Immigration, injunctions and overtime: Legal changes from July 2025

By Emma Peterson. 

Key takeaways for the roofing industry from the July legal landscape. 

July marks the halfway point of 2025 and a lot has happened since the start of the year! To help contractors keep up with all the legal changes and updates, Trent Cotney of Adams and Reese is sharing his insights through a newsletter called the Cotney Briefs. These are invaluable resources for contractors who want to understand the key shifts happening in construction law as we speak. Keep reading to learn about what Trent shared in his July brief. 

1 – Overtime exemption rule in flux 

In April 2024, the U.S. Department of Labor (DOL) made an overtime rule that raised the EAP salary threshold to $844 per week on July 1, 2024, and $1,128 per week on January 1, 2025. This has been challenged by a variety of business coalitions and the Fifth Circuit in Texas is set to hear oral arguments about it later in 2025.  

What this means for contractors: If you have salaried field managers, make sure to budget for whatever outcome the court decides upon. This means being ready to recalculate overtime retroactively if the rule is upheld. 

2 – California’s fast track housing package 

On June 30, 2025, California Governor Gavin Newsom signed a pair of bills amending the California Environmental Quality Act (CEQA). This bill means that things such as infill housing, child‑care, food‑bank and wildfire‑mitigation projects are now exempt from full environmental review, ultimately quickening project timelines and lowering building costs.  

What this means for contractors: Make sure to update your bid schedules when working in California on multifamily or mixed‑use projects to reflect the shorter CEQA timeline. 

3 – Trump v. CASA, Inc. decided 

The Supreme Court ruled at the end of June in a 6-3 vote that “district courts lack equitable authority to issue orders that bar the federal government from enforcing a statute or policy against non‑parties. Injunctive relief must be limited to the plaintiffs before the court unless certified as a class.”  

What this means for contractors: This curtails forum shopping and means more regulatory juggling for contractors who operate across state lines. Overall, make sure to include compliance‑cost contingencies in long‑term contracts as contested federal rules are likely to be implemented faster. 

4 – Continuing the conversation about immigration 

Immigration continues to be a hot topic that is key for contractors to stay on top of. As of February 2025, every United States Attorney has been ordered by the Department of Justice to “deploy every applicable criminal statute against employers that knowingly hire or harbor unauthorized workers.” This treatment of immigration as a frontline enforcement priority (rather than a paperwork problem) has led to a rise in high visibility worksite raids and arrests that can involve every member of the worksite, whether they are simply aware of the presence of unauthorized workers or warning crews about impending inspections.  

Because of this, it is crucial for contractors to verify paperwork wherever they can. Trent recommends “complet[ing] the current Form I-9 for every new hire, re verify[ing] expiring work authorization before the deadline and consider[ing] enrolling in the federal EVerify system wherever permitted. Many states now require it, and ICE credits voluntary participation when deciding whether to refer a case for prosecution.” Additionally, internal audits and reviews can be implemented to help avoid clerical issues snowballing into multi-count indictments that carry prison exposure and asset forfeiture. 

What this means for contractors: Treat immigration compliance and paperwork like you treat fall protection. That means documenting everything, auditing regularly and bringing in outside review when necessary. Overall, creating a strong paper trail of compliance is the best practice.  

To get a bit more context on this month's brief, or to read past briefs, visit www.cotneycl.com/cotney-brief-july-2025.