Labor Department Slashes Workplace Rulebook

Jul. 22, 2025, 11:15 am ET

Instant Insight

30-Second Take

  • Labor Department proposes sweeping deregulation of workplace rules
  • Over 60 “obsolete” regulations targeted for repeal or revision
  • Part of broader Trump administration effort to reduce regulatory burdens

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Quick Brief

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Essential Context

The Department of Labor has proposed eliminating or revising more than 60 outdated workplace regulations, aligning with President Trump’s executive order requiring agencies to cut 10 existing rules for every new one created. The move aims to streamline compliance and reduce costs for employers.

Core Players

  • Department of Labor (DOL) – Proposing regulatory changes
  • Donald Trump – President Trump whose deregulation agenda drives the effort
  • Small businesses – Primary beneficiaries of reduced compliance burdens
  • Worker advocacy groups – Potential critics of reduced protections

Key Numbers

  • 60+ – Number of regulations targeted for repeal/revision
  • 10:1 – Ratio of rules cut to new rules created under Trump’s executive order
  • $1.7T – Alleged regulatory costs imposed during Biden administration
  • July 31, 2025 – Effective date for some rule changes
  • August 1, 2025 – Deadline for public comments on proposed changes

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The Catalyst

“This action delivers on President Trump’s commitment to restore American prosperity through deregulation,” the Labor Department stated. The proposal follows a January 2025 executive order mandating aggressive regulatory reduction.

Agencies must now identify 10 existing rules to eliminate for every new regulation introduced, with total regulatory costs required to be “significantly lower than zero” for fiscal year 2025.

Inside Forces

The DOL’s proposed changes include:

  • Removing obsolete grant/contract regulations
  • Rescinding outdated enforcement coordination procedures
  • Amending FLSA-related policy statements

Some changes take effect immediately, while others face public comment periods through August 1.

Power Dynamics

President Trump’s deregulation agenda has accelerated since his return to office, building on his first-term “2-for-1” rule reduction strategy. The current 10:1 ratio represents a more aggressive approach to cutting red tape.

Small businesses stand to benefit most from reduced compliance costs, while worker advocates warn about potential erosion of labor protections.

Outside Impact

Key affected areas include:

  • Agricultural worker protections
  • Wage and hour enforcement
  • OSHA coordination procedures
  • FLSA interpretation guidelines

Business groups praise the move as pro-growth, while unions express concerns about weakened safeguards.

Future Forces

Next steps include:

  • Public comment period through August 1
  • Final rule implementation by September 2
  • Ongoing regulatory cost assessments
  • Potential legal challenges from advocacy groups

Data Points

  • January 31, 2025 – Trump signs 10:1 deregulation executive order
  • July 16, 2025 – DOL announces proposed rule changes
  • July 31, 2025 – Effective date for some rule rescissions
  • August 1, 2025 – Public comment deadline
  • September 2, 2025 – Final implementation date

This deregulatory push marks a significant shift in workplace regulation, potentially reshaping employer obligations and worker protections. The outcome will depend on public feedback and the administration’s ability to balance economic growth with labor safeguards.