On Friday, July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act, making permanent many of the tax provisions enacted under the 2017 Tax Cuts and Jobs Act (TCJA). An initial draft of the legislation was passed by the U.S. House of Representatives on May 22, 2025 (the Original House Bill). Winston & Strawn’s prior alert regarding key provisions of the Original House Bill can be found here. A revised version of the Original House Bill (the Final Bill) was passed by the U.S. Senate on July 1, 2025, and after overcoming opposition from certain members of the Republican Party, the House voted on July 3, 2025, along party lines, to send the Final Bill to President Trump for signature.

On January 15, 2025, the U.S. Supreme Court unanimously ruled in E.M.D. Sales, Inc. v. Carrera that employers must prove the applicability of exemptions under the Fair Labor Standards Act (FLSA) by a “preponderance of the evidence” (more likely than not), rejecting the higher “clear and convincing evidence” standard previously applied by the Fourth Circuit. The ruling resolves a circuit court split of authority.