Employers Should Plan for the Impact of Evolving Social Policy on Their Workforce

Even before the 2024 presidential election and the recent wave of executive orders, employers were evaluating their positions on various social issues.

Whether taking a formal stand, abstaining from a position, or landing somewhere in between, employers often consider external stakeholders and the court of public opinion. But they frequently forget about a critical and impactful audience—their employees.

Below are a few key areas where evolving social policies intersect with employee considerations.

• Environmental, Social, and Governance (ESG) Policies: Regulations around diversity, equity, and inclusion; sustainability; the environment; and financial investments can differ across federal, state, and local jurisdictions, and certain rules apply only to government contractors. Aside from legal concerns, employers may face public and private questions about their actions or policies from employees. As such, employers should make sure that their ESG policies are current, thoughtful, and well communicated, especially in light of changing public sentiment, regulations, and legislation.
• Social Media and Freedom of Speech: Employer policies on social media, recording/filming in the workplace (and online), volunteerism, non-solicitation, and whistleblowing should be updated to ensure that they reflect the latest laws, regulations, and guidance by applicable agencies and regulatory bodies. Management should also be trained on these policies, including how to respond to situations when the company’s employees choose to speak out on issues.
• Benefit Programs: Employees might question their employer’s benefit policies relating to health care coverage provisions, benefit subsidies, time off/leave and holidays, and even voluntary benefit choices. Do these programs appear to favor certain employees over others? Employers should regularly evaluate these programs not only for compliance but also through the lens of their employees’ needs and expectations, which may differ based on location.
• Labor Negotiations: An employer’s social advocacy and related positions impact its employees and the labor unions that currently—or may in the future—represent them. Therefore, employers should make sure that they have a strategy that supports this relationship and is in compliance with applicable labor laws, as well as labor contracts that are in place.
• Outsourced, Offshore/Nearshore Workforce: When a company’s contingent and contract labor works side by side with the company’s employees, it’s essential that policies and programs account for this important and sometimes significant part of the workforce. Vendor contracts and communication strategies should also be aligned with these efforts.
• Immigration Policies: Most industries and their employees are affected by immigration policy. A legal immigrant workforce will likely be concerned about their own status and that of their families during this uncertain time. Employers must review their policies and programs for these valuable workers and consider what supports, policies, and communications they should provide.
• Mandatory Training programs: Employers should annually review mandatory training programs against changing regulations and expectations, as well as current strategies related to advocacy and ESG.

The bottom line: An employer’s stand on social issues and related policies, investments, programs, and trainings affects its workforce. A company’s employees are its face to customers and the public, so employees’ engagement and alignment matters. Because laws and regulations affecting ESG are continually changing, employees will be more engaged and better ambassadors for their employer if it has a well-considered strategy and communication plan addressing these topics.

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For additional information about the issues discussed in this blog post, or if you have questions or want a review of legal compliance, employee impact, and communication strategies relating to your company’s policies and programs, please contact one of the authors, the Epstein Becker Green attorney who regularly handles your legal matters, or a member of our EBG Advisors team.

About the Authors

Susan Gross Sholinsky is a Member of the Firm at Epstein Becker Green. As an attorney, Susan partners with executives, human resources professionals, and in-house legal teams who seek her out for her straight-forward advice and access to boots-on-the-ground resources, regardless of location.

Michelle Wright is a Strategic Consultant at EBG Advisors. She has over 20 years of corporate leadership experience, including nearly a decade in the C-suite as both Chief Human Resources Officer and a Product Executive for the largest health insurer in the mid-Atlantic region.