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U.S. Department of Labor Proposes Employment-Related Deregulation

By Jennifer Vold posted 07-16-2025 08:00 AM

  

Earlier this year, President Trump directed agencies to repeal 10 regulations or guidance documents for every new one issued. The U.S. Department of Labor (DOL) recently responded to that deregulatory push by proposing to revise, remove, or rescind several rules and regulations.  

Not included were any proposals addressing the independent contractor rule or a Davis-Bacon prevailing wage update. 

Below are highlights of the DOL proposals. 

Home Health Care Worker FLSA Exemptions 

One proposed rule would restore the exemption of certain home health aid workers from minimum wage and overtime requirements under the Fair Labor Standards Act (FLSA), rescinding a 2013 rule limiting such exemptions. This would allow third-party employers like home care agencies to classify caregivers as exempt from minimum wage and overtime under the companionship and live-in domestic service exemptions.  

Rescission of H-2A Farmworker Organizing Rule 

Another proposed rule would rescind 2024 regulations meant to protect H-2A foreign farmworkers’ workplace organizing. This rule would remove retaliation protections and a definition of “for cause” termination, making it more difficult for these workers to organize. 

Ending Antidiscrimination Requirements for Apprenticeships 

This proposed rule would end certain affirmative action and nondiscrimination requirements in the registered apprenticeship program. Specifically, the rule would rescind affirmative action planning and some recordkeeping requirements for sponsors that operate registered apprenticeship training programs. 

Unwinding the OFCCP  

This proposal would formally eliminate the regulations under Executive Order 11246, which had previously established the Office of Federal Contract Compliance Programs’ affirmative action authority, and would also modify other related rules. This is the next step in the administration’s goal of shutting down the OFCCP entirely.  

VEVRAA and Section 503 Changes 

Additionally, the DOL proposed regulatory changes to the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) and Section 503 of the Rehabilitation Act, which require federal contractors to take affirmative action for protected veterans and individuals with disabilities. The changes primarily eliminate references to Executive Order 11246. However, under the Section 503 proposal, contractors would also no longer be required to invite applicants to self-identify as having a disability, and the proposal eliminates the 7% utilization goal. 

Employee Benefits Guidelines 

The DOL is also rescinding certain regulations and guidance documents on employee benefit plans under the justification of streamlining Employee Retirement Income Security Act (ERISA) standards for employers  

Comment periods for the proposed rules last until September 2, 2025. If you have any questions about these proposals, please contact an Employers Council attorney. 

Jennifer Vold is an attorney for Employers Council. 

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