On July 31, 2025, the Supreme People’s Court of China issued a new “Interpretation on the Application of Law in the Trial of Labor Dispute Cases (II),” set to take effect on September 1, 2025. This judicial interpretation aims to clarify legal relationships involving employees transferred between affiliated companies or holding concurrent positions, encouraging employers to use tripartite agreements that detail employment status, wage responsibilities, and social insurance obligations during such arrangements. The guidance also addresses permanent transfers, severance pay, and recognition of service years, aiming to reduce disputes and costs for employers[3].
In the United States, significant developments have occurred at both the Supreme Court and National Labor Relations Board (NLRB) levels. On May 22, 2025, the US Supreme Court ruled that NLRB Member Gwynne Wilcox cannot return to work while she challenges her termination by President Donald Trump, leaving the NLRB without a quorum to hear cases. The case revisits the landmark 1935 precedent Humphrey’s Executor v. U.S. regarding presidential powers to remove agency officials and reflects ongoing uncertainty as the Supreme Court awaits further briefing before deciding the constitutional merits[1].
The Supreme Court’s 2024–2025 term has centered on multiple labor and employment law issues. Notably, in E.M.D. Sales v. Carrera, the Court held that employers only need to prove exemptions to the Fair Labor Standards Act (FLSA) overtime and minimum wage requirements by a “preponderance of the evidence” rather than the higher “clear and convincing evidence” standard, resolving a split among federal circuits. This decision reduces the burden on employers facing wage-and-hour litigation and narrows potential liability[2][4].
Other ongoing developments include President Trump’s expected nominations to fill NLRB vacancies after terminating a Board member early in 2025, with the Senate set to confirm new appointees crucial to restoring the Board’s quorum. Meanwhile, labor law practitioners are monitoring further Supreme Court actions and compliance deadlines pertaining to employee rights, wage and hour rules, and federal contractor obligations[7][5].
References
- [1] Supreme Court Decides Against Reinstating Wilcox to NLRB as They Rule on Her Termination—NLRB Remains Without a Quorum
- [2] Labor and Employment Cases in the 2024/2025 Supreme Court Term
- [3] China’s SPC Issues New Judicial Interpretation on Labor Dispute Cases
- [4] 2024-2025 Supreme Court Term Roundup: Decisions Important to Local Government
- [5] Workplace Law Update: 10 Essential Items on Your August 2025 To-Do List
- [7] Top Five Labor Law Developments for June 2025
Leave a Reply