Top Five Labor Law Developments for September 2025

1. As a result of the federal government shutdown, the National Labor Relations Board has suspended nearly all operations and furloughed the vast majority of its staff. Nearly all Board operations, including hearings, elections, and investigations, are suspended. However, the Board will retain limited capacity to respond to unfair labor practice (ULP) charges that could cause irreparable harm to the private sector economy. Despite the shutdown, employers must still comply with bargaining obligations under the National Labor Relations Act, and charges can still be filed. Contract grievance and arbitration provisions under collective bargaining agreements remain active. This disruption may delay case processing and enforcement, affecting both unionized and non-union workplaces.
    
2. According to a new Gallup survey, public approval of labor unions dipped slightly to 68 percent in 2025. The approval rating is a two percent decrease from last year, which was slightly less than 2022’s record high of 71 percent. Nonetheless, 2025 marks the fifth consecutive year that union approval has been between 67 and 71 percent. The survey also notes that support for unions has grown across all political affiliations since 2016, although Republican backing has dipped from its 2022 high of 56 percent to 41 percent. Nonetheless, 90 percent of Democrats and 69 percent of Independents expressed approval. Although union support remains high, union membership is at its lowest in decades. 
    
3. The Board filed a federal lawsuit challenging a newly enacted New York statute amending the New York State Labor Relations Act to expand jurisdiction over private employers; other similar laws vexing private employers. NLRB v. State of New York et al., 1:25-cv-1283 (N.D. N.Y. Sept. 12, 2025). The Board alleges that the law unlawfully intrudes on the Board’s exclusive jurisdiction over private sector labor relations by empowering the state’s Public Employment Relations Board (PERB) to certify bargaining representatives and enforce collective bargaining agreements in areas governed by the Act. The complaint argues that S.8034A creates a parallel regulatory framework that conflicts with federal law and is therefore preempted under the U.S. Constitution’s Supremacy Clause. Like New York, California passed a similar measure with Assembly Bill 288, expanding its PERB’s authority to intervene in private-sector labor disputes when federal protections are unavailable or ineffective. It will likely face similar challenges from the Board. Similar challenges have been filed by businesses.
    
4. A U.S. senator introduced the “Tax Cut for Striking Workers Act of 2025,” a bill aimed at exempting union strike fund payments from federal income tax. The legislation seeks to prevent double taxation on compensation that workers receive while on strike, which are currently taxed despite being funded by post-tax union member contributions. The bill is co-sponsored by several Democratic senators and supported by major labor organizations, including the AFL-CIO, International Brotherhood of Teamsters, United Food and Commercial Workers, and United Steelworkers. If enacted, the proposed change would apply to stipends received after Dec. 31, 2025.  
    
5. Board Acting General Counsel William Cowen issued an internal memorandum emphasizing the importance of timely Section 10(j) injunctions to ensure prompt interim relief regarding ULPs. Memorandum GC 25-11 (Sept. 5, 2025). Regional Offices are instructed to assess whether interim injunctive relief is appropriate in cases involving high-risk ULPs, such as discharges during organizing, bad faith bargaining, or refusal to bargain by successor employers. The memo incorporates the U.S. Supreme Court’s standard from Starbucks Corp. v. McKinney, requiring a clear showing of four factors, including irreparable harm and public interest. Regions must expedite investigations and submit potential 10(j) cases promptly to the Injunction Litigation Branch (ILB), even if new charges arise mid-investigation. Interim settlements are encouraged, with ILB consultation, to resolve 10(j) issues efficiently. 

Please contact an attorney at Jackson Lewis if you have any questions about these developments.