Labor Laws & Money Blog

WASHINGTON – The United States today announced the successful resolution of the USMCA Rapid Response Labor Mechanism (RRM) matter at the Amphenol Optimize México, S.A. de C.V. facility located in Nogales, Sonora, Mexico, which manufactures automotive and aerospace connectors, cables, and components. The resolution is another win for the Trump Administration, whose America First approach ensures our trade partners do not undermine worker protections to gain an unfair trade advantage or attract investment.The United States and Mexico agreed on a course of remediation to address labor rights violations occurring at the facility, including employer interference in union activity and retaliatory dismissals of workers. That plan has now been implemented, and the Denial of Rights concerns raised in the U.S. request for review have been remediated. As a result, the United States Trade Representative has directed the Secretary of the Treasury to resume liquidation of unliquidated entries of goods from the facility.The U.S. Department of Labor’s Bureau of International Labor Affairs, the Office of the U.S. Trade Representative, and the Mexican government facilitated a resolution with Amphenol to remediate workers’ claims.Actions taken by the facility to address the matter include: Reinstating nine workers with full backpay and benefits; Implementing a neutrality statement and guidelines related to the freedom of association and collective bargaining; andInstalling and publicizing a complaint mechanism through which workers can report violations of their rights and breaches of company policies.Actions taken by the Government of Mexico to address the matter include: Delivering in-person trainings for all company personnel on the freedom of association and collective bargaining; Monitoring the facility and engaging with workers and the company throughout its review period; andMaintaining a direct email address, reporting platform, and telephone line for workers to anonymously report any potential acts of unlawful interference or other violations of freedom of association and collective bargaining rights, and timely investigating any allegations.The RRM, developed under the first Trump administration, is an unprecedented trade tool that works to level the playing field for American workers by addressing weak labor law enforcement in Mexican workplaces that compete in trade with the U.S.   BackgroundThe United States Trade Representative and the Secretary of Labor co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC). On April 11, 2025, the ILC received an RRM petition from the Sindicato Industrial Operaciones y Manufacturas, a Mexican labor union. The petition alleged that Amphenol had violated workers’ right to freedom of association and collective bargaining by coercing workers to vote for the company-favored outcome during a union vote, discouraging workers from joining an independent union, and taking reprisals against workers due to their union preferences, including through dismissals. The ILC reviews RRM petitions that it receives, and the accompanying information, within 30 days. The ILC determined that there was sufficient, credible evidence of a denial of rights enabling the good faith invocation of enforcement mechanisms.As a result, on May 9, 2025, the United States Trade Representative submitted a request to Mexico to review the matter. Mexico accepted the request, conducted an investigation, and worked with Amphenol to provide remediation to dismissed workers and implement facility-wide measures aimed at safeguarding freedom of association and collective bargaining rights. The United States has reviewed the matter and concluded the situation to have been remediated. As a result of the above actions taken by the facility and Mexico to resolve the action, the United States agrees that there is no ongoing denial of rights. Ambassador Greer’s letter directing the Secretary of the Treasury to resume liquidation of unliquidated entries of goods from the facility is available here.Read the full course of remediation here.Read an unofficial courtesy Spanish translation of the full course of remediation here.Information about previous requests can be found here.Learn more about the department’s work to make global competition fair for American workers.

In the week ending October 17, the advance figure for seasonally adjusted initial claims was 194,000, a decrease of 6,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 199,000 to 200,000. The 4-week moving average was 197,750, a decrease of 1,000 from the previous week's revised average. The previous week's average was revised up by 250 from 198,500 to 198,750.

VOORHEES, NJ – The U.S. Department of Labor has obtained a consent judgment and final order in federal district court requiring a New Jersey drywall installer to pay $725,000 in back wages, damages, and civil money penalties after denying 48 workers overtime pay.The department’s Wage and Hour Division found that P & B Partitions Inc. failed to pay their employees for pre-shift work while they waited for transportation to their jobsites. The failure to pay constitutes a violation under the Fair Labor Standards Act’s overtime provisions.  “Tasks completed to prepare for the job, and in this case, while waiting to get to the worksite, is work that must be compensated,” said Wage and Hour Division District Director Charlene Rachor in Southern New Jersey. “Failing to pay workers overtime wages deprives them of their rights, and we will hold employers accountable for such actions.”The consent judgment requires P & B Partitions Inc. to pay $350,000 in back wages, an equal amount in liquidated damages to 48 workers, and requires payment of an additional $25,000 in civil penalties. The judgment was entered in the U.S. District Court for the District of New Jersey on June 26, 2026.“The U.S. Department of Labor will pursue legal action to ensure that all employees receive the compensation they are legally owed,” said Regional Solicitor of Labor Jeffrey S. Rogoff in New York. “This case demonstrates that employers can face costly consequences if they do not comply with federal wage law.”Employees and employers can contact the Wage and Hour Division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). Employers are encouraged to use the agency’s industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division. The agency’s PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the FLSA, as well as certain potential violations under the Family and Medical Leave Act.Learn more about the Wage and Hour Division, including how workers can use a search tool if they believe they may be owed back wages collected by the division. Download the agency’s free WorkWise Timesheet app for iOS and Android devices to track hours and pay.

CHICAGO – The U.S. Department of Labor has cited a Frankfort-based utility construction company for repeatedly exposing employees to excavation safety hazards after federal investigators observed employees working in an unprotected trench.The department’s Occupational Safety and Health Administration initiated an investigation of Always Underground LLC as part of its National Emphasis Program on Trenching after witnessing employees working in an unprotected trench deeper than eight feet.OSHA cited the employer for three repeat violations for failing to provide workers with a safe means of egress, to install a trench protective system that would protect against cave-ins, and to keep excavated or other materials and equipment at least 2 feet from the edge. Additionally, the agency cited the employer for a serious violation for failing to provide workers with protective hardhats against falling objects.In total, OSHA proposed $380,664 in penalties.The employer has 15 business days from receipt of its citations and penalties to comply, request an informal conference with OSHA’s area director, or contest the findings before the independent Occupational Safety and Health Review Commission. Please check the OSHA establishment search page periodically for any changes in the inspection or penalty status.Visit OSHA’s website to learn about keeping workers safe around trenching and excavations. Employers can also contact the agency for information about OSHA’s compliance assistance resources and for free help on complying with OSHA standards. 

WASHINGTON – The departments of Labor and Health and Human Services announced that representatives from several large employers with self-insured health plans signed a statement of support for the expansion of electronic prior authorization reform to the self-insured markets. “The departments appreciate these U.S. companies for stepping forward to collaborate with Labor and Health and Human Services to help employees cut through red tape and receive their health benefits,” said Assistant Secretary for Employee Benefits Security Daniel Aronowitz. “By signing this statement of support for the expansion of electronic prior authorization reform, government and private industry are working together on behalf of the American workforce.”Signed by five delegates from Amazon, Axon Enterprise Inc., Google, Meta, and Oracle Corp., the statement supports the June 2025 Prior Authorization Pledge, which contains six key reforms, including standardizing all prior authorization submissions, reducing the volume of medical procedures that require preapproval, and making sure medical professionals review all clinical denials. It also asks third party administrators to enhance transparency and communication around authorization decisions and appeals.“Patients and doctors shouldn’t have to fall back on faxes and paperwork simply because of how a patient’s health plan is funded,” said CMS Administrator Dr. Mehmet Oz. “We’ve brought insurers, providers, and technology companies to the table to modernize prior authorization, and now employers are helping us take another important step. When the entire healthcare system moves together, we can spend less time on paperwork and more time getting patients the care they need.”Over the past year, the Trump Administration and industry partners have implemented electronic prior authorization reforms. In 2025, leading insurance companies signed the Prior Authorization Pledge to improve the process for their Medicare Advantage, Medicaid Managed Care, Health Insurance Marketplace, and commercial plans. Read the employer statement of support.