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Navigating the Changing Landscape: What Employers Need to Know About DOL Leadership and Labor Policy Shifts
Published 11 months, 2 weeks ago
Description
In recent days, the landscape of labor regulations and leadership at the U.S. Department of Labor (DOL) has undergone significant changes, particularly with the transition to a new administration.
One of the key developments is the consideration of Andrew Puzder, the former CEO of CKE Restaurants, for the position of Secretary of Labor. Puzder, who was previously nominated for this role in 2017 but withdrew, is known for his advocacy of reduced labor regulations. If selected, he is expected to roll back several Biden-era regulations, including those related to overtime pay and the classification of workers as independent contractors rather than employees. This shift could significantly impact wage-and-hour policies and benefits obligations for employers[1].
Alongside Puzder, other potential nominees include Patrick Pizzella, a former deputy secretary of labor, and Johnny C. Taylor Jr., CEO of the Society for Human Resource Management (SHRM). Pizzella is favored for his collaborative approach with employers, which could lead to a smoother transition and a more predictable regulatory environment. Taylor, with his background in HR, might focus on workplace inclusivity, employee development, and labor relations[1].
Meanwhile, the Senate Committee on Health, Education, Labor and Pensions (HELP) has been examining the nomination of Lori Chavez-DeRemer for Secretary of Labor. During her hearing on February 19, 2025, Chavez-DeRemer indicated she would review regulations related to joint employer and independent contractor status under the Fair Labor Standards Act (FLSA). She also committed to reviewing the Occupational Safety and Health Administration’s (OSHA) proposed emergency response rule and workplace violence prevention proposal. Notably, she expressed opposition to the PRO Act's provision to eliminate state right-to-work laws, suggesting a more balanced approach to labor policies[4].
The Department of Labor is also expected to retreat from the Biden-era Independent Contractor Classification Rule. The Trump administration has signaled it will drop its defense of the 2024 rule, which had rescinded the earlier Trump-era test for independent contractors. This move aligns with the broader trend of reducing regulatory burdens on businesses, a theme consistent with the potential nominees for the Secretary of Labor position[5].
In addition to these leadership changes, the National Labor Relations Board (NLRB) has seen significant shifts. Acting General Counsel William Cowen has rescinded several memoranda issued by his predecessor, Jennifer Abruzzo, which had expanded employee rights and enforcement priorities. Cowen's actions include making it easier for employers to defend against unfair labor practice charges, settling cases through informal agreements, and allowing more flexibility in employment contracts, such as non-compete agreements and severance agreements. These changes reflect a more employer-friendly approach under the new administration[2][4].
Overall, the current developments indicate a marked shift towards business-friendly labor policies, with a focus on reducing regulatory burdens and promoting a more flexible labor market. As the new administration solidifies its leadership and policies, employers can expect significant changes in labor classification, wage-and-hour policies, and workplace compliance.
This content was created in partnership and with the help of Artificial Intelligence AI
One of the key developments is the consideration of Andrew Puzder, the former CEO of CKE Restaurants, for the position of Secretary of Labor. Puzder, who was previously nominated for this role in 2017 but withdrew, is known for his advocacy of reduced labor regulations. If selected, he is expected to roll back several Biden-era regulations, including those related to overtime pay and the classification of workers as independent contractors rather than employees. This shift could significantly impact wage-and-hour policies and benefits obligations for employers[1].
Alongside Puzder, other potential nominees include Patrick Pizzella, a former deputy secretary of labor, and Johnny C. Taylor Jr., CEO of the Society for Human Resource Management (SHRM). Pizzella is favored for his collaborative approach with employers, which could lead to a smoother transition and a more predictable regulatory environment. Taylor, with his background in HR, might focus on workplace inclusivity, employee development, and labor relations[1].
Meanwhile, the Senate Committee on Health, Education, Labor and Pensions (HELP) has been examining the nomination of Lori Chavez-DeRemer for Secretary of Labor. During her hearing on February 19, 2025, Chavez-DeRemer indicated she would review regulations related to joint employer and independent contractor status under the Fair Labor Standards Act (FLSA). She also committed to reviewing the Occupational Safety and Health Administration’s (OSHA) proposed emergency response rule and workplace violence prevention proposal. Notably, she expressed opposition to the PRO Act's provision to eliminate state right-to-work laws, suggesting a more balanced approach to labor policies[4].
The Department of Labor is also expected to retreat from the Biden-era Independent Contractor Classification Rule. The Trump administration has signaled it will drop its defense of the 2024 rule, which had rescinded the earlier Trump-era test for independent contractors. This move aligns with the broader trend of reducing regulatory burdens on businesses, a theme consistent with the potential nominees for the Secretary of Labor position[5].
In addition to these leadership changes, the National Labor Relations Board (NLRB) has seen significant shifts. Acting General Counsel William Cowen has rescinded several memoranda issued by his predecessor, Jennifer Abruzzo, which had expanded employee rights and enforcement priorities. Cowen's actions include making it easier for employers to defend against unfair labor practice charges, settling cases through informal agreements, and allowing more flexibility in employment contracts, such as non-compete agreements and severance agreements. These changes reflect a more employer-friendly approach under the new administration[2][4].
Overall, the current developments indicate a marked shift towards business-friendly labor policies, with a focus on reducing regulatory burdens and promoting a more flexible labor market. As the new administration solidifies its leadership and policies, employers can expect significant changes in labor classification, wage-and-hour policies, and workplace compliance.
This content was created in partnership and with the help of Artificial Intelligence AI