Workforce Bulletin

On June 18, 2025, in the case of United States v. Skrmetti, the Supreme Court of the United States (SCOTUS) upheld Tennessee’s ban on gender-affirming care for minors, concluding that the law (titled Prohibition on Medical Procedures Performed on Minors Related to Sexual Identity, Senate Bill 1 (SB1)) does not violate the Equal Protection Clause of the Fourteenth Amendment of the U.S. Constitution.

In a 6-3 opinion authored by Chief Justice Roberts, the Court affirmed the decision from the 6^th Circuit Court of Appeals, which held that under the rational basis review, SB1 does not discriminate on the basis of sex for purposes of equal protection. Employers should be aware of certain considerations following this decision.

Earlier this year, Washington enacted new amendments (the “2025 Amendments”) to its pay equity law, which will soon bring some relief to employers. Since 2023, the Equal Pay and Opportunities Act (EPOA) has required employers with at least 15 total employees and at least one Washington-based employee to include the wage scale, salary range, and other disclosures in covered job postings, as we previously explained here. The 2025 Amendments, among other things, clarify the remedies available under the EPOA and temporarily curb liability for employers who violate its pay transparency requirements. These modifications take effect on July 27, 2025.

It’s July, and the White House Artificial Intelligence (“AI”) Action Plan (“Action Plan” or “the plan”) is almost here.

In Executive Order 14179 of January 23, 2025—entitled “Removing Barriers to American Leadership in Artificial Intelligence”—President Donald Trump directed federal officials to develop an Action Plan to achieve the policies of sustaining and enhancing America’s dominance in global AI. The plan is expected to drop by July 23, to coincide with an address by the President outlining his vision for American AI.

The release of the Action Plan will follow a number of recent developments in AI at the state and federal levels that show no signs of abating. On July 15, for instance, the White House announced $90 billion in energy and data center investments in Pennsylvania, according to Reuters. Bloomberg reported the same day that President Trump is planning to sign another executive order to implement the Action Plan upon its release to push the policy forward.

As featured in #WorkforceWednesday®: This week, we examine some of the key labor and employment implications of the recently signed One Big Beautiful Bill Act (OBBBA).

What the OBBBA Means for Employers

The OBBBA introduces major shifts for employers, transforming employee benefits, executive compensation, and workforce compliance. Are you prepared to adapt?

Essential Impacts for Employers

• Dependent care and education benefits—higher flexible spending account limits and tax-favored student loan repayment programs

• Health savings accounts—expanded eligibility and coverage options for employees
• Executive compensation rules—new tax implications for public companies and nonprofits

Only two months after Missouri’s statewide paid sick and safe time law became effective, Governor Mike Kehoe signed House Bill 567, which will repeal the earned paid sick time benefit effective August 28, 2025.

As we previously reported, Missouri was one of three states to adopt a sick leave obligation for private employers, adopted through ballot measures during the 2024 election. By commencing leave accrual and usage on May 1, 2025, Missouri was the first of the three states to require private employers to provide paid sick time to all employees within the state. Currently, Missouri employers must provide one hour of paid sick and safe leave (PSSL) for every 30 hours worked.

On June 22, 2025, Texas Governor Greg Abbott signed into the law the Texas Responsible Artificial Intelligence Governance Act (TRAIGA) or (the Act). The Act, which goes into effect January 1, 2026, “seeks to protect public safety, individual rights, and privacy while encouraging the safe advancement of AI technology in Texas.”

Formerly known as HB 149, the Act requires a government agency to disclose to consumers that they are interacting with AI—no matter how obvious this might appear—through plain language, clear and conspicuous wording requirements, and more. The same disclosure requirement also applies to providers of health care services or treatment, when the service or treatment is first provided or, in cases of emergency, as soon as reasonably possible.

The Act further prohibits the development or deployment of AI systems intended for behavioral manipulation, including AI intended to encourage people to harm themselves, harm others, or engage in criminal activity (see a post by our colleagues on Utah’s regulation of mental health chatbots).

In 2023, the Maryland General Assembly passed the Maryland Child Victims Act of 2023 (“CVA”) to expand claimants’ ability to file and seek damages for alleged child sexual abuse cases, following the trend initiated by other states like New York  and New Jersey.  The CVA was signed into law by Governor Wes Moore on April 11, 2023, and became effective October 1, 2023. The law removed the statute of limitation for claims of sexual abuse that occurred while the alleged victim was a minor. The CVA also placed high caps on non-economic damages from private defendants and monetary damages from public defendants.

The June 1, 2025 Amendment Drastically Reduces the Damages Cap

On April 22, 2025,  Governor Moore signed an Amendment to the CVA that reduced damages for public and private defendants.  The Amendment, which took effect on June 1, 2025, lowers the cap on noneconomic damages for CVA cases filed on or after June 1, 2025 in the following ways:

On July 4, 2025, there were more than hot dogs and fireworks. President Trump signed the One Big Beautiful Bill Act (OBBB), a comprehensive law that implements several of the administration’s tax, health, defense, and energy policy initiatives. This followed a flurry of activity earlier in the week in which the U.S. Senate narrowly voted to approve a substitute amendment to the OBBB. The Senate version resembles a prior version of the bill approved by the U.S. House of Representatives on May 22, 2025, but with certain key changes. All citations in this post are to the Senate provisions.

Below, we provide a summary of this legislation’s notable provisions that will directly impact employee benefits and executive compensation.

However, the law is sweeping and broader than the provisions noted here. Other, more contentious provisions in the OBBB, related to Medicaid funding cuts and efforts to decrease enrollment in the Affordable Care Act Marketplace Exchange plans could indirectly cause increased enrollment in employer-sponsored plans.

As featured in #WorkforceWednesday: This week, we explore Washington State’s new employment laws on reductions in force and background checks, digital labor law notices and pay equity measures in Ohio, and New York City’s enforcement of new employer obligations related to paid prenatal leave for employees.

• Washington Overhauls Employment Laws on Reductions in Force and Background Checks
• Ohio Leads the Way, Allowing Employers to Post Digital Labor and Employment Law Notices
• Pay Equity Expands in Ohio: Cleveland Passes Ordinance
• New York Paid Prenatal Leave: NYC Adds to State Mandate, Imposes More Employer Requirements
• Other Highlights

How can today’s workplace challenges be addressed with strategies that are both legally sound and business-focused?

For general counsel and human resources (HR) executives, a holistic approach addresses legal, operational, and organizational risks to ensure advice is both comprehensive and actionable.

In this one-on-one interview, Epstein Becker Green attorney Adam Tomiak sits down with fellow attorney George Whipple. Adam discusses how his in-house experience shapes his ability to deliver thoughtful, practical solutions. Additionally, Adam explains how listening to clients, understanding their challenges, and integrating various risk factors all add up to legal strategies that align with business realities.