EEOC Rescinds Affirmative Action Guidelines—What Employers Need to Know
On June 29, 2026, the U.S. Equal Employment Opportunity Commission (EEOC) rescinded its 1979 Guidelines on Affirmative Action Appropriate Under Title VII. The rescission, effective July 6, removes an agency framework that employers have relied upon for almost 50 years. Critically, employers can no longer use good-faith reliance on the Guidelines as a defense against employee discrimination claims.
Background Check Authorizations and Process: Small Missteps, Significant Risk
For employers that use third-party background checks, the legal risk often lies less in the substance of the report and more in the process employed to obtain and use it. The Fair Credit Reporting Act (FCRA) requires an employer to take specific steps before it may procure a consumer report for employment purposes and before it may take adverse action based on that report. Those requirements carry real consequences, and technical noncompliance—even in good faith—can expose the employer to costly class actions.
College Athletics at the Crossroads: Key NIL Licensing, AI and Related IP Issues for Universities
The NIL era has transformed college athletics from a debate over athlete compensation into a complex commercial ecosystem involving sponsorships, intellectual property, data monetization, AI, content distribution, and technology deals.
Attorney Spotlight
Stacey Bradford: Trump Accounts. Trump Accounts are special individual retirement accounts (IRAs) for children under age 18 that were created by the One, Big, Beautiful Bill Act of 2025 (OBBB). Both individuals and employers may contribute to Trump Accounts. For individuals, the federal government will make a $1,000 contribution to Trump Accounts established for children who are U.S. citizens and have a Social Security number.
Generally, Trump Accounts are for children under age 18—the Trump Account must be established by December 31 of the year the child reaches age 17. On the following January 1, the Trump Account becomes a traditional IRA. Contributions are generally made on an after-tax basis, but investment earnings accumulate tax-free. Investments are limited to an index of primarily U.S. equities (e.g., a S&P index fund), and fees may not exceed 0.1%. Distributions are not permitted until the Trump Account becomes a traditional IRA, subject to exceptions for death and a transfer to the child's ABLE account in year 17.
Employer Trump Account Programs. Effective July 4, 2026, employers may contribute up to $2,500 annually on a tax-free basis to Trump Accounts for employees' dependent children under age 18, while total contributions to a Trump Account are limited to $5,000. The $2,500 employer limit applies per employee rather than per employee's child. Notably, contributions by nonprofit and government employers are not subject to the $2,500 limit and are not counted toward the $5,000 limit.
Under Code section 128, added by the OBBB, employer contributions to a Trump Account are not taxable to the employee. In Notice 2025-68, the IRS stated that requirements similar to those applicable to Section 129 dependent care assistance programs will apply, including documentation, nondiscrimination, eligibility, notice, and benefit requirements, but did not give specific guidance on how those requirements apply. In addition, the IRS indicated in Notice 2025-68 that an employer may offer a Trump Account program through a Code section 125 plan, permitting employee pre-tax contributions on behalf of the employee's dependent child (but not to the employee's own Trump Account, if eligible). The IRS noted that contributions through a Code section 125 are considered deferred compensation, to which the employee has a vested right and that may be payable in a later year. The IRS recognized that how employers should coordinate these rules is unclear and intends to issue further guidance.
On the ERISA side, the U.S. Department of Labor (DOL) issued Technical Release 2026-02, stating that Trump Account programs established by employers will not be considered employee pension benefit plans under ERISA, which coordinates with the recognition by the IRS that guidance on the deferred compensation issue is necessary. At a minimum, employer Trump Account programs will not be subject to ERISA pension plan requirements.
Next Steps. Although employer contributions to Trump Accounts are permissible, employers may consider delaying implementation of a formal program, including through a Code section 125 plan, until the IRS issues further guidance. We recommend working with employee benefits counsel to discuss operational considerations for making employer contributions to Trump Accounts.
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