Compliance News & Updates: March 4 , 2025 Issue

In our recent In Compliance newsletter, we feature updates on key legislative and regulatory developments impacting employer-sponsored benefit plans. Highlights include new EEOC and DOJ guidance on discriminatory DEI practices, approaching deadlines for 2025 RxDC reporting, and executive actions affecting federal contractor wages and health plan compliance under the Trump administration. We also cover a rise in class-action lawsuits challenging tobacco surcharges and provide state-specific updates from Idaho, Iowa, and Nevada on workers’ compensation, civil rights protections, and workplace heat illness regulations. Stay up-to-date on the always changing state of employee benefits compliance. Sign up for our Bi-Weekly In-Compliance Newsletter.

EEOC and DOJ Issue Guidance on DEI-related Discrimination

On March 19, 2025, the U.S. Equal Employment Opportunity Commission (EEOC) and the U.S. Department of Justice (DOJ) issued joint guidance on illegal and discriminatory diversity, equity and inclusion (DEI) practices. The EEOC also issued frequently asked questions (FAQs) regarding DEI-related discrimination. The guidance provides some clarity as to the agencies’ position on what may constitute illegal DEI and offers steps employees may take to report violations.  Read more>>

Employers Should Start Preparing for 2025 RxDC Reporting

Group health plans and health insurance issuers must annually submit detailed information on prescription drug and health care spending to the Centers for Medicare & Medicaid Services (CMS). This reporting is referred to as the “prescription drug data collection” (or “RxDC report”). The next RxDC report is due by Sunday, June 1, 2025, covering data for 2024. Read more >>

Executive Order Revokes Federal Contractor Minimum Wage

On March 14, 2025, President Donald Trump issued an executive order (EO) rescinding Biden-era EO 14026. EO 14026 established the federal contractor minimum wage rate of $15 per hour in 2022 and provided for annual increases based on inflation. The new EO took effect immediately. Read More >>

New Wave of Lawsuits Target Health Plan Tobacco Surcharges

Numerous class-action lawsuits have recently been filed against employers alleging that health plan premium surcharges related to tobacco use violate federal compliance requirements. These lawsuits have been filed by current and former employees of major U.S. companies, such as PepsiCo, Walmart, Target and Whole Foods, who have paid more in premiums due to their tobacco use, often hundreds of dollars more per employee per year. Read More>>

Trump’s Early Initiatives May Impact Health Plan Compliance

In the first months of his second term, President Donald Trump and his administration have issued executive orders (EOs) and policy changes that may have significant implications for employer-sponsored health plans. Read More>>

Benefits and HR State Updates

Idaho Amends Workers’ Compensation Law to Include LLC Members for Penalty Liability

On March 13, 2025, Idaho amended its workers’ compensation laws to include members of limited liability companies (LLCs) and make them criminally liable for failure to obtain workers’ compensation insurance coverage if they had the authority to obtain the coverage. Read more>>

Iowa Removes Gender Identity Discrimination Protection

On Feb. 28, 2025, Iowa amended the Iowa Civil Rights Act (ICRA) to remove gender identity as a protected trait and define gender as either male or female, as observed or verified at birth. The amended law takes effect on July 1, 2025. Read more>>

Nevada Approves New Heat Illness Regulation

On Nov. 15, 2024, the Nevada Division of Industrial Relations (DIR) of the Department of Business and Industry adopted a new heat illness regulation due to the increase in heat illness complaints submitted to Nevada OSHA. This regulation went into effect on Nov. 15, 2024. Read more>>