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After the Election: The Washington Outlook for HR
Public Policy
Alaska State Bar Corporate Counsel Section Michael P. Aitken, Vice President
Government Affairs, SHRMDecember 21, 2016
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Economy Remains Top Problem in U.S. Prior to Election
Source: Gallup, September 16, 2016
Environment
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Source: Heart + Mind Strategies, November 8, 2016
EnvironmentNovember 2016 Elections
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Source: Heart + Mind Strategies, November 8, 2016
EnvironmentNovember 2016 Elections
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Opinion of Presidential Candidate You Voted For
Source: CNN, November 8, 2016
EnvironmentNovember 2016 Elections
Which Candidate Quality Mattered Most
President Obama Job Approval
Source: Real Clear Politics, December 17, 2016
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The Presidency
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32%
59%57%
63%
25%
53%
Presidential Job Approval Ratings (Two-terms on Day 2843)
Average Across Presidents
%
Source: Gallup, November 5, 2016
The Presidency
Source: Cook Political Report
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After Two-Term Presidencies; Parties Rarely Maintain Control of White House
The Presidency
Source: Real Clear Politics, November 7, 2016
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General Election: Trump vs. Clinton vs. Johnson vs. Stein
The PresidencyThe Presidency
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The PresidencyNovember 2016 Elections
2016 Presidential Election
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President-elect Trump won eleven out of twelve battleground states shattering Democrat’s “Blue Wall”: Arizona, Florida, Iowa, Georgia,Missouri, Michigan, New Hampshire, North Carolina, Ohio, Pennsylvania, and Wisconsin.
Why control of the White House is important:
Sets the agenda for the country;
All cabinet level and senior-level appointments;
Judicial appointments;
Decides the regulatory agenda and;
Vetoes legislation.
The PresidencyNovember 2016 Elections
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Race for the House 2016
There are currently in the 114th Congress, 246 Republicans to 201 Democrats.
House Republicans will control the 115th Congress with 241 Republicans to 194 Democrats.
Why control of the House is important:
Oversight hearings;
All tax legislation must originate in the House;
Party in control of House tightly controls policy and;
Need 2/3 of House to override a presidential veto.
CongressNovember 2016 Elections
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Source: National Journal Research, November 11, 2016
CongressNovember 2016 Elections
U.S. House of Representatives
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Race for the Senate 2016
There are currently in the 114th Congress, 54 Republicans to 44 Democrats, with 2 Independents caucusing with the Democrats.
Republicans lost two seats (Illinois and New Hampshire) but will maintain control in the Senate in the 115th Congress with 52 Republicans to 46 Democrats, and 2 Independents.
Why control of the Senate is important:
Oversight hearings;
Confirms presidential appointments and judges;
Approves treaties and;
Magic number for control in the Senate is 60, not 51. Need 60 votes to insure agenda moves forward.
CongressNovember 2016 Elections
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CongressNovember 2016 Elections
U.S. Senate
Source: National Journal Research, December 12, 2016
Source: National Journal Research, November 11, 2016
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StatesNovember 2016 Elections
President-elect Trump will freeze/review/rescind recent federal agency action.
The “2 for 1” Rule
Aggressive regulatory and executive action from the Obama Administration will be specifically under review:
Final Persuader Rules
DOL Interpretive Guidance on Misclassification of Workers
DOL Interpretive Guidance on Joint Employer
Executive Order on Fair Pay and Safe Workplaces (a.k.a. “Blacklisting”)
Executive Order on Paid Leave for Federal Contractors
NLRB Board actions will be reviewed:
Browning-Ferris
Specialty Health Care
D.R. Horton
2016-2017 Public Policy Agenda – Labor and EmploymentLabor-Management/Civil Rights Issues
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Federal court issues preliminary injunction on OT Rule. Decision was appealed. Next steps could include:
Appeal denied
Appeal overturns injunction
Incoming Trump administration withdraws appeal
Allow Trump Administration to issue a revised regulation
EEOC been very active also:
Final EEOC Guidance on Sex Discrimination
Final EEOC Guidance on Leave as an Accommodation
Final EEOC Changes to Annual EEO-1 Form on Pay Data
EEOC Best Practices on Harassment
2016-2017 Public Policy Agenda – Labor and EmploymentLabor-Management/Civil Rights Issues
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2016-2017 Public Policy Agenda – Labor and Employment
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Leave issues continue to be a focus of advocacy groups and state legislatures:
Paid sick leave
Paid family and medical leave
Predictive scheduling
Several states and localities have enacted paid sick leave requirements:
Arizona*
California
Connecticut
Massachusetts
….while others have paid family leave insurance programs:
California
New Jersey
New York
Rhode Island
Washington
San Francisco
Oregon
Vermont
Washington*
Labor-Management/Civil Rights Issues
2017 Public Policy Agenda – Labor and Employment
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Issues on the horizon:
Freeze/Review/Rescind recent federal regulations
Regulatory Reform
Paid leave
Compensation equity
Restrictions on background checks
Gig economy focus
Raising the minimum wage???
Labor-Management/Civil Rights Issues
2016-2017 Public Policy Agenda – Health Care Reform
Repeal of the ACA is one of President-elect Trump’s priorities in the first 100 days of his Administration…..but it will be difficult.
Increase in ACA premiums by 25 percent in 39 states in the federal exchanges and became part of narrative in closing days of presidential campaign.
Speaker Paul Ryan’s Better Way Agenda for a Confident America includes a task force on health care reform. The health care reform task force included recommendations to:
Cap on employer-tax exclusion for health care
Medical malpractice reform
Repeal/Replace of the ACA
Support for employer-sponsored wellness programs
Health Care Reform Issues
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View on the Affordable Care Act
Source: CNN, November 8, 2016
Health Care Reform IssuesNovember 2016 Elections
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Possible Repeal and Replace Scenarios for 2017
Health Care Reform Issues
Source: National Journal November 10, 2016
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Sources: National Journal, April 21, 2015; "Healthcare Reform to Make America Great Again," DonaldJTrump.com, May 19, 2016; Rachel Witkin, "Where 2016 Candidates Stand on Mental Health Issues" NBC News, February 24, 2016; Alan Rappeport and Margot Sanger-Katz,
Health Care Program Trump
Affordable Care Act (ACA) Repeal & Replace
Prescription Drug Prices Lower barriers to trade to allow drug makers from overseas to sell in the U.S.
Medicaid Expansion ?Unclear, Trump proposes state block-grants for Medicaid
Medicare Buy-In ?Unknown, Trump promised to improve Medicare by making “the country rich”
Public Option Does not support
Mental Health Parity Supports current reform plan in Congress
Provider Price Transparency Require transparency from doctors and hospitals
Sale of Health Insurance Across State Lines
Allow health insurance to be sold across state lines
Details on 2016 President-elect
Trumps’ Platform on Health Care
Presidential Trump’s Stance on Health Policy Span Political Spectrum
Health Care Reform Issues
2017 Public Policy Agenda – Health Care Reform
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Issues on the horizon:
Repeal/Replace/Phase-in
Taxation/Cap of employer-sponsored health care coverage
Exchange marketplace
Employer wellness programs
Price Transparency
HSA Expansion
Medicare/Medicade Buy-in
Defunding the ACA??
Health Care Reform Issues
E-Verify and four other immigration laws extended to April 28, 2017 as part of FY 2017 budget bill but will need to be extended again in April.
Immigration reform was a major issue in 2016 Presidential Campaign and migration issues are also at the forefront of the international community.
President-elect Trump has promised a focus on border security and interior enforcement, including worksite enforcement.
Direct DOL to investigate abuses of H-1B Program
New Congress will likely consider immigration enforcement issues and could also include a focus on employment-based visas as well.
2016-2017 Public Policy Agenda – Immigration Reform
Immigration Reform Issues
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Hillary Clinton
Donald Trump
Trump Recommits to Hard-Line Immigration Stance
Immigration Reform Issues
2017 Public Policy Agenda – Immigration Reform
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Issues on the horizon:
Border security/Interior enforcement
Increased focus of employment-based visa process
Stepped-up worksite enforcement
Incremental reform???
Immigration Reform Issues
2017 Federal Budget
Congress passed and President Obama signed a second Continuing Resolution (CR) to fund the federal government through April 28, 2017.
Congress will need to pass and President Trump will need to sign another spending bill at that time for 2017. Fights expected on:
Spending policy
Reconciliation proposals
Debt ceiling limit will need to be extended early in 2017 as current “reset” expires in March of 2017.
Federal National Debt
Projected deficit of $600 billion in 2016 but current federal debt is over $19 trillion dollars. Deficit projected to hit $1.1 trillion a year by 2025.
2016-2017 Public Policy Agenda – Budget
Tax and Benefits Issues
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Tax reform will be a focus of the 115th Congress.
Speaker Paul Ryan’s Better Way to Develop Bold Agenda for a Confident America included a task force on tax reform. Significant changes to employer-sponsored benefits will be part of any tax reform discussion. The tax reform task force included recommendations to:
Review current tax incentives for employer-provided retirement and pension plans to determine what incentives will remain.
Consolidate many of the higher educational tax credits; including Section 127 employer-provided educational assistance.
Social Security and Medicare Reform will be part of the overall budget and tax discussion.
Groups continue to engage in various congressional working groups to discuss impacts of changes to the tax treatment of retirement and benefit plans.
2016-2017 Public Policy Agenda – Tax Reform
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Tax and Benefits Issues
Analysis The top 10 most expensive tax expenditures will cost the federal government roughly $900B in FY 2013 Both Republicans and Democrats have recently considered eliminating or limiting these tax breaks as a way to
generate revenue
Exclusions from Taxable
Income
FY 2013 Cost of Major Tax Breaks
Tax Deductions
Preferential Rates on Capital
Gains and Dividends
Tax Credits
Employer-sponsored
health insurance
$248B
Pension contributions and earnings
$137B
Capital gains on assets
Social Security
and other benefits
State and local taxes
$77B
Mortgage interest
$70B
Charitable contribu-
tions$161B
$39B
$43B
$33B
Earned income tax credit
$61B
Child tax credit$57B
Total: $461B
Total$186B Total
$118B
Total$161B
Exclusions from Taxable Income
Account for Most Tax Expenditures
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Tax and Benefits Issues
2017 Public Policy Agenda – Budget & Tax Reform
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Budget & Tax Reform Issues
Issues on the horizon:
Corporate vs. individual tax reform
Taxation of employer-sponsored benefits
Entitlement reform
Auto enrollment for pension plans
PBGC reform
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The 21st Century Workplace is:
1) INNOVATIVE: The 21st Century Workplace provides employers and
employees the flexibility to address how, when and where work is
accomplished and allows for the design of employee benefit programs that
attract and retain employees, while managing the fiscal realities of modern
business.
2) FAIR: The 21st Century Workplace provides fair employment practices in
hiring, training and compensation, regardless of non-job-related
characteristics, and encourages practices that meet the goals of the
organization and the needs of its employees.
3) COMPETITIVE: The 21st Century Workplace gives employers the ability to
attract, recruit, hire and train talent, as needed, to remain competitive in a
global economy.
#21CenWork
2017 Employment Law & Legislative Conference
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For more information & registration: https://conferences.shrm.org/legislative-conference
Michael P. Aitken
Vice President
Government Affairs
Twitter: @SHRMVPAitken
1800 Duke Street
Alexandria, VA 22314
+1-703-535-6027 Direct
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