When the new President is sworn in on January 20, 2017, on the steps of the U.S. Capitol, what will that mean for you and your company?
Our Commitment - ADP has been serving employers of every size and from every industry, over the course of a dozen presidential administrations. When we signed our first payroll client in 1949, President Harry Truman was in the White House. And important part of his daily commitment was lasting legacy was embodied in a small sign he kept at his desk that read simply: "The buck stops here."
Just as Harry Truman felt a strong pride and commitment serving as our country’s leader, ADP feels enormous pride and responsibility as a resource and partner that employers can trust for our understanding of complex compliance, financial, and strategic issues concerning human capital management. As with each past change in Presidential administrations, employers must continue navigating compliance obligations that they are faced with, and ADP will be there to help.
Potential Impact - Laws and regulations, such as the Affordable Care Act (ACA) and the Fair Labor Standards Act (FLSA) and regulations, may be modified or repealed. For example, President-elect Trump has openly called for a repeal and replacement of the ACA. However, the ultimate fate of the ACA and any modifications to the law are uncertain at this time.
With respect to the FLSA, the new white collar exemption regulations take effect December 1, 2016 (well before the new president takes office). Therefore, despite current congressional efforts and state lawsuits to delay, modify or block the new regulations, we expect that they will take effect as planned. While President-elect Trump could direct the Department of Labor to issue new proposed regulations designed to recall the new FLSA white collar exemption regulations (or some portion thereof), this would not occur until after he is sworn in as President, and then any regulatory change would have to follow the same notice, comment, and approval process that the current rule followed. As we know, that process can take many months. Employers should, therefore, still plan to be in compliance by the December 1, 2016 effective date.
In addition, some employers question whether the new EEO-1 Survey requirements are on the proverbial chopping-block under the new administration. This remains to be seen but, ADP is working diligently to ensure that our employers’ collection and reporting of hours worked and wages earned will be as seamless as possible.
Finally, given that immigration reform was the centerpiece of the Trump campaign, increases in worksite enforcement activity including I-9 audits are possible as are renewed efforts to impose a nation-wide E-Verify mandate to confirm employment eligibility.
Overall, the details of any proposed changes to current law, regulation or enforcement policy are unknown at this time but most employment law and government affairs experts agree that some form of change is nearly certain. As always, we will keep you updated.
If you have any questions or need assistance with employment-related compliance issues, please contact your Relationship Manager or Service Team. Helping clients manage through change has always been part of our DNA and we are consistently focused on the knowledge, insights, and innovations that can help our clients.