New Leadership at the Department of Labor: What It Could Mean for Business-Friendly Reforms

As President-elect Donald Trump is forming his cabinet and key leadership positions, the transition team is reportedly considering Andrew Puzder, former CEO of CKE Restaurants (the parent company of Hardee's and Carl's Jr.), as a potential nominee for secretary of labor. Puzder, who was initially chosen by Trump for the post in 2017 but later withdrew, is known for advocating for reduced labor regulations that he argues hinder economic growth. 

Other names in the running, according to multiple news reports, include Patrick Pizzella, former deputy secretary of labor, and Johnny C. Taylor Jr., CEO of the Society for Human Resource Management (SHRM). Other names have been floated too, including Rep. Brandon Williams from New York. Each contender has a unique background that could shape the Department of Labor’s approach under a new administration.

If Puzder is selected, companies may expect a rollback of Biden-era regulations, particularly those expanding overtime pay and encouraging environmental, social, and governance (ESG) considerations in retirement investments. Puzder’s record suggests a focus on reducing regulatory burdens on businesses, potentially making it easier for employers to classify workers as independent contractors rather than employees – a significant shift affecting wage-and-hour policies and benefits obligations. 

However, Puzder’s past nomination faced scrutiny over issues like his stance on immigration and past personal controversies, which may complicate his confirmation.

Pizzella has a long history within the agency and favorable views within certain management-side labor circles. Pizzella, a key figure in the Trump-era Payroll Audit Independent Determination (PAID) program, has emphasized collaboration with employers to address compliance without heavy penalties, a business-friendly approach likely to appeal to many companies. His familiarity with the DOL’s operations could mean a smooth transition and predictable regulatory environment for businesses.

Taylor, as head of SHRM, offers another distinct possibility. His tenure focused on advancing HR interests and workplace issues, providing a voice for business concerns on labor regulations. If chosen, Taylor could bridge labor policies with a more comprehensive understanding of HR practices, possibly influencing policies on workplace inclusivity, employee development, and labor relations.

Changes in the DOL’s leadership will significantly affect companies, particularly in areas related to labor classification, wage-and-hour policies, and workplace compliance. A business-aligned Labor Department may bring regulatory relief, yet companies should still prepare for potential legal and compliance shifts as the new administration establishes its priorities.