With Donald Trump’s return to the White House following his 2024 election victory, significant changes in U.S. labor and immigration laws are anticipated. Drawing from his previous term’s policies, this administration is likely to pivot toward employer-friendly labor regulations and stricter immigration enforcement. This blog will explore key areas where these shifts may occur.
Labor Laws
With the re-election of Donald Trump in 2024, labor law in the United States is likely to shift back toward employer-friendly policies. Trump’s previous record on labor suggests an agenda focused on business flexibility, lower regulatory burdens, and a restrained approach to union influence. Key areas expected to see change include minimum wage, overtime, paid leave, joint employer status, union election standards, and federal contracting rules.
For more information on labor laws and their potential impact on your organization, contact our Managing Partner, Richard Liu, at richard.liu@consultils.com.
1. Union Relations: Rebalancing Employer and Employee Rights
Under a Trump administration, employers are likely to see a more balanced labor relations environment. Policies favoring union organizing may be scaled back, including changes made under the Biden administration. For example, Trump may reverse the Cemex decision, restoring secret ballots as the primary method for union recognition, and likely remove the Fair Choice Rule that limits decertification elections.
One of Trump’s first moves may involve replacing the NLRB General Counsel with someone more aligned with employer interests. This shift could lead to rescinding policies that made it easier for unions to organize and enforce representation, creating a more level playing field for employers in union-related matters.
What Employers Can Do: Review workplace policies and work closely with labor counsel to align with anticipated changes, particularly in union election procedures and collective bargaining rules.
2. Overtime and Minimum Wage
Trump’s re-election could result in modifications to the Department of Labor’s recently increased salary thresholds for overtime exemptions. While Biden’s rule to expand overtime pay is set to take effect shortly before Trump takes office, Trump’s DOL may still attempt to adjust or delay it. Additionally, Trump may reintroduce the Payroll Audit Independent Determination (PAID) program, offering employers a pathway to self-correct wage violations with reduced penalties.
Federal minimum wage increases remain unlikely under Trump, who has previously opposed large federal wage hikes in favor of business-friendly policies. Any change at the federal level would likely be modest, though states may continue to set their own rates above the federal baseline.
What Employers Can Do: Monitor both federal and state wage laws and consider updating payroll practices to account for possible changes in minimum wage and overtime thresholds.
3. Paid Leave
During his first term, Trump introduced paid parental leave for federal employees, but he has generally supported employer discretion and state-level control for paid leave policies. Unlike Biden’s push for a national paid leave program, Trump’s approach is likely to avoid imposing federal mandates, allowing states to set their own paid leave standards.
What Employers Can Do: Stay updated on state and local paid leave requirements, as state-specific mandates may continue to expand in the absence of federal legislation.
4. Independent Contractor Classification
Trump may reverse Biden’s efforts to make it harder for companies to classify workers as independent contractors. In his prior term, Trump introduced a rule simplifying the criteria for determining independent contractor status, which was later rescinded by the Biden administration. We may see a similar rule resurface, offering more flexibility in classifying workers outside the traditional employee model.
What Employers Can Do: Review your classification practices to ensure they align with potential new federal standards. Also, keep an eye on state laws, as some states have stricter definitions that could complicate compliance.
5. Artificial Intelligence and Technology
Trump’s administration is expected to reverse the Biden-era executive order on artificial intelligence, which introduced a series of recommendations for responsible AI use in the workplace. Trump’s approach is likely to be hands-off, with fewer regulatory barriers, which could give tech companies and employers more latitude in using AI for hiring and other processes. However, state governments and courts may take up the slack by enforcing anti-discrimination protections related to AI use.
What Employers Can Do: Implement best practices for ethical AI usage in hiring and operations, ensuring adherence to anti-discrimination guidelines to avoid potential state-level scrutiny.
Immigration Laws
A second Trump administration could bring substantial changes to immigration policy, affecting both nonimmigrant and immigrant categories. Potential restrictions may impact skilled foreign workers, family-based sponsorships, and employment-based visa applicants, all within a framework of stricter immigration enforcement.
For more information on immigration laws and their potential impact on your organization, contact our Senior Counsel, Ou (Anna) Sun, at anna.sun@consultils.com.
Outlined below are six key areas where Trump’s policies could reshape U.S. immigration, from nonimmigrant visas to deportation priorities
1. Nonimmigrant Visas (H-1B)
In a second Trump term, H-1B visas for skilled foreign workers may face further restrictions. During his previous term, the H-1B approval rate fell from 85% in 2017 to 74% in 2018 due to more stringent eligibility criteria, according to USCIS data. By contrast, the approval rate under Biden has since increased to about 96% by 2022, reflecting a more favorable stance on nonimmigrant labor.
Trump may again limit H-1B availability by imposing stricter renewal requirements. His approach could restrict the pipeline of skilled foreign workers, especially in STEM fields.
2. Employment-Based Immigration (EB-1, EB-2, EB-3)
Employment-based immigration, crucial for attracting global talent, could be significantly affected under Trump’s policies, especially in the EB-1, EB-2, and EB-3 categories. The backlog for employment-based green cards currently exceeds 1.2 million applications, creating extended wait times for applicants.
While the Biden administration has taken steps to streamline processing and address these delays,
Trump’s approach may focus on limiting new entries and tightening eligibility standards. These changes could lengthen processing times for skilled workers pursuing permanent residency, potentially impacting the competitiveness of the U.S. workforce in global markets.
3. International Entrepreneur
Trump is expected to renew efforts to eliminate the International Entrepreneur Rule (IER), which currently permits foreign entrepreneurs to stay in the U.S. temporarily to build their businesses. Given his previous attempts to dismantle this rule, a second term could bring more determined actions to rescind it permanently. This change may discourage foreign entrepreneurs from establishing innovative ventures in the U.S., as alternative visa options remain limited.
Eliminating IER would also reduce access to resources and guidance from U.S. immigration agencies, making it harder for foreign founders to navigate the complexities of the immigration system. Without structured support, new businesses could face challenges gaining a foothold in the highly competitive U.S. market.
4. EB-5 Investor Program
The EB-5 investor visa program, which provides residency in exchange for substantial U.S. investments, saw a minimum investment increase from $500,000 to $900,000 during Trump’s first term. According to recent data from the Department of Homeland Security, this increase led to a 65% drop in EB-5 applications.
A second Trump administration could further tighten investment requirements, potentially raising thresholds to limit participation to higher-value investors.
5. Family-Based Immigration and Birthright Citizenship
Family-based immigration could face substantial cuts under Trump’s potential second term. The "Project 2025" policy blueprint recommends reducing family-sponsored visas by up to 50%, significantly impacting the 480,000 family-based visas currently issued each year.
Additionally, Trump has voiced support for ending birthright citizenship, which could prevent the estimated 275,000 children born to non-citizen parents each year from automatically gaining U.S. citizenship. This stance diverges sharply from Biden's policy, which seeks to prioritize family reunification and maintain pathways for families of U.S. citizens and residents.
6. Undocumented Immigration
Trump is likely to continue prioritizing strict enforcement against undocumented immigration. His previous term saw a total of 185,884 deportations in 2020, though the figure was lower than the annual average of 267,258 during Obama’s administration, as Trump emphasized targeting those with criminal backgrounds. Policies aiming to restrict undocumented immigrants' access to resources—such as housing subsidies, which could affect an estimated 11 million undocumented individuals—may also return.
Additionally, Trump has indicated plans to increase cooperation between federal and local authorities to streamline deportation efforts, posing potential housing and security challenges for mixed-status families.
Conclusion
Donald Trump’s second term is poised to reshape the landscape of labor and immigration laws, steering policies toward reduced regulation and tighter immigration controls. Employers should prepare for potential changes by reviewing their compliance strategies and adapting to new standards that favor business flexibility but may also pose challenges in workforce management and global competitiveness. The upcoming years will demand careful navigation of evolving regulations to maintain compliance and leverage opportunities in an altered policy environment.
Richard Liu, Esq. is the Managing Counsel of ILS. He serves clients as a management-side defense lawyer specializing in employment and business litigation. Richard is also an expert on litigation prevention and compliance. He regularly advises Fortune 500 companies and startups on employment, labor, and commercial matters.
Email: richard.liu@consultils.com | Phone: 626-344-8949
Anna is Senior Immigration Counsel at ILS with over a decade of experience in business immigration, transactions, and foreign investment. She provides comprehensive guidance on U.S. business immigration, assisting global employers in recruiting and retaining foreign executives and skilled professionals. Anna specializes in H, L, E2, TN, O, EB1, and PERM cases, serving clients in technology, biotech, telecommunications, entertainment, animation, education, and logistics.
Email: anna.sun@consultils.com | Phone: 626-344-8949
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