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The Policy Week in Review, prepared by Littler's Workplace Policy Institute (WPI), sets forth WPI's updates on federal, state, and local matters.
FAA Forces Major U.S. Airlines to Cut Flights as Shutdown Continues
As the federal government shutdown continues, the Federal Aviation Administration said that it is forcing airlines to cut 10 percent of their flights at the nation's busiest airports, effective Friday morning, November 7, to relieve pressure on air traffic controllers (who are working unpaid) and improve safety. Multiple business groups and trade associations are not only concerned about the shutdown's further strain on an already understaffed air traffic control system, but also worried about losses in revenue to industries and the overall impact to the economy as flights are postponed and canceled. For example, the American Hotel and Lodging Association is reporting that the shutdown has resulted in an estimated $650 million in lost hotel business.
IRS Provides Penalty Relief for Reporting on Tips and Overtime
On Wednesday, November 5, the Department of the Treasury and the Internal Revenue Services (IRS) issued guidance providing "transition" penalty relief to employers and other payors for tax year 2025 regarding new information reporting requirements for cash tips and qualified overtime compensation under the recently enacted One Big Beautiful Bill (OBBB). This relief is provided in recognition that employers and other payors may not currently have all the information required to be reported under the OBBB or the systems and/or procedures in place. Click here to read more information.
White House Names Andrea Lucas as EEOC Chair
The White House elevated the Equal Employment Opportunity Commission (EEOC) Acting Chair Andrea Lucas to chair status on November 6. Lucas has been leading the Commission in an acting chair capacity since January when President Trump took office. On July 31, she was confirmed to a second 5-year term as a commissioner at the EEOC. During her term, she has aligned closely with the administration's priorities, e.g., she has prioritized religious rights in the workplace and has been an outspoken critic of DEI practices, which she argues result in discriminatory employment preferences and practices. As previously reported, the EEOC now has a quorum, with a two-to-one Republican majority. Once the federal government reopens, Chair Lucas is expected to execute on her agenda to reshape the agency. For a recap of what we might expect from a fully empowered Commission, WPI recently published, "What to Expect Now that the EEOC Has a Quorum."
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