Workplace policies poised for seismic shakeup post-election

This story was first published by Digiday sibling WorkLife

With conservatives set to control all three branches of the U.S. government in a matter of weeks, people managers are bracing for potentially titanic changes to the workplace regarding everything from labor relations and safety regulations to healthcare benefits and DEI policies.

“The post-election landscape has everyone in the business world wondering what’s next, especially when it comes to workplace policies that have been in conservative crosshairs for years,” said Angel Reyes, founder and managing partner of the law firm Angel Reyes & Associates.

Part of the fallout is predictable, however. “We can anticipate a strong push to scale back policies that aim to reduce disparities in healthcare coverage, mental health support and equitable opportunities for underrepresented employees,” said Stephanie Alston, president BGG Enterprises, a staffing solutions company. 

Topping the list of expected changes: a rollback of many health insurance reforms provided under the Affordable Care Act, better known as Obamacare — something that could result in substandard insurance products flooding the market, said Alden Bianchi, partner at the law firm McDermott Will & Emery. 

“While some cohorts of employers might embrace these products in an effort to reduce costs, they would result in broad gaps in coverage, with rank-and-file employees, among others, incurring substantial unreimbursed expenses,” he said. 

The incoming leadership in D.C. is also likely to restrict reproductive health benefits, including fertility treatments, resulting in greater administrative difficulties and costs for large, self-funded health plans, according to Sarah Raaii, a partner at McDermott Will & Emery. 

Following the 2022 Supreme Court decision in Dobbs v. Jackson Women’s Health Organization, which overturned Roe v. Wade and the constitutional right to abortion in the U.S., employers were forced to shift their healthcare strategies and implement creative solutions like travel benefits so women in restrictive states could continue to access reproductive healthcare, Raaii pointed out. That need would only intensify if more states were emboldened to pass restrictions on reproductive health, she predicted. 

When it comes to health coverage, Amy Spurling, founder and CEO of Compt, an employee lifestyle benefits platform, noted that many employers continue to opt for lifestyle spending accounts (LSAs) and flexible stipends, programs that allow employees to use funds for whatever they need, whether it’s personal healthcare expenses or family care.

“Instead of having narrowly defined benefits that might face scrutiny, companies can offer broader wellness and lifestyle stipends that employees can use for whatever they need most,” she explained, adding that “in times of regulatory uncertainty, the key is to create flexible benefits programs that can adapt quickly while continuing to support all employees.”

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