Sweeping changes in employment continue amidst an election year
The U.S. Chamber of Commerce reports that there are still approximately 1.7 million workers missing from the post-pandemic workforce.
Over the past year, organizations saw sweeping changes to major employment issues such as minimum wage and overtime exemptions, pregnancy accommodations, OSHA inspections, non-compete agreements and more. With a presidential election still looming, there is large uncertainty about what the future of the workplace will look like.
To help navigate these changes, Littler’s Workplace Policy Institute recently shared a report examining the top 10 economic, labor and employment issues facing organizations this year.
Firstly, while labor force participation is steadily increasing, especially for “prime age” workers (25-54), the U.S. Chamber of Commerce reports that there are still approximately 1.7 million workers missing from the post-pandemic workforce. As many older workers chose to retire during the pandemic, a number of open positions now require a higher level of education/skills that are in short supply.
The transformation of AI and automation is another major issue the workforce is currently grappling with. In response to technological advancements, the federal government has attempted to regulate the use of AI to protect the displacement of workers and mitigate harm.
Also showing signs of change – strikes and labor union influence is on the rise, despite the fact that union membership continues to decline. Unions have become increasingly involved in the health and safety sphere and most of the new rules proposed by OSHA require the involvement of employees and unions in the development of plans and training.
According to Littler, immigration issues continue to impact hiring and U.S. employers with foreign nationals in their workforce should remain alert on pending reforms that will affect work visa categories. Workers most likely to be affected are H-1B visas for “highly educated” foreign workers in “specialty occupations” and H-2B visas for temporary non-agricultural workers.
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Federal, state and local government contractors, as well as employers with voluntary inclusion, equity and diversity (IE&D) initiatives must consider the U.S. Supreme Court’s recent ruling that “direct consideration of a college applicant’s race in achieving student diversity in higher education” is now deemed unlawful.
Finally, the Littler report highlights that states and localities remain the drivers of employment law change due to lack of action at the federal level. As a result, states where one political party holds the seat of the governor and the majority in both chambers of the state legislature – nearly 40 – have been at the forefront of change. Littler found that since last year, over 275 bills that regulate labor and employment have been enacted at the state level.