We’re just three months into President Trump’s second term, and already significant shifts in labor and employment policy are underway. Case-in-point? The National Labor Relations Board (NLRB) and the Equal Employment Opportunity Commission (EEOC) are being reshaped under new leadership, signaling a return to employer-friendly regulations.
While a number of changes are still in progress, and the biggest certainty so far this year seems to be the overabundance of uncertainty, we still recommend that businesses start adapting now to avoid compliance risks and position themselves for success.
What (do we think) you can expect?
Regulatory Rollbacks
The administration has already begun rolling back workplace regulations, with a focus on:
Independent Contractor Classification. The Department of Labor has announced plans to loosen restrictions, making it easier to classify workers as independent contractors. Please be careful about what this does and does not mean for your workplace!
Joint-Employer Rules. The NLRB is reviewing its approach, with expectations that businesses will face fewer liabilities when working with subcontractors and franchisees. Again, don’t ignore the compliance piece of this very technical rule.
OSHA and Wage Compliance. Enforcement priorities are shifting away from aggressive oversight, placing more responsibility on employers to self-regulate.
How You Can Adapt
Review workforce policies to ensure they align with these anticipated changes and prevent costly missteps.
A Changing Union Landscape
Unsurprisingly, union activities are already facing new challenges under this administration. Some unionizing actions may be roll-backable, and some may just peter out. Early actions suggest:
- A more restrictive environment for union organizing efforts.
- Greater employer control in collective bargaining negotiations.
- Less scrutiny on employer-led responses to union activity.
How You Can Adapt
Assess your labor relations strategies now, ensuring management is trained on how to handle union-related matters under the new legal landscape.
It’s also worth noting that proactively addressing employee concerns and improving workplace conditions can help reduce the likelihood of unionization efforts gaining traction in the first place. Most companies can simply bring in some affordable compliance assistance and then get back to business.
Reassess Any DEI and Affirmative Action Programs
The administration has been pretty clear where it stands with Diversity, Equity, and Inclusion (DEI) programs. Specifically, there are early indications of:
- Increased legal scrutiny of race-conscious hiring and promotion policies.
- Potential rollbacks in affirmative action enforcement.
- A shift toward broader inclusion efforts rather than race-specific initiatives.
How You Can Adapt
DEI may have a confusing legal status. Workplace laws related to Title VII of the Civil Rights Act are still very much in place. Said plainly, DEI and Title VII are very different concepts. Title VII still has federal minimums with state and local equivalents in every place – and those standards have teeth.
That being said, you should review your DEI policies to make sure you’re in compliance with the evolving legal standards. Nothing new there, really – it’s wise to do that periodically – but right now it’s particularly worth it.
Also not new: if your DEI program subordinated any protected class (like White males), it was always illegal. Don’t worry, though – we can help you fix that.
And if all of this is driving you a little crazy, remember that fair Title VII activities not only bring up every single class of people, but also profits as well.
What You Should Do to Strengthen Your Compliance and HR Strategies
With ongoing policy changes, we are well aware that uncertainty remains a challenge for many businesses. That being said, the best-prepared employers are:
- Auditing their HR policies to anticipate future regulatory shifts.
- Providing management training on updated labor laws and compliance requirements.
- Developing contingency plans to quickly adapt to new rulings and agency actions.
Feeling overwhelmed by all of this? We get it – and you don’t have to do it all alone. Set up a consultation to learn how Treaty Oak can help you avoid the legal pitfalls of shifting regulations while positioning your business competitively in this new labor landscape.
