2025 Public Policy Preview Yields Insights for HR

HRPA Board Chair Tim Richmond opened the 2025 Public Policy Preview webinar, setting the stage for a timely and engaging discussion. HRPA staff provided updates on key policy changes under the incoming Congress and Trump administration, while CHRO leaders shared valuable insights on how HR can adapt and prepare for the shifts ahead.

EO on DEI: The webinar featured expert discussion of the President’s Executive Order focused on DEI, announced that morning. Please see the story below for more details.

Congressional state of affairs: Republicans control both the House and Senate, but with slim majorities which often lead to gridlock. This stalemate places greater pressure on the executive branch to advance policy priorities via regulation, typically requiring a longer timeframe to achieve progress.

Yes, but: Budget reconciliation, a process which provides for expedited consideration of spending, revenue, and debt changes, provides an opportunity for inclusion of certain substantive proposals. Since it requires only 51 votes to pass, the majority party often uses reconciliation to enact their priorities, so long as they qualify for inclusion by being tied to the budget and funding.

Bipartisan possibilities: Many legislative proposals of interest to employers are still possible outside of reconciliation. The following issues have bipartisan champions who will focus on negotiating bill text over the next several months. 

• Non-compete agreements – HRPA is working with bipartisan members interested in preserving, but limiting, the use of non-compete agreements. Employers should prepare for the possibility of a federal non-compete law.

• Paid leave – HRPA continues to engage with the bipartisan working group on a balanced paid leave proposal. While it’s likely that a proposal will be introduced, passage of the proposal in the current Congress would face significant challenges.

• PBM reform – We are likely to see PBM reform reintroduced. The differentiator this time around is the President’s support of reform.

• Artificial Intelligence – Congress is still fact finding, but President Trump announced a new executive order requiring agencies to produce an “action plan” to “sustain and enhance America’s global AI dominance” within 180 days.

• Labor – The populist shift among Republicans makes pro-union labor law legislation slightly more likely (see related story below), but Democrats may resist giving Republicans a win with labor. 

Executive branch: In general, employers can expect a lighter touch on regulations, except for the areas of DEI and immigration. 

Why it matters: Hard lines on corporate DEI initiatives and immigration may impact companies’ ability to access and retain the talent they need.

Go deeper by viewing the recorded webinar. (HRPA login needed)