HR in 2025: Navigating Federal Policy Shifts and Compliance Challenges
In this episode of The Herbein Conversation podcast, host Hannah Kubik welcomes back Kris M. Bashore, VP and Practice Lead for Herbein’s Human Capital & HR Consulting practice. Together, they break down recent federal policy shifts, including the revocation of Executive Order 11246, changes in EEOC leadership, and proposed workforce reductions. Learn what these developments mean for HR teams and how organizations can proactively adapt to the evolving compliance landscape.
Transcript
Hannah Kubik: Hello and welcome to an episode of the Herbein Conversation Podcast, where we dive into some of the most pressing issues in the modern workplace. I'm your host, Hannah Kubik, and today I'm joined by a previous guest of the podcast, Kris Bashore, Vice President and Practice Lead for Herbein’s Human Capital and HR Consulting Practice. Welcome, Kris.
Kris Bashore: Thanks Hannah. It's great to be back with you.
Hannah Kubik: Great to have you here again. Today we're discussing recent changes in HR policies resulting from executive orders and other federal policy shifts. One key development is a revocation of Executive Order 11246, which has been a foundational directive for federal contractors. What does this change mean for organizations that do business with the federal government?
Kris Bashore: Hannah, that's a great question. Executive Order 11246, which is a mouthful, has historically required federal contractors to maintain affirmative action plans or, as some people call them AAPs, and also to adhere to Equal Employment Opportunity standards. Its revocation signals a potential shift in compliance requirements, particularly for companies that rely on federal contracts where AAPs or affirmative action plans were required.
While nondiscrimination laws firmly remain in place, organizations may need to reassess their existing diversity, equity, inclusion and accessibility programs and ensure compliance with other federal and state regulations.
We recently wrote a blog on this topic, The Revocation of Executive Order 11246: What It Means for Employers, because certainly it can be difficult to navigate about what needs to be done from one organization to the next with this change.
This blog can be found on our website under the Insights tab and again it provides further details about what employers need to do.
Hannah Kubik: Yeah, this area certainly sounds like one to be staying up to date on and knowing the latest and greatest. And just curious, what other federal policy changes should HR teams be aware of in 2025 and beyond?
Kris Bashore: So there's already been several policy shifts that could impact workforce management. The federal workforce reductions of buyout plans may lead to downsizing in certain government agencies - they certainly already have. I just saw a statistic this morning showing that the expectation is that layoffs will be the highest they've been since 2020 based on the proposed and already occurred reductions in the federal government. So, while these policies directly affect and while these changes directly affect the public sector, there's always secondary effects on the private sector employers, particularly government contractors that rely on federal funding as well.
And then another significant shift involves a reclassification of certain federal employees which could impact employment practices and create a different hiring environment within these government agencies. And always when there are changes that influence workforce stability, and recruiting strategies, they both impact public and private sectors.
Hannah Kubik: Yeah. And great point about the private sector taking cue from what happens in the public sector, we've definitely seen that happen before. What about changes in leadership at the Equal Employment Opportunity Commission, or EEOC, how might that impact businesses?
Kris Bashore: This is another area to watch closely. There's a new acting general counsel, and so we may see shifts about how workplace discrimination claims are processed. A more conservative approach could mean adjustments in the strategies for investigations, how they manage case backloads, or where they're focused on enforcement.
So regardless of these shifts, HR teams should review their internal processes to ensure compliance with the existing anti-discrimination laws. And really, I think what's most important is that every organization should have a consistent and a clear complaint resolution process, because if people know how to solve things in each organization, that's where the most effective management of those concerns can be handled and managed.
Hannah Kubik: So true, and another key issue is the return to office mandate for federal workers. Do you see this affecting private sector employers?
Kris Bashore: Absolutely. We've already seen a press to have some large organizations want their employees back in the office. And so, with the federal policies also trending this way to really push people back into a workspace and a workplace, more private employers may follow this and reconsider their own policies. But when people look at these policies in terms of should people be in the office or out of the office,
we really need to evaluate things like productivity data, how it increases employee sentiment or decreases morale, and what are the business and operational needs to determine the best approach for each organization.
Hannah Kubik: And adaptability certainly seems key these days. Let's shift a moment to immigration policies and workplace compliance. What should HR teams do to prepare?
Kris Bashore: Again, we've already seen where there are enforcement officer showing up at different organizations and so certainly with this increased focus on workplace enforcement and employment verification, HR teams should absolutely be ensuring and auditing their I-9 documentation to make sure it's accurate and up to date. And so, they can provide compliance training, which again helps mitigate risks, and they should establish a clear response protocol in case of audits or enforcement actions that ensure the preparedness if they do have an audit or they have enforcement officers show up to review documentation.
Hannah Kubik: Great points. And then just something to point out too is that we have recently posted a blog on I-9s, so I encourage our listeners to check that out for just some additional information. Kris, with all these changes, what are key action steps HR teams should take right now?
Kris Bashore: Yeah, and that's a great point. The blog is a great place - actually both the blogs are a great place for people to start. Again, they're on our website under the Insights tab and they'll give some step-to-step action plans for folks to take on both the revocation of Executive Order 11246 and the refocus and the preparedness for 1-9s.
Beyond that, it's just stay informed these policies and changes are evolving daily.
Today I saw that the Senate has confirmed the new Department of Labor Secretary which could bring more shifts and changes in strategy. And so really this is a daily practice of seeing what's changing and how it will affect your organization.
Secondly, conduct internal reviews of hiring and compliance of workplace policies to ensure that they are aligning with the changing federal requirements.
And then the third again, just like we've talked about, prepare for more workforce shifts. I think we're going to see changes throughout this whole year and beyond. And so whether again that means we're looking at policies or looking at initiatives and then reinforcing that you've got your compliance and your documentation where it needs to be.
And finally seek guidance. You can seek expert guidance in multiple ways, whether it's legal counsel or is our HR consulting services. We can help you and other people can really help organizations navigate these changes effectively.
Hannah Kubik: Great advice again, Kris. And it sounds like HR leaders will need to stay proactive and adaptable in 2025. Just wanted to thank you again for sharing your insights with us today.
Kris Bashore: It was my pleasure, Hannah, as always. And again, while changes bring challenges, there are always an opportunity for improvement as well. And so I think we really need to approach these changes in a way that that has us reassess what's most important to our organization and make sure things are aligned in that direction.
Hannah Kubik: Very well said. And that's all for today's episode of the Herbein Conversation podcast. If you found this discussion valuable, please be sure to check out other episodes in the series on Apple, Spotify, and other platforms where you get your podcast, and stay tuned for more episodes on the evolving business landscape. Until next time!
