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What Does the Trump Administration Mean for Human Resources?


human-1181577_1280The next several months—and likely the next few years—will be a roller coaster for Human Resources professionals. The differences between the Obama Administration and the Trump Administration are stark in many government arenas, but labor and employment is surely one of the areas where the differences are the most dramatic.

Here are some of the most likely changes that HR will have to address with their organization’s management in the short-term:

1. Immigration

Immigration practice is likely to change, with some changes coming quickly and others developing over the course of several months and years. In the short term, E-Verify will be expanded to check all new workers, and I-9 forms are likely to see increased audits. Industries that are dependent on immigrant workers—both high-tech companies needing H1-B visa holders and those like hospitality firms that need manual and service workers—are likely to see a slow-down in their ability to bring in foreign workers. HR will need to have compliance programs in place.

2. Overtime

The Department of Labor changes to the overtime exemption rule will likely be reversed. Business had objected strongly to raising the exempt salary threshold to $913 per week ($47,476 per year), though most organizations had begun—or even completed—their transition to this increased bright line between exempt and nonexempt positions. Currently, the rule is in limbo, as a federal court has enjoined its implementation, but how the court will rule finally is unknown and the timing uncertain. The new Department of Labor could decide to drop its defense and let the injunction become permanent. Or DOL could propose some modifications. HR will need to advise management on whether to retain changes that have already been implemented and communicated, whether to reverse them, whether to take a “wait and see” approach, or some combination of all of these.

3. Health Benefits

The Affordable Care Act (Obamacare) will change. But the scope and direction of the modifications and repair of this complex statute and its even more complex regulatory scheme have not yet been determined. At the moment, HR can’t do anything, but this is an area that will necessitate time and effort, no matter what happens.

4. Union Organizing

Many NLRB rulings are likely to be reversed. The timing of these changes will depend on when President Trump fills the vacant seats on the Board, but as soon as Republican appointees have a majority, it is likely that we will see a significant tilt toward management-favored positions. In the immediate future, some of the pro-union policies favored in the Obama Administration, such as “quickie elections” and the “persuader” rule (requiring attorneys and other consultants to disclose clients whom they advise on union organizing issues), should be axed. The broadening of the joint employer doctrine—which the Obama Administration had pushed—may also be rolled back.

5. Downsizing

Reductions in force in major employers are likely to receive increased public scrutiny. If jobs are moving overseas, employers need to be ready to justify their moves and to respond to possible Presidential attention.

And over the longer term, HR can add the following changes to its project list:

  • The Obamacare changes are a long-term issue. It is unlikely that employers will need to change anything for 2017, and even 2018 is uncertain.
  • State and local legislative developments will become a bigger area of concern. Issues such as minimum wage increases and paid family leave are likely to see more movement at the state and local levels than through Congress.
  • Diversity practices may get murkier. The mandate for affirmative action at federal contractors may be weakened or repealed, though Congress might push back on President Trump on this issue if he goes too far. HR will need to work with organizational leaders in determining the best diversity policies for their workplace.
  • Also on the diversity front, employees with strongly held religious beliefs may seek greater freedom to object to work assignments and/or to display signs of their beliefs in the workplace. With Christians feeling empowered and Muslims feeling threatened, greater religious tensions in some workplaces are possible. HR will have to assist managers in working through these conflicts.
  • Whether President Trump will support broader immigration reform and whether Congress can pass such legislation are unknowns at this time.

The Society for Human Resource Management has set up a page monitoring workforce developments under the new Trump Administration. It is worth following.

I’ll revisit these issues in a few months to see what changes have developed.

HR professionals, which issue do you most hope changes under the Trump Administration?

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