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The first year of the second Trump administration was something of a roller coaster for employers, as rapid-fire policy shifts created persistent volatility for businesses of all shapes and sizes. From new immigration policies and diversity, equity and inclusion (DEI) program crackdowns to booming artificial intelligence (AI) adoption and state legislative changes, businesses are navigating myriad impacts to their workplaces and workers alike.
To assess where employers stand in this dynamic environment, Littler's Workplace Policy Institute® (WPI) – the firm's government relations and public policy arm – surveyed more than 300 in-house lawyers, human resources professionals and C-suite executives from a range of company sizes and industries across the U.S.
The findings reveal the widespread effects of 2025's regulatory and economic changes on employers, providing key benchmarks and insights as business leaders prepare for ongoing changes in the year ahead.
View the 2026 WPI Survey Report
Key Findings
- DEI and immigration policy changes during the first year of Trump 2.0 brought far-reaching impacts. The majority of employers said that DEI (71%) and immigration (65%) policy changes over the past year impacted their businesses – more than twice the share who selected any other workplace policy or regulatory change. Those figures rose to 86% for DEI changes and 79% for immigration among large employers (those with more than 10,000 employees).
- More than 6 in 10 employers (63%) – and 75% of large employers – experienced workforce staffing challenges as a result of the administration's immigration policies. This surpasses the unease expressed about workforce staffing in Littler's 2025 Employer Survey, when 58% expressed concern that such hurdles could arise due to the administration's immigration policies.
- Thirty-five percent of respondents – and 42% of large employers – said their organizations made workforce reductions as a result of regulatory and economic uncertainty over the past year. Another 30% said their organizations have paused or reduced hiring amid regulatory and economic uncertainty.
- Nearly 9 in 10 employers (89%) have been impacted by legislative changes and new workplace regulations at the state and local levels over the past year, primarily in the areas of paid leave, pay equity and pay transparency, and data privacy. With the federal government pulling back on workplace regulation, many state and local legislatures have looked to fill the gap, leading to a growing patchwork of laws for employers to navigate.
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