The election of Donald Trump as President of the United States has sparked strong reactions and generated discussion across workplaces nationwide—and even globally. While the exact outcomes of his administration are uncertain, several potential changes could significantly impact human resources practices.
Based on statements made during his campaign, HR professionals can anticipate possible adjustments to existing laws and workplace policies in the following areas:
1. Affordable Care Act (ACA) Changes
Trump has repeatedly stated his intention to repeal the Affordable Care Act, commonly known as “Obamacare.” Although the specifics of this repeal remain unclear, his opposition to mandatory healthcare and restrictions on insurance companies operating across state lines could reshape employee benefits. Optimistically, this could reduce reporting requirements and provide employers with greater flexibility to offer diverse insurance options.
2. Potential Reversal of the New Overtime Rule
The Department of Labor’s updated overtime rule, set to take effect on December 1, will already be in place before Trump assumes office. While he may not directly revoke the law, his pro-deregulation stance could allow individual states to determine whether to maintain the rule, potentially affecting employee salaries and overtime eligibility depending on local decisions.
3. Minimum Wage Policy
Raising the federal minimum wage has been a highly debated topic, with advocates pushing for $15 per hour. Currently, the federal minimum wage stands at $7.25, though many states enforce higher minimums. Trump has not expressed support for a federal increase, suggesting that there may be less emphasis on nationwide minimum wage hikes during his term.
4. Tax Breaks for Workers
Instead of increasing wages, Trump favors tax breaks as a means to benefit employees without placing additional burdens on employers. While details are still emerging, proposed measures include making health insurance premiums and child care costs tax-deductible. HR departments may need to adjust payroll and benefits systems accordingly to accommodate these changes.
5. Mandatory Maternity Leave
Encouraged by his daughter Ivanka Trump, the president has proposed a six-week paid maternity leave requirement. This could necessitate a revision of current leave policies in many organizations. There is no indication that paid paternity leave will be mandatory, but employers would have the discretion to include fathers in their policies.
6. Federal Hiring Freeze
Trump has announced plans to impose an immediate hiring freeze for most federal employees, with exceptions for military, public health, and public safety roles. Following the freeze, he aims to reduce the federal workforce over time by hiring fewer employees as older staff retire. While this primarily affects government HR, it may influence hiring trends in related industries.
Looking Ahead
HR professionals are unlikely to face immediate, drastic changes, but some of these policies could take effect as early as January. Many of these initiatives were highlighted in Trump’s “First 100 Days” action plan, signaling ambitious adjustments that HR departments should monitor closely. Preparing for potential policy shifts in benefits, wages, and leave programs will be essential for smooth transitions in the workplace.
