On July 22, 2025, the U.S. Department of Labor (DOL) announced a sweeping deregulatory initiative aimed at rewriting or repealing more than sixty workplace rules deemed “obsolete” or “overly burdensome” by the current administration. According to Secretary of Labor Lori Chavez-DeRemer, the rollback is part of a broader effort to “eliminate unnecessary regulations that stifle growth and limit opportunity” and to fulfill President Trump’s commitment to restore American prosperity through deregulation.

What is the DOL’s Rationale for the Regulatory Changes?

The DOL argues that many of the targeted rules were enacted under prior administrations and no longer reflect the realities of modern workplaces. The agency claims that the changes will:

• Reduce compliance costs for employers
• Encourage job creation and economic growth
• Expand access to services such as home health care by lowering labor costs, and
• Streamline enforcement by focusing on “core safety risks” rather than “niche” regulatory burdens.

What Areas of Workplace Regulations Are Likely to be Affected?

Weakening of Home Health Care Worker Protections

• A repeal of the 2013 rules that extended federal minimum wage and overtime protections to home care workers. As proposed, the rule changes could potentially impact up to 3.7 million workers who would lose eligibility for overtime pay and minimum wage under federal law. On the other hand, the rule changes may result in lower labor costs, expand access to home care services, and reduce institutionalization.

Modifications to Federal Wage and Hour Regulations

• The repeal of federal regulations requiring equal pay for workers with disabilities under Section 14(c) of the Fair Labor Standards Act (FLSA).
• A narrowing of the definition of joint employment, which could create more clarity for employers in this highly subjective area of the law and reduce liability for contractors and franchisors and other businesses utilizing independent contractors.
• Elimination for small businesses of some of the detailed wage and hour recordkeeping requirements under the FLSA.

Loosening Occupational Safety and Health Standards

• The relaxation of permissible workplace exposure limits for potentially hazardous substances like silica, lead, and asbestos in construction and mining.
• A reduction in OSHA administrative oversight for inherently dangerous jobs (e.g., stunt performers, animal trainers).
• The elimination of current electronic injury and illness reporting requirements for employers with fewer than 250 employees.

Elimination of Workplace Discrimination and DEI

• A repeal of the current affirmative action hiring requirements for federal contractors.
• The elimination of mandates for diversity, equity, and inclusion training in federally funded workplaces.

Changes to the Family and Medical Leave Act

• A tightening of the eligibility criteria to qualify for unpaid leave under the Family and Medical Leave Act (FMLA).
• Placing restrictions on employee use of intermittent FMLA leave for chronic health conditions.

Expansion of Apprenticeship Opportunities and Lessening Youth Labor Restrictions

• The deregulation of the standards for federally registered apprenticeship programs.
• An expansion of the permissible work hours and job types for minors in certain industries.

The Comparative Pros and Cons for Business and Labor

From a business perspective, among the potential benefits of the DOL’s proposed regulatory rollback are reduced compliance costs, greater operational flexibility, and fewer administrative burdens. Possible drawbacks to the proposed regulatory changes include increased legal uncertainty, reputational risks, in particular to certain industries, if worker protections are perceived as weakened, and the potential for higher worker turnover and lower morale.

Viewing things through the lens of U.S. workers, potential benefits of the DOL’s regulatory rollback are possible job growth in certain industries, like home health care, due to lower costs and less regulatory oversight. On the downside for workers, the proposed changes to federal wage-hour regulations are likely to mean a loss of wage protections for millions of U.S. workers. Weakened workplace safety standards may expose employees to a higher level of hazardous substances in the workplace and are likely to have a disproportionate impact on women and minority workers.

Strategic Considerations for Your Organization

With the DOL’s declaration that sweeping regulatory changes are coming, we recommend that employers:

• Continue to Monitor the Rulemaking Process, as most of the rules proposed for rollback will undergo a public comment period before changes are implemented. Employers affected by the rollback may wish to submit comments to influence the rulemaking process.
• Undertake an Assessment of your Company’s Potential Risk Exposure. Clients in certain industries, including construction, health care, and federal contracting, may face heightened scrutiny or litigation risk if they adopt relaxed standards prematurely.
• Review of All Potentially Impacted Internal Policies. Even if the federal mandates highlighted above are ultimately lifted or modified, state laws and best business practices may still require robust wage, safety, and DEI policies.
• Communicate with Your Employees. Transparency about how these regulatory changes may affect your particular workplace culture and compliance posture will be critical.

Conclusion

While the DOL’s deregulatory push appears to offer some short-term relief for employers, it may also introduce some new or different legal, reputational, and operational risks for businesses. Therefore, a balanced, proactive approach—grounded in both legal compliance and ethical responsibility—is likely to best position your business in this evolving regulatory landscape.

Preparing in advance can help you weather potential workplace regulatory changes. These steps are critical to helping your company maintain an engaged and effective workforce through what is a very unpredictable regulatory period. If you have questions about regulations impacting the construction industry, please feel free to reach out Timothy Hughes at Bean, Kinney & Korman, P.C. at (703) 526-5582, thughes@beankinney.com. Please reach to Doug Taylor on employment and immigration regulations and issues, (703) 526-5586, rdtaylor@beankinney.com. Our firm practices in Virginia, Maryland, and the District of Columbia in addition to various other jurisdictions.

This article is for informational purposes only and does not contain or convey legal advice. Consult a lawyer. Any views or opinions expressed herein are those of the authors and are not necessarily the views of any client.