Now that the vote count for the 2024 election is complete, new uncertainties cloud the outlook for business leaders.
For example, important questions abound regarding the impact the new administration will have on the workplace. How will President Trump's new agency appointments impact the current regulatory landscape for employers? What will happen to the Biden administration's pro-labor policies? Do state and local measures have downstream effects?
For now, much remains unknown. But what we do know is that even though Republicans control Congress, a narrow victory means the White House will be able to influence many policy changes through executive orders and executive regulations. This means that there is a high possibility that
With that in mind, here's what CEOs should consider as they begin preparing their workplaces for 2025 and beyond.
Federal regulatory activity will slow down
The Trump administration could take immediate action to appoint new chairs for federal agencies and kill pending Biden-era workplace regulations, as well as challenges to executive actions from the first Trump administration.
The end result is likely to be a slowdown in regulatory activity and a rollback of Mr. Biden's pro-union policies. Below are some of the key areas for CEOs to focus on, as outlined by federal agencies.
U.S. Department of Labor (DOL)
During the Biden administration, the DOL issued a number of important final regulations aimed at repealing and replacing pre-Trump administration regulations, including rules regarding white-collar overtime exemptions and independent contractor status. Both have faced legal challenges, with a federal court just recently striking down the overtime rules. The Biden DOL may seek to appeal this decision, but the Trump DOL is unlikely to pursue an appeal. Depending on the outcome of legal challenges to independent contractor regulations, a second Trump administration is likely to repeal Biden-era rules and reinstate Trump-era policies.
National Labor Relations Board (NLRB)
On Inauguration Day, President Trump will likely name Marvin Kaplan (the NLRB's only current Republican) as chairman or acting chairman of the board and fire NLRB General Counsel Jennifer Abruzzo. Kaplan will be the only Republican on the board, but will likely be outnumbered by Democrats David Prouty and Gwynne Wilcox until the two Republican vacancies are filled.
In line with President Biden's pledge to be the “strongest union president in history,” General Counsel Abruzzo shifts the board's laws and policies from what he sees as pro-employer laws and policies to favor union organizations. I have been actively trying to do so.
Republican general counsel will seek to change course, including many interpretations of the National Labor Relations Act advocated by Abruzzo. But until a majority of board members are Republicans, it will be difficult to adopt new positions on these issues.
Equal Employment Opportunity Commission (EEOC)
President Trump will likely nominate current EEOC Commissioner Andrea Lucas as chair. But as with the NLRB, Mr. Lucas will be outnumbered by three to one Democrats on the committee. This situation will continue for some time.
If given a Republican majority, the committee could seek to roll back the collection of workplace demographic data and limit the agency's interpretation of Title VII regarding protections for LGBTQ+ workers. The EEOC under the Trump administration is also likely to take a narrower view of what is permissible under the DEI initiative.
Federal Trade Commission (FTC)
In 2023, the FTC made headlines by proposing rules that would effectively ban nearly all noncompete agreements in the U.S. workplace. In August 2024, the final regulations were invalidated by the United States District Court for the Northern District of Texas. The FTC has begun an appeals process against this decision. As has been the case historically, the Republican FTC is likely to abandon this appeal and leave regulation of noncompete agreements to state courts and state legislatures.
Occupational Safety and Health Administration (OSHA)
At least one Biden administration-era OSHA regulation is currently under challenge. It's a so-called “walkaround” rule that allows employees to designate a third party to represent them during OSHA inspections.
This regulation has long been sought by organized labor but strongly opposed by the employer community. If the second Trump administration survives judicial oversight, it is very likely that this bill will be repealed.
Increased state and local legislative activity
As Congress remains gridlocked, states and local governments will continue to be the primary drivers of employment law change.
This election cycle brought several ballot initiatives, legislative proposals, and legal challenges at the state and local level that CEOs should keep an eye on. For example, minimum wage increases were passed in Alaska and Missouri, and ballot initiatives requiring paid sick leave were approved in Nebraska, Alaska, and Missouri.
Employers should also expect more state and local regulations establishing guardrails for the use of artificial intelligence. There were over 700 different proposals in 45 states this year, with Colorado passing the most comprehensive AI regulation bill.
In terms of industrial relations, there are increasing challenges to so-called “binding audience meetings” in which employers express concerns about union membership. Several states currently have bans in place, most recently California, which passed a law that would penalize most employers who implement such technology starting in January. Further complicating this area, the NLRB has ruled that such meetings are illegal, overturning more than 75 years of precedent.
make plans for next year
While questions remain, what is clear is that by 2025, logistics and legal changes will be in place in relation to issues ranging from labor relations and diversity initiatives to wage and hour rules and the use of AI in human resources. This means that both will bring about many changes in the workplace. .
In either case, advanced planning is essential to ensure a productive and legally compliant workplace. Now is the time for CEOs to take proactive steps to prepare for what's coming.
