Preparing for the new presidential administration.
As the United States prepares for another Trump administration, cooperatives should stay alert to possible shifts in workplace law and employee benefits. The new Trump presidency will likely bring significant changes to labor relations, employee classifications and health benefits, as well as shifts in safety regulations, overtime rules and minimum wage policies. For HR professionals in cooperatives, understanding these possible changes is crucial for proactive planning. Here’s an overview of the most significant potential changes and what they could mean for your cooperative.
Labor Relations and Unionization
During Trump’s first term, the National Labor Relations Board reversed several union-friendly policies enacted under the Obama administration. His second term could see similar rollbacks of Biden-era policies, potentially loosening regulations that currently favor union-organizing efforts. Expect the NLRB to make it easier for employers to manage workplace conduct without interference from union representatives and to streamline procedures for decertifying unions.
For cooperatives, many of which work closely with unions, this could mean a return to more employer-favorable labor policies. However, unionized cooperatives should approach any changes cautiously, ensuring that workplace policies align with updated labor relations rules without disrupting ongoing labor relationships. Preparing by aligning HR policies with anticipated shifts could mitigate disruptions and keep workforce relations smooth.
Workplace Safety Standards
The new Trump administration may relax Occupational Safety and Health Administration standards, as seen previously with lower inspection numbers and a reduced emphasis on strict mandates. The Biden administration had proposed a heat safety rule and allowed union representatives to join safety inspections, which might be repealed under Trump. Rather than enforcing specific safety standards, Trump’s OSHA will likely return to a broad reliance on the General Duty Clause, which requires employers to provide a safe work environment without setting specific criteria.
For HR professionals in cooperatives, a shift back to this more general approach means the responsibility for safety enforcement could fall more heavily on employers themselves. Without prescriptive federal guidelines, cooperatives might need to invest more in internal safety measures and preparedness for inspections. HR teams should work closely with safety officers to ensure readiness for compliance, even if federal inspections become less frequent.
Overtime Pay and Minimum Wage
The Department of Labor under Biden introduced changes that raise the salary threshold for overtime pay eligibility, with the salary threshold for the “white-collar” exemptions set to rise significantly by 2025. The Trump-led Department of Labor might attempt to roll back these increases, especially if ongoing litigation delays implementation until after the transition. Reducing the overtime threshold could provide flexibility for employers but might also introduce complexity as businesses adjust to shifting requirements. Additionally, Trump has indicated he would remove income tax on overtime pay, a change that could impact cooperative employees.
On the minimum wage front, Trump has historically been against federal increases, making it unlikely for the federal minimum to see significant hikes. Instead, state and local governments will likely continue to set minimum wages above the federal rate of $7.25/hour. HR professionals should stay updated on local wage laws, as even a rollback at the federal level won’t affect more progressive state-level wage standards.
For cooperatives in regions with higher state minimum wages, a rollback in federal overtime or minimum wage standards would have minimal effect, as they’ll need to comply with local mandates. HR professionals should prepare by regularly auditing wage policies to ensure compliance with both state and federal guidelines, while also considering the potential impact of labor cost adjustments on cooperative finances.
Sourcing Workforce Support
The Trump administration previously favored making it easier to classify workers as independent contractors, a stance Biden reversed with strict limitations on this classification. Trump’s second term will likely see a return to a more business-friendly independent contractor standard, simplifying the process for employers.
Cooperatives, which often rely on seasonal or contract workers, could benefit from relaxing contractor classification rules. This change would simplify hiring for temporary positions without adding the burdens associated with full employee benefits. However, cooperatives will still need to comply with local regulations that may limit their ability to classify workers as contractors.
Immigration reform was a priority in Trump’s first term, with limits on foreign labor programs such as the H-1B visa. Cooperatives employing a seasonal or foreign workforce might experience greater challenges under the new Trump administration, as visa availability could become more restricted. For agricultural cooperatives, this legislation will also impact any farmer members who rely on migrant workers.
Paid Leave and Pay Data Collection
In contrast to Biden’s support for a federal paid leave mandate, Trump’s policies have left paid leave to state and local governments. This trend is likely to continue in his second term, meaning that while federal paid leave is unlikely, more states may enact their own policies. For cooperatives, monitoring state-specific paid leave laws will be key, as multi-state employers will face varied mandates. HR professionals should ensure policies are adaptable and meet state requirements, particularly in states with stringent leave laws.
Regarding pay equity data collection, the Biden administration sought to revive the EEOC’s Component 2 pay data collection, which requires detailed wage reporting to ensure pay equity. This initiative will likely be revoked under Trump, aligning with his previous stance on regulatory reduction. Although the federal government may not require wage data, states may continue implementing pay transparency laws, so cooperatives should maintain internal pay equity assessments to avoid potential disparities.
A second Trump administration brings opportunities for cost savings but also regulatory uncertainty. With possible rollbacks in health benefits, labor relations, safety standards and overtime rules, cooperatives must balance federal changes with state-specific mandates to ensure compliance across locations. Preparing now by updating policies, tracking state legislation and maintaining flexibility will help cooperatives navigate these potential changes, staying aligned with both federal and local requirements. HR teams that proactively address these evolving regulations will be best positioned to support cooperative missions while safeguarding employee interests.
SOURCES
“Potential Employee Benefits Changes in Second Trump Term” – Newfront
“Top 10 Workplace Law Developments to Expect Under President Trump” – Fisher Phillips