The Equal Employment Opportunity Commission (EEOC) has been unusually active in recent months, issuing significant opinions on religious accommodations and clarifying its enforcement stance on transgender discrimination. At the same time, Congress’s Big Beautiful Bill (BBB), enacted July 4, 2025, is reshaping wage law with new tax treatment of tips and overtime. Together, these developments carry real implications for employers, from policy updates to payroll adjustments.
For decades, employers could deny a religious accommodation if it imposed more than a minimal burden. The U.S. Supreme Court’s 2023 decision in Groff v. DeJoy raised that bar, holding that an employer must show a substantial burden before denying a request. Two August 4, 2025, EEOC decisions show just how aggressively the agency is now applying that standard — even retroactively.
One of the EEOC’s August decisions involved the Department of Veterans Affairs. The matter centered on an employee who asked to leave early every Friday afternoon for Sabbath prayer. To balance her schedule, she offered to work extra hours Monday through Thursday. Rather than accept her proposal, the agency required her to either convert to part-time status or work on Saturdays.
The EEOC concluded that these alternatives were not reasonable. By forcing the employee into choices that significantly burdened her (fewer hours or weekend work), the...
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