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With Donald Trump winning the 2024 presidential election, employers may see significant shifts in employment laws in 2025. While we don’t yet know the specifics of these changes, Trump’s past term and campaign promises give us insight into likely areas of focus. As a result, employers should be ready for adjustments to several key policies.

This blog will dive into nine areas that may see potential changes, and we’ll explore what employers can do now to stay prepared.

Nine Employment Law Changes to Watch

1. Overtime and Independent Contractor Rules
   The Department of Labor (DOL) may be in for some shifts in policy. The Biden administration increased the salary threshold for overtime exemption, which will rise again in January 2025. However, Trump’s administration could push to modify or delay these increases, especially given pending court cases challenging the new rule. Independent contractor classifications may also loosen, potentially reverting to Trump’s 2021 standards, which emphasized factors like worker control and profit potential.
2. Minimum Wage and Tax Reforms
   Although Trump historically opposed a federal minimum wage increase, his latest campaign hinted at supporting some wage growth. Additionally, Trump proposed exempting overtime and tipped wages from federal income taxes. If enacted, these changes could boost take-home pay for certain workers, though they require Congressional support and may face budgetary hurdles.
3. Workplace Safety Standards (OSHA)
   During his previous term, Trump’s administration emphasized deregulation. This approach is likely to return, especially regarding Occupational Safety and Health Administration (OSHA) rules. New policies, such as allowing third-party representatives in inspections and heat illness prevention standards, might be reconsidered or revoked under Trump.
4. Equal Employment Opportunity Commission (EEOC) Policies
   The EEOC, which combats workplace discrimination, might see a shift in priorities. Trump’s administration may reallocate focus away from certain discrimination protections, like those recently expanded for pregnancy, gender identity, and sexual orientation. Additionally, a proposed rule requiring employers to report employee pay data may also be rescinded under Trump, limiting federal efforts to enforce pay equity.
5. Labor Relations (NLRB)
   The National Labor Relations Board (NLRB), currently Democratic-controlled, will retain its majority until 2026. However, once this changes, employers could see shifts in labor law policies similar to Trump’s previous term, which focused on limiting union influence. This may include reversing Biden-era decisions around union representation and employee rights to organize.
6. Diversity, Equity, and Inclusion (DEI)
   DEI initiatives could face cutbacks, particularly for federal contractors. During his first term, Trump restricted DEI training by prohibiting certain topics. His administration may reintroduce these limits, affecting how companies approach diversity initiatives and employee training.
7. Restrictive Covenants and Noncompete Agreements
   The Biden administration proposed a ban on noncompete agreements, which could be overturned under Trump. Republicans have generally opposed such federal restrictions, and employers may see efforts to abandon or significantly reduce limitations on noncompete clauses, allowing more flexibility in employment agreements.
8. AI Regulation
   Biden’s administration had enacted policies around AI use to ensure ethical standards and reduce bias, particularly in hiring. Trump’s administration may look to roll back these regulations to encourage broader AI use without federal restrictions. This could impact how employers implement AI in tasks like hiring, performance management, and scheduling.
9. Immigration Policies
   Trump’s campaign included promises to limit immigration, potentially reducing H-1B visa approvals and winding down programs like DACA. These policies could affect the availability of skilled foreign workers, so employers may want to plan for possible labor shortages in certain areas.

What Employers Should Do Now

Given these potential changes, employers should:

• Stay Updated: Policy updates can come quickly. Following relevant news, legal updates, and advisories will help employers stay proactive.
• Review and Update Policies: Evaluate current HR policies to ensure they meet compliance standards, but remain flexible to accommodate possible revisions under new regulations.
• Consult Legal Counsel: Employment law experts can provide tailored advice on how to manage potential changes and minimize legal risk.
• Prioritize Communication: Keeping employees informed about policy changes and what they mean for the workplace can help foster a positive environment amid changes.

As the Trump administration appoints new leaders to federal agencies, expect a shift in priorities affecting overtime, worker classifications, workplace safety, and more. By keeping a close eye on these nine areas, employers can remain compliant and ready for any changes ahead.

Stay tuned to this blog for continued updates on employment law developments!

This Compliance Bulletin is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. ©2024 Zywave, Inc. All rights reserved.