As the United States gears up for the 2024 presidential election, human resources professionals find themselves preparing for potential changes in labor and employment laws that could significantly impact their organizations. Whether the election results in a victory for Vice President Kamala Harris or former President Donald Trump, HR teams must be ready to navigate the shifting legislative landscape.
Minimum Wage
One of the most pressing issues on the horizon is the potential increase in the federal minimum wage, which has remained unchanged at $7.25 per hour since 2009. Vice President Harris has consistently voiced her support for raising the federal minimum wage to at least $15 per hour, aiming to provide a livable wage for all workers. On the other hand, former President Trump has expressed concerns that such a substantial increase could create financial strain on businesses, particularly small enterprises, potentially leading to job losses or closures.
Overtime Rules
Another significant area under scrutiny is the Fair Labor Standards Act (FLSA) overtime rules. The current administration’s new rule, set to take effect on January 1, 2025, increases the salary threshold for overtime exemptions to $58,656. This change is designed to extend overtime pay eligibility to more workers. Should Trump win the election, there is a possibility that these modifications could be reversed, maintaining the threshold at its previous level and affecting millions of workers’ paychecks.
Worker Classification
The classification of workers is also poised for potential changes. The Biden administration’s new rule introduces a stricter six-factor test to determine worker status, contrasting with the prior five-factor approach under Trump. This revised test aims to provide clearer guidelines for distinguishing between employees and independent contractors. A shift in administration could see further adjustments in this area, with policies that could either tighten or relax the criteria for worker classification.
Healthcare and Benefits
Healthcare policy remains a critical and contentious issue as the election approaches. Any potential changes to the Affordable Care Act (ACA) and employer mandates will have significant ramifications for employer-provided healthcare benefits. HR professionals will need to monitor these developments closely, as alterations in healthcare regulations could impact not only coverage but also the cost and accessibility of benefits for employees.
Union and Labor Rights
The composition and priorities of the National Labor Relations Board (NLRB) are likely to shift depending on the election outcome. If Harris wins, a pro-labor majority might be maintained, potentially leading to policies that strengthen union and labor rights. Conversely, a Republican victory could result in a pro-management stance, with regulations that may favor business interests.
Paid Leave
Federal paid family and medical leave policies are another area of interest. Harris has expressed her support for federal laws that guarantee such leave, influenced by her running mate, Minnesota Governor Tim Walz. In contrast, while Trump signed a law in his previous term providing 12 weeks of paid parental leave for federal employees, his current campaign platform does not include paid leave. Therefore, the election outcome could significantly influence the direction of federal paid leave policies.
Strategies and Next Steps
As the United States approaches the 2024 presidential election, human resources professionals are bracing for possible shifts in labor and employment laws that could have a significant impact on their organizations. HR teams must be prepared to adapt to new legislative landscapes, which will depend largely on whether Vice President Kamala Harris or former President Donald Trump emerges victorious. The outcome of the election has the potential to bring about substantial changes in the way companies handle various HR issues, such as employee rights, workplace safety regulations, and benefits administration.
For HR professionals, staying informed and flexible is crucial. They need to be well-versed in current and proposed legislation, ready to implement new policies swiftly, and capable of guiding their organizations through uncertain times. Whether it’s adapting to new wage laws, understanding shifts in healthcare requirements, or navigating changes in immigration policies, HR leaders will play a pivotal role in ensuring their companies remain compliant and responsive. The 2024 election could mark a turning point in labor laws, making the role of HR even more critical in the evolving employment landscape.
