Summary of September 2025 Labor Law Updates for Washington, D.C.
A monthly roundup for employees, HR professionals, and employers navigating workplace rights and compliance in D.C. — brought to you by HKM Employment Attorneys.
September 2025 in Washington, D.C. did not bring sweeping new labor statutes, but the period was characterized by procedural rulings, regulatory updates, reports spotlighting misclassification and wage theft, and continued tension over tipped wage policy. Employers—especially in construction, hospitality, federal contracting, and labor relations sectors—should stay attuned to evolving administrative agendas, court rulings, and Council actions. If you have questions about how any of these developments affect your organization or case, the D.C. team at HKM Employment Attorneys (https://hkm.com) is here to help.
CFPB Employees Union Seeks Rehearing in D.C. Circuit — Court Ruling / Federal Employment
Date: September 29, 2025
Summary:
The National Treasury Employees Union (NTEU) filed a petition for rehearing en banc following a 2–1 D.C. Circuit panel decision that vacated a preliminary injunction blocking reductions in force (RIFs) at the Consumer Financial Protection Bureau. The panel majority held that claims by the plaintiffs could not properly proceed in district court and that they must use the Civil Service Reform Act’s procedures instead. The injunction was left in place temporarily while the Court considers en banc review.
Implications:
This development affects federal employees and unions in D.C., potentially limiting district courts’ jurisdiction over certain employment claims by federal workers. It underscores the procedural complexity of challenging federal employment actions and the need to carefully evaluate which statutory channels must be used for relief.
U.S. Department of Labor Releases Semiannual Regulatory Agenda — Federal Rulemaking
Date: September 4, 2025
Summary:
The DOL published its Unified Agenda, detailing nearly 150 proposed and active regulatory and deregulatory actions under its jurisdiction, including initiatives aimed at “modernizing outdated rules” and improving labor-market flexibility.
Implications:
While national in scope, many of these proposals could influence D.C. employers (especially those subject to federal labor standards). Employers and HR should track rulemakings in areas like overtime, independent contractor definitions, and wage & hour compliance to anticipate future shifts.
Enforcement Spotlight: Wage Theft in Affordable Housing Projects — Report & Critique
Date: Early September 2025
Summary:
A report released by civil rights groups and labor advocates documented recurring wage theft and misclassification in D.C.’s affordable housing construction sector, alleging repeat offending contractors exploit weak enforcement.
Implications:
Contractors, subcontractors, and developers in D.C. may face heightened litigation or agency scrutiny. Public funding or affordable housing programs could incorporate stronger oversight or penalties. Employers should double-check classification, prevailing wage obligations, and prompt payment practices.
Tipped Minimum Wage Increase Delayed & Act 26-94 Expires (or Set to Expire) — Local Legislation / Emergency Amendment
Date: June 30, 2025 through September 28, 2025
Summary:
Under D.C. Act 26-94 (Tipped Minimum Wage Increase Clarification Emergency Amendment Act of 2025), the July 1, 2025 increase in the tipped wage—from $10 to $12 per hour—was delayed until at least October 1, 2025.
That emergency legislation is (or was) set to expire September 28, 2025 unless extended.
Meanwhile, as part of broader rollback efforts, the D.C. Council had previously amended the schedule for phasing out the tipped wage under Initiative 82.
Implications:
For September 2025, employers may continue to use the $10 base rate and the relevant tip credit (currently $7.95, since the full minimum wage is $17.95). Employers must ensure that total compensation (wages + tips) meets or exceeds the standard minimum wage. They also should monitor whether the Council extends the emergency measure or enacts further changes before October. Payroll systems, wage notices, and budgeting should reflect this temporary status.
NLRB Deference Case Pending Before D.C. Circuit — Court Ruling Expected
Date: Argued prior to September 2025 (decision pending)
Summary:
The D.C. Circuit is set to rule on how much deference courts should accord NLRB interpretations of the National Labor Relations Act (NLRA)—a first such opinion in the circuit post Loper-Bright v. Raimondo. The case (Hospital Menonita de Guayama v. NLRB) concerns the so-called “successor bar” doctrine and the NLRB’s interpretive authority.
Implications:
A decision could shift the balance of power between courts and the NLRB, affecting union organizing, employer obligations following corporate changes, and shadowing of agency interpretations. D.C. employers and counsel should watch closely, as it may influence future NLRA litigation and compliance strategies.
Other Context & Trends to Watch
DC Human Rights Act & Discrimination Claims: Though no new reported decisions in September, D.C. has an active enforcement climate in discrimination, retaliation, and disability claims under the DC Human Rights Act. (Prior months’ updates addressed these trends.)
Federal Contracting & DEI Policy: Executive Order 14173, rescinding affirmative action and diversity requirements in federal contracts, remains a backdrop for D.C. employers engaged in federal work.
Unemployment & Economic Data: The D.C. unemployment rate for August 2025 was reported at 6.0 percent; preliminary September data is expected to be released in October.
Political Pressures & Council Dynamics: Budget pressures, federal job cuts, and proposed labor reversals (e.g. on tipped wages) may drive summer-into-fall legislative activity at the D.C. Council.
Conclusion: Looking Back on Washington, D.C. Labor Law Updates from August 2025
With local rulings interpreting the DC Human Rights Act and ramped-up scrutiny of discrimination, retaliation, wage disputes, ethics, and contract enforcement, navigating them requires skilled local counsel. At HKM Employment Attorneys in Washington, D.C., our experienced team—including specialists in DC Human Rights Act cases, wage and hour claims, retaliation, ethics investigations, employment contracts, and more—brings decades of experience and a commitment to no‑fee‑unless‑we‑win advocacy. Our D.C. clients emphasize the clarity, responsiveness, and local insight we provide, whether dealing with federal employees, agency staff, or private-sector professionals. If recent decisions have made you question your workplace rights, don’t wait—contact our Washington, D.C. office to explore how we can support you.
