The Federal Corner is an initiative of the Florida Chamber under the Small Business Council and the Litigation & Regulatory Reform Center that tracks and engages in federal rules out of Washington, D.C., that may be problematic for Florida businesses.
The Federal Corner is intended to provide details of what is happening in Washington, D.C., that may impact your business. It’s important that if these federal provisions apply or potentially apply that you are aware so you can take advantage or take the proper steps accordingly.
The biggest issue currently at the federal level is the government shutdown due to Congress’s failure to extend current funding or pass a new spending plan. One of the sticking points to getting Democrat support is around healthcare and the expiration of Enhanced Premium Tax Credit (EPTC) at the end of this year. The sunset of EPTCs will significantly increase the cost of health insurance for the 4.1 million Floridians and 600,000 Florida businesses that rely on the healthcare marketplace to purchase health insurance. For example, a family of four earning $129,800 per year would see premiums increase by over $10,000, while a family of four earning half as much would see premiums increase by 197%.
For more information on what is happening at the federal level on labor and other regulatory issues, click the link below.
If you would like to engage in our federal legislative or regulatory advocacy efforts, please contact Florida Chamber Vice President of Government Affairs, Carolyn Johnson, at cjohnson@flchamber.com.
Treasury Announces Proposed Rule on “No Tax on Tips” (Rule Published, Comment Period Ended October 22)
Last month, the U.S. Treasury announced its rule on “No Tax on Tips,” a provision that was passed under the One Big Beautiful Act. The rule includes 68 qualifying tipped occupations, and specifies that these tips must be voluntarily paid and in cash or through other payment. Available through 2028, those in eligible occupations can deduct up to $25,000 in tip income on their taxes and the deduction phases out for those that make more than $150,000 ($300,000f or joint filers). The list of occupations includes beverage and food service staff, entertainment, hospitality, transportation and wellness services. For further information or to submit comments, click here.
U.S. Department of Labor Independent Contractor Rule (U.S. Department of Labor Suspended Enforcement)
The U.S. Department of Labor (DOL) has announced its intend to rescind the 2024 Independent Contractor rule, citing 5 legal challenges. Earlier this Summer, the U.S. Department of Labor (DOL) announced that its Wage and Hour Division will stop enforcement of the 2024 independent contractor rule and will instead apply the more business-friendly “longstanding principles” to determine independent contractor classifications, which was the standard under the previous Trump Administration. DOL has said their new rule will be “deregulatory in nature” and that they are still considering how to proceed with a new rule.
Last year, the Biden Administration’s DOL independent contractor rule took effect, replacing the approach of the first Trump Administration and reimplementing the Obama Administration’s “totality of the circumstances” test, meaning that no single factor determines the worker’s status and all aspects of the work relationship may be considered. The Florida Chamber believes this rule interfered in the employer-employee relationship and resulted in many more workers being classified as employees as opposed to independent contractors.
For businesses that rely on the independent contractor model, last year’s rule could have increased costs due to the reclassification of some contractors as employees – leading to minimum wage, overtime pay, and additional benefit obligations. The rule could have also led to increased compliance costs and liability concerns due to the misclassification of workers.
Multiple business groups filed suit against the DOL’s authority to issue this rule, and this litigation is still playing out in court.
Occupation Safety and Health Administration Heat Rule (Pending; Florida Chamber Submitted Comments)
In response to the Occupational Safety and Health Administration (OSHA) proposed rule on heat illness and injury in the workplace, the Florida Chamber of Commerce and Florida Chamber Leadership Cabinet submitted formal comments on behalf of Florida businesses. The major concerns include an estimated $10 billion in increased compliance costs annually, the unintended consequences of a blanket one-size-fits-all approach as opposed to site-specific, business-led solutions, and the outsized impact on Florida’s key economic sectors.
While this rule was proposed under the Biden Administration, it is still expected that OSHA will issue a scaled back heat safety rule. Several national business groups have called for the adoption of the Nevada standard, which only requires a written plan. A virtual public hearing was held earlier this year and the deadline for post-coming comments is this week, meaning a new rule could be imminent. The Florida Chamber Safety Council will continue to lead on heat safety in the workplace, providing free resources to businesses found on the heat stress prevention platform.
U.S. Treasury Beneficial Ownership Information Reporting Rule (Interim Final Rule Issued to Narrow Scope)
Following a series of conflicting court rulings on the legality of the Corporate Transparency Act’s (CTA) beneficial ownership reporting requirements, the U.S. Treasury Department announced earlier this year that it will not impose penalties or fines on U.S. reporting companies, while issuing an interim final rule that imposes reporting requirements on “foreign reporting companies.” As a result, U.S. small businesses will not face fines or penalties for failing to file their paperwork previously required by the Treasury’s Financial Crimes Enforcement Network. If your business was formed under the law of a foreign country, you can find more information on this rule here.
Basel III Endgame Rule (Federal Reserve in Process of Making Changes, Re-Proposing)
Following advocacy from the Florida Chamber and broader business community, the Federal Reserve has begun work on a re-proposed “Basel III Endgame” rule and is expected to issue a new draft rule in early 2026. The previous iteration of the rule would have significantly increased capital requirements for U.S. banks, driving up the cost of capital and credit for businesses of all sizes. Small and mid-size businesses, which are vital to Florida’s economic growth, would have been particularly vulnerable, due to heavier reliance on bank financing to support operations and growth. If this rule had been enacted, the rule could have made financing prohibitively expensive for businesses already facing a challenging economic environment. The Federal Reserve held a conference in late July with regulators, industry executives and analysts, and academics to examine a more balanced approach to bank capital rules.
Occupational Safety and Health Administration Union Walk Around Rule (In Effect, Pending Ongoing Litigation)
The Occupational Safety and Health Administration (OSHA) rule allowing workers to select a union representative to accompany OSHA inspectors walking around employers’ workplaces – regardless of whether the workplace is unionized or the representative selected by the workers is an employee of the business being inspected – took effect last year on May 31, 2024. The rule changes the previous requirement that the representative accompanying the OSHA inspector must be an employee and could present significant challenges for employers.
The final rule is likely to increase union participation in the inspection process and could potentially be problematic as representatives with unknown motives are now allowed to participate in inspections of employers’ property. The rule also means sensitive information could potentially be shared with union representatives, even in non-union workplaces, which could lead to increased union participation. There have also been concerns raised that representatives may be more focused on finding violations rather than working collaboratively to improve safety.
A coalition of business leaders have filed a lawsuit challenging the OSHA rule. The Trump administration may review this rule and could potentially overturn the rule in the coming years.