Top 10 Employment and Employee Benefits Trends to Monitor in Trump’s Second Term
The recent election of Donald J. Trump as the 47th president is anticipated to bring about significant changes in the realm of employment, labor, and employee benefits law and regulation. While no official reforms have been announced as of yet, we can speculate on potential changes based on Mr. Trump’s previous administration and campaign statements. Here are ten key areas to keep an eye on, with insights into how these potential changes may impact employers.
1. **Noncompetes**: Employers may see the withdrawal of the ban on noncompetes issued by the Federal Trade Commission (FTC) in April 2024, which was recently halted by a federal district court in Texas. The enforcement of this ban has faced setbacks in federal courts, leading to appeals by the FTC. Given the current political landscape, the withdrawal of this ban may come sooner than any court outcome, with the Trump administration likely to comply.
2. **Artificial Intelligence (AI)**: Developers and users of AI could experience a rollback of some Biden-era AI guidance, aligning with the broader goals of the Trump administration. While the Biden administration has not introduced substantial binding regulations on AI, they have focused on sector-specific actions and interpretive guidance. Potential changes in AI policy under the Trump administration could impact various industries where AI is extensively used.
3. **Federal Agency Personnel Changes**: Mr. Trump’s tenure is expected to bring changes in federal agencies like the FTC, Department of Labor, National Labor Relations Board, Equal Employment Opportunity Commission, and Securities and Exchange Commission. These changes could result in more employer-friendly interpretations of existing laws and regulations, including the Fair Labor Standards Act and National Labor Relations Act.
4. **Legislative and Judicial Activity**: Changes at the federal level may trigger increased legislative and judicial activities at the state level, especially regarding noncompetes. Employers should be prepared for potential shifts in laws and regulations in various states.
5. **Healthcare Policy**: The Trump administration is likely to focus on reconsidering and potentially amending healthcare-related policies, including the Affordable Care Act. Employers should stay informed about potential changes that may impact healthcare coverage requirements in the near future.
The incoming Trump administration is poised to bring about significant changes in employment, labor, and employee benefits law and regulation. Employers should stay attentive to developments in these areas and be prepared to adapt to potential policy shifts in the coming months.
