With the election over, employers in Connecticut now have to sort out what type of changes can be expected in a new Trump administration.
Much remains unclear. While there has been much talk about Project 2025, a book published by the Heritage Foundation, as fueling policy proposals, it's entirely unclear how much will be proposed.
But here are three things I expect to see in the foreseeable future.
Non-Compete Ban is Dead...For Now. The FTC proposed banning most non-compete agreements. While that rule has been put on hold by the courts, it seems likely that the rule will simply fadeaway in a new administration.
But a secondary question arises: Will a second Trump Administration be able to advance its own set of rulemaking? Indeed, earlier this year, the U.S. Supreme Court ruled in Loper Bright that federal courts can no longer defer to federal agencies' interpretations of statutes. We'll have to wait to see the way this plays out in the courts, but it seems increasingly likely that major changes to workplace laws will need to occur through Congress, which remains divided in many (though not all) respects.
State Laws Control
Despite campaign rhetoric about the importance of national elections, we've seen over the last decade the rise of the patchwork of state laws that vary wildly across the nation. I'd expect that to continue. Thus, for employers with offices or employees in multiple states, it means that it's going to be more important than ever to track the developments in each state.
DEI Initiatives Will Remain Under Attack
We've seen a renewed attack on companies that convey and display strong diversity, equity and inclusion initiatives. We've seen lawsuits and threats of lawsuits as well. With a Department of Justice that will shift with a new administration, it remains to be seen whether the administration will make it a focus to challenge DEI policies and procedures at companies.
One way we might also see this is through the elimination of the EEO-1 form, a path suggested by Project 2025. But again, we'll have to see if policy proposals turn into action.
Other Items to Watch For
There will also be a shift at the National Labor Relations Board and likely a movement to return to the Independent Contractor rule that had been advanced by the Trump administration in the first term. All this and more remains up in the air.
For employers, a change in administration always presents new challenges and if there's one thing we can predict for 2025 it's that this will continue again.
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