The Wage and Hour Division (WHD) of the Department of Labor (DOL) recovered the largest amount of back wages in the past six fiscal years. The WHD also issued an opinion letter on bonus payments and released Family and Medical Leave Act (FMLA) videos. A federal district court upheld the increase of the H1-B visa fee to $100,000. A House of Representatives committee held a hearing on “Building an AI-Ready America.” The House of Representatives passed retirement legislation.

DOL Update – The Wage and Hour Division (WHD) of the Department of Labor (DOL) announced in the most recently completed fiscal year, more than $259 million in back wages for almost 177,000 employees was recovered. This is the largest amount of back wages recovered since fiscal year 2019 and amounted to almost $1,465 per worker. WHD Administrator Andrew Rogers stated that “the department is enforcing the laws fully and fairly to promote equal competition for all job creators while protecting the rights and earnings of American workers.”

WHD issued opinion letter 2026-2 ruling that bonus payments that do not qualify as discretionary under the Fair Labor Standards Act (FLSA) must be included when calculating the regular rate of pay of employees. Under Section 7(e)(3) of the FLSA, for a bonus to be considered discretionary and excludable from the regular rate of pay, it must be: 1) determined solely at the discretion of the employer,  2) the determination must occur at or near the end of the pay period when the work was performed, and 3) must not be made pursuant to any prior promise, contract or agreement causing the employee to expect such payments regularly. The opinion letter declares “the amount of the bonus is calculated using a predetermined plan to incentivize certain work performance,” and as a result the first two FLSA requirements for the bonus to be discretionary are not met.

The employer in this case is in the waste management industry and pays drivers $12.00/hour. In addition, there is a “Safety, Job Duties, and Performance” bonus plan that if earned provides a maximum amount of $9.50 per hour.  The bonus plan rewards employees for punctuality, attendance, consistency in completing daily safety tasks, driving safety, compliance with traffic laws, proper attire, and performance efficiency. The employer improperly excludes the bonus payments from the regular rate of pay when calculating overtime premiums.

The WHD also has released seven videos designed to provide guidance to assist employers and workers on leave requirements under the Family and Medical Leave Act (FMLA).  The topics addressed in the videos include covered employer, employee eligibility, qualifying reasons for taking FMLA leave, certification process, military related leave, what the law requires before and during FMLA leave, and FMLA prohibitions.

Court Upholds Increased H1-B Visa Fee – The United States District Court for the District of Columbia ruled that the president had the statutory authority to increase the fee for obtaining an H-1B visa to $100,000. In the case of Chamber of Commerce of the United States v. Department of Homeland Security, the District Court stated the lawfulness of the increased fee rested on “a straightforward reading of congressional statutes giving the President broad authority to regulate entry into the United States for immigrants and nonimmigrants alike.”

President Trump issued a proclamation, “Restriction on Entry of Certain Nonimmigrant Workers that took effect on September 21, 2025, claiming that the H-1B visa program has been “deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor.” The plaintiffs contend that the higher application fee will hurt businesses and universities resulting in either higher labor costs or hiring fewer skilled employees in positions where domestic replacements are not available. Despite the concerns expressed by the plaintiffs, the district court focused its analysis solely on “constitutional and statutory powers, not economic policy.” In granting summary judgement for the government, the District Court concluded that “Congress has granted the President broad statutory authority, which he has used to issue the Proclamation addressing, in the manner he sees fit, a problem he perceives to be a matter of economic and national security.” The plaintiffs have appealed the decision.

House Committee Holds Hearing on AI – The House Committee on Education and the Workforce held a hearing on “Building an AI-Ready America” exploring artificial intelligence (AI) and its increasing role in education, workforce development, and the future of work. Representative Tim Walberg (R-MI) stated that “AI may change how tasks are performed, particularly for entry-level roles, which underscores the need for strong pathways into the labor market and strong skills development.” He noted that labor laws and regulations have failed to keep up with the way in which work is changing, creating benefits and flexibility challenges for employers.  Ranking committee Democrat Robert Scott (D-VA) urged Congress to “take an active role in shaping how AI is integrated into our lives and develop thoughtful regulations that balance protecting students, workers, and families, and fostering economic growth.”

Among the witnesses was Chaya Nayak, Head of Certifications and Jobs Platform, OpenAI who testified that “AI will make workers more productive and unlock increased opportunity for more people than any technology in history.” She acknowledged that some jobs will no longer exist while tasks and roles will be altered.  She estimated that by utilizing AI, up to 56% of the tasks that workers perform could be completed faster with the same quality. She believes that AI is a “way to help people do more in their existing roles, not as a replacement for human work.” She advised that OpenAI has developed certification programs that are designed to help workers acquire AI skills. She indicated that Open AI intends to soon release a jobs platform that will use AI to connect employers with those seeking jobs.

House Passes Retirement Legislation – The House of Representatives passed the Protecting Prudent Investment of Retirement Savings Act (H.R. 2988), which was introduced by Representative Rick Allen (R-GA). The bill would reverse the rule implemented during the Biden Administration that would have allowed retirement plan fiduciaries to consider investments based on environmental, social, and governance (ESG) factors. This bill would amend the Employee Retirement Income Security Act (ERISA) to clarify that investment decisions must be based only on economic factors. House Education and the Workforce Committee Chair Tim Walberg (R-MI) stated that “H.R. 2988 restores clarity and accountability by making clear that fiduciaries must put financial returns first” when investing retirement plan funds. The bill needs to be considered by the Senate.

Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. He is an attorney, a frequent writer and speaker on public policy and human resource issues, and an adjunct faculty member at George Mason University. For questions or additional information, contact Reichenberg at neilreichenberg@yahoo.com.