With a change in power in the White House, businesses are preparing for significant policy changes over the next four years. From tax rates to workforce regulations, companies need to stay proactive to navigate potential shifts.  

Here’s what employers can expect and how they can prepare. 

Tax Policy: Potential Extensions and Adjustments 

One of the biggest tax discussions revolves around extending the 2017 Tax Cuts and Jobs Act (TCJA), which lowered corporate tax rates and provided certain business deductions.  

The current administration is expected to push for its extension, which could maintain a 21% corporate tax rate. However, if Congress does not support the extension, rates could increase by 2026. 

What Employers Can Do: 

Review Tax Strategies – Work with financial advisors to assess how potential tax changes might impact profits, deductions, and cash flow.
Plan for Expiring Deductions – Some provisions, such as bonus depreciation, are set to phase out. Businesses should consider making capital investments sooner rather than later.
Monitor Legislative Changes – Stay updated on congressional negotiations, as the final outcome could affect tax planning strategies. 

Regulatory Changes: Focus on Deregulation 

The current administration has emphasized reducing government oversight in certain industries, particularly in energy, finance, and healthcare. This could make compliance easier in some sectors, but state-level regulations may still impose restrictions. Additionally, executive orders may reduce environmental and workplace safety regulations. 

What Employers Can Do: 

Monitor Industry-Specific Changes – Not all sectors will experience deregulation equally. Companies should consult industry groups and legal experts for updates.
Evaluate Compliance Needs – Even if federal regulations ease, state and international compliance requirements may still apply.
Stay Flexible – Regulatory shifts can change quickly with new executive orders, so businesses should maintain adaptable policies. 

Workforce and Employment Law: Changes to Wage and Labor Policies 

The administration is expected to roll back certain labor policies, including those related to worker classification, overtime pay, and workplace safety. Some initiatives, such as the independent contractor rule, may be revised to favor businesses. 

What Employers Can Do: 

Review Worker Classification Policies – Ensure independent contractors and employees are properly classified under evolving labor laws.
Stay Updated on Wage and Hour Laws – While federal requirements may ease, some states are raising minimum wages and enforcing stricter labor protections.
Update Employee Handbooks – Keep policies in line with both federal and state employment law changes. 

Immigration and I-9 Compliance: Increased Scrutiny on Work Authorization 

Immigration enforcement is expected to intensify, with stricter rules on H-1B visas, employment verification, and audits. Businesses may face increased penalties for non-compliance with hiring regulations. 

What Employers Can Do: 

Conduct I-9 Audits – Ensure all employees have properly completed I-9 forms and that records are up to date.
Use E-Verify – While not federally required for all businesses, E-Verify helps confirm employee work eligibility and reduces audit risks.
Consult Immigration Experts – Businesses hiring foreign workers should work closely with legal professionals to navigate potential visa changes. 

Technology and Cybersecurity: Data Protection and Foreign Tech Restrictions 

The administration is expected to take a strong stance on technology security, particularly concerning foreign software and data protection. Stricter regulations on companies using Chinese tech firms could impact businesses relying on cloud services or international software.  

What Employers Can Do: 

Strengthen Cybersecurity Measures – Implement robust data protection strategies, including multi-factor authentication and employee training.
Review Software Providers – Businesses using foreign tech platforms should evaluate potential compliance risks.
Prepare for Changing Data Laws – As federal cybersecurity policies shift, companies should stay compliant with both national and international data regulations. 

Businesses should take a proactive approach to policy changes by staying informed, working with financial and legal advisors, and ensuring compliance in key areas. While deregulation may create new opportunities, businesses must also prepare for increased scrutiny in areas like immigration and trade.