Employment laws are constantly evolving, and staying informed is crucial for businesses and HR professionals. This reality becomes even more apparent with major changes to the political landscape.
In our recent webinar, a panel of employment law experts tackled pressing questions regarding policy updates, compliance, and best practices as a result of anticipated employment law changes under the second Trump administration.
You can watch the full webinar at the bottom of this article (and we recommend that you do so)—but we’ve also compiled and answered a few of the most relevant questions from our live audience to help you navigate these legal complexities with confidence.
Employment policy updates
Should we remove our Equal Employment Opportunity (EEO) Statement and Affirmative Action Policy from our employee handbook?
Generally, EEO policies that align with statutory non-discrimination requirements are still good to include, as employers must adhere to those laws. However, Affirmative Action policies could be riskier under the current administration, and employers should carefully evaluate their approach so that their EEO policies avoid the appearance of promoting any favoritism of one group over another.
Is there a recommended EEO statement to include in job postings?
There isn’t a specific phrase that will protect against potential enforcement under the new administration, as there’s still uncertainty around how existing EEO rules will be interpreted.
However, given the current political trajectory and history of new administrative leadership, it would be wise to maintain absolute neutrality when discussing the ways your business makes its employment decisions. At minimum, employers may want to remove any reference to “Diversity,” “Equity,” and “Inclusion” from their policies and statements.
Workplace classification and independent contractors
How will the classification of independent contractors change under the new administration?
It seems likely that the Department of Labor will return to the less restrictive version of the employee/contractor test that was in place during the last Trump administration, making it easier for businesses to classify workers as independent contractors. This may reduce employer liability and payroll costs, but businesses should still assess classification carefully to avoid potential misclassification penalties.
What industries will be most impacted by changes to contractor classification?
Industries that rely heavily on gig workers, freelancers, and contract employees—including tech, logistics, and healthcare—may see the greatest impact. Employers in these sectors should stay informed on classification rules, and SixFifty has employee classification tools to make this super simple for your team to manage.
Immigration and employment verification
How should employers handle I-9 verification for international employees?
Specifics depend on how enforcement trends shake out under the Trump administration. Employers should ensure they are following I-9 compliance requirements and staying up to date with any changes.
What steps should employers take to prepare for possible I-9 audits?
Employers should maintain proper documentation of all I-9 forms, conduct internal audits to ensure compliance, and designate a point of contact to handle ICE visits. Training employees on your response procedures is also recommended.
Will remote I-9 verification continue, or will in-person verification be required again?
That’s a likely possibility. That I-9s can be verified remotely is a relatively new development, instituted based on the need created by COVID. The fact that COVID is “over,” coupled with the new direction of this administration, makes it seem likely we will go back to in-person verification.
Regulatory and compliance updates
Will the National Labor Relations Board (NLRB) remain in place under the current administration?
Yes, though its priorities and enforcement strategies may shift based on leadership and policy changes. Currently, leadership transitions are causing delays in decision-making because the Board is unable to make significant decisions without a quorum of board members.
Are there expected changes to race/ethnicity categories for federal reporting?
We don’t have any clear guidance here. However, it seems unlikely that additional protected classes will be recognized at the federal level under the current administration.
Executive orders and DEI policy changes
What do the new executive orders on DEI mean for businesses?
Two major executive orders have been issued, ending DEI programs in federal hiring and contracting, and directing the government to identify private businesses engaging in “illegal DEI.” Federal contractors must now certify compliance with anti-discrimination laws and could risk losing contracts for non-compliance.
What is considered “illegal DEI”?
Federal law prohibits businesses from making employment decisions based on protected characteristics such as race or gender. Policies that explicitly consider these factors in making employment decisions could now be interpreted as discriminatory under the new framework. It’s unclear exactly what that means right now, but we expect to see updated guidance from the responsible agencies soon.
What actions should businesses take in response to these executive orders?
Employers should evaluate hiring and promotion policies to ensure protected characteristics are not a determining factor. DEI policies are no longer permitted for businesses that contract with the federal government. Employers can still implement workplace fairness or equality policies, but they should focus on more merit-based criteria.
How will changes to federal employment regulations affect private businesses?
Federal contractors and grant recipients may be impacted first, as they will be required to certify compliance with new executive orders regarding DEI restrictions. Employers seeking federal contracts should review hiring and promotion policies to ensure they do not explicitly rely on non-merit-based characteristics.
Best practices for HR compliance
How can HR professionals stay ahead of ongoing employment law changes as it continues to evolve under the second Trump administration?
HR teams should establish an update process to monitor legal developments, review policies frequently, and leverage reliable sources such as SixFifty’s employment law compliance platform (which automatically tracks changes to the law for you, and pushes recommended updates straight to your documents).
Regular compliance training for staff is also recommended.
What should businesses do to ensure smooth legal compliance updates?
Companies should designate key personnel responsible for monitoring changes, establish a review schedule, and document updates systematically. Employee acknowledgment procedures for major policy changes should also be in place.
How often should employers update their employee handbooks?
Our best practices suggest reviewing policies monthly to ensure compliance with evolving employment laws. Frequent reviews are especially valuable in light of how much change we may see in the first half of 2025, depending on how news around various executive orders and legislative action develops.
Consider whether updates should be acknowledged by employees upon significant changes, annually, or at hiring—with clear communication of modifications.
Stay on top of changing laws
Navigating employment law updates can be challenging, but staying proactive and informed is key. If you have specific concerns or need legal guidance, consulting with an employment law expert is always a good idea. Keep an eye on our future webinars and resources to stay ahead of changes in the regulatory landscape. Regularly reviewing policies, training staff, and understanding compliance obligations will help your business stay prepared for ongoing changes.
Watch the full webinar
