When the new president is sworn in on January 20, 2017, on the steps of the U.S. Capitol, the Oval Office will have a new occupant. There will also be new faces in Congress and some government compliance policies are likely to change. That begs the question – so what does this mean for you and your company?
Our Commitment to You
ADP has been serving employers of every size and from every industry, over the course of a dozen presidential administrations. When we signed up our first payroll client in 1949, President Harry Truman was in the White House. An important part of his daily commitment and lasting legacy was embodied in a small sign he kept at his desk that read simply: “The buck stops here.”
Just as Harry Truman felt a strong pride and commitment serving as our country’s chief elected leader, ADP feels an enormous pride and responsibility as a resource and partner that employers can trust for our understanding of complex compliance, financial, and strategic issues concerning workforce management. More than ever, employers will need to continue navigating complicated requirements and potential changes.
Potential Impact
Laws and regulations, such as the Affordable Care Act (ACA) and the Fair Labor Standards Act (FLSA) regulations, may be modified or repealed. By way of example, President-elect Trump has openly called for a repeal and replacement of the ACA. The ultimate fate of the ACA and any modifications to the law are; however, uncertain at this time.
With respect to the FLSA, the new regulations are effective December 1, 2016 (before the new president takes office). Therefore, despite current congressional efforts and state lawsuits to delay, modify or block the new regulations, they are likely to go into effect as planned. After taking office, president-elect Trump could in theory direct the Department of Labor to issue new proposed regulations designed to roll back or recall the new FLSA regulations. However, that process can take many months. Employers should therefore still plan to be in compliance by December 1, 2016.
President-elect Trump has also previously committed to repeal many Executive Orders issued under President Obama. Given that immigration reform was the centerpiece of the Trump campaign, increases in worksite enforcement activity, including I-9 audits, are possible as are renewed efforts to impose a nation-wide E-Verify mandate to confirm employment eligibility.
Overall, the details of any proposed changes to current law, regulation or enforcement policy are unknown at this time but most employment law and government affairs experts agree that some form of change is nearly certain. As always, we will keep you updated.
If you have any questions or need assistance with employment-related compliance issues, please contact your Human Resources Business Partner. Helping clients manage through change has always been part of our DNA and we are consistently focused on the knowledge, insights, and innovations that can help our clients.