Employers and Human Resources (HR) departments have seen major changes in employment law throughout 2025. These rapid changes underscore the need for employers and HR professionals to stay ahead and adapt to them as swiftly as they develop.
Executive Orders
President Donald Trump issued more than 200 executive orders (EOs) in 2025, which is more than any president in the last 50 years. Many of these EOs, which typically take effect immediately, directly impact the workplace and how it operates.
For instance, Executive Order 14173 – Ending Illegal Discrimination and Restoring Merit-Based Opportunity has reshaped priorities concerning the enforcement of civil rights laws. The U.S. Department of Justice’s Civil Rights Fraud Initiative is an example of this shift in priorities.
Furthermore, Executive Order 14168 – Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government focuses on the government’s policy recognizing two sexes based on immutable biological characteristics. Executive Order 14151 – Ending Radical and Wasteful Government DEI Programs and Preferencing has required some federal contractors to certify how their operations comply with its provisions. However, questions have arisen about balancing the executive order provisions with federal and state nondiscrimination laws, leading to the reevaluation of programs by federal contractors, postsecondary educational institutions, and health care institutions.
The U.S. Supreme Court Decision
The U.S. Supreme Court’s decision in Ames v. Ohio Department of Youth Services is likely to affect the workplace going forward. The Supreme Court held in Ames that members of majority groups filing discrimination claims have no higher burden of proof than do members of minority groups. Historically, employers have evaluated protected categories of affected individuals only when assessing employment risks, focusing primarily on minority classifications. However, the tide has turned, and employers now need to assess overall risks of decision-making, whether those affected by the decisions are members of minority or majority groups. Rather than centering the inquiry on the demographics of the person at issue, employers must focus on whether a decision is biased; if it is biased, it is illegal, according to the Supreme Court.
As a result, employers may need to evaluate their inclusion and diversity programs to ensure that they do not prefer members of minority groups or exclude members of majority groups. As members of majority groups become more aware of their rights, they may be more likely to challenge such programs. Similarly, management training on discrimination, harassment, and implicit bias must clarify that all employees can experience these issues, not just women and members of minority groups.
Federal Agencies and Enforcement Priorities
Federal agencies have shifted their enforcement priorities throughout 2025, including the U.S. Equal Employment Opportunity Commission (EEOC), the U.S. Department of Labor (DOL), and the National Labor Relations Board (NLRB).
Equal Employment Opportunity Commission
The EEOC has shifted and expanded its enforcement actions, most notably in cases involving religious discrimination and antisemitism. As a result, employers can expect increased scrutiny of accommodation requests related to religious practices and attire, as well as of alleged hostility toward employees based on their faith.
U.S. Department of Labor
The DOL has indicated that it will return to traditional compliance tools, including opinion letters that provide periodic advice to employers. As a result, employers should expect greater adherence to the Fair Labor Standards Act, regulations, and opinion letters. Therefore, employer questions about modern or emerging workplace practices, such as hybrid work schedules and AI tools to make employment decisions, may take longer for DOL to resolve.
Additionally, the DOL has suggested that enforcement efforts will increase in certain targeted industries, including hospitality, construction, and healthcare, which tend to have a higher percentage of wage and hour violations. Therefore, employers in those industries should expect increased audits and investigations, particularly regarding worker classification, overtime, and recordkeeping requirements.
National Labor Relations Board (NLRB)
The NLRB was without a quorum for most of 2025, regaining it only on December 19, 2025. As a result, the NLRB was unable to make any decisions regarding policy shifts, which stalled the system. Nevertheless, regional offices continued to process unfair labor practice charges and representation petitions,. However, now that the NLRB has a quorum, employers can expect rapid moves to clarify various unresolved issues. A Republican-majority board may also overturn precedent on issues ranging from union representation without an election to restrictions on employer speech, workplace meetings during union organizing campaigns, and employer work rules.
State Law
Finally, states have been passing regulatory laws on various issues that also affect employers and may be of particular concern to multi-state employers. These issues include:
- Transparency in pay scales;
- Rights to paid leave;
- Prohibitions or limitations on noncompete agreements;
- Using AI in employment decisions; and
- Increased workplace safety rules.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.