On July 1st and 2nd, the U.S. Department of Labor (DOL) published several notices of proposed and final rules that, if adopted, will rescind or amend labor regulations. DOL is requesting comments on any reason to rescind or not rescind these regulations. Additionally, small entities are encouraged to provide detailed information on any direct impact on their business, whether negative or positive, and whether any regulatory alternatives would minimize the impact on small entities. A short description of each proposed rule is set forth below.
Application of the Fair Labor Standards Act (FLSA) to Domestic Service
DOL is rescinding a 2013 rule which narrowed the companion care services exemption to minimum wage and overtime under the FLSA. The 2013 rule prohibited third-party employers such as home care agencies and home care registries from utilizing this exemption for workers and live-in workers. Advocacy has advocated for this recission in multiple comment letters, citing small business concerns about significant compliance costs and loss of revenue. DOL is requesting public comments on reasons to keep or rescind the 2013 home care regulations, the best definition of companionship services, and whether third party employers should be covered by the exemption under the best reading of the FLSA. The Department also seeks comment on the 2013 regulation’s consistency with statutory authority and costs and benefits.
Comments must be received by September 2, 2025.
DOL is rescinding a rule which added extra requirements for employers trying to obtain H-2A visas for agricultural workers. These provisions included adding material terms and conditions such as policies for cause-based employment terminations and anti-retaliation measures for certain workers engaged in self-organization and other concerted activities. The rule also imposed data collection requirements on employers on their use of foreign labor recruiters. Advocacy advocated for this recission in a regulatory reform comment letter.
Comments must be received before September 2, 2025.
Rescinding Affirmative Action Requirements for Multiple Programs
Registered Apprenticeship Programs
DOL is rescinding affirmative action program requirements from the registered apprenticeship program. These provisions included conducting utilization analyses and setting goals if underutilized on the basis of race, sex, and ethnicity.
Comments must be received before September 2, 2025.
Federal Contracting (Rescission of Executive Order 11246)
DOL proposes to rescind the regulations that implemented Executive Order 11246, the regulations prohibited covered federal contractors and subcontractors from discriminating in employment based on race, color, religion, sex, sexual orientation, gender identity, and national origin and required them to take affirmative action on those bases.
Comments must be received by September 2, 2025.
Federal Contracting- Vietnam Era Veterans’ Readjustment Assistance (VEVRA) Act
The VEVRA proposed rule removes all references to the affirmative action requirements under Executive Order 11246.
Comments are due on September 2, 2025.
Federal Contracting- Disabilities (Section 503)
The 503 regulations propose to eliminate self-identification data collection and utilization analysis for individuals with disabilities.
Comments must be received by September 2, 2025.
DOL is rescinding its regulations by implementing the Workforce Investment Act of 1998 (WIA) containing the nondiscrimination and equal-opportunity provisions of WIA. Under WIA, DOL provides financial assistance to certain recipients for the purpose of establishing programs to meet the job training needs of youth and adults facing serious barriers to employment.
The direct final rule is effective September 2, 2025, unless significant adverse comments are received by July 31, 2025.
Recipients of WIOA Title I Financial Assistance
DOL proposes to remove the regulations implementing the nondiscrimination and equal opportunity provisions of the Workforce Innovation and Opportunity Act (WIOA) that contain affirmative outreach requirements for recipients of financial assistance under Title I of WIOA.
Comments must be received on or before July 31, 2025.
Filing Thresholds for Forms LM-2, LM-3, LM-4, Labor Organization Annual Reports
This proposed rule revises the filing thresholds in for the Forms LM-2, LM-3, and LM-4 Labor Organization Annual Reports, which had disclosure requirements for labor organizations, their officers and employees, employers, labor relations consultants, and surety companies. In this proposed rule, the Department proposes to increase each filing threshold to higher values: labor organizations with $450,000 or more in annual receipts must file Form LM-2; those with less than $450,000 may choose to file Form LM-3; and those with less than $25,000 may choose to file Form LM-4.
Comments must be received on or before July 31, 2025.
Another similar proposed rule also changes the definition of “minor child” as that term appears in 29 CFR 404.1(h) and on the Form LM-30 Labor Organization Officer and Employee Report.
Comments must be received on or before July 31, 2025.
Proposed and Final Rules on Rulemaking
Rescinding Unnecessary Notice and Comment Procedures
This final rule rescinds the Secretary’s policy to engage in notice and comment rulemaking, even where the Administrative Procedure Act does not require notice and comment rulemaking.
The final rule is effective July 31, 2025.
Obsolete Grant and Contract Regulations
This direct final rule removes obsolete grant and contract regulations in the Department of Labor’s regulations.
The direct final rule is effective September 2, 2025, unless significant adverse comments are received by July 31, 2025.
Statements of General Policy or Interpretation Not Directly Related to Regulations
DOL is removing interpretative rules and policy statements on the Fair Labor Standards Act (FLSA) because they were not originally issued, or subsequently amended, through notice-and-comment rulemaking. DOL seeks comments on what provisions in Subchapter B should be retained in the CFR, as well as what kind of sub-regulatory guidance the Department should use to preserve interpretive rules and policy statements that are removed from the CFR.
Comments must be received before August 1, 2025.
Rescission of Coordinated Enforcement Regulations
DOL proposes to remove the regulations that set forth the procedures within the Department for the coordination of enforcement activities by the Wage and Hour Division (WHD), the Occupational Safety and Health Administration (OSHA), and the Employment and Training Administration (ETA) relating to migrant farmworkers. DOL states that this rule does not affect small businesses.
Comments are due on September 2, 2025.
Rescission of Workforce Investment Act Regulations; Direct Final Rule
DOL is removing the regulations that implemented and governed the Title I Workforce Investment Act (WIA) programs at the national, state, and local levels and provided program requirements applicable to all WIA formulas and competitive funds. Title I of WIA was repealed by Congress with the enactment of the Workforce Innovation and Opportunity Act (WIOA) on June 22, 2014, and all remaining grant funding under Title I has been closed out by the Department.
The final rule is effective September 2, 2025, unless adverse comments are received by July 31, 2025.
Wagner-Peyser Act Employment Service Staffing
DOL is proposing to remove the requirement that states use state merit staff to provide Wagner-Peyser Employment Service (ES) services. This deregulatory action would allow states to use the staffing model that provides the required services with the most efficient model for their state. DOL states that there are no small businesses affected.
Comments must be received on or before September 2, 2025.
Is your small business or entity being impacted by a proposed rule? If yes, write a comment letter to the proposing agency.