“Elections have consequences.” Ever since that was said by the then newly elected President Barack Obama (it may have been said before that, but that is the first time this author heard it), it has always seemed more of a threat than anything else, and it was just recently heard again from the Trump side, and if nothing else, it warns of change.
Federally, the Republicans won the Executive Office, a majority in the U.S. Senate (currently at 53 Republicans and 46 Democrats), and it’s projected that the Republicans will also take the U.S. House of Representatives (as of 11/12/24 NPR reports the GOP has 213 seats of the 218 needed for a majority to 205 seats currently for the Democrats). Seventeen (17) seats remained un-called as of Tuesday morning (11/12). Media source The Hill reports control of the House will remain with the Republicans giving GOP control of the Executive and Legislative Branches along with a majority of conservative justices on the U.S. Supreme Court.
Michigan Legislative Consequences
In Michigan, there was not an election for Governor. That office remains in Democratic hands. Though the Democrats maintained a majority in the State Senate, the Democrats lost their majority in the Michigan State House. State Republicans now have a 58-52 seat advantage there come next year. The State Supreme Court is still in the hands of the Democrats with a 5-2 majority. From a legislative standpoint going forward, the Democrats still control two branches of Government in Michigan. However, the loss of the State Senate will make it much more challenging to get Democratic legislation passed next year and make the Lame Duck session here in Michigan more interesting.
Just a day or so after the election results, two bi-partisan bills were introduced to do some amending of the minimum wage and paid sick time off laws that were judicially hefted on businesses this summer.
The Lame Duck session that started on 11/6/2024 will be a short one – absent some extension to the legislative session this year. Michigan’s Legislature will be in recess for two weeks during Michigan’s hunting season and Thanksgiving. When they return, they are scheduled to go to just December 19th before adjourning for the year.
In addition to amending the two laws above, the Legislature is expected to act on unemployment benefits by seeking to increase the length weekly benefits can be received from 20 to 26 weeks. One bill (SB 975) seeks to change the three-day no call, no show misconduct disqualification the unemployment law currently contains. This change seems to be intended to smooth out the issue of retaliation contained in the Earned Sick Time-off Act (ESTA) by removing this misconduct penalty from Michigan law.
There is also a bill (HB 5461) to create a state-run retirement plan for small businesses that do not have a retirement plan.
Next year, a new legislative session will begin and there will have to be some constructive negotiations if either party wants to get anything of importance done.
Federal Regulatory Consequences
Back to possible changes at the federal level – there will be changes within the federal agencies. On the labor front, one of the first things Trump is expected to do when he takes office is fire the National Labor Relations Board General Council, Jennifer Abruzzo. GC Abruzzo has led the agency responsible for pushing through a whole host of labor friendly decisions that has radically changed how labor law is applied in the U.S. There will most likely be a recission of Abruzzo’s more radical memos that give direction to the agency on enforcement policy.
Going forward the new NLRB General Council along with a Republican majority on the NLRB will no doubt begin reversing the many pro-labor cases that the current NLRB have used and even last week continue to change toward labor friendly policy. The new Trump Administration will reverse many of these labor rulings back to where they were at the end of the last Trump Administration.
So, for those employers that have had to change their employee handbook policies due to the many union friendly rulings over the past four years, you may be allowed to change them back to some more common sense-based employment policies/rules when the Trump NLRB is in.
With tongue in cheek, call this new handbook the “Red” handbook, but if you have changed your handbook policies to come in line with the current NLRB don’t throw it out. Just put it on the shelf and “store” this handbook until the day when the Democrats come back in, and the NLRB’s make-up will change again. You can call that handbook now going into storage the “Blue” employee handbook. Though the upcoming NLRB will no doubt change its labor policies to more employer friendly ones, should the Democrats once again return to the White House, they will no doubt change them back to what we have had up till today, and then you can pull the “Blue” handbook out and use that one.
Other labor concerns that are now expected to change are:
- Fortunately, the PRO Act will be put away in cold storage for the time being. This bill has been pending for many, many years. Due to its radical change to the National Labor Relations Act it will be shelved again.
- Initiatives that try to make union organizing easier will disappear (e.g. ambush/’Quicke election rules)
- For the time being the idea of a ban on “captive audience” meetings will go away. However, some states are passing their own laws on this. The current federal law (NLRA) is seen to pre-empt those state laws.
The second federal agency change expected will be the Equal Employment Opportunity Commission (EEOC) where President-Elect Trump is expected to fire their Chief and their General Council. The new EEOC GC is still speculative, but the head of the EEOC is expected to be now Commissioner Adrea Lucas – the only Republican currently on the EEOC board.
- Under the Trump Administration, the Office of Federal Contract Administration (OFCCP) program will be under threat.
- Diversity Equity and Inclusion (DEI) programs will be limited or banned in government via a new Executive Order.
- And do not forget about the Federal Trade Commission (FTC) and now the NLRB’s non-compete rules, and the more radical elements of the Independent Contractor and Joint employment rules. These too should all fade away.
The above is just a short list of expected changes that are anticipated to come with the election. ASE will continue to monitor the “consequences” of this election both state and federally.
Sources:
Michigan Catholic Conference newsletter. Lansing Update: How the Election Went, and a Look at Lame Duck (11/8/2024)
NFIB. Michigan Legislative “Lame Duck Session” Preview: Changes to Paid Sick Leave and Minimum Wage Legislation are Crucial (11/6/2024)
Lexology: Winds of Change at NLRB: Employer Guide for Upcoming Trump Administration. (11/8/2024)