President Donald Trump has been sworn in as the 47th President of the United States, making him the first leader since Grover Cleveland to serve non-consecutive terms. Despite the administration still being in its early days, we’re already seeing substantial changes to labor and employment policy, including signals about diversity, equity, and inclusion (DEI) programs, workplace discrimination enforcement, and federal contracting requirements.
Here’s what we’ve gathered so far, plus some key insights to help guide your business decisions.
Major Shakeup At The EEOC
The Equal Employment Opportunity Commission (EEOC) recently experienced an unprecedented staffing change beyond the appointment of Andrea R. Lucas as Acting Chair:
Firing of two democratic commissioners
President Trump terminated Democratic Commissioners Charlotte Burrows and Jocelyn Samuels, effectively removing them from office before their terms expired. Trump also dismissed EEOC General Counsel Karla Gilbride. Legal challenges questioning the scope of the president’s power are already in the works, and it is unclear whether courts will ultimately reinstate the terminated commissioners or uphold the firings.
Current status
With Burrows and Samuels gone, the EEOC now has only two remaining commissioners: Acting Chair Andrea R. Lucas (Republican, originally appointed in 2020) and Commissioner Kalpana Kotagal (Democrat, confirmed in 2023). Because the EEOC must have a three-member quorum to take formal actions such as issuing new regulations or formal guidance, President Trump is expected to quickly appoint at least one new Republican commissioner, giving him a functioning majority.
Acting Chair Andrea Lucas’s priorities
Lucas has already outlined several top priorities, including:
- “Rooting out unlawful DEI-motivated race and sex discrimination.”
- “Defending the biological and binary reality of sex and related rights.”
- Potentially revisiting or reversing the EEOC’s sexual harassment guidance.
- Reconsidering the Pregnant Workers Fairness Act (PWFA) rules, especially those connected to abortion-related accommodations.
Implications of the firings
If the courts uphold Trump’s decision, Republicans could rapidly reshape the EEOC’s policies—speeding up the pivot away from “disparate impact” class actions and heightening scrutiny of certain DEI initiatives and LGBTQ+ protections. However, if a court temporarily or permanently reinstates the fired commissioners, any new regulations or guidance the reconfigured EEOC issues could be invalidated or tied up in litigation. This legal limbo could complicate employers’ compliance efforts for months or even years.
What this means for employers
- DEI audits may become a focal point for the reconstituted EEOC. Even though legal challenges may slow changes, businesses should ensure their DEI programs are carefully structured to comply with existing law (i.e., not imposing quotas or favoring one group over another).
- Employers in states or localities with robust anti-discrimination protections should remain mindful that federal changes do not necessarily override state or local laws.
- If your organization has been relying heavily on DEI initiatives, it’s a good time to consult legal counsel or human resource (HR) experts, such as Group Management Services (GMS), to confirm the legality of your programs and make any necessary adjustments.
Rollbacks Affecting Federal Contractors
Separately, President Trump issued an executive order rolling back portions of Executive Order 11246, which had expanded DEI responsibilities for federal contractors. This is consistent with the White House’s newly stated mission to “combat illegal private-sector DEI preferences” and push for more “colorblind” or strictly equal approaches to hiring and promotion.
What this means for employers
- Federal contractors should review any contractual obligations related to DEI or Affirmative Action Plans. Changes in guidance from agencies like the Office of Federal Contract Compliance Programs (OFCCP) may be on the horizon.
- Even non-federal contractors could feel an impact: the order instructs agencies to “enforce our longstanding civil-rights laws,” including scrutiny on private companies’ DEI policies.
- With litigation on the rise, both from special-interest groups opposing DEI and from employees advocating for inclusion, employers should walk a careful line in how they design or continue DEI initiatives.
Congressional Developments And DOL Moves
Meanwhile, the early days of the new Congress, led by Speaker Mike Johnson (R-LA) in the House, signal potential labor reforms. Various new measures, like Representative Zach Nunn’s proposal to limit telework or potential new oversight for the Occupational Safety and Health Administration (OSHA), underscore a theme: tightening certain policies that expanded under the previous administration.
In addition, the Department of Labor’s (DOL) new leadership lineup is taking shape. Former EEOC Commissioner Keith Sonderling is set to serve as Deputy Secretary of Labor, pending Senate confirmation. We also expect a hearing for the new Labor Secretary nominee soon, which could help clarify how actively the DOL might revisit rules on wage and hour, workplace safety, and more.
What this means for employers
- Keep an eye on the Wage and Hour Division for guidance changes on overtime exemption standards, tip credits, and pay equity.
- OSHA is rescinding some COVID-19 era rules and may pivot more toward the administration’s broader stance on workplace regulations, meaning less pandemic-specific guidance but potentially renewed focus on enforcement of general safety obligations.
- The immediate takeaway is that compliance is still key. With shifting rules, partnering with a professional employer organization (PEO) like GMS helps ensure you’re always up to speed on federal requirements.
Key Takeaways And Next Steps
1. DEI under the microscope:
With the new acting EEOC Chair Andrea Lucas prioritizing “unlawful DEI-motivated race and sex discrimination” and “biological and binary reality of sex and related rights,” expect more investigations into the structure and fairness of DEI programs.
2. Monitor federal contracts:
If you’re a federal contractor, you may need to amend or revert certain DEI obligations.
3. Stay nimble:
HR compliance requires vigilance in times of political transition. Expect new DOL guidance, House and Senate proposals, and possible Supreme Court developments, especially around wage and hour standards and Affirmative Action-related issues.
How GMS Can Help
At Group Management Services, we monitor these changes daily and support businesses with:
- HR policy audits and compliance to ensure your workforce practices align with the shifting legal landscape.
- DEI best practices and robust training that stays within the bounds of anti-discrimination laws.
- Payroll and tax compliance solutions that adjust to new federal and state-level rules.
- Risk management guidance including how best to navigate a potential uptick in discrimination claims.
We encourage our clients and partners to stay informed and remain agile. If you’re unsure about how these first 90 days might affect your HR strategies, contact us here for tailored advice and updates on the latest regulatory guidance.