DEI Whistleblower Risk, DOL Letters & PAGA

What employers should know about key developments this week:

Two Federal Agencies Target DEI: The U.S. Department of Labor (DOL) is urging its employees to file whistleblower complaints and report diversity, equity, and inclusion (DEI) activities that violate the administration’s ban. Additionally, the Equal Employment Opportunity Commission released a 2025-2029 National Enforcement Plan that prioritizes enforcement against DEI-related discrimination.
DOL Opinion Letters: The DOL’s Wage and Hour Division published four opinion letters addressing overtime exemptions, bonuses, meal breaks, and compensable work. While these letters do not signal dramatic shifts in the DOL’s position, they provide greater clarity, consistency, and transparency.
PAGA Standing: A California appeals court held that an employee who loses in individual arbitration may also lose standing to bring a representative claim under the Private Attorneys General Act (PAGA).

Agencies Step Up DEI Scrutiny, DOL Clarifies Overtime Rules, and California Court Limits PAGA Claims
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June 10, 2026

Transcript

[00:00:03] George Whipple: Welcome to Employment Law This Week. I’m George Whipple. Federal agencies take action to comply with the executive order ending DEI in government. Late last month, the Department of Labor issued an unsigned email to all employees encouraging them to file whistleblower complaints and report any "DEI-related discrimination" occurring in their offices.

[00:00:32] George Whipple: The email emphasized DEI activity that would violate the current administration’s DEI ban, including exclusive networking events, hiring quotas, and DEI trainings that "stereotype or demean employees." The agency also reminded workers that the Office of Special Counsel’s statute of limitations to report violations is three years, which suggests that employees could report activity that took place during the Biden administration.

[00:01:06] George Whipple: And last week, the EEOC scrapped the Biden-era 2024-2028 Strategic Enforcement Plan in favor of the 2025-2029 National Enforcement Plan, which prioritizes enforcement against DEI-related discrimination. The DOL's Wage and Hour Division has released four significant new opinion letters that address overtime exemptions, bonuses, meal breaks, and compensable work.

[00:01:37] George Whipple: This action continues the agency's recommitment to opinion letters announced in June 2025. While the new opinion letters do not signal dramatic shifts in the DOL's position, they do provide clarity, consistency, and transparency. For example, one letter confirmed that an employee may hold both an exempt position and a nonexempt position with the same employer without losing the exemption for the primary role, provided that the salary basis is maintained.

[00:02:13] George Whipple: Another confirmed that time nurses at a hospital spend logging into computer systems and reviewing patient data before their shifts is compensable. PAGA claims could be subject to individual arbitration rulings - As California employers know, the Private Attorneys General Act, or PAGA, permits any California employee to file a representative claim on behalf of all current and former employees.

[00:02:43] George Whipple: Typically, such representative claims cannot be forced into arbitration. However, a recent California appeals court ruling adds momentum to a growing trend in defending these claims: issue preclusion. Companies are enforcing arbitration agreements to resolve the individual claims of the plaintiff, undermining their standing as a representative.

[00:03:08] George Whipple: Here, the trial court found that, when the plaintiff lost an arbitration over his individual claim of labor violations, the arbitration established that he was not an aggrieved employee and thus lacked standing to represent employees in the PAGA claim. The appeals court affirmed the decision. That’s it for this week. Thanks for watching. We’ll see you next time.

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Chicago Recalibrates Fair Workweek Rules, Which Took Effect June 1, Workforce Bulletin

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