Michele Harmon
Will changing regulations reduce inflation and costs overall? Will it end some of the current entitlement of our workforce after COVID?
I only minored in Economics, but it just makes sense that decreasing regulations will decrease costs and thus reduce the rate of inflation. Only time will tell but let’s review some current and upcoming reductions in regulations affecting the workforce.
First, let’s consider the end of Diversity, Equity, and Inclusion (DEI) programs and all the other legal changes.
Yes, DEI programs are, at the very least, changing. Even before Donald Trump was elected, organizations started backing off, including publicly traded corporations that now have a considerable stake in the Permian Basin.
DEI programs took a huge hit when the U.S. Supreme Court struck down Affirmative Action in 2023. Then, in 2024, the U.S. Supreme Court in Loper Bright Enterprises v. Raimondo changed decades of how courts evaluate the boundaries of regulatory authority. This ruling overturned the Chevron doctrine, whereby courts deferred to regulatory agencies to interpret ambiguous statutes. The Federal Trade Commission (FTC) ban on noncompete agreements was ruled unlawful. Next, the 5th Circuit Court of Appeals vacated the U.S. Department of Labor’s (DOL’s) 80/20/30 tipped wage rule. This rule categorized work into three types and required full minimum wage compensation for time spent in non-tipped work. This one is certainly welcome in my HR Consultant role. What payroll software can track that one? If there is one, it will cost the employer even more money, passed on to us, and all I wanted was a good steak at a nice restaurant.
Pending challenges to current law interpretations include Section 702 of the Employee Retirement Income Security Act (ERISA). Health plans are prohibited from charging different premiums based on health factors, except wellness programs. Currently, employers can charge more for tobacco users.
Another regulation currently being challenged is the 2024 worker classification rule under the Fair Labor Standards Act (FSLA). This regulation keeps coming up. Is the employee exempt or nonexempt? Is the worker an employee or an Independent Contractor?
Does this author think the world will favor a free-for-all for employers? Not at all.
However, for the employee, you better show up, work hard, and continue to retool to have the skills your employer needs.
The world is already diverse, and even when, recently, some young guy said I looked like the person who would still have a landline, and he was being a smart-alec, I immediately told him that he had decided that because of my age, that was the case. Many of you who read this are over 40, and many probably over 60. We are still working because we have learned to be adaptable and flexible, and we continue to learn, and show up. We also are relevant because we have learned to advocate for ourselves.
“Your employees are the heart of your organization.” Dr. Michele Harmon is a Human Resource professional, supporting clients in Texas and New Mexico that range in size from five to more than 3,000 employees. Email: micheleharmon1@gmail.com
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