University of Kwazulu-Natal

Navigating Compliance And Hr Shifts Under A New Administration What To

Bonisiwe Shabane
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navigating compliance and hr shifts under a new administration what to

Over the past few years, companies with strong compliance frameworks have avoided hefty penalties, lawsuits, and reputational damage, while those that failed to keep up with evolving policies faced significant financial and operational setbacks. From labor laws and workplace safety regulations to data privacy and AI governance, compliance serves as the foundation for ethical business practices and sustainable growth. The risks of non-compliance continue to escalate. In 2024 alone, corporate penalties for regulatory violations exceeded $4 billion, spanning industries such as finance, healthcare, and tech. Employment-related lawsuits surged, with HR missteps costing companies an average of $1.5 million per case. Beyond financial losses, failure to comply with updated laws can erode employee trust, increase turnover, and invite heightened government scrutiny.

With a new administration taking office in 2025, proactive compliance strategies will be more essential than ever to protect your business and your workforce. As the U.S. transitions to a new administration in 2025, a wave of uncertainty looms over HR and compliance professionals. This shift could bring dramatic changes to workplace regulations, employment policies, and corporate compliance structures: some of which may significantly reshape the business landscape. The stakes are high: potential reversals of existing labor protections, shifting enforcement priorities, and new policies surrounding DEI, remote work, and AI governance could force companies to rethink their compliance strategies entirely. While every administration ushers in policy adjustments, 2025 stands out as a critical turning point.

Your company must prepare for increased scrutiny on labor relations, evolving rules for workplace automation, and state-led initiatives that may challenge federal directives. If regulatory oversight weakens at the federal level, expect states to step in, leading to a fragmented, complex compliance environment. As 2025 unfolds, the transition to a new presidential administration brings with it significant shifts in policies that affect businesses across the United States. For HR professionals, staying ahead of these changes is critical to maintaining compliance and supporting their workforce effectively. In this blog, we’ll explore the key areas where the new administration’s policies may impact HR compliance and what businesses can do to prepare. One of the most closely watched areas of change involves updates to federal labor laws.

Employers should pay attention to: Payroll taxes and employer tax credits are likely to see adjustments under the new administration. Key areas to monitor include: The administration’s agenda may include expanded federal mandates for paid family or medical leave. Employers will need to: Immigration policy changes often accompany new administrations, potentially affecting hiring and workforce management.

Businesses should: With the new Trump administration taking office, small business owners across the U.S. are preparing for potential shifts in HR policies, employment regulations, and workplace compliance. As policy shifts take shape, businesses should prepare for changes in labor laws, healthcare, and taxation. At Focus HR, we help small business owners stay informed and adapt to evolving HR and employment policies with confidence. Below is an overview of the key changes and considerations to keep in mind for strategic business planning.

The Trump administration is expected to push for deregulation and employer-friendly labor policies, which could mean: Changes to employer-sponsored healthcare policies may affect small businesses in several ways: The Trump administration is prioritizing tax reforms aimed at reducing the financial burden on small businesses. Key proposals include: The 2025 inauguration of Donald Trump signals a shift in policy priorities, particularly in areas such as immigration, workplace audits, and labor law enforcement. HR teams must prepare for these anticipated changes to ensure compliance and safeguard their organizations.

o Increased scrutiny on employment eligibility verification is expected. Review Form I-9 documentation processes to ensure compliance and avoid penalties. Recent cases underscore the steep fines associated with non-compliance. o Anticipate stricter requirements for visa sponsorship programs, including H-1B visas. Conduct regular internal audits to ensure all records are up-to-date and accurate. o Federal agencies are likely to increase audits targeting wage-and-hour compliance and employee classification.

Prepare by conducting internal audits and addressing discrepancies proactively. o Ensure overtime pay practices comply with the Fair Labor Standards Act (FLSA). Recent Department of Labor (DOL) actions have highlighted aggressive enforcement efforts in this area. In our recent HR Compliance Trends for 2025 webinar, we explored the evolving regulatory landscape and shifting workforce dynamics. Below, we’ve highlighted key insights from the discussion. The full webinar is also available OnDemand.

One of the most pressing issues for HR managers is the rapid pace of regulatory changes, particularly in areas such as immigration policy, employee benefits, and data protection. With the introduction of new laws governing paid leave, family leave, and employee rights across different states, compliance has become a multifaceted challenge. Multi-state employers must stay informed about varying regulations, as many laws apply to part-time and temporary employees. Employee Compliance and Immigration Policies Accurate documentation is critical for maintaining compliance, particularly regarding immigration status for employees on F-1 and DACA visas. HR managers should prioritize the correct completion of I-9 forms, ensuring that all information is up-to-date and properly organized.

This approach not only facilitates audits but also demonstrates a commitment to regulatory adherence. Another significant trend is the rise of pay transparency laws, with 19 states mandating salary ranges in job postings by 2025. This shift towards transparency is essential for enhancing recruitment and retention efforts, as candidates increasingly seek clarity regarding compensation. HR managers should embrace these requirements, recognizing that transparent practices can lead to reduced turnover and a broader talent pool. By Nicholas Kowalczyk, Vice President, Chief Risk, Compliance, and Privacy Officer at Kelly Falling out of compliance isn’t an option, but keeping up with constantly changing labor laws can feel Sisyphean for HR professionals.

Regulations that stem from federal, state, and local levels—often with conflicting priorities—create real challenges for organizations who want to achieve and maintain compliance without disrupting operations. Fortunately, there’s no reason for businesses to face these challenges alone, and expert guidance can make all the difference. Here are a few practical strategies for effectively monitoring, interpreting, and implementing regulatory changes to protect your organization from compliance risks. Labor laws are foundational to employer-employee relationships. They influence everything from workplace safety and wages to discrimination protections and leave policies. But these regulations aren’t static; they evolve in response to economic conditions, political shifts, and emerging workplace challenges.

In order to stay compliant, employers need to be aware of not only the letter of the law, but shifting enforcement priorities at the federal, state, and local level. For a better sense of how these laws change over time, let’s take a look at how they have evolved over the last century. The Department of Labor itself was developed in 1913 to “foster, promote, and develop the welfare of working people, to improve their working conditions, and to enhance their opportunities for profitable employment.” Since then,... Navigating the first 100 days of a new administration is pivotal for businesses as it sets the direction for policy and regulatory changes that impact operations and compliance. With a new administration that also holds a Congressional majority, there is significant potential for advancing various policy agendas. This period is characterized by executive actions, legislative initiatives, and regulatory reviews that businesses must closely monitor to remain compliant and strategically aligned.

Understanding these early actions is essential for businesses to adapt and thrive. A recent webcast, Beyond the Ballot: Navigating the First 100 Days, featured insights from three ADP subject-matter experts, Mary DeYoung, Melissa Kelly and Amy Miller, all senior directors of government affairs. The complimentary one-hour session detailed what employers might expect during this critical period in terms of labor policies, tax reforms, health care and technological advancement regulation. An overview of their insights are below. The priorities of current Tax reforms aim to exempt overtime and tips from federal income taxes while making the 2017 tax cuts permanent. However, balancing these tax cuts with the need to manage the federal budget and debt limit presents a significant challenge.

Businesses must navigate this complex landscape to remain compliant and optimize their financial strategies. Recent discussions about tax policy have highlighted key areas that could significantly impact businesses and individuals, including:

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