Once Obama is out of office and the threat of his veto disappears, a Republican controlled Congress could take action to pass legislation that revises the definition of a joint employer.
Arbitration Agreements Under Obama, the NLRB has aggressively challenged agreements between companies and workers that require employment-related disputes to be settled in arbitration. Appeals courts have been split over the NLRB’s decisions regarding mandatory arbitration agreements, with three Circuit Courts finding such agreements enforceable and two Circuit Courts agreeing with the NLRB,
so
the issue could possibly end up being resolved by the U.S. Supreme Court.
• Federal Contractor Rules Another Obama order, The Fair Pay and Safe Workplaces, has also been partially enjoined by a preliminary injunction, issued by
U.S. District Court Judge
Marcia A. Crone, from the Eastern District of Texas, before it was scheduled to take
effect. The rule would require companies working on federal contracts to disclose information about labor violations when participating in the bidding and selection process.
Conclusion While there will be many changes in the regulatory, legislative, and enforcement environment under President Trump, employers need to be aware that changes may not come about immediately. It’s likely that regulators will continue enforcement for the foreseeable future. However, over the next several years, many of the Obama-era administrative regulations may be subject to repeal and reversal.
Employers must be vigilant about the potential for enforcement actions and work carefully with legal and HR experts, until it becomes clear what a Trump administration will focus on and how regulations will be revised. There is no doubt that most employers are looking forward to less regulation and less red-tape.
About the Author
Richard D. Alaniz is senior partner at Alaniz Schraeder Linker Farris Mayes, L.L.P., a national labor and employment firm based in Houston. He has been at the forefront of labor and employment law for over thirty years, including stints with the U.S. Department of Labor and the National Labor Relations Board. Rick is a prolific writer on labor and employment law and conducts frequent seminars to client companies and trade associations across
the country. Questions
about this article, or requests to subscribe to receive Rick’s monthly articles, can be addressed to Rick at (281) 833-2200 or ralaniz@alaniz-
schraeder.com.
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