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President-Elect Trump to jettison NLRB General Counsel Jennifer Abruzzo as one of his first acts as President . For several years , she pushed an ambitious agenda — including wanting to crack down on stay-or-pay provisions , limiting non-disparagement language in severance agreements , construing non-compete agreements as unfair labor practices , and classifying student-athletes as employees . We expect to see an equally ambitious appointee who will work to undo much of General Counsel Abruzzo ’ s policies .
Support for No Taxes on Tipped Wages
On the campaign trail , President-Elect Trump said he would support legislation that ends federal income taxes on tips for hospitality workers . Supporters say such a move would help employees take home more pay without forcing hospitality employers to increase base wages in the face of high inflation and low margins . Critics , however , say income-tax-free tips may drive base wages down , encourage customers to tip less , and cause a revenue shortfall for the federal government .
This promise had bipartisan support during campaign season , 1 and we ’ ve already seen some Congressional movement on this issue .
Artificial Intelligence Given Free Rein at Federal Level
The Biden-Harris administration issued a sweeping AI executive order 2 last year containing numerous provisions that could eventually impact the workplace . Trump ’ s campaign platform promised to repeal it . President-Elect Trump has described it as “ dangerous ” and a hinderance to innovation , so you can expect it to be scrapped early on in his second term .
President-Elect Trump has not yet provided any details as to how he would approach AI issues — though he has spent a good deal of time appealing to tech leaders and seeking their campaign support , signaling an openness to fostering strong relations with the industry .
But even if we don ’ t see federal action at the agency or legislative level , we ’ ll start to see courts impose liability on employers , businesses , and AI developers for unintentional discrimination and other actions that run afoul of best practices . And we ’ ll see states begin to regulate AI as they watch D . C . punt the issue .
One thing is certain , employers and employees should consult experienced employment counsel to navigate the changes that are sure to come . n
1 https :// www . rosen . senate . gov / 2024 / 07 / 12 / rosen-cortez-masto-joinbipartisan-legislation-to-exempt-tipsfrom-federal-income-tax /.
2 https :// www . fisherphillips . com / en / news-insights / white-house-issuessweeping-ai-executive-order . html .
Authors : Alissa Kranz & Elysse Gorney – Fisher Phillips LLP
J A N - F E B 2 0 2 5 | H C B A L A W Y E R
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