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Policy Week in Review – May 16, 2025
At a Glance
The Policy Week in Review, prepared by Littler’s Workplace Policy Institute (WPI), sets forth WPI’s updates on federal, state, and local matters.
House Workforce Protections Subcommittee Holds Hearing on “Reclaiming OSHA’s Mission”
On Thursday, the House Subcommittee on Workforce Protections, chaired by Ryan Mackenzie (R-PA), held a hearing titled “Reclaiming OSHA’s Mission: Ensuring Safety Without Overreach.” The hearing examined OSHA activity under the previous administration and explored alternative solutions OSHA can take to advance workplace safety. Littler attorney Felicia Watson served as a witness at the hearing and focused her testimony (on her own behalf, and not on behalf of the firm or any of its members or clients) on four of OSHA’s recent regulatory and enforcement policies, including (1) the Worker Walkaround Representative Designation Process; (2) changes to the Instance-By-Instance enforcement policy; (3) the Severe Violator Enforcement Program; and (4) the proposed rule on Heat Illness and Injury Prevention in Outdoor and Indoor Workplaces. Ms. Watson stated, “While OSHA is well-intentioned, there is no data to prove that these rules and policies achieve OSHA’s mission: protecting workers. These are not solution-based systems, these are punitive-based systems, and that is not what the OSH Act was supposed to be.” For a full recap of the hearing, read here.
House Committees Work to Advance Budget Reconciliation Measures
This week, House Committees spent long hours approving their respective portions of the budget reconciliation bill that largely reflects the Trump Administration’s policy agenda, including the following noteworthy measures.
On Wednesday, the House Ways and Means Committee approved a massive tax package that, among other things, includes no taxes on tip wages and overtime pay – a centerpiece of President Trump’s campaign promises. However, these new tax breaks would only be available through the 2028 filing year.
On Thursday, the House Energy and Commerce Committee approved, among other measures, a decade-long moratorium on state regulation of Artificial Intelligence (AI). Specifically, that section of the bill states that “no state or political subdivision may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems during the 10-year period beginning on the date of the enactment of this Act.” Many states have already enacted AI laws to establish guardrails around its use and other state measures are pending. Given the obvious constitutional concerns with this provision and the Senate’s strict “Byrd Rule,” which bars inclusion of provisions that are extraneous to the budget (only provisions that change spending or revenues can be included), this provision could fall out.
Additionally, the House Judiciary Committee’s reconciliation proposal includes sharp new fees to the nation’s immigration system, including a $1,000 application fee for asylum claims and a $8,500 fee to sponsor an unaccompanied minor – incorporated to reflect the Trump Administration’s immigration policies. These fees are estimated to raise $77 billion in revenue.
Ultimately, these various committee reconciliation bills must be rolled up into “one big, beautiful bill” by the House Budget Committee. House leadership, with its razor-thin republican majority, aims to tee up the bill for final passage on the House Floor by Memorial Day. It will then be sent over to the Senate where, undoubtedly, major changes will be made as already alluded to by Senate Majority Leader John Thune (R-SD) this week. Once the Senate can reach consensus, the budget reconciliation process allows for expedited passage of the bill in the Senate with only a simple majority. Republicans are eyeing July 4th as the goal-post for sending the bill to President Trump.
Chair Owens to Hold Hearing on “Restoring Excellence: The Case Against DEI”
On Wednesday, May 21 at 10:15a.m. ET the House Subcommittee on Higher Education and Workforce Development, chaired by Rep. Burgess Owens (R-UT), will hold a hearing titled “Restoring Excellence: The Case Against DEI.” At this time, hearing witnesses have not been noticed. The hearing will be live-streamed on the Committee’s YouTube page.
President Trump Nominates EEOC Commissioner
Last week, President Trump nominated Brittany Panuccio, currently serving as an assistant U.S. attorney in Florida, to serve as a Commissioner at the Equal Employment Opportunity Commission (EEOC). Panuccio’s confirmation would give the EEOC a republican majority and restore the quorum needed to change policies, revoke previous guidance, and issue new guidance in alignment with the Trump Administration’s policy agenda. Current EEOC officials include Acting Chair Andrea Lucas, appointed by President Trump, and Kalpana Kotagal, who was appointed by President Biden. The EEOC lost its quorum earlier this year in January when President Trump unexpectedly terminated sitting Democratic Commissioners Jocelyn Samuels and Charlotte Burrows, as well as the General Counsel Karla Gilbride.
