John Ashby, BridgeTower Media Newswires
Many of President Donald Trump's campaign promises focused on job creation and a reduction in business regulation. Indeed, he famously stated that he would be "the greatest jobs president that God ever created."
Part of President Trump's promise to create jobs has been based on his plan to "eliminate every unnecessary job-killing regulation." For example, in announcing his nomination for a new secretary of the Department of Labor, President Trump stated that his nominee would "save small businesses from the crushing burdens of unnecessary regulations that are stunting job growth and suppressing wages."
While it is difficult to predict exactly what changes are in store under President Trump's administration, his campaign promises signal a decidedly pro-business shift in employment law and policy. The following are a few examples of likely changes to the employment law landscape.
Affordable Care Act
It is no secret that President Trump intends to repeal the ACA. Indeed, one of his key campaign promises was that, "[o]n day one of the Trump Administration, we will ask Congress to immediately deliver a full repeal of Obamacare." While the process to repeal the ACA will take some time, and the ultimate outcome is unclear, significant changes are certain to come.
The big question from an employment perspective is what role employers will play going forward. Under the current law, employers with 50 or more employees are required to provide health care coverage to full-time employees. One of the biggest challenges employers have faced over the past several years has been learning the new ACA requirements and getting into compliance. Like it or not, employers are likely going to have to learn a whole new set of rules.
Minimum Wage
The federal minimum wage was a big issue on the presidential campaign trail, with presidential candidates pushing for an increase to as much as $15 per hour. President Trump voiced some support for an increase to as much as $10 per hour. However, he has since indicated that each state should set its own minimum wage as appropriate for that state. Accordingly, an increase to the federal minimum wage is unlikely anytime soon. The political climate in Idaho seems equally unlikely to result in a significant increase to the minimum wage in Idaho.
Department of Labor
Big changes are likely in store upon confirmation of a new secretary of the Department of Labor -- the agency that administers federal labor laws. The first impact may be to new overtime regulations that would increase the minimum salary level at which an employee can be exempt from overtime pay from $23,660 per year to $47,476 per year. A federal court stopped implementation of those regulations just before they were to go into effect on December 1. Although that decision was appealed by the former administration, the new Department of Labor is likely to either withdraw the appeal or begin the administrative rulemaking process to amend the regulations to a presumably more employer-friendly form.
Equal Employment Opportunity Commission
Under President Obama's administration, the EEOC pushed aggressive enforcement actions and litigation with an emphasis on pay equality and LGBT protections. While those issues are certain to remain at the forefront of employment law and policy, the EEOC is poised to become more conservative. President Trump will have the opportunity to appoint commissioners to fill two upcoming vacancies on the five-member EEOC -- which will result in a conservative majority less inclined to push the envelope on cutting-edge employment law issues.
That conservative majority is also likely to roll back some of the EEOC's more controversial initiatives. For example, recent EEOC regulations would require large employers to annually report compensation data for employees by gender, race and ethnicity in their Employer Information Report (EEO-1), beginning in March of 2018. Those regulations are likely on the chopping block.
Employment Immigration
While the general theme of President Trump's job creation initiatives has been a decrease in regulation, the opposite is likely with regard to employment immigration. For example, I-9 audits are expected to increase under President Trump's administration. The may also be a push toward mandatory E-Verify -- a web-based system for confirming employment eligibility that is currently voluntary for most employers.
President Trump has made clear that he intends to curtail the availability of H1-B visas (temporary visas for high-skilled foreign workers common in technology industries). In fact, he campaigned on the promise to "end forever the use of the H1-B as a cheap labor program, and institute an absolute requirement to hire American workers first for every visa and immigration program."
Employers must adapt as employment laws evolve. Accordingly, employers should keep an eye on these issues and modify their policies as employment laws change under the Trump administration.
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John Ashby is a partner with Hawley Troxell, where he practices in the areas of employment law and business litigation. He advises employers on their obligations under state and federal employment laws and he represents employers in administrative proceedings and litigation. He may be contacted at jashby@hawleytroxell.com.
Published: Thu, Mar 02, 2017
