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http://hr.cch.com/news/employment/111008a.aspLABOR & EMPLOYMENT LAW — 11/10/08
Obama win, power shift in Congress to bring major employment law changes
As President-elect Barack Obama celebrates an historic victory, employers are considering exactly what impact the presidential and congressional shift will have on their organizations over the next four years. In an already volatile market, businesses should immediately prepare for impending changes related to wages, immigration, taxes, health care, executive compensation and benefits, civil rights and, most importantly, an inevitable increase in unionization, according to employment law firm Littler Mendelson.
As a result of the new administration's stated ideals, employers are likely to be increasingly burdened with costs from potential minimum wage hikes and added responsibility pertaining to monitoring employment of illegal immigrants. The likely legislative agenda will create surges in union activity and increases in legal claims, which are typically filed more frequently as times get tough and employees and former employees become desperate to make ends meet, according to Littler.
Beyond such issues, businesses need to consider new agendas from governmental agencies and the rapid development of close relationships between agencies, labor and civil rights groups.
"The combination of President Obama, with an electoral mandate for change from the voters, large Democratic gains in both houses of Congress, and the declining economy, sets the stage for a wave of legislative and regulatory proposals intended to protect workers in these troubled times," said Jay Sumner, an attorney in Littler's Washington, DC office. "In the first 100 days and over the next four years, American businesses should anticipate significant changes." "Those companies that educate themselves and prepare to navigate the changed labor and employment landscape will survive and prosper; and they should have a competitive edge over those that are caught unprepared."
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