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Employee relations and the changing regulatory landscape

April 15, 2025
in Human Resources
Reading Time: 5 mins read
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Employee relations and the changing regulatory landscape
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Hope is not a strategy. “I hope that was documented somewhere.” “I hope we don’t get sued.”

As changing regulations continue to reshape the landscape of employee relations (ER), our work has never been more important. If we’re going to guide our organizations through these times of change and unpredictability, we must be measured, strategic and consistent—not just hopeful.

Here are the key changes shaping the future of ER and how ER teams can prepare.

See also: Are you doing enough to leverage tech for employee relations?

First, we saw the revocation of the 60-year-old executive order that prevented discrimination in federal employment and the dismantling of federal diversity, equity and inclusion programs, both of which have implications for equal employment opportunity in the United States.

Next, EEOC and NLRB commissioners were fired, which resulted in more uncertainty for businesses as they navigate discrimination, retaliation and labor law compliance.

Then, most recently, the EEOC’s guidance on DEI-related discrimination reinforces that Title VII protections apply equally to all employees, regardless of race, gender or other protected characteristics.

All of these have sweeping consequences for our work as ER professionals.

Two things are certain: Cases will rise, and our work will face heightened scrutiny, from hiring and promotions to disciplinary actions and terminations. Every single claim—valid or not—will need to be investigated, well documented and addressed with consistency.

As an aside, expect more retaliation claims, too. They are already the most common EEOC complaint, and they’re often easier to prove than the original discrimination claim.

Turning to our workplaces, managers and employees will be confused about their rights and responsibilities. This will also undoubtedly cause more workplace conflict, and it may even negatively impact reporting rates because people will be unsure of what is or isn’t discrimination, harassment and more.

To get ahead of this, now is the time for ER professionals to show our value, helping our organizations and our people thrive despite these unpredictable times.

How so?

Standardized and consistent investigatory processes

Employee relations teams have always been responsible for ensuring fairness and consistency in employment actions. But now, standardized, structured investigation processes are not optional—they are essential.

HR Acuity’s Employee Relations Benchmark Study shows that many organizations still lack fully standardized investigation processes, with only 58% reporting that they follow a consistent approach.

If your organization has structured ER processes for conducting investigations, double down on consistency.

If you don’t, it’s time to put them in place. To get started, look to online communities for employee relations professionals. In addition to resources and guides, this community can also connect you with other ER leaders and exchange best practices.

Negate risks on day-to-day employment decisions

Here’s the challenge: Most employment decisions—like performance management, time and attendance issues, and disciplinary actions—are handled by people leaders, not HR. And that’s a problem.

Most managers aren’t trained to document properly, and many don’t think about documentation—well, that is, until it’s too late. Only 2% of employee relations professionals surveyed are “very confident” that their people leaders have the skills needed to appropriately handle these issues, according to recent research.

ER teams need to ensure that:

  • Managers are trained to document employment actions properly.
  • There is visibility into how day-to-day decisions are made and documented.
  • Employee relations teams can review employment actions proactively—before they become legal claims.

Documentation and data: Your best defense

If an employee files a claim, it’s not enough to say you made a fair decision—you need to prove it. And as regulations quickly shift, documentation is the only way to show compliance at the time a decision was made and to provide evidence of consistent, fair treatment across the organization.

But proper documentation isn’t just about writing things down; it also must be:

  • Readily accessible in a centralized platform, so it doesn’t matter if someone leaves the company or if lots of time has passed.
  • Reviewed before there’s a claim. Organizations should have a way to audit documentation and employment decisions proactively to ensure they are appropriate, consistent and defensible—before they escalate into legal disputes.
  • Legally protected, properly designating documents under attorney-client privilege and placing legal holds when necessary. Mishandling this could mean key documentation isn’t protected when it matters most.

Additionally, documentation of what occurred in the past isn’t enough. ER teams need to stay several steps ahead of future risk. By analyzing trends and identifying predictive indicators, organizations can proactively address workplace concerns before they escalate and pinpoint any inconsistencies, such as:

  • Are disciplinary actions consistent across teams?
  • Are certain groups being impacted disproportionately?
  • Are patterns emerging that indicate a systemic issue?

Proving ER’s ROI: Getting the resources you need

With claims expected to rise, ER teams must be ready to demonstrate their value—tracking metrics is non-negotiable. At the same time, though, most organizations do not expect to add ER resources even as legal and compliance risks rise, according to HR Acuity’s most recent Employee Relations Benchmark Study.

This is a mistake.

Having concrete data that shows how ER mitigates costly legal risk and strengthens workplace culture can be the key to getting the staffing and resources you need—or maintaining what you currently have.

If you aren’t sure where to begin, here are some ER metrics to get you started, which include case volume per 1,000 employees, EEOC cases per 1,000 employees, percentage of substantiated issues, issue-to-case ratio and legal cost per employee.

About AI and employee relations: Proceed with caution

Even as compliance expectations remain high, HR and ER departments are being asked to do more with fewer resources. It may be tempting to turn to AI to help streamline investigations, documentation and case management. That’s understandable—but it’s also a huge risk if done carelessly.

Investigations are complex; people are nuanced. Simply put, AI isn’t sophisticated enough to replace critical human elements like empathy, judgment and context. Use AI wisely—as a tool to enhance ER processes, not replace them.

A final thought: Every new executive order and EEOC guidance that comes our way isn’t just another regulatory update—it is a fundamental shift in how claims, whether related to discrimination or retaliation, will be handled. This is yet another challenge for ER, but if history has taught us anything, it’s that we always rise to the occasion.


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