The Washington Report
May 28, 2025
Note to Subscribers
While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change after our publication deadline.
Health
HHS Announces It Is Taking “Immediate Steps” to Implement Most-Favored-Nation Pricing Targets
On May 20, 2025, the Department of Health and Human Services (HHS) announced that it is taking immediate steps to implement the President’s Executive Order (EO), Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients. According to the news release, “... the Department has identified specific targets pharmaceutical manufacturers are expected to meet to satisfy the requirements of the Executive Order. President Trump and Secretary Kennedy look forward to highlighting commitments in the coming weeks.” Please refer to the news release for additional information.
The news release is available here.
The EO is available here.
Other HR/Employment
DOL, OSHA, Update Inspection Program Focusing on Workplaces With Highest Injury and Illness Rates
On May 20, 2025, the Department of Labor’s (DOL’s) Occupational Safety and Health Administration (OSHA) announced an update to the inspection program that directs enforcement resources to establishments with the highest rates of injuries and illnesses based on injury and illness data submitted in accordance with OSHA’s recordkeeping requirements. The Site-Specific Targeting program is OSHA’s primary planned inspection program for non-construction establishments with 20 or more employees. The new directive replaces the previous Site-Specific Targeting program directive issued on February 7, 2023.
The news release is available here.
Guidance for the Site-Specific Targeting program is available here.
Federal Court Vacates Portions of EEOC Harassment Guidance
On May 15, 2025, a Texas federal court held the Biden Equal Employment Opportunity Commission’s (EEOC’s) expansion of the definition of “sex” in its Enforcement Guidance on Harassment in the Workplace was contrary to law (Texas, et al. v. EEOC, 2:24-CV-173 (N.D. Tex. May 15, 2025)). As a result, the court vacated portions of the guidance nationwide. The “EEOC previously issued the Enforcement Guidance on Harassment in the Workplace by a 3–2 vote in 2024. EEOC Acting Chair Andrea Lucas voted against the guidance and issued a dissent after it was approved by the EEOC majority.” On January 20, 2025, in Executive Order 14168: Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government, the President “directed the EEOC to rescind portions of the guidance that conflicted with the Executive Order. However, any modification or recission must be approved by a majority vote of the Commission, and as of January 27, 2025, the EEOC lacks a quorum. Because the EEOC cannot rescind or modify the Enforcement Guidance on Harassment in the Workplace at this time, to assist the public following the federal court decision, the EEOC has labeled and shaded the vacated portions of the guidance on the agency’s website. The EEOC continues to review its documents to ensure full compliance with the court order.”
The news release is available here.
Aon Publications
Departments Confirm Enforcement Stay of Mental Health Parity 2024 Final Rule
On May 15, 2025, the U.S. Departments of Labor, Health and Human Services, and Treasury (the Departments) released a statement confirming an enforcement stay of the Requirements Related to the Mental Health Parity and Addiction Equity Act (the 2024 Final Rule).
In the litigation over the 2024 Final Rule filed by the ERISA Industry Committee against the Departments, the U.S. District Court of the District of Columbia had granted a stay requested by the Department of Justice. The statement released by the Departments confirms the non-enforcement policy referenced in the litigation filings.
The Aon bulletin is available here.