100 Days In: What HR and Small Business Leaders Need to Know Under Trump’s Second Term

One hundred days into Trump’s second term, the message is clear: deregulation is back, enforcement is selective, and chaos is the point. Agencies are being gutted, executive orders are contradicting court precedent, and political appointees are wielding power like wrecking balls.

For HR leaders and small business owners, this isn’t just noise—it’s liability. Compliance expectations are shifting so fast they’re practically evaporating. DEI programs are under attack, workplace raids are back in fashion, and the federal government no longer wants to hear about “disparate impact” unless it affects white men.

And while oversight disappears, state-level enforcement is surging, meaning you could be compliant in one jurisdiction and in violation across the street. You don’t need to panic or overhaul everything overnight. But you do need to understand what’s happening so you’re ready when it hits your front door.

Immigration: Enforcement Overhaul and Data Sharing

Workplace immigration enforcement is no longer just a talking point—it’s operational. High-profile raids have resumed, and this time, they’re designed to make an example. Not just of undocumented workers, but of the employers who hire them. Even businesses with clean records aren’t immune to the theater of enforcement.

The goal isn’t just compliance—it’s fear. And that fear doesn’t stop at undocumented workers. Citizens, green card holders, DACA recipients—anyone perceived as “other” is feeling it. HR teams are fielding questions they’ve never had to answer. This isn’t just an immigration story. It’s a workplace one.

The IRS–ICE data-sharing agreement is an alarming move. It signals a new level of coordination between agencies that were never meant to work this closely.

The IRS has long been a firewall—protecting taxpayer data even from law enforcement. That wall just crumbled. Sharing employment tax records to aid immigration enforcement may violate federal law. It definitely violates decades of institutional norms. And it turns routine employer filings—W-2s, 1099s, payroll reports—into evidence.

For employers, if your I-9s are incomplete, inconsistent, or outdated, you’re on the hook. If your re-verifications aren’t happening on time, or you’ve got a hiring manager skipping steps to “get someone in the door quickly,” you’re at risk.

It doesn’t matter whether you meant to violate anything. This administration isn’t looking for bad actors. It’s looking for headlines.

It’s also worth stating what many won’t: these tactics put employees—documented or not—in dangerous positions. They create a culture of silence and fear. That’s not just unethical, it’s bad for business. People can’t thrive in a workplace where they’re worried about who’s watching or whether their paperwork might be weaponized.

Action Step:

Conduct a full I-9 audit—don’t wait until you’re served. Confirm reverification processes are in place and up to date. Train managers on how to respond to enforcement visits without overstepping or making promises they can’t keep. And have an immigration attorney in your contacts.

DEI & EEO: From Encouraged to Exposed

Let’s get something straight: DEI is not discrimination. Diversity, Equity, and Inclusion initiatives are about expanding opportunity—giving everyone a fair shot, especially those who’ve historically been excluded.

They’re not about quotas. They’re not about punishing white men. They’re about leveling the field, not tilting it. But under Trump’s second term, that nuance is being obliterated on purpose.

Two executive orders have thrown federal support for DEI under the bus. The first targets federal contractors, gutting the previous administration’s directives that encouraged proactive inclusion.

The second directs agencies to abandon disparate impact claims altogether—claims that don’t rely on intent, just outcomes. That’s not just a policy shift. That’s an ideological war against civil rights law.

The EEOC and DOJ followed with joint guidance in March, placing new scrutiny on some of the most effective tools HR has: mentoring programs and employee resource groups (ERGs). If your mentorship program gives priority to underrepresented groups, you may now be in the crosshairs. If your ERG is centered around race, gender identity, or sexual orientation—and most are—you could be asked to justify why it exists at all. The same federal agencies that once encouraged these programs now warn that they could create a “hostile environment” for others.

A case is already heading to the Supreme Court that could expand so-called “reverse discrimination” claims. And if the current Court’s track record on race is any indication, it’s not going to end well for DEI. The potential ruling could open the floodgates for lawsuits against programs designed to include people who’ve been historically shut out of opportunity.

So yes, inclusion now comes with legal risk. That’s the point. These changes aren’t about creating fairness—they’re about chilling progress. They’re meant to scare companies out of doing the right thing by blurring the lines between inclusion and exclusion.

Action Step:

Don’t panic, but don’t stay passive. Review your DEI programs now. Make sure you’re not making employment decisions—hiring, promotions, benefits—based on protected categories. But don’t let fear gut your programs either. Focus on access, support, and opportunity for all employees. And when in doubt, bring in legal counsel and a trusted HR advisor.

Affirmative Action: Federal Retreat, State Confusion

Affirmative action and DEI are not the same thing. DEI is a broad workplace strategy—mentorships, ERGs, inclusive hiring practices.

Affirmative action is a legal framework tied specifically to government contracting. It doesn’t mean giving someone a job because of their race. It means taking proactive steps to ensure a federal or state workforce reflects the diversity of the available labor pool. For federal contractors, it’s been around since Nixon. Yes, Nixon.

Now, it’s gone. Trump rescinded the executive order that required federal contractors to take affirmative action to prevent discrimination. The Office of Federal Contract Compliance Programs (OFCCP), which once enforced these rules, has been gutted—staff cut by as much as 90%.

Even as federal rules vanish, state and local rules are tightening. Cities like San Francisco, New York, and Chicago have their own affirmative action and anti-discrimination mandates tied to public contracts. Some states are even moving in the opposite direction of the federal rollback—expanding requirements, increasing audits, and imposing penalties for noncompliance.

If you’re a contractor working across jurisdictions, you’re now trapped in a compliance paradox. What’s legal federally may be illegal locally. What’s required in California could get you sued in Texas. This patchwork is intentional. And navigating it wrong doesn’t just cost you a contract—it can tank your reputation, your margins, or both.

Action Step:

Don’t assume the absence of federal rules means you’re in the clear. Review every contract and subcontract tied to state, local, or municipal funding. Check for affirmative action, diversity, or nondiscrimination clauses. If your compliance playbook is based on federal standards alone, it’s outdated. Work with your HR advisor to build a multi-jurisdictional compliance strategy.

Wage & Hour: Independent Contractor Rules Back in Flux

The Department of Labor is shifting course. With Lori Chavez-DeRemer now in charge, expect a clear rollback of pro-worker rules. The administration has already signaled plans to undo key protections related to wages, overtime, and worker classification.

The salary threshold for exempt employees under the Fair Labor Standards Act is likely to drop. The Biden administration attempted to increase this to nearly $60,000 but a court struck that down on January 1, 2025.

We will probably see an increase of the $35,568 amount but current estimates suggest the new threshold will fall around $43,000 to $44,000. That change could leave many employees working longer hours without overtime pay—simply because their salary crosses a lower line.

Joint employer and independent contractor standards are reverting. The Trump administration is bringing back a narrower definition that favors businesses, particularly those using franchise models or contract labor. It may reduce liability in some cases, but it also creates compliance risks in others, especially for businesses operating in multiple states with stricter standards.

Action Step:

Review your worker classifications now. Confirm your exempt employees still qualify under the new expected threshold. If you rely on independent contractors or staffing partners, revisit your contracts and workflows. Prepare for audits—federal or otherwise—and make sure your pay practices are defensible. This is a structural shift, not a temporary one.

Labor Relations: NLRB in Limbo

The result of a targeted political move, the National Labor Relations Board no longer has a quorum. Two Democratic members were removed, including Gwen Wilcox, a vocal advocate for workers’ rights. With the Board now effectively paralyzed, union elections have slowed, unfair labor practice cases are in limbo, and employers are left without clear direction.

The NLRB was created to enforce the National Labor Relations Act and protect the right to organize. Without a functioning Board, there’s no one home to interpret or enforce the law. That creates a vacuum—one that favors employers who want to roll back union gains or stall organizing efforts entirely. And when the Board eventually regains a quorum, expect a push to unwind recent worker-friendly decisions.

But the law hasn’t changed. Employers are still subject to the NLRA, and retaliation, surveillance, or interference with organizing is still illegal. The only thing missing is enforcement. For now.

Action Step:

Don’t treat the Board’s silence as permission. Use this moment to invest in genuine employee engagement. Build trust, communicate clearly, and make space for feedback. If you’re relying on legal uncertainty to dodge accountability, you’re setting yourself up for future risk. A smart employer doesn’t wait for the NLRB to act—they lead with fairness before the law forces their hand.

Workplace Safety: OSHA Leadership Vacuum

OSHA’s proposed heat illness standard—meant to protect workers from soaring temperatures—has been shelved. The walk-around rule, which would’ve let employee reps accompany OSHA inspections, is likely dead.

With climate-driven heat waves becoming the norm, shelving a heat illness rule isn’t just regulatory delay—it’s calculated neglect. Outdoor and warehouse workers, often in low-wage roles, are the ones left exposed. And the rollback of the walk-around rule limits how workers can participate in holding employers accountable.

But don’t confuse federal retreat with total freedom. States like California, Washington, and New York aren’t following suit—they’re pushing harder.

Expect new state-level rules, increased inspections, and aggressive enforcement in blue jurisdictions. And while federal OSHA may look the other way, state agencies are watching closely—especially where political leaders view federal inaction as a betrayal of public health.

Action Step:

If you’re in a blue state, start treating state OSHA guidance as your primary source—not federal rules. Review your policies on heat safety, hydration breaks, indoor air quality, and employee access to inspections. Even if federal oversight is fading, your obligations aren’t.

Artificial Intelligence: Deregulation Meets Disparate Impact

The Trump administration’s stance on AI is clear: growth first, guardrails later—if ever. A recent executive order pushes for global “AI dominance,” but says little about how that innovation should respect civil rights, labor standards, or fairness in hiring.

AI tools are increasingly used in hiring: resume screening, automated interviews, behavioral assessments, even facial analysis. But these systems aren’t neutral. They learn from existing data—data shaped by decades of systemic bias. If your company’s hiring history skews white, male, or able-bodied, the AI will likely replicate those patterns unless explicitly audited and corrected.

Without federal oversight, the burden falls to states—and they’re stepping up. Some states require notice and consent for AI interviews and mandate annual bias audits for automated employment decision tools. California is exploring even broader legislation. The result is a patchwork of rules, deadlines, and reporting standards that vary by ZIP code. For multistate employers, compliance isn’t just hard—it’s a moving target.

Ignoring this doesn’t make the risk go away. It just shifts the liability. And in this legal environment, claiming ignorance won’t help you in court.

Action Step:

Audit any AI tools you use in recruiting, hiring, performance evaluations, or promotions. Ask vendors for transparency on how their models work—and whether they’ve been tested for bias. Keep documentation of your efforts. And monitor legislation in the states where you operate. Even if Washington has walked away from the table, you’re still responsible for what happens in your workplace.

No One’s Coming to Save You—But You Still Have to Comply

If there’s one thing these first 100 days have proven, it’s this: you’re on your own. Federal oversight is shrinking, legal standards are shifting, and political leadership is more interested in deregulation headlines than in what actually happens to workers.

For employers, that means there’s no safety net. No roadmap. Just a growing list of risks, contradictions, and gotchas.

Staying compliant now takes more than checking boxes. It takes strategy. It’s not just about avoiding fines—it’s about protecting your people, preserving your values, and keeping your business off the front page for all the wrong reasons. Because what’s being rolled back at the federal level isn’t bureaucracy—it’s protection. For workers, yes, but also for you.

So don’t wait for the next executive order or court ruling to make the call for you. Know where you stand. Fix what’s broken. Prepare for what’s coming.

And if you’re not sure where to start—or just need someone to walk you through it—let’s talk.

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Bryan J. Driscoll

Bryan Driscoll is a non-practicing lawyer, seasoned HR consultant, and legal content writer specializing in innovative HR solutions and legal content. With over two decades of experience, he has contributed valuable insights to empower organizations and drive their growth and success.

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