Adjusting to workplace laws under Trump

As the Trump administration focuses its priorities, employers need to be aware of several new, proposed, and potential changes to workplace laws, regulations, and federal agency enforcement initiatives. Here is a preview of some of the likely changes.

Independent contractor classification/joint employer rule

After the first Trump administration, the Biden administration reverted to a more traditional approach to worker classifications. For example, both the U.S. Department of Labor (DOL) and the National Labor Relations Board (NLRB), through administrative rule and board rulings, made it harder for employers to classify individuals as independent contractors as opposed to employees.

In 2019 and again in 2023, the NLRB announced and refined its independent contractor rule. That was effectively a reinstatement of the pre-Trump standard. The new administration will likely change the rule again.

In addition, in March 2024, the U.S. District Court for the Eastern District of Texas indirectly benefitted employers regarding independent contractor classification by preserving a more limited standard when determining joint employer liability. Likewise, a case pending before the U.S. 5th Circuit Court of Appeals has challenged the DOL rule on misclassifications, meaning that the classification standards are still evolving.