A new year and a new White House administration could bring big regulatory changes in 2025.
President Donald Trump has said he plans to get more aggressive on employee immigration violations, while other issues, such as workplace safety, could see a regulatory rollback.
In 2025, experts say manufacturers should watch for not just upcoming federal regulatory changes, but state-level laws as well. Otherwise, they could face hefty fines and lawsuits.
AI implementation is coming fast but lacks regulatory guardrails
More manufacturers are introducing AI into the workplace, using it to further automate processes including production, accounting and recruitment work, said Darrell West, senior fellow at the Brookings Institution’s Center for Technology Innovation.
As AI is increasingly integrated, West said safety must remain a top priority, including in related regulations.
“I think in particular in the manufacturing area, the human safety piece is a big issue,” West said. “We want to make sure, if machines are being operated by AI, that they're safe for the workers and do not create any undue risk for them."
Safety and security issues related to AI were top of mind for lawmakers as well under the Biden administration. In December, the House of Representatives published the Bipartisan House Task Force on Artificial Intelligence report, which recommended that policymakers accelerate and invest more in research and innovation to address AI-related privacy risks.
The report cited former President Joe Biden’s AI safety executive order, which established AI safety and security guardrails to protect privacy, improve equity and civil rights and defend consumers and workers.
However, Trump on Jan. 20 repealed Biden’s AI safety executive order, which he said during his inauguration speech is part of a plan to "begin the complete restoration of America and the revolution of common sense."
“We have a Republican president and Republican House and Senate, and in general, they are closer to tech companies and more likely to favor deregulation as opposed to regulation,” West said. “Trump in particular, has talked about the need to unleash AI and deploy it in a lot of different areas.”
As of Jan. 21, six states have introduced and enacted laws on AI data and algorithm discrimination bias on potential employees, according to Husch Blackwell’s Byte Back AI state tracker.
For example, Illinois passed a bill in August to protect prospective workers from bias when an employer uses data analytics to recruit and hire, such as their zip code or race. The bill will be enacted next year.
“I think Illinois, like California and some of the more progressive states, are kind of at the forefront of protections for employees with respect to AI,” said Anne Mayette, a Chicago-based partner in law firm Husch Blackwell’s labor and employment practice. “I think that that is going to continue as a trend."
Bill Remy, CEO of supply chain firm TBM Consulting, said he believes the industry and government need to partner on AI regulations.
“I think there needs to be some guardrails, especially when it comes to the control over data and what AI can do, and the controls for things that it has access to,” Remy said.
Regardless of regulations, one of the biggest things everyone must do is be careful with data and security access, Remy added.
“Caution is in focus around managing your data, what does your data mean, and not letting it out in the public domain,” Remy said. “And many companies have implemented that ahead of any regulatory compliance for the government.”
Labor regulations may see rollback
With the new administration in office, manufacturers may see some regulations pulled back or eased enforcement of existing rules.
It could also minimize the role of federal agencies like the Occupational Safety and Health Administration, said Jackie Garrick, founder of the nonprofit Whistleblowers of America. Career OSHA employees who have worked under Democrat and Republican administrations could be replaced under Trump’s second term, creating an exodus of the agency’s regulatory experience.
“A lot of enterprise looks towards the federal government for its oversight role,” Garrick said. “We want to see government agencies doing the inspections and holding those responsible, like the role of the [Federal Aviation Administration] over Boeing, the role of the [Food and Drug Administration] over some of these food productions and some of the standards involved in drug production.”
If Trump succeeds in his federal employee overhaul, it could make federal workers political positions instead of civil service positions, which may impact how manufacturing industry oversight is handled, Garrick said.
“Where do their loyalties lie? And are they going to still do the same level of work, and will there still be the same level of accountability if you minimize [the federal agencies], take away some of their resources, reduce their budgets,” Garrick said. “Those are all the consequences, intentional or unintentional, that can cause harm.”
Mayette also said the new administration could potentially roll back some regulations, such as the OSHA walkaround rule. The regulation, implemented in May 2024, allows employees to select a third party to accompany employers and OSHA officials on a workplace walkaround or inspection.
“The rule is controversial in that it could provide a side door for union organizers to gain access to non-union workplaces,” Mayette and attorney Terry Potter said in Husch Blackwell’s 2025 “Legal Insights for Manufacturing” report.
“We want to see government agencies doing the inspections and holding those responsible, like the role of the [Federal Aviation Administration] over Boeing, the role of the [Food and Drug Administration] over some of these food productions and some of the standards involved in drug production.”
Jackie Garrick
Founder, Whistleblowers of America
In May 2024, the National Association of Manufacturers along with other trade groups filed a lawsuit in a federal court in Texas challenging the rule. NAM Chief Legal Officer Linda Kelly said in a press release that the walkaround rule doesn’t improve workplace safety. Kelly added that the regulation breaches manufacturers’ rights to prohibit outsiders from entering the facility and risk compromising their intellectual property.
Trump’s previous administration rolled back the initial walkaround rule in 2017. Trump also rolled back worker safety protections such as faster speed lines at meat processing plants, Politico reported in 2018.
Tesla and SpaceX CEO Elon Musk and entrepreneur, one of Trump’s appointees for the new Department of Government Efficiency, will work to cut “wasteful government spending and unnecessary regulations,” according to a December 2024 post on the social media platform X, formerly known as Twitter.
“We finally have a mandate to delete the mountain of choking regulations that do not serve the greater good,” Musk said in another X post in November 2024.
However, depending on the employer, Mayette doesn’t think companies who have already implemented and invested in compliance efforts, such as complying with the heat safety rule, will pull back on their efforts.
“I've seen several heat-related complaints in my career, so it is something that is important to employees,” Mayette said. “Lawsuits are not cheap, and that's what I tell everyone, so it's easier to, and less expensive sometimes, to put these things into place than to deal with the lawsuit in the end.”
However, Mayette said she expects to see an uptick in wage and hour class action lawsuits nationwide, which manufacturers need to pay attention to. The wage and hour lawsuits would argue various issues, such as unequal pay, failure to pay overtime and failure to meet minimum wage.
While the federal government may not continue legislating wage and hour laws, states have been focusing on this issue over the past few years, Mayette said.
For example, Illinois implemented a pay transparency law on Jan. 1, requiring employers with 15 or more workers to provide pay ranges and benefits in all job postings.
“These laws emphasized pay in the workplace, which will only continue to increase the number of these suits,” Mayette said in an email.
PFAS reporting could lead to more lawsuits
The Trump administration’s environmental agenda is set to take shape under EPA administrator pick Lee Zeldin, who has voted in favor of regulations over a group of long-lasting chemicals known as PFAS, per- and polyfluoroalkyl substances.
Zeldin said in a Senate confirmation hearing on Jan. 17 that he would work with staff and both political parties on pressing environmental and health issues impacting the economy.
Manufacturers that use the so-called forever chemicals in their processes will need to keep an eye out for state bans of the toxic substances and if they can sell or distribute PFAS-based products there.
“I think that that is still a newly emerging concept for a lot of manufacturers, and it's been accelerated with all these PFAs laws,” said Cally Edgren, VP, of regulatory and sustainability at consulting firm Assent. “They haven't really had to think about it. They focus so much on operations and not on the products they're selling in those markets, at least not from a chemical composition standpoint.”
In the past, manufacturers focused compliance on state laws where their plant is located, such as labor and chemical safety regulations. Now, companies must verify if states have PFAS bans in place, and if they can sell their products there, Edgren said.
However, some companies that do follow state laws regarding PFAS may still get hit with lawsuits that impact their bottom lines, Edgren said.
For example, pen and razor maker Bic was sued last year after it disclosed that its razor blades are coated with forever chemicals in compliance with Maine’s PFAS reporting law. The lawsuit was dismissed in August 2024.
Edgren expects manufacturers will face growing challenges as more reporting regulations are implemented. The EPA’s reporting rule under the Toxic Substances Control Act, which requires manufacturers to report PFAS presence in their supply chains since 2011, is set to start in July, while small manufacturers will begin reporting in July 2026.
While Bic escaped the lawsuit unscathed, it’s a cautionary tale for manufacturers, Edgren said.
“It's unfortunate for Bic that they were doing what they were supposed to do, and now they're getting burned for it, right?” Edgren said. “I think that's another caution for manufacturers in 2025 and maybe another reason for them to try and design the PFAS out of their products sooner. Not because of the laws, but because of little lawsuits.”
