In light of far-reaching changes, including in US labor law, employers in the United States are facing increasing regulation by federal authorities and an ever more complex web of state and local regulations. These developments present companies with significant challenges - particularly in human resource management and legal implementation. The results of Littler's 13th annual US Employer Survey provide in-depth insights into today's most pressing issues from the perspective of in-house counsel, HR professionals and executives.
These trends are also relevant for German companies with a US presence. We have summarized the most important findings for you.
Inclusion, equality & diversity: between political pressure and corporate responsibility
The IE&D initiatives of US companies are currently under massive political pressure. In the first 100 days of his second term, President Trump launched an aggressive campaign to review diversity programs: Presidential decrees have ended federal IE&D measures, repealed affirmative action requirements for federal contractors and directed federal agencies to target private sector companies for investigation. Despite this pressure and the increased risk of legal disputes, 45% of the companies surveyed are sticking to their current IE&D strategies. Only 7% are considering comprehensive rollbacks, while the majority are taking a cautious wait-and-see approach and specifically reviewing their programs for legal compliance and effectiveness.
Relevance for German companies with US subsidiaries or employees in the USA:
Observe legal fragmentation: While there is a clear rollback at federal level, numerous states - such as California or New York - are sticking to the previous requirements for promoting diversity. These include statutory training requirements, reporting obligations and regulations on salary transparency. Companies operating across the US should therefore differentiate accordingly.
Adapt centrally controlled corporate policies: Global IE&D strategies of German companies may be legally problematic or even prohibited in individual US states, while they are mandatory elsewhere. The challenge lies in the dynamic balance between global consistency and local compliance.
Increased liability and reputational risk: Violations of federal or local IE&D requirements - for example, due to a lack of training or improper wording in job advertisements - can lead to lawsuits, official investigations or media criticism. Internal tensions between US management and German corporate headquarters cannot be ruled out either.
Conclusion: German companies with a US presence will have to manage IE&D initiatives in a much more differentiated way in future - legally compliant, locally adapted and strategically well thought out. The political headwind in Washington does not mean the end of IE&D, but shifts the focus more to the state level - and thus increases complexity.
Immigration policy and skills shortages: global impact
The US survey clearly shows that employers are increasingly concerned about the stricter immigration policy under President Trump. 58% of companies surveyed expect staff shortages as a result of regulatory hurdles, while 70% anticipate a significant or moderate impact of increased enforcement measures by ICE (Immigration and Customs Enforcement) and the Department of Homeland Security on their jobs in the coming year. The Trump administration's current plans and new executive orders are making legal immigration more difficult, for example through stricter visa requirements, additional screening procedures and travel restrictions. Initial consequences: longer processing times, uncertainty about obtaining a visa to return to the USA after private or business trips abroad and rising costs for employers with international teams.
Relevance for German companies with US subsidiaries or employees in the USA:
Visa allocation is becoming more unpredictable: Stricter criteria for certain visa types and planned changes to the salary levels for green card applicants will affect young, international skilled workers in particular. This can make posting from Germany considerably more difficult.
Increased compliance requirements: US branches of German companies need to prepare their internal processes - particularly around visa forms, employment verification and audit preparations - for potential scrutiny.
Project delays & planning uncertainty: Travel to US locations for meetings, project launches or technical assignments may be blocked at short notice due to new travel bans or lengthy security checks.
Need for strategic preparation: HR and legal departments in Germany and the USA should jointly draw up exit strategies, escalation plans for visits to the authorities and legally robust processes in advance in order to remain operationally capable of acting at short notice.
Conclusion: The political developments in the USA are not only of symbolic importance, but also have a direct impact on personnel decisions made by German companies with US connections. A forward-looking, legally compliant alignment of the global mobility strategy will therefore become a clear competitive advantage.
Artificial intelligence in the world of work: Liberalization in the USA - new risks in the transatlantic context
After years of regulatory uncertainty, there is a clear change of course in the US under the new Trump administration: on his first day in office, President Trump lifted key safety requirements for AI systems. This was followed shortly afterwards by political signals to promote the global technological dominance of the USA. The effect: companies feel relieved of regulatory burdens - especially when using AI in HR processes such as recruitment and applicant pre-selection.
This development is clearly reflected in the survey figures:
31% of all companies - and as many as 47% of technology companies - plan to increase the use of AI in HR,
only 16% still show significant concern about labor law lawsuits in connection with AI,
and only 24% currently fear greater intervention by US federal authorities.
At the same time, a growing tension between federal and state regulation is becoming apparent: AI laws or resolutions were passed in at least 31 US states in 2024, and more than 570 new bills have already been introduced in 2025. Many of these explicitly concern the use of AI in the workplace - for example with regard to transparency, auditing and discrimination requirements.
This poses key challenges for German companies with US business:
Tension between regulatory freedom in the US and compliance obligations in the EU: While AI-based recruiting or performance systems currently pose less risk in the US, they are under considerable scrutiny in the EU - particularly in light of the AI Act. This applies in particular to so-called “high-risk applications” in the work context, which will be subject to strict testing, documentation and transparency obligations in future. Anyone using globally standardized systems must cover two regulatory worlds.
Underestimated transatlantic risks: Although only 38% of US companies are concerned about requirements imposed by foreign regulators - among large companies, the figure is 51%. For German employers, this means that the use of AI systems in US subsidiaries can also indirectly entail liability or reputational risks for the European parent company, especially in the case of potentially discriminatory or non-transparent algorithms.
Forward-looking governance required: Despite deregulation at US federal level, compliance standards should be aligned with the stricter market - i.e. the EU. A pragmatic approach would be, for example AI systems that stand up to EU regulations are highly likely to be able to comply with future US federal regulations.
Conclusion: While the US market is currently becoming increasingly liberal for AI applications in the world of work, globally active companies must respond to an increasingly fragmented regulatory environment - and keep the stricter standards of the EU in mind as a strategic guideline for legally compliant and responsible AI use.
Back to the office: return duties, legal risks and mental health as new compliance challenges
Five years after the pandemic-induced upheaval in the world of work, many US employers are returning to face-to-face work - sometimes gradually, sometimes with clear guidelines. Almost half of the companies surveyed with remote-capable activities have already tightened their presence requirements or are planning to do so. Large employers are driving this development particularly strongly.
This development is particularly relevant for German companies with US subsidiaries for several reasons:
Political signals to return to the office: The Trump administration is making it clear that it does not want to promote remote work: In January 2025, President Trump ordered the end of remote work for federal employees - a signal that many private companies are taking on board.
Legal risks of refusing remote work: The number of requests for remote work options as so-called medical or psychological “accommodation” continues to rise, whereby errors in the evaluation or rejection of such requests can lead to discrimination lawsuits, which US courts are increasingly deciding in favor of employees.
Tensions between culture, productivity and talent: Returning to the office is often justified with better corporate culture and more control - but only 26% of employers actually see a productivity gain. At the same time, there are clear disadvantages such as increased fluctuation (35%), difficulties in recruiting talent (30%), a drop in employee satisfaction (44%) and increased complaints and non-compliance with office attendance rules (47% and 40% respectively). For global companies, this means that while the trend in Europe continues to strengthen hybrid models, an overly rigid return-to-work strategy in the USA can have a massive negative impact on labor market access and employer attractiveness - especially in the competition for digital and technical specialists.
Conclusion: German companies with a US connection must differentiate their global working models - and at the same time establish specific processes for the US (labor) market for the legally compliant assessment of remote work and absence requests. The obligation to return is not only a cultural issue, but also a new labor law ”construction site“ with a considerable litigation risk.
The complete Littler Annual Employer Survey 2025 can be found here.
We will be happy to provide you with individual advice on your global activities or put you in touch with our US colleagues.
Do you have further questions on this topic?
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