Seth Ford

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For more than 160 years, the False Claims Act (FCA) has been the federal government’s primary tool to combat fraud. In 2025, the U.S. Department of Justice (DOJ) underscored just how powerful — and profitable — the FCA can be, announcing a record-shattering $6.8 billion in government recoveries driven largely by health care fraud cases. Now, the Trump administration is using the FCA as a tool to eliminate what it considers to be illegal diversity, equity, and inclusion (DEI) programs. The question companies should be asking moving into 2026 is whether failure to comply with the Trump administration’s interpretation of civil rights laws presents a new level of risk. Indeed, a new frontier of potential liability under the FCA — with its treble damages and potentially astronomical statutory penalties — may become the future of enforcement.

Labor + Employment Workforce Watch is a guide to the employment law developments most likely to impact your business. The Troutman Pepper Locke Labor + Employment Team represents employers in the most sensitive workplace matters, enabling our clients to concentrate on their core business operations. Our team is adept at handling and managing labor and employment issues on national, international, and local levels. Recognized as a leading law firm by Chambers USA, our attorneys provide comprehensive advice on every type of employment issue a company may encounter, at every stage of the employment life cycle.

A recent Supreme Court decision clarified that discrimination claims brought by members of majority groups in so-called “reverse discrimination” cases cannot be subject to a heightened evidentiary burden. In Ames v. Ohio Department of Youth Services, the Court ruled that a Sixth Circuit requirement that members of a “majority group” (such as heterosexual employees) must satisfy a heightened evidentiary standard for discrimination claims was incompatible with the language of Title VII and with Supreme Court precedent. The unanimous decision written by Judge Ketanji Brown Jackson resolves a circuit split, as the Sixth, Seventh, Eighth, Tenth, and D.C. circuit courts of appeals had previously imposed a higher evidentiary burden on discrimination claims brought by majority group members.

Labor + Employment Workforce Watch is a guide to the employment law developments most likely to impact your business. The Troutman Pepper Locke Labor + Employment Team represents employers in the most sensitive workplace matters, enabling our clients to concentrate on their core business operations. Our team is adept at handling and managing labor and employment issues on national, international, and local levels. Recognized as a leading law firm by Chambers USA, our attorneys provide comprehensive advice on every type of employment issue a company may encounter, at every stage of the employment life cycle.

As workers were leaving their offices for the Fourth of July holiday, the Northern District of Texas issued its much-anticipated order preliminarily enjoining the effective date of the Federal Trade Commission’s (FTC) controversial noncompete ban rule. The court’s decision, however, is limited to the named plaintiffs — a tax accounting firm and several business groups — in the case. Although the stay is temporary pending the court’s final decision on the merits of the case and applies only to the movants in the case, it signals that a permanent and nationwide injunction is likely.

On January 2, the U.S. Department of Labor (DOL) published a hotly anticipated final rule, which establishes a six-factor test for determining whether a worker is an employee or an independent contractor for purposes of coverage under the Fair Labor Standards Act (FLSA). The final rule was adopted after publication of a proposed rule in October 2022 and following a 61-day comment period in which the DOL received more than 55,000 comments. The final rule also rescinds an independent contractor rule, issued in January 2021, which never went into effect due to legal challenges. The new final rule becomes effective on March 11.

Executive Summary

On February 21, the National Labor Relations Board (NLRB or Board) reversed course from its own Trump-era precedent when it held that an employer’s offer of employee severance agreements with broad confidentiality and non-disparagement provisions is an unfair labor practice in violation of Section 8(a)(1) of the National Labor Relations Act (Act). In light of this change, all employers, regardless of whether they are unionized, should carefully consider actions including:

Q: Who are the newest members of the National Labor Relations Board (NLRB), and what does their arrival mean for the future of micro-units?

A: Party control of the National Labor Relations Board recently shifted to the Democrats when the Senate approved two Biden appointees. In August, longtime union-side attorneys Gwynne Wilcox and David Prouty joined fellow Democrat Chairman Lauren McFerran and Republican appointees John Ring and Michael Kaplan on the five-member board.

States are re-opening in various phases, and some exercise facilities have opened their doors once again. For most states, gyms and fitness studios shuttered for months are now considering how to operate and attempt to recoup months of lost revenue while complying with strict social-distancing guidelines. Additionally, many states are seeing mandatory face covering orders for the first time.

AUTHORS
Ashley Hager, Partner, Troutman Sanders
Seth Ford, Partner, Troutman Sanders
Emily Reber, Associate, Troutman Sanders
Tracey Diamond, Of Counsel, Pepper Hamilton

We are continuing our series of guidance on the new issues facing employers during the COVID-19 outbreak. In our last post, Coronavirus and OSHA: What…