Management Update

Volume 14, Issue 6

June 2025

Supreme Court Bars Wilcox’s Return to NLRB, Leaving Board Without Quorum

On May 22, 2025, the U.S. Supreme Court ruled that Gwynne Wilcox cannot resume her role on the NLRB while she challenges her January termination by President Trump. The 6–3 decision does not resolve the core legal issue but signals the Court may be open to revisiting Humphrey’s Executor, the longstanding precedent limiting presidential power over independent agencies. With Wilcox sidelined, the NLRB remains without a quorum to issue decisions.

DOL Pulls Back on Biden-Era Independent Contractor Rule

On May 1, 2025, the U.S. Department of Labor announced it will no longer enforce the Biden-era 2024 Final Rule on independent contractor classification. Investigators have been directed not to apply the rule’s analysis in enforcement actions, easing federal restrictions on classifying workers as independent contractors. While the rule technically remains in effect for private lawsuits and state laws may still impose stricter standards, the shift marks a significant rollback in federal worker protections.

EOC Warns Employers on Discriminatory Risks of AI Use

The EEOC continues to emphasize that federal anti-discrimination laws apply fully to the use of AI and automated technologies in employment. While AI can streamline hiring and performance monitoring, it may also violate the law if it leads to bias—intentionally or not—based on race, sex, disability, age, or other protected characteristics. Employers should be cautious when using AI tools in recruitment, monitoring, or personnel decisions, as neutral-looking systems can still result in unlawful disparate impact.

Breazeale, Sachse & Wilson, L.L.P. Labor & Employment Attorneys

David C. Fleshman

david.fleshman@bswllp.com

(225) 381.8055

Murphy J. Foster, III

murphy.foster@bswllp.com

(225) 381.8015

Alexandra Cobb Hains

alex.hains@bswllp.com

(225) 381.3175

Philip Giorlando

philip.giorlando@bswllp.com

(225) 680.5244

Leo C. Hamilton

leo.hamilton@bswllp.com

(225) 381.8056

Kayla M. Jacob

kayla.jacob@bswllp.com

(225) 584.5451

Rachael Jeanfreau

rachael.jeanfreau@bswllp.com

(225) 584.5467

Steven B. Loeb

steven.loeb@bswllp.com

(225) 381.8050

Eve B. Masinter

eve.masinter@bswllp.com

(225) 584.5468

E. Fredrick Preis, Jr.

fred.preis@bswllp.com

(225) 584.5470

Jacob E. Roussel

jacob.roussel@bswllp.com

(225) 381.3172

John Shaw, Jr.

john.shaw@bswllp.com

(225) 381.8022

Melissa M. Shirley

melissa.shirley@bswllp.com

(225) 381.3173

Scott D. Wilson

scott.wilson@bswllp.com

(225) 381.8005