Legal Update – May

News

By: Abigail Leinsdorf Garber

 

U.S. Supreme Court to Decide Case on the U.S. Department of Labor’s Enforcement Power

On April 27, 2026, the United States Supreme Court granted a petition for certiorari in Dept. of Labor v. Sun Valley Orchards, LLC, in which the Court will be asked to provide clarity on nature of the U.S. Department of Labor’s (“DOL”) enforcement authority under Article III of the U.S. Constitution. At issue is whether the DOL can hold proceedings like administrative hearings to collect monetary penalties from an employer that allegedly violated terms of the H-2A visa program, which allows foreign nationals to work legally in the U.S. on a seasonal basis.

Through administrative proceedings, the DOL found that Sun Valley Orchards, a New Jersey-based farm, had subjected its seasonal workforce to squalid workplace conditions, required payment for meals, and transported laborers using unlicensed drivers, which it said violated the conditions of employment required under the H-2A visa program. Sun Valley challenged the DOL’s power to adjudicate the case by filing a lawsuit in federal court, where the District Court granted the DOL’s motion to dismiss.

The U.S. Court of Appeals for the 3rd Circuit reversed the District Court’s order, holding that the alleged violations by Sun Valley should have been adjudicated in federal district court, not before an administrative judge. The U.S. Solicitor General requested the U.S. Supreme Court grant certiorari to review the 3rd Circuit’s decision, which he argued, “deprives the government of an important tool for ensuring that employers comply with the conditions for employing” workers under the visa program.

Oral arguments will likely be set for the fall. 

 

U.S. Department of Labor Updates Federal Independent Contractor Rule

On April 28, 2026, the 60-day comment period on the DOL’s proposed update to the independent contractor rule ended. On May 1, 2025, the DOL announced it would no longer enforce the 2024 rule announced under the Biden Administration, which utilized a “totality of the circumstances” assessment of whether a worker qualified as an independent contractor. That test considered factors like the degree to which an employer controls a worker’s work, the worker’s and employer’s investments in equipment and materials, the worker’s skill level, and the degree of permanence of the work relationship.

The DOL’s new proposed rule replaces the totality of the circumstances test with an updated version of the 2021 rule, adopted under the first Trump administration, which determines whether a worker is “economically dependent on the employer for work.” The two core factors to be considered under this test are: (1) the nature and degree of the control the potential employer has over the work; and (2) the worker’s opportunity for profit or loss. Other factors may be included in the consideration, including the permanence of the working relationship, the worker’s skill level, etc.

 

EEOC Sues Coca-Cola Bottler and Distributor over 2024 Women’s Retreat

In February 2026, the Equal Employment Opportunity Commission (“EEOC”) sued Coca-Cola Beverages Northeast, Inc. over a September 2024 two-day retreat it held for female employees. The retreat was themed, “Embrace Your Authenticity,” and aimed to offer participants the opportunity to socialize with higher-ups and connect with other employees who shared similar experiences. No male employees were invited to attend.

The EEOC’s lawsuit cites Title VII of the Civil Rights Act and states, “excluding men from an employer-sponsored event is a Title VII violation that the EEOC will act to remedy through litigation when necessary.” The lawsuit reflects the Trump Administration’s newly announced enforcement priorities, including the evisceration of Diversity, Equity, and Inclusion programs it deems to be discriminatory and violations of Title VII.

 

EEOC Chair Andrea Lucas Is the Focus of Virginia-Based Bar Complaint

On April 22, 2026, a Virginia-Based nonprofit, Legal Accountability Center, filed a bar complaint against the new EEOC Chair, Andrea Lucas. The complaint claims Lucas “repeatedly used her position as Chair of the EEOC to advance initiatives aligned with personal and political objectives even when those initiatives directly violate her duties as chair of the EEOC and Title VII of the Civil Rights Act of 1964.” The complaint lists examples of this alleged conduct, including her (1) refusal to investigate disparate impact claims; (2) refusal to investigate claims of alleged sex-based harassment against members of the LGBTQ community; (3) failure to follow agency procedures requiring notice and comment before rescinding guidelines; (4) violation of Title VII confidentiality provisions; and (5) demand for documents related to DEI practices from twenty law firms.

Lucas joined the EEOC as a Commissioner in 2020, during President Trump’s first term. In January 2025, following his re-election, President Trump appointed Lucas Acting Chair of the EEOC. He then elevated Lucas to Chair of the EEOC in November 2025.

In its Bar complaint, the Legal Accountability Center claimed Lucas had violated Virginia Rules of Professional Conduct and Title VII of the Civil Rights Act and requested the State Bar of Virginial open a formal investigation into her conduct.

 

Resources:

https://www.scotusblog.com/2026/04/court-decides-to-hear-additional-case-next-term-turns-down-petition-from-parents-challenging-sch/

https://hrwatchdog.calchamber.com/2026/03/u-s-dol-proposes-changes-to-federal-independent-contractor-rule/

https://www.eeoc.gov/newsroom/eeoc-sues-coca-cola-beverages-northeast-sex-discrimination

https://www.washingtonpost.com/nation/2026/03/31/eeoc-lawsuit-coca-cola-bottler-discrimination/

https://static1.squarespace.com/static/67367bde1a5ffd49c54fcf7e/t/69e943e4c2072a1899269882/1776894948202/Lucas+Bar+Complaint.pdf

https://www.eeoc.gov/newsroom/president-appoints-andrea-r-lucas-eeoc-acting-chair

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