Duane Morris Takeaway: This week’s episode of the Class Action Weekly Wire features Duane Morris partners Jerry Maatman and Jennifer Riley with their discussion of how the Trump’s second term in the White House could transform the class action arena heading into 2025.
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Episode Transcript
Jerry Maatman: Thank you, loyal blog readers and listeners, for joining us for this episode of the Class Action Weekly Wire. I’m joined for this episode by my partner, Jen Riley, the vice chair of Duane Morris’ Class Action Defense Group. Welcome, Jen.
Jennifer Riley: Thanks, Jerry. Great to be here.
Jerry: Today, we’re going to be discussing the potential impact of the second Trump presidency. Obviously, the last week has been dramatic in terms of the political world in America, and many people uppermost in their mind are what are going to be the new policies, the new procedures, the goals of the Trump administration, and how that’s going to play out in the class action litigation space. Jen, do you have some immediate thoughts in terms of what we’re going to see starting in 2025?
Jennifer: Thanks, Jerry. Well, since the time of Trump’s first administration, and really, over the past decade, American life and culture have really dramatically transformed. We’ve gone through a global pandemic, which drastically changed how we work and how employers manage their workplaces. The focus during the next Trump administration could reflect an even more pro-business approach with an emphasis on reducing class actions by supporting arbitration and limiting the opportunities for these large-scale lawsuits, especially in the employment space and in the consumer protection area. We also likely will see a few areas of particular focus, namely, immigration reform and easing of enforcement activity by federal agencies like the EEOC and the DOL, and a decrease in support potentially for initiatives, focusing on things like diversity in the workplace.
Jerry: I agree with those points. In living through the changeovers, from red to blue or blue to red, of the White House over the past several decades, I think this changeover may well be one of the most dramatic in memory. I’m looking for the impact on the federal judiciary and the differences between the types of individuals President Biden has nominated for appointments in the federal court compared to those that Donald Trump is apt to put forward, starting in 2025. I think that more conservative, measured federal judiciary may have a big impact in terms of class action litigation, and narrowing the circumstances where classes may well be certified. As far as immigration reform, I know that a lot of clients have been calling us about what is that to happen, and what sort of enforcement mechanisms will be in place. So, I think that America and its business leaders certainly are looking at some change in the offing, and some flux coming down the road.
Jennifer: Another area that I think we likely will see some change is in the artificial intelligence arena. The Trump administration could likely reverse some of the current administration’s regulatory efforts on AI, especially if they’re seen as having an anti-Big Business agenda. President Biden issued several executive orders that provided directives to federal agencies regarding AI, and President Trump could very well end those orders. Additionally, rather than focusing on regulations, the Trump administration could be more inclined to collaborate directly with tech companies – for instance, in crafting AI policies. One roadblock President Trump could have with any AI policy changes is the continued Democratic control of agencies, though, like the EEOC and the NLRB.
Jerry: Those are great points, and speaking about AI, obviously Corporate America is facing a patchwork quilt of laws and regulations without any overarching federal law, and the existence of various pockets of laws and regulations at the state level. So, a very difficult compliance challenge for companies. I think that the two Republican leaders on the commission at the EEOC, Andrea Lucas, and then Marvin Kaplan at the NLRB, may well be tapped to lead those organizations, but that might not take effect until mid-2025, and so maybe the trumpeted demise of government enforcement action at the Department of Labor or at the EEOC may well be overblown in a certain respect.
Jennifer: Oh, I absolutely agree. There have been several new regulations from the NLRB, the EEOC, and the Department of Labor over the past years, from changes to overtime rules, non-compete agreements, independent contractor classifications, and the implementation of the Pregnant Workers Fairness Act. Besides the activity slowing down from all agencies, whether it be ordered or due to lack of funding, though, there’s a chance that some of the regulations are rolled back with Trump’s new administration. The Trump administration also likely will reduce the focus on workplace diversity initiatives, including rolling back policies promoting affirmative action, or expanding definitions of workplace harassment. The EEOC might also take a more narrow approach to enforcing discrimination laws, for instance, things like LGBTQ rights or protections for other nontraditional segments of the workforce.
Jerry: Thanks, Jen. It’s certain change is inevitable and get used to it because it’s coming down the pike. We’ve seen it before, but it’s certainly underscored here in the circumstances of the shift from the Biden administration to the Trump administration. If you heard what he said on the campaign trail, change is in the offing. I know we’ll be addressing this in the forthcoming publication of the annual Duane Morris Class Action Review – that comes out in the first week of January of 2025. So, thanks very much for your thought leadership, Jen, and your analysis of what Corporate America is apt to face in the next few months under the new White House.
Jennifer: Absolutely thanks for having me, Jerry, and thank you to our listeners for joining us today.