Finding Your Footing in the First 100 Days: What Businesses Should Know

In the first 100 days of the new administration, there has been a whirlwind of executive orders. For business owners, HR professionals, and CPAs, figuring out the path of this new landscape is no small feat, especially with potential changes to enforcement activity around DEI, tariffs, and immigration laws.

But what do these changes mean for your organization? And how can you stay ahead while maintaining compliance? Let’s take a look at the key shifts that have emerged, focusing on what they might mean for your daily operations and long-term strategies.

Understanding Executive Orders

Any regulatory change that could potentially come for businesses starts with these Executive Orders (EOs), which allow the president to direct how federal executive branch agencies enforce existing laws. While EOs aren’t laws in the legislative sense – only Congress can pass laws – they can create massive downstream effects for businesses.

Do Executive Orders Apply to Your Business?

EOs direct federal agencies, but businesses that contract with the federal government or who receive grants from the federal government are often directly affected. For example:

• Changes might affect federal agency enforcement activities related to employment standards. Companies might have to make a shift in policies and practices.
• Supply chain shifts driven by tariffs or regulatory updates might hit your bottom line.
• Adjustments in environmental rules could alter compliance demands or operational costs.

Understanding how and where these directives might touch your operations is essential.

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Top Areas Affected by Recent Policy Changes

Some of the executive orders are impacting the following:

Diversity, Equity, and Inclusion (DEI) Policies

Some of the most polarizing EOs have restricted DEI initiatives in federal agencies and directed them to scrutinize similar programs found in private businesses. While these EOs apply to federal agencies and likely federal contractors and grantees, private businesses aren’t necessarily off the hook. Agencies like the Equal Employment Opportunity Commission (EEOC) could investigate workplace policies under the spirit of enforcement priorities driven by the recent EOs.

What you should do:

• Review your DEI programs, applicable statutes, as well as evolving agency guidance at both the federal and state level.
• Work with HR consultants or legal advisors who can advise on the details of your DEI programs and help ensure consistency of programs with company practices.
• Continue to monitor EO activity in this space.

Tariffs and Supply Chain Disruptions

The list of tariffs is growing as the new administration reintroduces certain tariffs and introduces others, which means businesses across all sectors might have to reassess their supply chains. While these tariffs aim to protect domestic industries, they often drive up costs for businesses reliant on imported goods. This could create challenges for smaller businesses that may lack the resources to absorb these cost increases.

How it affects you:

• Higher costs for imported goods could squeeze your margins.
• Domestic producers might gain a competitive edge, but only in select industries.

Action plan:

• Your business might need to reevaluate its supply chain and explore alternative suppliers or domestic production options depending on how competitive global and domestic supply chains for a given commodity are impacted.
• Consider passing on some costs or finding ways to improve operational efficiency.

Immigration

The new restrictions on immigration and potential deportation policies could be particularly impactful on industries that rely on immigrant labor, such as agriculture, construction, and hospitality.

What you should watch for:

• Changes to work visa regulations that might affect hiring and retention activities related to current and potential employees.
• Additional enforcement activities.
• Labor shortages driving up wages in certain sectors.

What to do:

• Stay updated on changes and reach out to trusted resources, such as local chambers or trade associations, for updates.
• Develop contingency plans for labor shortages or rising costs.

The “10 for 1” Deregulation Executive Order

Perhaps one of the most under-discussed yet critical orders is the “10 for 1” order, which calls for cutting 10 existing regulations for every new regulation introduced. While intended to make compliance easier and stimulate business growth, this move has created temporary volatility as businesses and agencies scramble to understand what this actually means.

The immediate impact is short-term confusion as agencies review which regulations to axe. The long-term potential change might be a reduction in regulatory burdens and compliance-related costs and perhaps opportunity for more innovation.

Need Help Navigating Compliance?

Business is, after all, about working through challenges and finding ways to thrive. By evaluating your operations, staying informed, and leveraging available resources and support, you can position your company to succeed — even in uncertain times.

One of the challenges is understanding the complexities of your compliance obligations. It takes time, and that takes time away from running your business.

Consult with the experts at Paychex who can simplify HR, payroll, and compliance for your business.

This article was created with the assistance of an AI tool reviewing audio of a podcast.