A sharply divided government is creating concern among employers, according to Littler's 2014 Executive Employer Survey.

More than half (56 percent) of the 500 in-house counsel, HR professionals and executives surveyed identify rulemaking and enhanced enforcement from federal agencies as the most troubling outcomes of a divided government.

"With Congress deadlocked and the ongoing divisions in government, employers are feeling the impact of President Obama's focus on the federal agencies to bring about changes to workplace policy," said Michael Lotito, co-chair of Littler's Workplace Policy Institute. "As employers grapple with more-aggressive enforcement and workplace reforms from several federal agencies, the Department of Labor's pursuit of President Obama's 'income inequality' agenda was a particular area of concern for employers.

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