In the December Trendline Report, we highlight key developments in workforce, technology and corporate governance—from EEOC push for "reverse discrimination" claims and a bipartisan proposal on AI-driven job displacement to SEC and DOL scrutiny of proxy advisors, and an executive order limiting state AI rules. We also announce the launch of the Trendline Framework for Political Risk Management.
In December’s Trendline Report, we round up key developments across technology, workforce and corporate governance that are shaping business at the intersection of law and policy. Here's what we cover in this month's issue:
Chair of the EEOC urges white men to report discrimination
Hawley, Warner introduce bipartisan legislation to disclose the number of jobs lost to artificial intelligence
SEC, DOL to tighten oversight of proxy advisors on ESG & DEI issues
Department of Energy announces partnerships for Trump AI Initiative
Trump signs executive order to limit state AI rules
Also in this issue:
Introducing the Trendline Framework for Political Risk Management
Trendline Talks: Continuing resolutions—and why they matter for business
Upcoming events
Workforce
Chair of EEOC Urges White Men to Report Discrimination
The U.S. Equal Employment Opportunity Commission Chair Andrea Lucas took to social media to urge white men to report race- or sex-based workplace discrimination is best understood as astrategic sign of enforcement priorities rather than a one-off social media post. As we head into 2026, Trendline anticipates an increase in “reverse discrimination” charges, broader investigative discovery into how employment decisions are made, and heightened scrutiny of DEI-adjacent programs (including certain ERG structures and selection-based initiatives) framed as potential Title VII issues.
Lucas also told Reuters that enforcement may target various corporate efforts, including employee resource groups, and that the EEOC is “looking for strategic impact." Chair Lucas's statements align with joint guidance issued by EEOC and Department of Justice on “unlawful DEI-related discrimination” and reinforces a broader Trump-era anti-DEI posture. This creates near-term political risk through regulatory action, reputational polarization, and compliance complexity, as anti-discrimination laws have not changed. As we wrap up 2025, the new year is likely to be a more aggressive enforcement environment.
Hawley, Warner Introduce Bipartisan Legislation to Disclose the Number of Jobs Lost to Artificial Intelligence
U.S. Senators Josh Hawley (R-Mo.) and Mark Warner (D-Va.) introduced the AI-Related Job Impacts Clarity Act, legislation that would require major companies and federal agencies to report AI related layoffs to the Department of Labor to be compiled into a publicly available report. “Artificial intelligence is already replacing American workers, and experts project AI could drive unemployment up to 10-20% in the next five years,” said Senator Hawley. “The American people need to have an accurate understanding of how AI is affecting our workforce, so we can ensure that AI works for the people, not the other way around.”
Specifically, the AI-Related Job Impacts Clarity Act, S. 3108 would:
Require major companies and federal agencies to quarterly report AI-related job effects –including layoffs and job displacement – to the Department of Labor (DOL).
Require the DOL to compile data on AI-related job effects and publish a report to Congress and the public.
The bipartisan push shows there is concern on both sides of the aisle about AI's impact on jobs, even as the Trump administration champions the technology as key to U.S. competitiveness.
Corporate Governance
SEC, DOL to Tighten Oversight of Proxy Advisors on ESG & DEI Issues
President Trump has expanded his ESG/DEI crackdown into the shareholder-voting ecosystem, issuing an executive order, Protecting American Investors From Foreign-Owned and Politically-Motivated Proxy Advisors, on December 11. The order is aimed at curbing the influence of proxy advisory firms—explicitly targeting major players such as ISS and Glass Lewis—and directing the Securities and Exchange Commission to review proxy-advisor and shareholder-proposal rules, including consideration of revisiting or rescinding regulations viewed as advancing ESG and DEI priorities. The order also pulls in the Department of Labor (DOL) and other agencies, framing proxy advice as a driver of “politicized” corporate voting and signaling heightened federal scrutiny of how third parties shape governance outcomes at public companies. DOL leadership publicly endorsed the directive praising Trump's efforts necessary to "rein in politicization of capital markets by proxy services."
Technology
Department of Energy Announces Partnerships for AI Initiative
Microsoft, Google, Nvidia, OpenAI and other major AI players have joined the Trump administration’s “Genesis Mission,” a Department of Energy (DOE)–led effort to accelerate scientific discovery and energy innovation by pairing national laboratory supercomputing and datasets with commercial AI models, chips, and cloud infrastructure. The DOE says24 organizationshave signed new collaboration agreements or are entering the initiative via existing partnerships, positioning Genesis as a coordinated federal platform for research breakthroughs across domains such as energy systems, advanced materials, and national security-relevant science. This announcement follows President Trump's executive order launching the mission in at the end of November.
Trump Signs Executive Order to Limit State AI Rules
President Trump has signed an executive order aimed at limiting state-by-state AI regulation and pushing toward a single national framework—an outcome long sought by major AI and tech companies concerned about a “patchwork” of requirements across jurisdictions. Reporting indicates the directive would empower federal agencies to review and potentially challenge state AI laws on constitutional grounds (including First Amendment and interstate commerce arguments), with additional leverage via federal funding mechanisms—setting up a high-stakes federal-state confrontation that could generate near-term legal uncertainty even as it reduces long-run compliance fragmentation.
While this executive order does not have the effect of law, it does raise compliance and litigation stakes for businesses operating in multiple states. The potential for policy whiplash may rise in 2026 as states defend their authorities and the federal government tests the limits of preemption, making scenario planning and regulatory contingency work essential.
Trendline Updates
Introducing the Trendline Framework for Political Risk Management
In today's environment, business decisions can carry political implications—from workforce policies to supply chain choices to public statements. Trendline Strategies helps organizations move beyond crisis response to proactive political risk navigation.
Through our proprietary Trendline Framework, we provide systematic monitoring of regulatory shifts, stakeholder dynamics, and emerging political flashpoints, translating complex political developments into clear strategic guidance tailored for your business.
Interested in learning more? Schedule time to connect with me here.
Continuing Resolutions and Why They Matter for Business
Congress appears to be headed toward another funding deadline — and the effects of it won’t stay in Washington. After Republicans blocked a proposal to extend expiring health insurance subsidies, Senate negotiations have stalled and the January 30 funding deadline set under the last continuing resolution is quickly becoming leverage in a broader fight over federal health care spending and potential premium increases next year.
In this episode of Trendline Talks, Jonay Holkins, CEO of Trendline Strategies, breaks down continuing resolutions: what they are, why they’ve become the default tool to keep the government open, and how they can create real operational risk for the private sector.
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