain exempt.

In its final rule and accompanying FAQs, the DOL also specifies that beyond the increases specified at this time, it will continue to update minimum salary and compensation levels every three years based upon up-to-date wage data and methodologies. The first three-year-update will occur on July 1, 2027. Finally, the DOL confirms that it is not making any changes to the existing job duties tests for exempt employees under the FLSA.

Confronted with these new salary requirements, employers will face difficult choices. The first order of business will be to identify those exempt employees whose current salaries do not meet DOL’s new thresholds. Employers should then assess whether they can maintain employees’ exempt status by increasing their salaries or whether they must convert employees to non-exempt status and comply with applicable overtime pay requirements. These decisions will require careful consideration of financial and budgetary constraints, operational needs, parity among positions, employee morale, and the need to attract high quality candidates with competitive compensation packages.

As we quickly approach the first effective date of July 1, 2024, Lake Effect can help assess your workforce and review your compliance options consistent with your mission, culture, and commitment to your employees. Let us help you navigate this challenging new landscape.

Lake Effect is here to answer all your questions about employment laws, regulations, and new agency guidelines. We continue to monitor important legal and HR developments, as well as other information that could impact the workplace. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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