Labor & Employment I DECEMBER 6, 2024

Anticipated changes to labor & employment laws under the upcoming Trump administration

Businesses can expect a shift towards more employer- friendly regulations with the new administration. Key areas to watch include:

  1. Department of Labor (DOL) Overtime Rule Blocked: On November 15, 2024, a Texas federal court blocked the implementation of the DOL’s final rule, preventing an increase in the salary thresholds under the FLSA overtime exemptions. While salary thresholds may be revisited, we do not anticipate substantial increases.
  2. Independent Contractor Classification: The new administration is likely to reverse the current DOL’s independent contractor rule, easing the classification criteria for businesses.
    • However, many states have their own independent contractor regulations.
    • Changes in the DOL rule will not affect the IRS test or tax liabilities. 
  3. Joint Employer Standard: We expect a return to previous joint employer rules, which set a higher bar for establishing joint employer status.
  4. Non-Compete Agreements: The FTC’s non-compete ban has been set aside by federal courts. We do not anticipate that the new administration will pursue appeals.
    • Many states, however, have restricted or banned non-competes.
  5. Equal Employment Opportunity Commission (EEOC) and National Labor Relations Board (NLRB) Changes: There will be new appointments at the EEOC and NLRB, leading to a shift in focus and a likely reversal of recent decisions that have been unfavorable to employers.

For more information about important updates to labor & employment law, contact Brian Kreucher of Howard & Howard Attorneys.