Trump Labor Policies Reduce Federal Wages and Terminate Bargaining Rights

During his second term, Donald Trump enacted a series of labor policies that reduced worker incomes and contributed to a rise in unemployment, which reached 4.6% by November 2025. A March 14, 2025, executive order scrapped minimum wage regulations for private federal contractors and terminated collective bargaining rights for more than one million federal employees.

Additional administrative actions included restoring subminimum wages for workers with disabilities and introducing lower-wage guidelines for foreign guest workers under the H-2A visa program. Elon Musk led a purge of 317,000 federal workers, while the government halted various offshore wind farm projects.

Workplace safety declined following a 30% reduction in Occupational Safety and Health Administration inspections and significant budget cuts to the National Institute for Occupational Safety and Health. Liz Shuler, president of the AFL-CIO, characterized these developments as a relentless assault on working people and a challenge to democracy.