Businesses should prepare for shifts in federal employment regulations, administrative policies, and the workplace under the new Trump administration. The following sets forth likely changes of interest to employers.
Regulatory Agencies and Policies
Under Trump’s upcoming administration, leadership at the federal Equal Employment Opportunity Commission (EEOC), Department of Labor, and National Labor Relations Board (NLRB) is expected to shift. As a result, we should see a decrease in Biden-led priorities. These have sought to strengthen the rights of workers, and consequently, less regulatory burden on employers. Expected shifts include less litigation and enforcement of LGBTQ+ and pregnancy discrimination in the workplace, more flexibility to classify workers as independent contractors, and a reverse of some rules that strengthen unions and union workers’ rights.
Trump will also appoint a new chair of the Federal Trade Commission (FTC). It is unclear whether the FTC will continue to pursue its objective to eliminate non-competition agreements across the country. The FTC recently appealed a federal Texas district court case that struck down the FTC’s non-compete ban. It is anticipated that under the new administration, the FTC may withdraw its appeal. Thus, the elimination of non-competes may no longer be a priority.
Historically, Trump has not put a strong emphasis on wage and hour issues. Interestingly, Trump appeared to gain the trust of working-class voters in his recent campaign. It has been said that he may support a Congressional move to increase the federal minimum wage. Trump has also proposed eliminating federal income taxes on tips and overtime pay, measures that may benefit both businesses and workers alike.
DEI Initiatives
The Trump administration previously took steps to restrict DEI programs. It has continued pursuing policies that limit DEI initiatives in the federal government and among federal contractors. In 2020, Trump signed an executive order that banned all federal contractors from using “divisive propaganda” in their DEI programs, trainings, and communications. While President Biden reversed the order in 2021, Trump will likely issue a directive similar to the one he issued in his previous term. It remains unclear whether businesses will change their approach. This includes those with established workplace DEI programs.
Immigration
With the appointment of Tom Homan as the new “border czar,” we can expect that Trump will keep his campaign promise of mass deportation of undocumented workers and stricter enforcement of immigration laws. We can also expect more audits of businesses by U.S. Immigration and Customs Enforcement (ICE) and tighter compliance controls on H-1B visa programs. Businesses that rely on foreign labor may incur significant workforce reductions, especially those in the agriculture, construction, and hospitality industries.
Workplace Safety
We may see a shift in rulemaking by the Occupational Safety and Health Administration (OSHA). OSHA recently proposed a new heat safety standard, which seeks to regulate heat injury and illness issues and implement related control measures. This standard has not yet been made final, and it may either be revised or rescinded under the Trump administration. Whether OSHA inspections and enforcement decrease remains to be seen.
Conclusion
The U.S. president has significant power to influence change in federal employment laws and policy. With the Trump presidency, it is safe to say that businesses will incur less exposure in the workplace under federal laws. However, while workers’ rights may be diluted on the federal side, states may pass their own laws that seek to provide greater protections for workers.