A Look Ahead: What to Expect in Labor & Employment Law Under a New Trump Administration
As President Donald Trump embarks on his second term, federal agencies are rapidly reshaping employment law in ways that favor businesses. From diversity initiatives to worker classification rules, the shift is unmistakable: the government is rolling back, and employers are gaining more flexibility.
Dismantling Diversity, Equity, and Inclusion (DEI) Initiatives
One of the administration's early moves includes an executive order rescinding affirmative action and DEI programs for federal agencies and government contractors. This order effectively nullifies previous mandates that required businesses receiving federal funds to implement diversity-based hiring and training programs. Instead, it directs a return to “merit-based” practices, eliminating race and gender-conscious policies.
What This Means for Employers:
Policy Revisions: Employers with government contracts should review DEI initiatives to ensure compliance with the new rules.
Legal Risks: While federal requirements are loosening, state and local DEI laws still apply, making compliance a balancing act.
Revisiting Worker Classification Standards
The Trump administration is also moving to repeal the Biden-era independent contractor rule, which made it harder for businesses to classify workers as contractors rather than employees. The Department of Labor (DOL) is expected to reintroduce a more employer-friendly standard, similar to the 2021 rule that prioritized worker flexibility and business autonomy.
What This Means for Employers:
Operational Flexibility: Businesses will have more leeway in structuring their workforce without the immediate risk of misclassification claims.
State Law Challenges: States like California, which use the stricter ABC test, may still impose tougher classification standards, requiring multi-jurisdiction employers to tread carefully.
EEOC Contemplates Changes to LGBTQ+ Protections
In response to Trump’s proclamation defining gender as strictly male or female, the Equal Employment Opportunity Commission (EEOC) is reviewing its approach to LGBTQ+ discrimination and retaliation claims. While the agency has not yet officially reversed its stance, it has signaled that it may narrow its interpretation of sex discrimination under Title VII, potentially affecting how complaints based on gender identity and sexual orientation are handled.
What This Means for Employers:
Legal Uncertainty: The Supreme Court’s Bostock v. Clayton County (2020) decision ruled that LGBTQ+ discrimination is sex discrimination under Title VII. While this remains binding law, a shift in EEOC enforcement could lead to fewer agency investigations and a more pro-employer approach to these claims.
State & Local Considerations: Many states have their own laws protecting LGBTQ+ employees, meaning employers will need to remain compliant to state laws currently in place.
Restructuring Federal Workforce Protections
Another significant shift is the administration's effort to weaken civil service protections by making it easier to fire career federal employees who don’t align with executive priorities. This policy may set a precedent for broader at-will employment trends in the private sector.
What This Means for Employers:
Potential Influence on Private-Sector Employment: While this primarily affects federal workers, it could signal a broader rollback of worker protections in favor of greater employer discretion.
Workplace Policies: Employers should review termination and disciplinary procedures in case future legislation expands these principles to private-sector employment.
Adapting to a New Era
The Trump administration's return to the White House has brought swift reforms that touch nearly every aspect of workplace regulation. While these changes may reduce compliance burdens for businesses, they also create legal uncertainties as courts and agencies grapple with evolving policies.
Employers should take proactive steps to adapt, balancing new federal policies with existing state laws and potential legal challenges. As a firm with years of experience in labor and employment law, we are here to help you navigate these changes and ensure your business remains compliant and prepared for what’s ahead.