Navigating the Evolving Landscape of Workplace Regulations: Insights from the 2025 Littler Employer Survey

Introduction

The workplace landscape is undergoing significant transformations as U.S. employers adapt to a shifting regulatory environment. The latest 13th Annual Employer Survey by Littler, the leading employment and labor law firm, highlights key findings from almost 350 professionals, including C-suite executives and HR strategists. This article delves into the most pressing workplace concerns and trends identified in the survey, focusing on inclusion, equity, diversity (IE&D), immigration policies, and the integration of artificial intelligence into work processes.

IE&D Scrutiny: A Growing Concern

A staggering 84% of employers surveyed expressed worries about changes in regulations concerning inclusion, equity, and diversity. This concern is particularly pronounced following shifts in the political climate and policies associated with the Trump administration. Many organizations have recognized that altering or reducing their IE&D programs could lead to significant litigation risks, with nearly half (45%) citing apprehensions about potential lawsuits tied to IE&D practices—an increase from 24% in the previous year.

Despite these challenges, it’s noteworthy that 45% of businesses remain committed to their IE&D initiatives. According to Jeanine Conley Daves, a shareholder at Littler, employers are taking a strategic approach. They are reassessing their IE&D practices to ensure compliance while maintaining their effectiveness as talent retention and recruitment strategies.

Immigration Policy: Anticipating Staffing Challenges

Shifting gears to immigration, 58% of respondents foresee staffing challenges due to new immigration policies. As enforcement by agencies like ICE is expected to intensify, 70% of employers anticipate significant impacts on their operations over the next year. Jorge R. Lopez, chair of Littler’s Immigration and Global Mobility Practice Group, emphasizes the importance of preparation. Employers are encouraged to review I-9 forms and establish crisis management teams to address potential site visits by immigration authorities.

State Regulations vs. Federal Enforcement: A Complex Interaction

While the survey indicates that employers expect less regulatory scrutiny in some areas under a more management-friendly National Labor Relations Board (NLRB), state and local regulations are becoming increasingly complex. An overwhelming 82% of respondents anticipate a rise in legislation and regulations at these levels, creating a patchwork of compliance challenges. Shannon Meade, Executive Director of Littler’s Workplace Policy Institute®, articulates the tension between state legislation and federal law, highlighting the need for employers to stay vigilant and proactive in their compliance efforts.

Artificial Intelligence: Opportunities and Risks

AI is at the forefront of change in many workplaces. Notably, 31% of employers, particularly within tech organizations, are looking to expand their use of artificial intelligence. However, a striking 31% report lacking formal policies to govern the use of AI among employees. Niloy Ray, a member of Littler’s AI and Technology Practice Group, warns of the potential risks associated with unregulated AI use, such as intellectual property loss and reputational damage. He advocates for a comprehensive governance approach that involves multiple organizational facets to mitigate these risks effectively.

Workplace Flexibility: Navigating Remote Work Accommodation Requests

The push for in-person work has led 48% of employers with remote-capable positions to increase their in-office requirements. While this move may reflect a desire for collaboration, it also results in a surge of accommodation requests. Among those who increased in-office requirements, 56% reported more requests for remote work accommodations, with 50% concerned about the potential for lawsuits related to workplace accommodations.

To address these emerging needs, Alexis C. Knapp from Littler suggests that companies must delineate between legal obligations for reasonable accommodations and general requests for flexibility. This distinction will be critical in managing expectations and ensuring compliance.

Mental Health: A Growing Focus in Employee Accommodations

Mental health has emerged as a significant area of concern, with 70% of employers reporting an increase in accommodation requests related to mental health conditions—a trend that parallels findings from last year’s survey. Other areas of concern include intermittent and extended leaves, which complicate workforce management due to their unpredictable nature. Employers must navigate these requests carefully to maintain operational integrity while supporting their employees.

Religious Accommodations: Adapting to New Norms

The landscape of religious expression in the workplace continues to evolve, with 45% of employers fielding requests for adjustments to work requirements to allow for religious practices. Given the current focus on religious protections from both the Trump administration and the EEOC, it’s likely that such requests will continue to rise.

Final Remarks

As organizations prepare for the challenges posed by a changing regulatory environment, they must remain adaptable and informed. The findings of the 2025 Littler Annual Employer Survey underscore the need for strategic planning, vigilant monitoring of regulatory changes, and a commitment to fostering inclusive workplaces. Each facet—whether IE&D, immigration policy, AI integration, remote work accommodations, or mental health—demands focused attention to ensure compliance and promote a positive and productive work environment. Employers must adopt a proactive stance to successfully navigate these complex waters in the coming year.