The election of former President Donald Trump, along with Republican control of the Senate and possible control of the House, raises questions as to several employment law issues.
The National Labor Relations Board (NLRB)
The General Counsel for the NLRB serves at the pleasure of the President. The current General Counsel, Jennifer Abruzzo, likely will be removed, and many of the NLRB’s labor-friendly policies instituted under the Biden administration eliminated.
Labor Relations
Although labor unions have not historically supported Republicans, Trump’s campaign made in-roads with this constituency as revealed by the support he received from many blue-collar workers. However, it is expected that Trump’s administration will still take a pro-employer stance and attempt to limit union power. It will be interesting to see what happens to a bill re-introduced this year by Vice-President-elect JD Vance and Senator Marco Rubio, the Teamwork for Employees and Managers Act of 2024, which “give[s] employees a voluntary opportunity to negotiate with employers on their own terms and without fear of legal action or bureaucratic meddling.”
Immigration
Immigration enforcement is a central focus of Trump. For employers, this impact may be felt through stricter compliance with immigration laws, increased audits, restrictions on the use of the H-1B visa, and a reduction in the workforce if Trump implements his plan for mass deportations.
Federal Minimum Wage
The federal minimum wage is $7.25 per hour and has been since 2009. During his campaign, Trump supported “raising wages;” however, he likely would not favor an increase as significant as the Democratic-driven increase to $15 per hour. Because California’s minimum wage is higher than the federal standard, an increase in the federal minimum wage would have little effect on California employers.
Pay Data Reporting
Although California’s pay data reporting requirements are more stringent than federal requirements, the Trump administration will most likely reduce federal reporting requirements. We anticipate a halt in the Equal Employment Opportunity Commission’s collection of EEO-1 Component 2 information (i.e., data related to employee wages and hours worked).
Employers will face many key employment law challenges in 2025. That said, Trump is expected to maintain employer-friendly positions on many issues. Of course, California employers will remain subject to state law, which in most cases is stricter than federal authority.
The bottom line? There’s lots to be done, but at least some basis for employers to be optimistic about the new term.
