As we await the return of a Trump administration, the implications for HR policies and practices loom large. With the change in administration, we can expect significant shifts in regulations, immigration policies, diversity initiatives, and tax law—all of which could impact how businesses attract, manage, and support their workforce. Here's a look at the possible changes ahead and how employers can prepare.

1. Deregulation and Reduced Agency Authority

A cornerstone of Trump’s previous administration was cutting regulations, and this trend is likely to continue. The administration is expected to follow recent legal trends, such as the Supreme Court’s curtailment of agency authority (see the end of Chevron deference and constitutional challenges to agencies like the SEC and NLRB). For HR, this could mean:

• Fewer compliance requirements tied to federal labor and employment regulations.

• A possible shift in enforcement priorities, with a decreased focus on agency-led investigations or rulings.

• Uncertainty at the state level, as states may implement stricter regulations to fill federal gaps.

Employers should keep a close watch on legal developments to stay ahead of these changes.

2. A Shift Away from Pro-DEI Policies

Under a new Trump administration, pro-DEI policies in the federal government would likely be significantly curtailed. Trump has previously issued executive orders limiting diversity training for federal contractors, and this approach will almost certainly resurface. Additionally, there’s speculation that attempts could be made to restrict private employers’ DEI initiatives.

This poses challenges for employers committed to fostering diverse and inclusive workplaces. Companies may need to balance maintaining their DEI goals with navigating evolving legal constraints. Proactive preparation—such as reviewing DEI programs for compliance—will be essential.

3. Stricter Immigration Policies

Immigration reform is expected to be a top priority in a new Trump administration. Anticipated policies could include:

• H-1B Visa Restrictions: Tighter eligibility criteria, reduced approvals, or even moratoriums could impact employers’ access to international talent.

• Workforce Gaps: Immigration curbs may lead to talent shortages in industries heavily reliant on foreign workers, including technology, healthcare, and manufacturing.

Employers should evaluate their workforce planning strategies, explore alternative pipelines for talent, and consider advocating through industry associations to address these concerns.

4. Potential Reversals on ACA Subsidies

A new Trump administration may attempt to dismantle or reduce the subsidies provided under the Affordable Care Act (ACA). This could increase the burden on employers to provide affordable healthcare options or face rising employee dissatisfaction.

It’s critical for employers to monitor changes to healthcare regulations and prepare for potential adjustments to benefit offerings, should ACA subsidies be reduced or eliminated.

5. Expansion of the 2017 Tax Cuts

Trump is likely to push for the expansion of the 2017 Tax Cuts and Jobs Act, potentially making expiring provisions permanent. While this could offer businesses financial benefits, HR leaders should consider how such changes might impact compensation strategies, benefits offerings, and overall budgeting.

How Employers Can Prepare

Uncertainty often accompanies any change in administration, but employers can take proactive steps to be ready:

• Stay Informed: Follow developments in labor laws, immigration, and tax policies to anticipate changes.

• Evaluate DEI Programs: Ensure that initiatives comply with current and anticipated regulations while maintaining your organization’s values.

• Plan for Workforce Gaps: Explore new talent acquisition strategies to mitigate the impact of tighter immigration policies.

• Review Benefits Packages: Be prepared to adapt healthcare offerings and other benefits to align with shifting regulations.

• Engage HR Expertise: Partner with HR professionals or external consultants to navigate legislative changes with confidence.

We’re Here to Help

Navigating the complexities of changing federal policies can be challenging, but you don’t have to do it alone. At SevenStar HR, we’re here to support your organization through any legislative shifts that may arise. Whether it’s adapting to new regulations, revamping policies, or preparing for workforce changes, we’re ready to help you thrive—no matter what comes next.

Let’s face the future together. Reach out to SevenStar HR today to ensure your team is prepared for whatever 2025 brings.