Workplace policies poised for seismic shakeup post-election
With conservatives set to control all three branches of the U.S. government in a matter of weeks, people managers are bracing for potentially titanic changes to the workplace regarding everything from labor relations and safety regulations to healthcare benefits and DEI policies.
“The post-election landscape has everyone in the business world wondering what’s next, especially when it comes to workplace policies that have been in conservative crosshairs for years,” said Angel Reyes, founder and managing partner of the law firm Angel Reyes & Associates.
Part of the fallout is predictable, however. “We can anticipate a strong push to scale back policies that aim to reduce disparities in healthcare coverage, mental health support and equitable opportunities for underrepresented employees,” said Stephanie Alston, president BGG Enterprises, a staffing solutions company.
Topping the list of expected changes: a rollback of many health insurance reforms provided under the Affordable Care Act, better known as Obamacare — something that could result in substandard insurance products flooding the market, said Alden Bianchi, partner at the law firm McDermott Will & Emery.
“While some cohorts of employers might embrace these products in an effort to reduce costs, they would result in broad gaps in coverage, with rank-and-file employees, among others, incurring substantial unreimbursed expenses,” he said.
The incoming leadership in D.C. is also likely to restrict reproductive health benefits, including fertility treatments, resulting in greater administrative difficulties and costs for large, self-funded health plans, according to Sarah Raaii, a partner at McDermott Will & Emery.
Following the 2022 Supreme Court decision in Dobbs v. Jackson Women’s Health Organization, which overturned Roe v. Wade and the constitutional right to abortion in the U.S., employers were forced to shift their healthcare strategies and implement creative solutions like travel benefits so women in restrictive states could continue to access reproductive healthcare, Raaii pointed out. That need would only intensify if more states were emboldened to pass restrictions on reproductive health, she predicted.
When it comes to health coverage, Amy Spurling, founder and CEO of Compt, an employee lifestyle benefits platform, noted that many employers continue to opt for lifestyle spending accounts (LSAs) and flexible stipends, programs that allow employees to use funds for whatever they need, whether it’s personal healthcare expenses or family care.
“Instead of having narrowly defined benefits that might face scrutiny, companies can offer broader wellness and lifestyle stipends that employees can use for whatever they need most,” she explained, adding that “in times of regulatory uncertainty, the key is to create flexible benefits programs that can adapt quickly while continuing to support all employees.”
Also high on the list of workplace policies bound for change are DEI programs, a favorite target of conservatives.
Overturning affirmative action and diversity training programs has already enjoyed a groundswell of support, as opponents argue such initiatives are themselves discriminatory. In recent years, Supreme Court decisions have narrowly interpreted the concept of equal protection, which could signal still more legal decisions curbing diversity efforts.
“If the incoming Congress backs those moves with legislative support, we could be looking at an environment where voluntary DEI programs face real headwinds,” Reyes said.
HR resources for navigating changes
In most cases, employers already have no shortage of solutions at their disposal.
For healthcare benefits, partnering with powerful lobbying organizations and industry groups can be a lifeline, according to Reyes. Groups like the American Benefits Council and SHRM (the Society for Human Resource Management) have a history of defending comprehensive employee benefits and can provide resources, advocacy support and timely analysis to employers.
As public policy evolves, companies could increasingly rely on legal counsel, too, to interpret new laws and craft compliant strategies that keep the employee top of mind, he added.
Employers who anticipate challenges and prepare flexible benefit structures, with backup plans in place, will be better positioned to adapt without major disruption, according to Reyes.
For employers committed to initiatives that may now become further endangered, BGG Enterprises’ Alston advised reframing DEI and employee wellness not just as benefits but as “core components of organizational resilience and talent retention.” She proposed that “emphasizing the proven impact of these policies on productivity, innovation and employee engagement can strengthen internal buy-in and safeguard their continuity.”
“Smart companies aren’t retreating from progressive workplace policies — they’re making them more resilient through flexibility and inclusivity,” said Spurling. By offering personalized wellness programs, for example, companies can support the diverse needs of the workforce while maintaining legal and regulatory compliance.
“To be clear, the goal isn’t to find loopholes — it’s to create genuine, sustainable support systems that work for everyone,” she said. “Because when benefits are truly inclusive and adaptable, they become much harder to challenge and much more valuable to your workforce.”
Regardless of changes that may be coming down from Washington, HR leaders must continue to focus on job one, and that is to serve their employees, as workplace experts see it.
“Cultivating psychological safety and belonging is essential to any thriving workforce, regardless of policy shifts around DEI or broader ESG topics at the federal level,” said KeyAnna Schmiedl, chief human experience officer at the employee recognition and rewards provider Workhuman. “The political landscape has always impacted folks from different communities in different ways. As HR leaders, it’s our responsibility stay current on changes to that landscape and identify the places our employees may need additional support.”
By continuing to ensure access to services like mental health support and peer support groups — and by always keeping lines of communication open — Schmiedl is confident employers can “reaffirm their commitments to building inclusive, equitable workplaces where every human is treated with the care and respect they deserve.”