Washington, D.C.’s rapid moves are upending the workplace as employers scramble to address immigration, DEI, and layoff threats due to tariffs/funding cuts; Employment attorney looks at key issues, best practices

Media Contact: Barbara Fornasiero; EAFocus Communications; 248.260.8466; barbara@eafocus.com

Detroit – March 20, 2025 – It’s typically never a dull moment for management-side labor and employment firms, but Deborah Brouwer, managing partner of Detroit-based Nemeth Bonnette Brouwer PC, says employers have been moving at warp speed to keep up with changes coming out of the new administration and navigating the fallout of such changes in the workplace.

“There’s a tremendous amount of uncertainty among employers who don’t want to unknowingly run afoul of labor and employment laws,” Brouwer said. “Three of the top issues of concern are immigration, DEI, especially as it impacts overall training, and the threat of layoffs due to tariffs or loss of federal funding.”

Brouwer offers practical advice for employers facing these issues now.

1. Don’t stop training! The fear of being called out for DEI practices now discouraged by the new administration should not end employer-provided training programs for employees. First, DEI is not illegal. Discrimination is illegal. Second, training on workplace conduct has never been more important. It can and should include topics on communication, anti-bullying, discrimination in all its forms, and the need for (and benefits of) inclusivity of all people, points of view, physical and intellectual capabilities, and geographic, educational and religious backgrounds. Informed and effective training programs should encourage civility in the workplace. While continuing training, however, employers should review their DEI policies and practices as they relate to recruitment, hiring and promotions. Set-asides for hiring minorities or policies that explicitly favor a specific group - for example, internships reserved for any one protected class – may be discriminatory and, hence, illegal.

2. Do an I-9 immigration internal audit. Employers in industries that tend to hire immigrants, such as staffing companies, restaurants, landscaping companies, and hospitality, need to have immigration counsel selected now, should an Immigration and Customs Enforcement (ICE) inquiry arise. While ICE may grant a few days’ notice to review I-9 forms, which are required for every employee regardless of country of origin, ICE agents can also appear unannounced with a judicial subpoena. In the case of an ICE visit, employers should contact their immigration counsel immediately for next steps. Employers also should take time to make sure that all I-9 paperwork is complete and in compliance with the law.

3. Plan now for orderly layoffs should tariffs or federal funding cuts require a reduction in force. If tariff threats become reality, layoffs are likely. Employers in certain industries including automotive/manufacturing, with 100 or more employees are subject to the advanced layoff notification requirements of the Worker Adjustment and Retraining Notification (WARN) Act. Regardless of size, employers should be prepared to announce layoffs in a manner consistent with established policies and collective bargaining agreements. In the case of companies and nonprofits for which federal funding is vital to continuing their mission – often the situation with social service agencies – funding cuts may prompt immediate and massive layoffs. Brouwer offers insights on such actions.

“The loss of federal or state funding may devastate some nonprofit employers, but it’s best to plan for interim reliance on alternative funding sources – or perhaps even the return of some or all federal/state funds,” Brouwer said. “Retaining at least a skeleton staff to continue operations in the meantime is often advisable. For some key personnel, that may mean paying a retention bonus for a designated period.”

About Nemeth Bonnette Brouwer PC

Nemeth Bonnette Brouwer specializes in employment litigation, traditional labor law, workplace investigations, and management consultation and training for private and public sector employers. The firm also provides arbitration and mediation services. Woman-owned and led since its founding in 1992, Nemeth Bonnette Brouwer exclusively represents management in the prevention, resolution and litigation of labor and employment disputes.