By: Abigail Garber
Federal Shift Away from Disparate-Impact Enforcement
On December 9, 2025, the U.S. Department of Justice formally repealed regulations authorizing disparate-impact enforcement under Title VI of the Civil Rights Act, which prohibits discrimination on the basis of race, color, or national in programs that receive federal funding. This regulatory repeal signals a clear shift in federal enforcement priorities toward intentional discrimination rather than neutral policies with disproportionate effects.
In its public statement, the DOJ wrote, “The Department’s new rule reflects the best reading of Title VI, as the Supreme Court has repeatedly recognized for over twenty years. Title VI has and will continue to prohibit intentional discrimination. The Department’s new rule ensures that recipients of federal funding will be judged on their actual conduct, not on statistical outcomes or circumstances beyond their control.”
Renewed EEOC Enforcement Activity
On October 7, 2025, Brittany Pannucio was confirmed by the U.S. Senate as the third commissioner of the EEOC. Pannucio’s confirmation followed the Trump administration’s termination of two Democratic commissioners in January 2025. These terminations left the agency without a quorum and, therefore, without lawful authority to revise and replace regulations for the following nine months. Pannucio’s confirmation restored the agency to a quorum, meaning the EEOC has regained full authority to issue guidance, approve systemic litigation, and pursue enforcement actions.
On November 5, 2025, President Trump named then-acting chair Andrea Lucas as chair of the EEOC, signaling approval of the direction the agency has taken since her leadership role began. The EEOC’s recent approach includes:
- Guidance stating that certain DEI initiatives involving race- or sex-based employment decisions are prohibited by Title VII of the Civil Rights Act
- Decreased enforcement of race-based disparate impact claims in favor of intentional discrimination claims
- Decreased enforcement of civil rights on behalf of transgender employees, along with a de-emphasis on recognition of trans and non-binary gender identity
Colorado Wage Act Amendments and Expanded Enforcement
Beginning January 1, 2026, certain amendments to the Colorado Wage Act go into effect, including:
- Colorado minimum wage is increasing from $14.81/hour to $15.16/hour
- Colorado tipped minimum wage is increasing from $11.79/hour to $12.14/hour
- Highly-compensated-employee (HCE) income threshold is increasing from $127,091/year to $130,014/year. This threshold applies to noncompete and non-solicitation agreements, meaning noncompete covenants are only enforceable against HCEs, and the same is true for non-solicitation agreements if an employee earns 60% of the HCE threshold
Colorado FAMLI Program Updates
Effective January 1, 2026, Colorado’s FAMLI program includes adjusted premiums and expanded leave entitlements, including additional leave for Neonatal Intensive Care Unit (“NICU”)-related care. Employees may be eligible for up to 24 total weeks of paid FAMLI leave, including 12 weeks of bonding and 12 weeks during which a newborn is in the NICU. As FAMLI usage increases, so too does the risk of claims alleging interference or retaliation related to protected leave.
The amount deducted from employees’ wages to fund FAMLI benefits was reduced from 0.9% to 0.88% for the 2026 calendar year. This rate may change annually and will be announced on or before September 1 of the year preceding any rate change that will go into effect in the new year.
Sources:
https://www.justice.gov/opa/pr/department-justice-rule-restores-equal-protection-all-civil-rights-enforcement
https://www.eeoc.gov/brittany-bull-panuccio-commissioner
https://www.hklaw.com/en/insights/publications/2025/12/back-in-business-eeocs-restored-quorum-explained
https://www.gtlaw.com/en/insights/2025/12/2025-round-up-major-colorado-employment-law-developments