Agency Update: Policy Developments at OSHA and Wage and Hour

By Al Vreeland - Lehr Middlebrooks Vreeland & Thompson, P.C.

July 7, 2025

As the permanent agency heads are slowly being confirmed, DOL agencies are starting to roll out their agenda items. Here’s an update on a few developments at the Wage and Hour Division (WHD) and the Occupational Safey and Health Administration (OSHA):

Wage & Hour: On June 27th, the Wage and Hour Division announced the abandonment of its long-standing policy which required WHD to demand liquidated damages in any pre-litigation settlement of minimum wage and overtime claims.

A little background: the Fair Labor Standards Act (FLSA) authorizes an award of liquidated (double) damages in a lawsuit for unpaid minimum wages and overtime.  A worker cannot waive their claims under the FLSA unless the settlement is approved by a court (which requires a lawsuit) or approved by the WHD.  Since 2010 (with a brief hiatus in 2020), WHD policy has required the payment of liquidated damages as part of any voluntary pre-litigation settlement which it approved.  This policy made it difficult for employers who wished to correct past payroll errors and make employees whole. To receive WHD’s required blessing, they had to pay their maximum possible exposure (i.e., their worst day in court) to employees.

WHD explained this policy reversal as not merely an effort to remove a significant obstacle to voluntary settlement.  The agency explained that, in its view, it did not have the legal authority to demand liquidated damages in supervising pre-litigation settlements. This is consistent with the Trump administration’s view on limiting agency authority.  The change is a very welcome development for employers seeking to resolve historical payroll errors without the risk and expense of litigation.

Safety: Also on June 27th, OSHA announced that it was renewing its inspection emphasis on the amputations in the manufacturing sector. The program directs OSHA inspectors (and employers) to identify and reduce or eliminate hazards from machinery or equipment in manufacturing and industrial workplaces that could cause amputations. The renewed program allows the exemption from the programmed inspection list of any employer which was inspected under the program in the last 24 months and has had no reportable amputations since.

With the renewal of the program, employers should revisit and address potential amputation hazards, remembering that “amputation” is defined broadly to include even the loss of the very tip of a finger.  Employers should confirm that all required machine guards are in place, lockout-tagout procedures are current, and employees are periodically trained on preventing amputations.

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