Employers should be ready for some workplace changes with a new president in office. The Trump administration has already begun to roll back some of the labor reforms that were implemented by the Biden administration.
These workplace law updates can impact everything from employee classification to safety regulations. Employers need to stay on top of these changes and implement them in a timely fashion to avoid regulatory fines or fees. Here are some changes to be aware of with a new administration in the White House.
Stronger immigration enforcement in the workplace is one change that the Trump administration launched immediately. Employers in specific industries are already seeing ICE raids and I-9 employment audits. Companies need to be diligent in their workforce eligibility verification efforts and ensure that all their I-9 paperwork for employees is up to date.
The Biden administration attempted to implement stricter pay data collection through the Equal Employment Opportunity Commission (EEOC). This was an initiative that would require employers to turn over data to the government on wages paid and hours worked by employees, to potentially identify perceived pay gaps and prosecute employers. The Trump administration has made it clear that it will end this policy very soon.
There is bipartisan support for President Trump's initiative to charge no taxes on tipped wages. This provision has already been included in the budget package being prepared by Congress. It's not expected to pass until August or September 2025. Once "No Tax on Tips" goes into effect, it will reduce administrative burdens on employers with tipped workers. Employers will also potentially save on payroll taxes.
These are just a few of the employment and HR policy changes that can be expected to happen during the Trump administration.
Companies that rely on unskilled labor or H-1B workers can expect employment eligibility verification to tighten up in 2025 and beyond. Companies should review their policies on employment verification and conduct an internal I-9 audit to ensure that they are in compliance.
The National Labor Relations Board (NLRB) issued a new rule in 2024 that made it more difficult for employers to classify independent contractors. The Trump administration is expected to reverse this policy, although there is no timeline for it at this point. Employers should expect these standards to change at the federal level at some point. HR departments should also be aware that state and federal classifications of independent contractors may differ.
The Trump administration is also expected to make major changes in the Occupational Safety and Health Administration (OSHA). Given the administration's proactive approach to reducing the federal workforce, it's expected that the number of OSHA safety inspectors could dramatically shrink. Rather than mandating specific standards for different industries, the administration is expected to rely on the OSH Act's General Duty clause.
HR departments should stay aware of potential upcoming changes and be proactive in any business areas that will be impacted. For example, an I-9 self-audit would be a good step to take in companies that rely on a lot of unskilled labor. This allows an organization to ensure that its employee records are accurate and up-to-date, especially when it comes to immigration status.
Companies may have to adjust budgets or hire new talent based on HR policy changes. It's important to identify these areas before changes go into effect and develop contingency plans so that business operations are not interrupted.
Organizations may also want to consider outsourcing HR services. At Workforce PayHub, our HR team can provide services on a project basis, on an on-call basis, or a full HR outsourcing basis. We can provide off-site support for your business and ensure that compliance changes take place on time and accurately. We can handle the HR services for large and small businesses, so you can focus on growing your business.
As the political and regulatory landscape evolves, staying informed is crucial for ensuring your business remains compliant and proactive. Subscribe to our newsletter for the latest updates and insights directly to your inbox. Sign up here to never miss an important update.