Labor & Employment Law Daily Wrap Up, REPORTS—Public Citizen details reduced federal enforcement during Trump’s second term, (Jan 21, 2026)

By Patricia K. Ruiz, J.D.

The report highlights that 55 of the corporations benefiting from canceled or weakened enforcement had ties to the Trump administration.

A report by Public Citizen describes a sweeping reduction in federal corporate enforcement during the first year of President Trump’s second term, identifying 145 canceled enforcement actions and 14 frozen actions across 166 corporations. The rollback spanned numerous federal agencies, including the Equal Employment Opportunity Commission (EEOC), National Labor Relations Board (NLRB), Department of Labor (DOL), and U.S. Customs and Border Protection (CBP).

EEOC enforcement actions. The report states that 10 EEOC enforcement actions were canceled or frozen during Trump’s second term. It highlights the EEOC’s lawsuit against Amazon, which alleged discrimination against pregnant workers. The EEOC dismissed the case after President Trump issued an April 2025 executive order instructing federal agencies not to rely on disparate impact analysis. The report describes extensive ties between Amazon and the administration, including a $1 million cash donation to Trump’s inaugural fund, a $1 million in kind contribution for streaming the inauguration, and licensing arrangements that generated unspecified payments to Trump related to The Apprentice. Amazon was also reported to have paid $28 million to Melania Trump for a documentary, sponsored White House events and federal celebrations, and employed lobbyists aligned with the administration.

NLRB enforcement actions. The report identifies one NLRB case involving GEO Group, which was accused of punishing detained immigrant workers—including through solitary confinement—because the workers protested pay and working conditions and supported labor strikes. The NLRB withdrew the case on March 19, 2025, halting the enforcement effort. The report also notes that GEO Group made significant political contributions connected to Trump, including $1 million to a pro Trump super PAC and $500,000 to Trump’s inaugural committee, placing it among corporations that benefited from both enforcement rollbacks and political proximity.

DOL enforcement actions. The report states the DOL closed its FLSA compliance investigation into Scale AI, Upwork, and HireArt on May 9, 2025. It further notes that on May 1, 2025, Trump’s DOL announced a retreat from enforcing a 2024 rule finalized under the Biden administration intended to protect workers from misclassification as contractors. According to the report, Scale AI donated $125,000 to Trump’s inaugural fund and Trump nominated former Scale AI executive Michael Kratsios to serve as director of the White House’s Office of Science and Technology Policy.

Other employment related matters. The report identifies additional labor connected reversals, including CBP’s lifting of a forced labor import ban on Central Romana Corporation, which had previously been blocked due to forced labor findings. Central Romana is described as partially owned by members of the Fanjul family, who made substantial political contributions in support of Trump and participated in aligned fundraising activities.

Companies: Public Citizen; Amazon; GEO Group; Scale AI; Upwork; HireArt; Central Romana Corporation

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