As Trump 2.0 settles in, business leaders are seeing a rapid recalibration of federal labor and employment priorities. With the White House expected to revive many of its earlier pro-business initiatives, the coming years will likely bring a move away from regulatory expansion and toward deregulation, employer flexibility, and economic growth. From the EEOC’s new enforcement posture to evolving DOL and NLRB policies, employers face a dramatically different compliance landscape—one that emphasizes merit-based opportunity, narrower interpretations of protected classes, and increased scrutiny of diversity, equity, and inclusion (DEI) programs.
For business leaders, HR professionals, and in-house counsel, this moment represents both opportunity and risk. Navigating the evolving legal terrain will require agility, strategic foresight, and careful compliance planning. Below are key developments across the major employment agencies.
A new EEOC, a new mandate
The Equal Employment Opportunity Commission (EEOC) regained a quorum on October 7, 2025, with the confirmation of Brittany Panuccio. Under Acting Chair Andrea Lucas, the agency has pledged even-handed enforcement and identified five priorities:
- Rooting out unlawful DEI-motivated race and sex discrimination
- Protecting American workers from “anti-American national origin discrimination”
- Defending the “biological and binary reality of sex”
- Protecting workers from religious bias and antisemitism
- Remedying areas of under-enforcement
In practice, employers should expect heightened scrutiny of DEI-related initiatives, particularly in hiring, promotion, and training. Opposition to mandatory DEI training also may be treated as protected activity. These themes echo several of the President’s executive orders.
DOJ alignment and executive orders in motion
The Department of Justice is mirroring the EEOC’s direction. A July 2025 DOJ memorandum warns federal-funding recipients that preferential treatment or segregation by protected traits, even in well-intentioned DEI efforts, may be unlawful. While private employers are not directly bound by these directives, voluntary compliance is encouraged.
Meanwhile, Executive Order 14281, Restoring Equality of Opportunity and Meritocracy, directs agencies to eliminate reliance on disparate-impact liability, a long-standing method for proving discrimination. While the order cannot override statutory precedent, it reframes how federal investigators will assess bias claims. The EEOC has already begun dismissing complaints based solely on disparate impact, a practice that is now facing legal challenges.
Department of Labor: Deregulation and Flexibility
The Department of Labor (DOL) has renewed its focus on deregulation, employer autonomy, and economic growth, particularly through review of the Independent Contractor Rule and White-Collar Exemptions. The agency’s September 2025 Unified Agenda of Regulatory and Deregulatory Actions underscores this philosophy, spotlighting reviews of joint employer status, independent contractor classification, and H-2A agricultural program rules, while exploring new heat injury and illness prevention standards.
As Secretary Lori Chavez-DeRemer emphasized, the DOL aims to “eliminate red tape and craft smart regulations that spur job creation.”
NLRB: Operating Without a Quorum
As of late 2025, the National Labor Relations Board (NLRB) is effectively paralyzed, operating without a quorum and currently consisting of only one active member, David Prouty, a Democratic nominee. On October 9, 2025, the Senate HELP Committee endorsed James Murphy for Board member and Crystal Carey, for General Counsel, though a vote on the remaining Trump nominee is pending.
With no quorum, the Board cannot issue decisions in unfair labor practice cases, causing a growing backlog of matters and leaving past employee-friendly decisions, employers’ appeals, and union petitions in limbo.
Looking Ahead: The Value of Agility
The hallmark of effective employment strategy during political transitions is agility. Policy landscapes can shift overnight, and organizations that anticipate and adapt will have a distinct advantage. The Trump 2.0 era presents both challenges and opportunities for U.S. businesses to realign their employment frameworks within a more flexible regulatory environment. For many employers, success will hinge on revisiting policies, maintaining compliance awareness, and staying proactive in response to agency developments.
David Sieck is an associate attorney within Fennemore’s Employment & Labor and Employee Benefits practice groups. His practice focuses on advising employers on all scopes of employment and employee benefit matters. Reach him at dsieck@fennemorelaw.com
Christine Burns is a director within Fennemore’s Employment & Labor practice group. Christine provides employers with day-to-day employment advice on all human resource matters and has extensive experience defending employers at trial and before administrative agencies. Reach her at cburns@fennemorelaw.com