New IRS Guidance on Overtime and Tip Reporting Under the OBBBA
The One Big Beautiful Bill Act (OBBBA), which President Trump signed into law in July 2025, purports to eliminate taxes on overtime and tips from 2025 to 2028. Accordingly, the OBBBA requires employers to track overtime and tipped wages, and to report separate accountings of each to employees. Employers must also provide tipped employees with an occupation code from the IRS's list of tipped occupations to ensure that the employees are eligible to deduct tipped wages.
Employee Performance Management: Practical Steps to Reduce Legal Risk in the Upcoming Employment Cycle
As independent schools prepare for a new employment cycle, determining whether to invite employees to return for the 2026-2027 school year, thoughtful attention to employee performance management practices and employment agreements is critical. Increases in aggrieved employees threatening suit and filing claims to challenge personnel decisions underscore that schools must be prepared to explain and demonstrate the basis for their personnel decisions. Well-designed performance processes and carefully drafted employment letters can significantly reduce legal exposure, while also promoting employee engagement and community stability.
Is "Ozempic Face" a Disability?
As GLP-1 medications like Ozempic become more common, employers may increasingly face questions about whether obesity, weight loss, and their visible side effects can trigger protections under the Americans with Disabilities Act. A hypothetical workplace dispute highlights how employer assumptions, lingering stereotypes, and unchecked ridicule can create legal risk even after an employee's underlying condition appears to be resolved.
New Year, New Rules in New York: Key 2026 Legislative Changes Employers Need to Know
As we move into 2026, New York employers face a number of new and amended employment laws that impact workplace policies, compliance obligations, and day-to-day operations. This article provides a high-level overview of the most significant changes and highlights key considerations for employers operating in or employing individuals in New York.
Attorney Spotlight
Jen Prozinski: The beginning of the year is an excellent time for employers to review job postings for compliance with applicable state and local pay transparency laws, which are increasing in number annually. These laws generally require the employer to include in a job posting the anticipated salary range for the relevant position and, among other things, address employee benefits associated with the position. While many of these laws have an employee threshold that must be met in order for an employer to be covered, covered employers, particularly those who hire remote employees, should note that, if a position can be performed in a particular state or locality, the employer may be required to comply with the pay transparency law associated with such state and/or locality, even if the employer is headquartered in another jurisdiction. In addition, employers should also keep in mind that many pay transparency laws include hiring process requirements, such as prohibiting employers from making inquiries regarding a candidate's salary history.
In Case You Missed It
DOJ Final Rule Limits Title VI Claims to Intentional Discrimination
The U.S. Department of Justice (DOJ) has issued a Final Rule (the Rule) updating its regulations under Title VI of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, or national origin in programs and activities that receive federal funding. The Rule now requires proof of intent as the sole basis for discrimination claims, eliminating the use of statistical disparities under a so-called disparate-impact theory. By issuing the Rule, the DOJ has removed disparate-impact liability from its Title VI regulations, ending a 50-year practice that allowed civil rights enforcement agencies and courts to find actionable discrimination without evidence of explicit intent.
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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. Allison Gotfried, editor of this newsletter, invites you to share the content with your colleagues and reach out with any questions.