What could the new presidential administration mean for U.S. employers and workers?

The results are in, and a Republican president will be returning to the White House come January 2025.

With a new era in United States politics incoming, many are wondering what changes to expect.

When a new U.S. president takes the reigns, the reality for employers and workers can rapidly change. Let’s look at what the upcoming presidency could mean for the working world in the United States.

How did policies from the last Republican presidency affect the employment landscape?

Looking back at the last Republican party presidency can help us understand what to expect from the next one.

What we know is that the incoming president supports pro-business policies and is anti-union. Elon Musk, the world’s richest person, donated at least $132 million to the most recent Republican presidential campaign. Musk is anti-union, so his support implies continued pro-business, anti-union policies.

The pro-employer policies of the last Republican administration included:

• Opposition to the raising of minimum wage
• Executive orders removing power from unions
• The addition of number of pro-employer appointees to the National Labor Relations Board
• Cutting of funding of the Department of Labor by 21%.

What can we expect this time around?

Labour policies

There is some speculation that the incoming policies may be more labour-friendly than previous Republican administrations. This is due to the new President of the United States' appeal to organized labour during the campaign.

However, there are concerns over lack of clarity around the incoming president’s intentions. The new president has not provided in-depth detail on the policies that he intends to enact. He has confirmed that he will raise tariffs to protect jobs in the U.S.

The new president has also promised mass deportations of undocumented people. This would affect millions of undocumented workers in the country.

According to the Washington Post, it is likely that incoming labour policies will involve:

• Removing the previous Democrat administration’s appointments to the National Labor Relations Board. These appointments led to several cases of significant union action. These included labour disputes by Amazon workers and Starbucks workers.
• Adjusting federal overtime rules, so that fewer workers are eligible for overtime pay. The outgoing president’s has implemented a rule extending overtime coverage to 4 million workers. This rule will take effect three weeks before the new president officially takes office. This may make it difficult to roll back because of the time-consuming nature of regulatory processes.
• Workplace health and safety protections may also come under scrutiny by Trump’s administration.

Focus on manufacturing

The Republican campaign this time around promised to restore and protect manufacturing jobs long-term.

This plan aims to lower the corporate tax rate for domestic manufacturers. It also includes imposing tariffs on all imported goods.

Many viewed the incoming president’s first term in office as a successful era for manufacturing. This is according to the National Association of Manufacturers. During that time, the manufacturing industry saw tax reform and a regulatory overhaul to new trade agreements.

Visas and immigration changes

The incoming president previously enacted a number of controversial anti-immigration policies. These included travel bans imposed on several Muslim countries, crackdowns on illegal immigration, and tighter restrictions around visa applications.

During the 2024 campaign, the President-elect promised to carry out mass deportations of undocumented people.

According to CNBC, these plans targeting undocumented workers would seriously impact the construction, housing, and agriculture sectors.

The new administration wants these plans to attract more businesses to the country. They also aim to encourage the hiring of U.S. citizens.

Forbes predicts difficulty for H-1B visa holders and their spouses. The H-1B is the most common type of work visa in the U.S. The new administration may strip H-1B spouses of the right to work.

Gaining approval for this popular visa may become more difficult and processing times may slow down significantly.

If these changes occur, they will cause trouble for both employers and prospective foreign workers.

Taxes

The new administration plans to implement major changes to personal and corporate taxes. This will impact both employers and workers.

According to observations made by Pillsbury Winthrop Shaw Pittman law company, the next four years may see:

• Corporate and individual taxes cut
• Continued reduction of the corporate tax rate from 21% to 15%
• The removal of tax on tips, Social Security income, or overtime pay.

Project 2025

Project 2025 is a document outlining a conservative vision for the U.S. federal government. Project 2025 was developed by the Heritage Foundation. It proposes several changes that could impact work and business environments.

Project 2025 outlines plans to cut corporate and income tax. This is aimed at encouraging economic growth by allowing businesses to retain more profits for reinvestment and expansion.

Project 2025 proposes allowing employers and employees to calculate overtime over extended periods, rather than the standard one-week period. This change could offer greater flexibility in scheduling and managing workloads.

How Mauve Group can help

Are you an employer seeking to hire in or expand into the United States? Mauve Group has over 28 years of experience in the global mobility arena. Our team of experts is ready and waiting to guide you through every step of your global journey.

With dedicated teams across the world working on global hiring and expansion, global payroll, visa and immigration, and compliance, Mauve is here to ensure your global success.