Updates
No Risk, No Reward: Steps an Employer Can Take to Conduct an Effective Pay Audit Without Creating Greater Risk for Their Organization
Back in 2021, survey data from the Society for Human Resource Management reflected that nearly 58 percent of U.S. employers voluntarily conducted pay audits. With sweeping pay equity legislation being enacted across states and localities and a corresponding uptick in pay equity legislation over recent years, pay audits are a tool that more and more employers may use both to promote pay equity across their workforce and to ensure compliance with law. This article explores a few key steps employers can take to help ensure that they reap the rewards of pay audits without creating greater risk for their organization.
A New Force in Town: What to Know about the FTC's Joint Labor Task Force
The Federal Trade Commission (FTC) has historically focused on protecting Americans in their role as consumers. But, pursuant to a recent directive issued in February 2025 by FTC Chairman Andrew Ferguson, the FTC will also focus its efforts on protecting those same American consumers in their role as workers and participants in the economy as "sellers of labor." This directive comes on the heels of President Trump's recent executive order, Ending Illegal Discrimination and Restoring Merit-Based Opportunity, to eliminate the "illegal" diversity, equity, and inclusion (DEI) policies of federal agencies and government contractors, as discussed in our recent article on the DEI Dilemma.
An Independent School's Guide to Evaluating Federal Financial Assistance
Generally, independent schools intentionally refrain from participating in the majority of federal funding programs, preserving their ability to ensure the educational program is provided in a manner that is reflective of their unique mission and culture. However, as different programs and funding sources present themselves, the question independent schools would be wise to consider is whether and the extent to which receipt or participation would render the school a recipient of federal financial assistance. It is important to understand this, as the obligation to comply with certain federal laws and regulations is triggered by a school's receipt of federal financial assistance, and, as discussed here, so is the requirement to comply with certain executive orders.
IRS Issues Guidance Regarding ACA Reporting
Laws enacted at the end of 2024 made important changes to the ACA reporting requirements. (Our previous alert regarding the ACA reporting changes can be found here.) The laws codified an alternative option for furnishing certain forms to individuals and authorized the IRS to issue new guidance on the ACA reporting requirements. Recently, the IRS issued this new guidance.
Attorney Spotlight
John Harras: Controversies over labor relations receive significant press coverage. Controversies between employers and union-affiliated benefit funds, in contrast, receive virtually no media coverage. However, the consequences of an unresolved union benefits issue can be as significant, if not more so, than a labor relations issue. Specifically, the relationship between employers and union benefit funds is governed by the Employee Retirement Income Security Act of 1974 (ERISA). This statute empowers union benefit funds, also known as Taft-Hartley multiemployer funds, to collect contributions from employers to finance union benefits and to penalize employers that try to withdraw from the union's pension fund, which can cause significant financial distress. Consequently, even though ERISA liabilities are less publicized than labor disputes, all employers with unionized workforces should regularly consult an ERISA attorney to ensure that they avoid these ERISA pitfalls.
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About the Labor and Employment Group
The national, 40-person Labor and Employment team at Venable provides guidance and support across the full spectrum of workplace dynamics – helping employers control costs, avoid disputes, and defend themselves when litigation arises. As co-editors of this newsletter, Michael Volpe and Allison Gotfried invite you to share the content with your colleagues and reach out with any questions.