What Employees Should Know About Workplace Changes Under a Trump Second Term

With Donald Trump set to return to the White House, many employees are wondering how this will impact their workplaces. Whether it’s wage policies, labor relations, or workplace safety, change is on the horizon. Here’s a guide to help you understand what might be coming and how you can stay prepared.

Minimum Wage and Tipped Wages

The federal minimum wage has been $7.25 an hour since 2009, and while many states and cities have raised their local minimums, federal action has stalled. During his campaign, Trump hinted at support for wage increases aimed at benefiting working-class Americans. While a significant federal hike to $15 an hour is unlikely, there could be a modest increase.

For tipped workers, there’s some buzz around a potential move to eliminate federal income taxes on tips. This could mean more take-home pay for servers, bartenders, and other tipped employees, which might offer some relief without raising base wages.

Although federal minimum wage increases are uncertain, California has its own minimum wage laws that surpass the federal rate. The state is on a scheduled path to reach a $15 per hour minimum wage, with annual adjustments thereafter. Therefore, California employees will continue to see wage increases independent of federal actions.

Labor Relations and Unions

Labor relations will likely see some shifts. The Biden administration implemented policies that made it easier for unions to organize and gave them more leverage in the workplace. Trump’s administration may take a different approach, focusing on giving employers more flexibility.

For example, policies that allow union reps to join workplace safety inspections or permit workers to display political messages on uniforms might be rolled back. If you’re part of a union or considering joining one, you might see some changes, which is all part of the ebb and flow of labor policies in Washington.

Workplace Safety

Workplace safety remains a priority, but how it’s managed could change. The previous Trump administration reduced the number of safety inspectors and focused more on general oversight rather than specific mandates. For example, some proposed regulations, like heat safety rules, may be scaled back or delayed.

This doesn’t mean safety will be ignored—employers are still required to provide safe working environments. But it’s a good time for employees to be proactive. If you notice unsafe conditions, speak up. Your input plays a vital role in maintaining a safe workplace.

However, California's Division of Occupational Safety and Health (Cal/OSHA) enforces state-specific safety standards, which often exceed federal requirements. Therefore, California employees may continue to benefit from robust safety protections regardless of federal changes.

Overtime Pay

Big changes to overtime rules are already in motion. Starting January 1, millions of additional federal workers will qualify for overtime under a new rule that raises the salary threshold for exemptions. This is great news for many employees who might soon see bigger paychecks for extra hours worked.

While there’s speculation that the Trump administration might attempt to modify or roll back this rule, it’s a complex process that could take time. For now, employees should familiarize themselves with the new threshold and ensure they’re receiving the overtime pay they’re entitled to.

While federal standards could be modified, California maintains its own overtime laws with higher thresholds and more expansive coverage. Consequently, California employees are likely to remain eligible for overtime pay under state law, even if federal policies change.

Paid Leave

The U.S. remains one of the few industrialized nations without a federal paid leave mandate. While Trump signed a law in 2020 granting federal employees 12 weeks of paid parental leave, it’s uncertain if this will extend to private-sector workers.

For now, paid leave policies are likely to remain a state or local issue. Many states and cities have implemented their own programs, so check your local regulations to see what benefits you might already be eligible for.

The federal government may not implement new paid leave mandates; however, California has established comprehensive paid leave laws, including paid family leave and sick leave provisions. These state laws will continue to provide benefits to employees, ensuring access to paid leave regardless of federal policy shifts.

Immigration Policies

Immigration reform will continue to be a focal point, and policies affecting work visas, like H-1Bs, could see changes. If you or your colleagues rely on these programs, it’s worth keeping an eye on any updates.

Additionally, programs like Deferred Action for Childhood Arrivals (DACA) might be revisited, which could impact hundreds of thousands of workers. Staying informed and seeking legal guidance if needed will be crucial.

Independent Contractors

The classification of workers as independent contractors versus employees is a hot topic. During his first term, Trump’s administration made it easier for businesses to classify workers as independent contractors.

This classification offers flexibility for gig workers but comes with fewer benefits and protections. If you’re working as a freelancer or contractor, it’s a good time to review your status and understand your rights.

California's Assembly Bill 5 (AB 5) established strict criteria for such classifications, aiming to ensure that workers receive appropriate benefits and protections. State laws like AB 5 will continue to govern worker classification in California, potentially mitigating the impact of federal changes.

Pay Transparency and Data Collection

The Biden administration proposed expanding pay data collection to address wage gaps, requiring employers to submit detailed pay and hours worked information. However, this initiative might be paused or reconsidered under the Trump administration.

While this means less reporting for employers, employees concerned about pay equity can still advocate for transparency within their organizations. Open conversations about wages and fairness can help bridge any gaps.

Staying Informed and Empowered

While some policies might shift, it’s important to remember that employees have the power to adapt and advocate for themselves. Here’s how you can stay ahead:

• Know Your Rights: Familiarize yourself with labor laws and workplace protections.

• Speak Up: Whether it’s about safety, wages, or working conditions, your voice matters.

• Stay Involved: Participate in workplace discussions, join advocacy groups, and keep the conversation going.

Looking Ahead

Change is a constant, but with preparation and awareness, employees can navigate whatever comes their way. Trump’s second term may bring adjustments, but many of these changes take time to implement. While federal policies under President Trump may introduce changes, California's robust labor laws and regulations provide a strong framework that often exceeds federal standards. Employees in California should remain informed about both federal and state developments to understand how potential changes may affect their rights and workplace conditions. By staying informed and proactive, you can continue to thrive in your workplace.