Employment Law Update: The Impact of Trump’s Reelection on Federal Employment Policies
Introduction
The reelection of Donald Trump is expected to bring about significant changes in federal enforcement of employment-related policies. These changes will likely reverse many of the pro-employee initiatives introduced during the Biden administration, as well as significantly impact enforcement priorities. Employers should be prepared for a shift towards more pro-employer policies and adjustments in the regulatory landscape.
Reversal of Pro-Employee Initiatives
Under the Biden administration, several proactive measures were introduced to enhance employee rights and protections. For instance, the Federal Trade Commission (FTC) sought to ban noncompete agreements and regulate the fairness of gig-employment relationships. Similarly, the National Labor Relations Board (NLRB) General Counsel stated that most noncompete and "stay or pay" agreements violate the National Labor Relations Act. These initiatives, along with other pro-employee measures, are likely to be curtailed or reversed by the Trump administration.
Changes in Federal Agency Leadership
The Trump administration is expected to replace many of the current federal agency heads with individuals who have a more business-oriented, and, therefore, pro-employer mindset. The current leadership, appointed by the Biden administration, includes individuals with strong ties to organized labor and more progressive-oriented employment initiatives.
Current agency heads, including within the EEOC and OSHA, for example, will be replaced by individuals more in line with the Trump administration agency, which will more than likely influence the direction of enforcement policies and legal interpretations. The only exception here may be the Department of Homeland Security, where employers may see an uptick in workplace audits and investigations for compliance with the Immigration Reform and Control Act of 1986, which imposed the employment verification requirement for all employees through the use of the Form I-9. Early signals from the incoming administration are that enforcement of immigration laws, including those that affect the workplace, will have top priority.
Implications for Employers
With new leadership in place, employers can expect several changes in enforcement policies:
- Reduced Regulatory Oversight: There will likely be a reduction in the regulatory oversight of employment practices, giving employers more leeway in managing their workforce.
- Shift in Legal Interpretations: The new administration may abandon or modify many of the statutory enforcement policies introduced by the Biden administration, leading to more employer-friendly interpretations of existing laws.
- Focus on Business Interests: The overall focus of federal agencies is expected to shift towards supporting business interests, potentially resulting in fewer penalties and less stringent enforcement actions against employers.
- Increased Focus on Worksite Immigration Enforcement: In order to meet a primary campaign promise, worksite investigation activity may take priority, particularly within certain target industries, such as certain service industries and construction. Immigration-related I-9 violations bring with them substantial penalties, which are typically imposed using a matrix that weighs the total number of violations against the size of the employer’s workforce.
Whiteford’s Labor and Employment Law team will closely monitor these developments and be available to advise clients on how to adjust their practices accordingly to ensure compliance with the new regulatory framework.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.