Looking Ahead: Workforce Policy Outlook in 2025

Looking Ahead: Workforce Policy Outlook in 2025

Tracking the election impact on retail policy priorities

• By [ Evan Armstrong ]
• 12/02/2024

Looking ahead to 2025, a new Congress and a new administration - both controlled by the Republican party - will bring sweeping changes to federal public policy over the next two years. Via a series of blogs, the RILA government affairs team is sharing the outlook for public policy issues important to the retail industry heading into the new year, with insights on how those policies are being viewed on Capitol Hill and in the White House. Below, RILA's Vice President of Workforce Evan Armstrong explores what to expect for workforce policy.
BACKGROUND
The American workforce is evolving to meet the needs and demands of a rapidly changing economy where talent shortages may become the norm and skills requirements are increasing. In addition, technology is empowering workers as well as consumers and disrupters are using it to shape the future.

The 21st century retail workforce is diverse, innovative, and skilled. RILA is working with stakeholders and strategic partners to redesign and pursue workforce policies and practices to help retailers make their companies more dynamic, allowing them to compete for talent and serve customers well.

Expect the incoming Trump administration to undo many of the Biden-Harris administration executive orders and regulations from the Department of Labor (DOL), National Labor Relations Board (NLRB) and the Federal Trade Commission (FTC) that tilted the workforce dynamics away from an employer and employee collaboration and toward organized labor.

ELECTION IMPACT
President-elect Trump with a Republican Senate and House will provide legislative opportunities but there will still be few chances to pass bills related to labor law. In absence of legislation, President-elect Trump will likely issue aggressive executive orders to enhance border security and interior enforcement. Additionally, the Trump administration will likely decline to pursue appeals of lower court decisions blocking rules finalized by the Biden-Harris administration - notably, the DOL's independent contractor, overtime, and walkaround rules as well as the FTC's rule related to non competes. By deciding against appeals, the lower court rulings in effect negate these rules and leave in place policies previously enacted during the first Trump Administration.

Legislatively, the Republican Senate will power a Trump administration's priorities. However, the narrow majority in the House will make it difficult to pass consequential legislation without significant cross-over votes from House Democrats. Importantly, a Republican Senate led by a growing populist flank of the party and a Vice-President Vance may move the conference towards a more worker centric domestic policy which could include pro-union measures. Likely, the areas of focus for these members will be to enact robust industrial policy to protect jobs and support domestic energy and manufacturing. Potential nominees to key posts at the DOL, NLRB and others may need to be more aligned with these interests as well to be successfully confirmed.

Another example, where there is significant bipartisan support and business support, is for the reauthorization of the Workforce Investment and Opportunity Act (WIOA) which seeks to equip individuals with emerging skills in the economy. Finally, RILA has worked with both parties on developing ideas around paid leave and childcare. The major tax battle could open avenues for both priorities during the debate and compromise between the White House, Senate and House.

RILA POSITION
In the next Congress, RILA will work with the Trump administration to alter or remove many of the harmful policies from the Biden-Harris administration including rulemakings from the DOL around worker classification, workplace inspections and overtime. In addition, RILA will continue to advocate for overreaching changes to the NLRB which has sought to disrupt a positive relationship between employers and employees.

As the retail industry evolves with greater emphasis on productivity, new technologies like Artificial Intelligence (A.I.) and digital experiences, RILA supports efforts to modernize skill development opportunities through WIOA reauthorization. In addition, as efforts attempt to undermine changing work arrangements continue, RILA will work with partners to promote a workforce that is dynamic, nimble and responsive to demographic changes and consumer preferences.

Finally, RILA is engaged with policymakers about a way forward on immigration issues including a resolution to the legal status of the DACA individuals as well as a modern view of legal work visas.
RILA is a member of the Coalition for Workforce Innovation, Skills First Coalition and the Coalition for the American Dream.

Heading into the new year, RILA will continue to advocate for policy which supports a 21st century workforce that is diverse, innovative, and skilled; and we will keep members informed of workforce policy developments of consequence. For more information about RILA's advocacy efforts around this issue, please reach out to RILA VP of Workforce Evan Armstrong.

Want more election insights? Dive into our policy outlooks on more retail focus areas below.
• Payments
• Tax
• Privacy & AI (coming soon)
• Trade (coming soon)
• Supply Chain and Transportation & Infrastructure
• Organized Retail Crime (coming soon)

Tags

• Investing in People
• Public Policy
• Workforce

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