Recently, PRemployer hosted a webinar reviewing the expected employment law changes under Biden's new administration. The webinar touched on the different attitudes present in the administration and what will likely be implemented. The webinar contains a wealth of information, and we highly recommend you check out the full video. Here is a preview of some of the things it discusses.
Coronavirus Relief Plan
Biden's $1.9 trillion coronavirus relief plan passed almost as originally written soon after the webinar aired. It contained several provisions to help support the American economy and our country's vaccination efforts. Most significantly, it included:
- A third round of stimulus checks, with most Americans receiving an additional $1,400
- Funding for school reopening, testing, contact tracing, health services in underserved populations, and vaccination roll-out
- Expanded unemployment benefits, including extending the current $300 federal supplement to unemployment insurance until September
- Eviction protection (although the legality of this is under question)
- 15% increase in SNAP benefits
- Expanded child care tax credits
Hopefully, that will be the last round of COVID-19 stimulus, although this depends on whether further virus surges occur. Some experts are concerned about a resurgence of the virus in the fall, leading to further economic impact. Depending on that possibility, the Biden administration may extend the Families First Coronavirus Recovery Act, which requires higher levels of paid sick leave. The goal is to ensure that people will not be forced back to work when they should be quarantined, but some employees have been using it to avoid returning due to fear of exposure. If you have employees who are afraid to come to work, you absolutely should work with them and find out what policies would make them more comfortable.
Regulatory Agencies
The webinar discusses the Biden Administration's changes to regulatory agencies in depth. Much of this is rolling back changes made by President Trump. The changes are likely to include increased rights and protections for employees, increased enforcement against employers, and more avenues for complaints. That will make it even more critical for companies to ensure that they remain compliant with all regulations and that their HR professionals stay up to date. Increased enforcement reduces the chance of a mistake flying under the radar, and changing regulations increases the risk of making a mistake in the first place. For more information, check out the full webinar.
Biden moved very quickly to unwind many of Trump's executive orders, including ones designed to promote deregulation. This administration will likely continue to push for employees’ rights over employers. A memo, Modernizing Regulatory Review, shows that Biden intends to work with the civil service and lean heavily on regulation to push his agenda. That is in strong contrast to Trump's tendency to alienate federal employees and might help him get much of his agenda done without relying on Congress to pass items.
Department of Labor: Wages and Compensation
The minimum wage increase was removed from the stimulus bill after the Senate parliamentarian ruled it could not be passed under budget resolution. There will likely be a standalone bill to increase this. It is highly unlikely to pass the current Senate, especially if the filibuster remains in place. An increase in the minimum wage could create wage compression issues and make it harder for small companies to grow.
There is also a push in the administration to apply the so-called ABC Test to distinguish between employees and contractors, significantly curtailing the use of contractors. However, there is significant pushback against this by companies and freelancers since they may be classed as employees regardless of whether they want to be. It is unlikely that legislation including the test will pass in the current climate. The DOL may enforce existing rules more strictly and be more likely to go after companies that have misclassified employees as contractors.
National Labor Relations Board
The Biden administration has a much more pro-union stance. It has aggressively supported the PRO Act, which would greatly expand the ability to unionize and overrule state Right to Work laws. The law has passed the House but is unlikely to get through the split senate. It is currently referred to the committee with no date yet announced for a senate vote.
What the administration can do right away is reverse some of Trump's NLRB-related decisions, which would, for example, add restrictions to policies that interfere with unionization and provide a more liberal interpretation of joint employer. Another significant issue is that the NLRB is going after employer social media policies that might be overly broad, like prohibiting employees from saying disparaging things about the company. This information is discussed in greater depth within the webinar. It's a good idea to regularly review your social media policies and ensure that they protect you without being unfair to employees.
Public opinion in the United States remains primarily anti-union, although that is starting to change in some areas.
Biden's administration is likely to be more pro-employee than pro-employer and is pushing for regulatory changes to increase employees’ rights. Some of these may prove damaging for small businesses, at least in the short term, and rapid regulatory changes present a challenge for HR departments. To find out more, you should listen to the recorded webinar, which provides much more comprehensive information than can be covered here.
