With the incoming Republican administration, the U.S. Department of Labor (DOL) is set to reverse several key labor policies introduced during the Biden administration. These changes will likely reshape labor regulations in areas ranging from worker classification and overtime pay to immigration-related work visas and workplace safety, all while reflecting President Trump’s approach to economic policies and immigration reform.
One of the top priorities for the DOL under the new administration is to repeal the Obama-era rule that made it more difficult for businesses to classify workers as independent contractors rather than employees. The Biden administration had pushed for stricter worker classifications that could require companies to provide benefits such as overtime and minimum wage protections. This would have significant cost implications for industries reliant on freelancers and contract workers, including tech platforms like Uber, DoorDash, and gig economy sectors, as well as trucking and healthcare.
Under the Trump administration, the DOL is expected to reinstate a rule more favorable to businesses, focused on the degree of control a company has over a worker, and the opportunity for workers to profit from their own investments. This change, which was initially outlined in non-binding guidance in 2019, aligns with the interests of business groups and is expected to gain traction in the new regulatory landscape.
The Biden administration’s push to expand overtime pay eligibility to millions of salaried workers is likely to be rolled back. A federal judge in Texas recently ruled that the overtime rule, which was set to increase the salary threshold for overtime eligibility, was improperly based on wages rather than job duties. The Biden administration had aimed to raise the salary threshold for salaried workers to approximately $58,600 annually, allowing more workers to receive overtime pay. However, the Trump administration is expected to drop an appeal of the Texas ruling and freeze any increases to the salary threshold, with business groups favoring a lower cap.
In addition to reversing labor protections, the Trump administration is expected to tighten policies surrounding work visas and immigrant hiring. The DOL is poised to revive policies that limit the number of work visas issued to foreign workers, particularly in the technology sector, where the H-1B visa is commonly used. This includes narrowing the definition of “specialty occupations” and raising the salary requirements for H-1B visa holders. The administration is also expected to make it more challenging for employers to prove that they cannot find American workers to fill positions in industries such as agriculture and low-skilled labor, which would directly affect the H-2A and H-2B visa programs.
Additionally, the DOL could take action against federal contractors who are perceived to be hiring foreign workers over U.S. citizens, targeting tech firms and large companies accused of discriminating against American workers by opting for cheaper foreign labor.
The Trump administration is also expected to review workplace safety regulations, specifically those overseen by the Occupational Safety and Health Administration (OSHA). One of the first changes could be the reversal of a rule that allows third parties, such as union representatives, to accompany OSHA inspectors on worksites. Business groups have criticized this rule, arguing that it provides unions with unnecessary access to workplaces, even when union representatives lack expertise in safety regulations.
Moreover, a proposal released by OSHA to protect workers from extreme heat exposure will likely be revisited. The proposed rule would require employers to provide workers with shaded or air-conditioned areas, water, and regular breaks during extreme heat conditions. While some business groups have opposed the proposal, arguing that it is too stringent, others anticipate that the rule may be scaled back to address heat exposure in a more targeted way, without placing undue burden on businesses.
As the Trump administration prepares to assume office, a significant overhaul of U.S. labor policies seems inevitable. The changes will have wide-ranging effects on industries, workers, and immigrants alike. From redefining worker classifications to limiting immigrant labor opportunities, these regulatory shifts mark a major departure from policies introduced during the Biden administration.
The future of workplace protections, worker rights, and immigration regulations now hinges on the direction the Department of Labor will take under the new administration. For workers, employers, and businesses across the country, these upcoming policy changes will set the stage for a new era of labor law in the U.S.
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