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FEATURED NEWS
2025-11-11T06:00:00Z
NewsIndustry NewsWage and HourWage and HourAssociate Benefits & CompensationHR GeneralistFair Labor Standards Act (FLSA)In-Depth ArticleHR ManagementEnglishFocus AreaHuman ResourcesUSA
Can using AI risk employees’ exempt status?
Under the federal Fair Labor Standards Act (FLSA), employers may consider executive, administrative, or professional (EAP) employees to be nonexempt (hourly) unless they can show that the employees:
- • Are paid on a salary basis,
- • Are paid at least $684 every week they work, and
- • Perform certain duties.
The duties are where using artificial intelligence (AI) might put some employees at risk of no longer meeting the exemption. Duties under the EAP exemption generally look like this:
- Executive: The primary duty must be managing the enterprise, or managing a customarily recognized department or subdivision of the enterprise; and having the authority to hire or fire other employees, or the employees’ suggestions and recommendations as to the hiring, firing, advancement, promotion, or any other change of status of other employees must be given particular weight.
- Administrative: The primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers, and include the exercise of discretion and independent judgment with respect to matters of significance.
- Learned professional: The primary duty is performance of work requiring advanced knowledge, defined as work which is predominantly intellectual in character, and which includes work requiring the consistent exercise of discretion and judgment.
Overall, exempt employees must exercise independent judgment and discretion over matters of significance. AI use could replace or undermine this.
How this might happen
Here’s an example. Joe Employee is a department manager and is classified as exempt. He’s responsible for supervising a team, including hiring and firing, assigning tasks, and employee evaluations, so he meets the executive duties test for the EAP exemption.
If Joe were to begin using AI-powered systems that automatically assign tasks and provide hiring or firing recommendations based on metrics and past job performance, he might no longer exercise independent judgment and discretion. His title alone won’t be enough to maintain the exempt status. If he gives up his authority and discretion to AI and simply monitors what AI provides, he might not be exempt.
If, however, Joe uses AI but does much more than monitor its output, if he uses independent judgment and discretion when reviewing and validating the AI output, his exempt status should remain intact.
What to look for
In light of the AI-use explosion, employers might want to review their exempt employees’ duties to ensure that they still meet the FLSA’s exempt tests. If exempt employees stop using their judgment and discretion and rely heavily on AI, they might risk losing their exemption.
Such a review of duties and job descriptions could be quite an undertaking, but misclassifying employees can be expensive.
A review should consider whether:
- The employee/position still needs the use of judgment and discretion that is real, substantial, and on matters of significance.
- The employee still has the actual authority to interpret, validate, or override AI outputs using judgment and discretion, instead of just monitoring the output.
- Job descriptions need to be updated to accurately reflect the current tasks and authorities.
The rapid pace of AI advancement might require more frequent reviews of these factors for exempt employees. HR professionals might not know specifically how exempt employees are, or will be, using AI.
Key to remember: Employers must ensure that exempt employees meet certain duties tests, which could be undermined by the use of AI. This might mean that audits can be called for.
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RECENT INDUSTRY HIGHLIGHTS
2025-11-11T06:00:00Z
NewsUSAHR ManagementEnglishAssociate Benefits & CompensationIndustry NewsIndustry NewsWage and HourWage and HourTipsHR GeneralistFair Labor Standards Act (FLSA)Non-Exempt employees OvertimeAssociate RelationsFocus AreaHuman Resources
IRS gives employers penalty relief for 2025 tips and overtime tax reporting requirements
On November 5, the Internal Revenue Service (IRS) published guidance giving employers a break from penalties for new reporting requirements under the One Big Beautiful Bill Act’s (OBBBA) provision regarding taxes on employee tips and overtime pay.
Under the provision, for tax years 2025 -2028, employees may take an above-the-line tax deduction on qualified overtime pay and qualified tips.
To help accomplish this, employers must report the total amount of qualified tips and overtime pay on their employees’ Forms W-2. They will also need to report the amount of qualified tips and overtime compensation for non-employees on the applicable Forms 1099, even though the federal Fair Labor Standards Act (FLSA) doesn’t apply to independent contractors.
To comply with this reporting requirement, employers must:
- Identify and calculate qualified tips and overtime above the regular rate required by the FLSA, and
- Separate the overtime amounts.
For 2025, however, the IRS won’t penalize employers that fail to file correct information or give employees correct statements.
The IRS realized that employers might not currently have the information they need to report or the systems or procedures in place to be able to correctly file the additional information, and give such information to employees.
The IRS has already announced that it won’t update Forms W-2 and 1099 for the 2025 tax year to account for the OBBBA-related changes.
This doesn’t mean that employers are prohibited from providing the reports. The IRS still recommends that they do. Employers can submit the information:
- Through an online portal, providing additional written statements to employees;
- Using other secure methods; or
- For qualified overtime pay, by entering the amount in Box 14 of employees’ Form W-2.
Key to remember: The IRS won’t penalize employers for not submitting overtime or tip pay information for tax year 2025.
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2025-11-10T06:00:00Z
NewsDrug and alcohol policy - Motor CarrierDrug and Alcohol Testing - DOTDrug testing - Motor CarrierTransportationDrug and alcohol training - Motor CarrierIn-Depth ArticleEnglishIndustry NewsFleet SafetyRandom alcohol and drug testing- Motor CarrierSafety-sensitive function - Motor CarrierAlcohol testing - Motor CarrierDrug and alcohol recordkeeping - Motor CarrierFocus AreaUSA
DOT modes & testing: Different inputs, same result
What’s the formula for success when it comes to DOT drug and alcohol testing? Part 40 is your constant, agency rules are your variables, and compliance is the sum. This is true whether you’re subject to highway, rail, air, pipeline, transit, or maritime testing requirements.
If your operation spans multiple agencies, don’t assume A = B when it comes to DOT drug and alcohol testing. Use the following to aid in balancing your compliance equation.
Common denominators across modes
Several constants are built into 49 CFR Part 40, which contains the procedures for drug and alcohol testing of transportation workers. These constants ensure consistency, fairness, and privacy.
To sum up Part 40, it specifies:
- Privacy and security requirements for collection sites,
- The collection kits, equipment, and forms to use,
- Collector and technician training,
- Steps to perform drug and alcohol tests,
- Approved laboratories,
- Steps to return to duty following a violation,
- Follow-up testing after a return-to-duty program, and
- Credentials and training of:
- Collection site personnel,
- Medical review officers (MROs), and
- Substance abuse professionals (SAPs).
To create this uniformity between modes, Part 40 is referenced by all agencies subject to DOT testing:
- Federal Motor Carrier Safety Administration (FMCSA)
- Federal Aviation Administration (FAA)
- Federal Railroad Administration (FRA)
- Federal Transit Administration (FTA)
- Pipeline and Hazardous Materials Safety Administration (PHMSA)
- United States Coast Guard (USCG)
This means each covered employee will experience the same procedures no matter what agency they operate under, including specimen collection, lab analysis, handling of drug test results, and alcohol testing procedures. Those who violate DOT testing rules are subject to the same evaluation, treatment, and testing requirements.
Part 40 also requires employers to investigate the DOT drug and alcohol history of those applying to or transferring into a safety-sensitive position.
Variables that change the formula
In addition to Part 40, DOT employers and employees must factor in agency-specific rules. For example, FMCSA-regulated employers must follow 49 CFR Part 382, while PHMSA-regulated employers follow 49 CFR Part 199.
Agency rules lay out:
- Which entities are subject
- Who is a covered employee
- What activities are safety-sensitive functions
- When testing is required
- Training of employees and supervisors
- Content of policies and procedures
- Prohibited behavior
- Recordkeeping
- Random testing rates
- Confidentiality
When an agency rule conflicts with Part 40, the company must go with the more stringent of the two. For example, FMCSA requires employers to investigate the past three years of DOT testing history, while Part 40 requires just two. So, FMCSA-regulated employers must pursue three years.
And, of course, many agency-specific requirements must be followed. For instance:
- FMCSA employers must use the Drug and Alcohol Clearinghouse as the sole means of learning of FMCSA testing violations. Other agencies don’t have access to this or any similar database.
- PHMSA only requires random drug tests; random alcohol testing is not permitted.
- Some agencies require the observations of two trained supervisors for reasonable suspicion tests.
Employer2
When the same employer is subject to testing for more than one DOT mode, it’s important that the two remain separate. This means each program must have its own chain of custody forms, alcohol testing forms, lab accounts, and so forth.
Forms. When an employee is sent to a clinic, these dual-mode employers must ensure the clinic personnel know which testing form to use and the appropriate agency box to check. This is especially important when a violation needs to be reported to the Clearinghouse. The MRO will only report those checked as FMCSA.
Policies. Dual-mode employers must have a testing policy for each agency. A single policy does not communicate the modal-specific requirements and definitions. An investigator only wants to see what applies to their agency.
Random testing. If an employer is subject to more than one DOT agency for testing, they have the option of creating separate selections or combining them into a single pool (similar to a consortium). They would test at the highest minimum testing rate represented
Employee2
Employees who are subject to more than one mode under the same employer must be in both agency programs.
These employees are subject to all aspects of each respective agency (e.g., background checks, issuance of each policy, post-accident testing, etc.).
The only exception is random testing. These employees are placed in the random pool for the agency where they perform at least 51 percent of their job functions.
Key to remember: Make sure your DOT testing program adds up. Part 40 plus your agency-specific rules equals total compliance.
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EHS Monthly Round Up - October 2025
In this October 2025 roundup video, we'll review the most impactful environmental health and safety news.
Hi everyone! Welcome to the monthly news roundup video, where we’ll review the most impactful environmental health and safety news. Let’s take a look at what happened in the last month!
On October 7th, David Keeling was confirmed by the Senate as OSHA’s new Assistant Secretary of Labor. During his confirmation hearing, Keeling stated that “nothing is more beneficial than collaboration between employers and employees” and shared his three main goals for the agency. These are modernization in regulatory oversight and rulemaking, expanding OSHA’s cooperation and collaboration efforts, and transforming OSHA’s enforcement.
In a landmark opinion, an appeals court offers a framework to revive federal rulemakings, such as OSHA’s Ergonomics Program rule. The rule was previously struck down by the Congressional Review Act in 2001. The latest court decision loosens the grip that the Act has had for almost 25 years. This makes it feasible for agencies like OSHA, EPA, and others to give long-gone rules a second chance. It gives OSHA a path to publish a narrow or different ergonomics rule in the future.
OSHA quietly archived a memo from 2024 that had suggested its enforcement offices may refrain from grouping violations where those offenses are separate and distinct. In some cases, ungrouping raises the total penalty for an inspection. An OSHA spokesperson said the memo was determined to be unnecessary since agency policy in its Field Operations Manual provides clear guidance to OSHA field staff on when citation item grouping may be considered.
The NFPA’s Fire Prevention Week kicked off October 5th with a theme of lithium-ion battery safety in the home. Reports of fires and explosions involving lithium-ion batteries have been on the rise. NFPA provides information and guidance on how to safely use, handle, and recycle them.
And finally, turning to environmental news, the California Air Resources Board submitted comments opposing EPA’s proposal to overturn its 2009 Endangerment Finding. The Endangerment Finding has guided federal actions to address greenhouse gas pollution. CARB’s comments note that EPA’s proposal ignores more than 15 years of its own research and regulations and emphasizes that the agency is obligated to address greenhouse gas emissions and adopt strong standards to reduce them. EPA received over 15 thousand comments on its proposal.
Thanks for tuning in to the monthly news roundup. We’ll see you next month!
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HR Monthly Round Up - October 2025
In this October 2025 roundup video, we’ll review the most impactful HR news.
Welcome, everyone! In the next few minutes, we’ll review the latest HR news. Let’s get started.
On October 7, the U.S. Senate confirmed Brittany Panuccio as the third commissioner of the Equal Employment Opportunity Commission. This gives the EEOC a quorum, or enough people to vote on rulemaking, issue new policies, or revoke guidance documents.
With Panuccio’s confirmation, the agency will likely move forward with making changes. This means that employers may see updates to regulations and other guidance about employment discrimination rules, like those under the Pregnant Workers Fairness Act.
In other news, three federal agencies recently announced that they’re drafting regulations that would allow employers to provide stand-alone, self-funded fertility benefits plans. A fertility benefit would be provided in a manner similar to how dental and vision coverage is offered to employees.
The regulations are in response to an announcement on October 17 from the Trump administration that urged U.S. employers to create new fertility benefit options to cover in vitro fertilization and other infertility treatments. An executive order, signed by President Trump in February, encouraged policies that reduce out-of-pocket costs for IVF.
And finally, E-Verify employers that want to retain information about cases that are more than 10 years old have until January 4, 2026, to download the records. That’s because on January 5, 2026, U.S. Citizenship and Immigration Services will dispose of E-Verify records for cases that were last updated on or before December 31, 2015.
A company’s E-Verify program administrator or corporate administrator may download and save the Historical Records Report to retain information about these cases. The report includes company information, case identifiers, and case resolution information. It doesn’t include employee Social Security numbers or document numbers.
That’s all the HR news we have time for today. Thanks for watching. See you next month!
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Transportation Monthly Round Up - October 2025
In this October 2025 round up video, we'll review the most impactful transportation news.
In this October 2025 round up, we will discuss the Unified Carrier Registration Program, the CDL medical certification update, and results for this year’s Operation Safe Driver Week.
From October 1st through December 31st, carriers and others operating in interstate commerce must register under the Unified Carrier Registration (UCR) program — and waiting until the last minute could cost you.
UCR applies to private property carriers, for-hire passenger and property carriers, freight forwarders, leasing companies, and brokers.
Beyond compliance, UCR registration reflects your company’s commitment to safety and regulatory integrity. It signals to clients, partners, and regulators that your business operates responsibly and within the bounds of federal and state law. Failure to register by the December 31 deadline may result in penalties, citations, or delays during roadside inspections.
Phase 2 of the CDL Medical Certification Integration (known as NRII) was effective June 23, 2025. As of October 27, 2025, 40 states now automatically receive medical exam updates from the NationalRegistry of Certified Medical Examiners.
This means commercial driver’s license (CDL) and commercial learner’s permit (CLP) drivers in those states no longer need to submit their medical cards to the state, and carriers don’t have to verify that the examiner is listed on the Registry.
The current FMCSA waiver, effective October 13, 2025, through January 10, 2026, allows CDL/CLP drivers to carry a paper copy of their medical examiner’s certificate (MEC) for up to 60 days after it’s issued. The previous waiver ending October 12th, had the same 60-day allowance.
Carriers can also keep the certificate in the driver qualification (DQ) file, but it must be replaced with an updated MVR within 60 days of the exam.
This year’s Commercial Vehicle Safety Alliance (CVSA) event ran from July 13–19, 2025, focusing on unsafe driving behaviors. CVSA schedules this 7-day safe-driving awareness campaign every year to educate drivers and create safer roadways across Canada, the U.S., and Mexico.
During the July event, officers across North America issued warnings and tickets to 5,069 unsafe drivers, targeting commercial and passenger vehicles alike (both CMV and non-CMV drivers).
The top infractions of Operation Safe Driver Week 2025 were speeding, failure to wear a seatbelt, texting or using a handheld device, reckless/careless/inattentive driving, and possession/use/under the influence of drugs/alcohol. A total of 8.739 vehicles were inspected during this year’s campaign.
That’s it for this month’s round up. Stay safe, and thanks for watching
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Copyright 2025 J. J. Keller & Associate, Inc. For re-use options please contact copyright@jjkeller.com or call 800-558-5011.