Managing Member Alan G. Brackett and Associate Noah R. Borer are co-authors of a workers’ compensation “Attorney Analysis” column for Reuters Legal News and Westlaw Today. Following is their recent article, “Trump 2.0: The Potential Effects of a Second Trump Administration on Workers’ Compensation and Employers.”
Trump 2.0: The Potential Effects of a Second Trump Administration on Workers’ Compensation and Employers
On Jan. 20, 2025, President Donald J. Trump was inaugurated for a non-subsequent second term as the 47th President of the United States. As with every change in administration, particularly when the presidency changes political party, significant changes can be expected.
Almost immediately following his inauguration, across agencies career employees were offered incentives to leave their jobs through deferred resignations and early retirement packages. According to the political news site, The Hill, planned reductions in force included as much as 90% for some units of the Department of Labor. “Trump is neutering the Labor Department,” by Gleb Tsipursky, April 8, 2025. Several expected changes directly impact the U.S. Department of Labor and labor and employment in general. Below we outline the effect this will have on workers’ compensation and employers.
Workers’ Compensation
There have been significant changes in the Department of Labor. As with most changes in administration, the Director of the Office of Workers’ Compensation Programs (OWCP) was removed. A new Director has yet to be appointed, but Douglas A. Pennington is the Acting Director. A Chief of Staff has likewise yet to be appointed.
Two of the District Directors covering the three Compensation Districts have retired, leaving only two District Directors to cover the entire country. Several Claims Examiners have retired or left government employment, significantly delaying action on requests for intervention and slowing the pace of settlement reviews.
At the Office of Administrative Law Judges (OALJ), there have been a number of ALJ retirements, and law clerk positions are unfilled. While the volume of claims referred for formal hearing (trial) has exponentially increased, staffing has remained static or decreased, meaning the adjudicatory process could potentially take years for an injured worker to receive a decision on their claim for benefits.
Administration Appointee Changes
According to a press release by the U.S. Department of Labor, several changes have already been made regarding senior political appointees. John Clark, who previously worked on trade, transportation, and China policy matters in Washington D.C., has been appointed as policy advisor to the Bureau of International Labor Affairs.
Regarding the Employment and Training Administration, Amy Simon, founder of the consulting firm Simon Advisory and chief of staff and acting deputy assistant secretary for the Employment and Training Administration during President Trump’s first administration, was appointed as the principal deputy assistant secretary. However, Simon left the administration in April.
Marek Laco, who previously led the workforce development policy as a staff member for the Committee on Education and the Workforce in the U.S. House of Representatives, will serve as the Employment and Training Administration’s chief of staff.
As expected with the transition to the Trump administration, Jennifer Abruzzo, General Counsel for the National Labor Relations Board (NLRB) under the Biden administration, who advocated for expansive interpretations of the NLRA regarding noncompete agreements and stay-or-pay provisions, was fired shortly after the inauguration.
She has since been replaced by William B. Cowen, who previously served as the agency’s Regional Director in the Los Angeles Regional Office. Cowen’s appointment is expected to result in a return to more traditional enforcement, which could lead to a friendlier environment for full settlement remedies and a requirement for default language.
Expected Changes to Policy
As was expected, the Trump administration immediately began rolling back policies of the Biden administration including multiple pro-union initiatives. Regarding Civil Rights Enforcement, significant changes are expected at the Equal Employment Opportunity Commission and the Office of Federal Contract Compliance. However, it is expected, based on the previous Trump administration’s actions, that the current administration will continue to focus on enforcement of the Pregnant Workers’ Fairness Act, which seeks to eliminate discrimination and ensure workplace accommodations for workers with limitations related to pregnancy, childbirth, or a related medical condition, and an increased focus, as seen in Trump’s first administration, on religious discrimination.
Immediately following his inauguration, President Trump signed several executive orders focused on Diversity, Equity, and Inclusion initiatives that eliminated required DEI training for federal employees and the ending of federal funding for programs that enact DEI initiatives.
Regarding workplace health and safety, the Occupational Safety and Health Administration has generally and historically received support from both sides of the political aisle. It is important to note that OSHA enforcement does not alternate based on the political party in control of the Executive Branch of government.
Interestingly, the total number of OSHA inspections actually decreased under the Biden administration compared to Trump’s first administration. In immigration policy affecting businesses, it was expected that the Trump administration would favor increased worksite enforcement related to undocumented workers and reintroduction of severe restrictions or bans on travel to the United States by citizens of specific countries.
Just a few weeks ago President Trump enacted a travel ban on 12 countries, citing security concerns including a recent terror attack in Boulder, Colorado. He also reversed policies permitting spouses of certain H-1B workers to receive work authorization, a rollback of Biden policies enacted to encourage more approvals of petitions for foreign nationals in STEM related fields.
Other changes that have been seen or may be seen as a result of the Trump administration include the following:
- According to The Hill, an increase in mine-related deaths, an increase that some argue is a sign of a weakened oversight regime. In fact, OSHA’s inspection staff is so depleted that some argue it would take 12,000 years to inspect every United States workplace. “Trump is neutering the Labor Department,” by Gleb Tsipursky, April 8, 2025
- Elimination of Executive Order 11246, originally signed by President Lyndon B. Johnson, which prohibits federal contractors from discriminating in employment. The Trump administration, in its support for the elimination of the Order, argues that the requirements under the original Order fostered preferential treatment and deviated too much from merit-based hiring practices.
- A rollback of the Biden Administration’s increases in the salary amounts employers must pay to be exempt from overtime payments under the Fair Labor Standards Act. However, on April 24, 2025, the DOL requested to pause the appeals in the federal courts stating that they intend on reconsidering the issue and rollbacks. “Department of Labor asks to pause litigation over overtime rule.” Economic Policy Institute blog, April 24, 2025.
- A return to the first Trump administration’s more simple classification of a worker as an independent contractor, a move that would ease employers’ burden of assessing whether they are correctly classifying workers which could significantly affect workers’ compensation claims and would potentially allow retirement benefits to contractors. Independent Contractor Rules and Retirement, Plan Sponsor Council of America, May 29, 2025.
The Takeaway for Employers
In assessing whether an Employer is up to date with the numerous changes being enacted or promulgated, employers should:
- Review all policies and procedures to ensure compliance with existing legal standards.
- Update training materials and employee handbooks to be in compliance with existing legal standards.
- Examine contractual documents to ensure compliance with the ever-changing federal regulations.
- Continue to be apprised of any updates to policies and law by regularly checking the news released from the U.S. Department of Labor.
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