Work this Month
In September, Lobbyit conducted outreach with lead policymakers from the Center for Consumer Information and Insurance Oversight (CCIIO) within the Center for Medicare and Medicaid Services (CMS). CCIIO is responsible for the final rulemaking on short-term, limited-duration insurance (STLDI). As no final rule has been set yet, the team set a meeting between CCIIO and NEA leadership to discuss the impact of this policy on employers.
The meeting is with Peter Nelson, Deputy Administrator of CMS and Director of CCIIO.
DOL Releases Unified Agenda of Regulatory and Deregulatory Actions
On September 4, 2025, the U.S. Department of Labor published its semiannual Unified Agenda, which outlines forthcoming rulemakings and reviews under DOL jurisdiction. The agenda includes high priority actions aimed at reducing regulatory burden on employers and employees. Topics listed include independent contractor classification, joint employer status, heat injury prevention, FLSA (Fair Labor Standards Act) exempt salary thresholds, and increased transparency around pharmacy benefit manager (PBM) fees in employer health plans.
This gives advance notice of possible regulatory changes and areas where the administration is signaling flexibility. Lobbyit will monitor the agenda for changes affecting classification risk (employee vs contractor), overtime thresholds, and potential new administrative requirements.
STLDI Developments
Continuing into September, the Departments of Labor, Treasury, and HHS followed up on their August statement that, while they maintain the 2024 final rule limiting short-term plans, they will not prioritize enforcement against insurers that fail to strictly comply while they reconsider the definition of STLDI.
Related to the non-enforcement posture, media and industry commentary in September pointed to the possibility that the strict 3-month initial / 4-month total cap on STLDI plans may be loosened in future rulemaking or through agency reinterpretation. Some carriers and benefits consultants have begun planning for a return to longer short-term policies (e.g., up to 36 months) depending on state law and agency drafting.
Employment Law Changes Go Into Effect Across States
September saw several new employment and labor relations laws take effect on the state level. In January 2025, the Department of Labor adopted a new six-factor test for classifying independent contractors under the Fair Labor Standards Act, replacing the simpler two-factor test. This change is expected to result in more workers being considered employees, making them eligible for overtime and other benefits. While the current administration may revise or even reverse the rule, employers are advised to remain alert to potential changes and prepare for compliance under the broader standard.
At the same time, several states, including Illinois, have expanded their paid sick and family leave laws effective in 2025. Businesses that have not yet reviewed their leave policies should do so promptly to ensure they are in line with these new requirements. Employers operating in multiple states face additional challenges in harmonizing leave benefits across jurisdictions.
Minimum wage increases have also gone into effect across many states, cities, and counties. These adjustments create a complex compliance environment for employers, particularly those that operate across state boundaries. Ensuring that payroll practices are updated to reflect these changes is critical to avoid violations and penalties.
Meanwhile, federal employment policy has shifted under the Trump administration. Executive orders have been issued that restrict or terminate Diversity, Equity, and Inclusion initiatives within the federal government and among federal contractors. The Equal Employment Opportunity Commission has also updated its harassment guidance by removing references to sexual orientation and gender identity in light of recent court decisions. Employers that contract with the federal government need to review their DEI policies carefully while recognizing that the regulatory and legal landscape continues to shift.
Finally, pay transparency requirements are continuing to expand. Illinois is among the states now mandating that employers disclose salary ranges in job postings and promotion opportunities. This trend is spreading, and employers should expect growing obligations around pay disclosure and transparency.
Taken together, these developments reflect a rapidly evolving employment law environment in 2025. From worker classification and paid leave to wage laws, DEI policies, and pay transparency, the regulatory landscape is shifting on multiple fronts. Employers are strongly encouraged to consult with legal counsel and review their policies and practices to ensure compliance at both the state and federal levels.
Federal Employee Discipline and Civil Service Protections
In September 2025, proposals surfaced from the administration to significantly alter how disciplinary actions are handled for federal employees. The central change would end the requirement that agencies apply progressive discipline, which has traditionally allowed federal workers to correct performance issues or misconduct before termination. Instead, managers would be given broader discretion to move directly to removal if they deem it necessary. Alongside this, the proposals would shorten the appeals process and limit the ability of employees to contest disciplinary actions through lengthy administrative procedures.
For private employers, this shift in federal employment policy is instructive. While the proposals apply only to federal workers, they signal an administrative philosophy that emphasizes managerial authority over employee protections. The language in these proposals reflects a broader deregulatory impulse that could spill into the private sector, either through agency interpretations, legislative proposals, or judicial decisions. For employers, the relevance lies in anticipating potential legal and cultural changes in how discipline and termination practices are viewed. If these reforms move forward, employers may find a more favorable legal climate for defending termination decisions and for resisting regulatory expansions of employee rights.
H-1B Visa Changes and Employer Costs
On September 19, 2025, President Trump issued a proclamation imposing a one-time $100,000 fee for any employer applying for a new H-1B visa between September 21, 2025, and September 21, 2026. The fee does not apply to renewals of existing H-1B visas but does apply to all new applications. This represents one of the largest increases in the financial burden associated with skilled worker visas in U.S. history.
For employers, particularly in technology, health care, higher education, and other industries that rely heavily on foreign talent, the new fee raises immediate cost concerns. Many employers will have to reconsider whether sponsoring an H-1B applicant is financially viable. Smaller businesses, startups, and nonprofits may find the cost prohibitive, effectively limiting their access to the international talent pool. Larger employers may still proceed but will face increased per-hire expenses that could affect hiring strategies, salary negotiations, and workforce planning.
Beyond the direct financial impact, the policy raises strategic questions about workforce management. Employers may need to explore alternative visa categories, adjust recruitment pipelines, or increase reliance on domestic candidates in fields already experiencing labor shortages. For associations and advocacy groups, the development highlights the need for engagement in immigration policy debates, as visa costs and caps directly affect competitiveness and innovation across sectors. Additionally, the imposition of such a large fee signals an administration stance that views foreign labor programs not as workforce tools but as areas for revenue generation and restriction. Employers should prepare for the possibility of further increases or additional limitations on work visa categories in the coming year.
National Employers Association