By the book: Navigating legal challenges in 2025

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President Donald Trump began his second term by signing a dizzying array of executive orders. He signed 26 in his first week, and by mid-March Trump had signed 89 executive orders, according to the Federal Register, more than any other past president. 

A large amount of new federal action in addition to other legal issues creates a lot of information to process and questions to answer about the effect on businesses. Aside from federal policy changes, other topics trending within the legal industry today include artificial intelligence; Federal Trade Commission changes; diversity, equity and inclusion; and immigration policies. 

The Business Record asked the Central Iowa legal community what they’re hearing from clients about the new executive orders and federal-level changes, as well as what general legal trends they’ve seen in recent years. Here’s some of what we heard.

When it comes to federal action in 2025 on DEI, immigration, tariffs and more, what questions are you receiving from your business clients? What are business clients most concerned about? 

Melvin O. Shaw and Kathleen Law, President and president-elect, Iowa State Bar Association

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Businesses are closely monitoring the impact of executive orders on workforce policies, regulatory compliance and economic stability. Recent changes in DEI regulations have led companies to reassess hiring practices and workplace policies to ensure compliance. Immigration reforms are also a key concern, particularly for businesses that rely on foreign talent. Delays in visa processing, work authorization uncertainties and increased scrutiny of employment-based immigration programs have made workforce planning more challenging. Additionally, changes in tariffs and trade policies are directly affecting supply chains, pricing strategies and overall business operations.

Kailey Blazek Naranjo

Kailey Blazek Naranjo, Shareholder and immigration attorney, Dentons Davis Brown

Immigration was a central issue in President Trump’s reelection campaign. Now that he has assumed office and issued a flurry of immigration-related executive orders, businesses are trying to navigate the ever-changing landscape and assess what affects their operations, their ability to find and retain talent, and how to ensure compliance with federal immigration laws. Notably, clients are asking questions about Form I-9 compliance and best practices for conducting internal audits. They are seeking guidance as it relates to potential unannounced worksite enforcement actions and creating plans to avoid or limit operational interruptions. Further, companies are asking how they can better support their immigrant workforce in times of uncertainty. 

Luke Mohrhauser

Luke T. Mohrhauser, Patent attorney and managing partner, McKee, Voorhees & Sease

The tariffs are most applicable to most of our clients. We have a large number of agricultural clients – both in manufacturing and in seed development. There is already a large supply of crops from previous years affecting farmers’ ability to purchase new equipment and the tariffs will likely increase costs of goods, making it less desirable to buy. This, coupled with the potential of other countries enacting tariffs on United States crops, could be detrimental to ag companies.

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Frances Haas, Shareholder, Nyemaster Goode PC 

Recent executive orders to limit or suspend DEI programming have largely been enjoined, but they generated questions about the legality of existing DEI programs. Under existing federal and Iowa law, so long as an entity’s DEI programming does not amount to discrimination, DEI initiatives remain legal. Examples of legal, nondiscriminatory DEI initiatives: 

  • Attending job fairs for underrepresented identity groups
  • Providing employee training and education about discrimination and bias 
  • Having employment policies that exceed what the laws require (prohibiting more than discrimination or harassment)
  • Devoting resources to organizations that support or promote underrepresented identity groups
  • Supporting employee resource groups for identity groups, provided that participation in the group is open to all in the organization 

To ensure that your organization’s DEI efforts have not crossed the line into illegal discrimination, it may be prudent to involve legal counsel in an audit of your DEI programs. 

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Megan Moritz, Special counsel and employment attorney, Dentons Davis Brown 

When workplace issues get unnecessarily politicized, it keeps everyone confused. Both employers and employees struggle to keep up with changing policies and priorities of enforcement agencies from one administration to the next. There’s been a lot of dialogue about technical interpretations of laws, changes to statutes. The details are important, but with the flurry of regulatory and compliance changes, it can feel overwhelming. It can be helpful to take a step back. It may not be about what’s “legal”; it might just be about what’s decent. If you’re a business owner, run a fair business, value its people, don’t tolerate bullies, and expect everyone to treat each other with respect. If you’re an employee, seek out feedback, don’t be a bully, and be respectful to everyone at work. But don’t rely solely on this intuition for the Fair Labor Standards Act. For that, rely on experienced wage and hour counsel. 

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Chris Sackett, Partner, BrownWinick Law 

Businesses are most concerned with uncertainty and disruption across industries and legal areas. They can adjust to the known or predictable changes — whether primarily business or legal. But it’s almost impossible to plan for changes that they don’t see coming, or that don’t seem to make business sense. And unfortunately, they’re seeing a lot of that recently.

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Kay Oskvig, Employment/privacy lawyer and member attorney, Whitfield & Eddy PLC 

Business leaders are concerned about predictability and whether the scope of the order(s) will change. Clients are asking, “What does this mean for my business?” and “Should we make changes now?” Several executive orders direct federal agencies to revise existing rules and/or adopt new regulations. Regulations typically have compliance requirements, which means businesses may need to change their practices or policies.

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Danielle Smid, Employment law and member attorney, BrownWinick Law 

This depends a little on the industry. Certain industries seem to be targets on the immigration front and we are seeing a lot of questions surrounding the potential for immigration raids and/or audits. Some of our larger clients are also focused on the DEI changes and are concerned about doing something to instigate an investigation. Generally most of our businesses are concerned about the tariffs and how it may affect their production and profits moving forward.

In a general sense, how are you advising clients on how to navigate recent changes at the federal level? 

Kay Oskvig, Whitfield & Eddy PLC

Read the entire executive order instead of relying on headlines. Wait a week before making significant changes. Many executive orders are amended or are challenged in court. This is not unique to the current political administration. Executive orders typically require new rulemaking, which can take several months.

Luke T. Mohrhauser, McKee, Voorhees & Sease 

Mostly wait and see. There seems to be changes by the day, if not hour. It has been difficult to provide concise advice in this landscape due to the changes and reactions from all parties, so I have been trying to advise to stay the course for now and be ready to pivot at a moment’s notice.

Jo Ellen Whitney

Jo Ellen Whitney, Shareholder and employment attorney, Dentons Davis Brown 

Uncertainty and chaos have created the most dramatic impact on my clients. Whether this was the FTC proposed rule on noncompetes, the Department of Labor changes to base pay for exempts, or a myriad of other issues which came and went and circled back again. The question is how to be responsive and consistent in response to change. This occurs when you have good communication with employees and a transparent process, as well as being able to focus on how to make change work for your people and company. 

Melvin O. Shaw and Kathleen Law, Iowa State Bar Association 

The key to navigating regulatory changes is staying informed, reviewing compliance requirements and proactively adapting policies. Businesses should conduct internal audits, consult with legal counsel on employment and trade regulations, and develop contingency plans for workforce and operational adjustments. For companies that rely on foreign talent, immigration compliance remains a top priority. Employers should work closely with legal counsel to monitor visa program updates, anticipate processing delays and ensure proper documentation to avoid hiring disruptions. 


LEGAL CHANGES IN RECENT YEARS

Are there any new laws that have gone into effect during the past year or two that are negatively affecting businesses or prompting a lot of questions? If so, what impacts are you seeing?   

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Brianna Long, Shareholder, Nyemaster Goode PC

With employees on the move and new regulation of restrictive covenants, we are receiving many questions on enforcing and enforceability of noncompete agreements and the like. The Federal Trade Commission issued a final rule in April 2024 that would have largely banned noncompetes across the country. Before the rule took effect, a federal judge in Texas blocked it with a nationwide injunction. Although currently on pause, whether the FTC rule can ever take effect is not yet settled. The FTC has appealed the ruling to the 5th Circuit Court of Appeals and there are other legal challenges ongoing. More states are also enacting legislation banning noncompetes altogether or in particular industries. Employers need to be vigilant on the status of the FTC rule litigation and state-specific noncompete laws to ensure their restrictive covenants are compliant and enforceable to protect their customer base, employee pool and confidential information.

Lori Chesser

Lori Chesser, President, immigration attorney, Dentons Davis Brown

Many organizations are preparing for interaction with law enforcement based on announced plans for “mass deportation.” While their employees have legal status – or may not include any foreign nationals – they are concerned about potential searches on their property and how to respond. These leaders understand the dynamic of dealing with something new and that their staff needs to consider scenarios and understand how to follow the law while not breaking other laws (such as privacy regulations). It is not something most management has had to consider.

Kay Oskvig, Whitfield & Eddy PLC 

Several neighboring states recently passed laws that impact paid time off policies, even for Iowa-based employees. Other state agencies are sending enforcement notices to companies in Iowa. Many clients – even if 90-plus percent of their operations take place in Iowa and all their employees live in Iowa – have needed to update their written policies and payroll reporting to comply with these laws. This can be confusing for companies and employees, as there is often a lot more paperwork but no financial changes.

Danielle Smid, BrownWinick Law

We saw a lot of changes to the laws and regulations for employers in 2024 with the Biden administration that tended to lean toward the employee side and now we are seeing a lot of those either being rescinded or we expect that there will be less concentration of the areas that the Biden administration was focused on and more to the Trump administration’s focus points. 

Melvin O. Shaw and Kathleen Law, Iowa State Bar Association 

Several recent legal developments are impacting businesses, including:

  • The Corporate Transparency Act: This federal law, which took effect in January 2024, requires businesses to disclose ownership details to prevent financial crimes. However, legal challenges have delayed its enforcement, leaving businesses uncertain about compliance requirements.
  • AI-related regulations: As AI continues to be integrated into business operations, federal and state governments are considering new laws to regulate its use, particularly in hiring practices, decision-making processes and liability concerns.

Chris Sackett, BrownWinick Law 

Tariffs and labor/workforce laws, policies and changes – and resultant uncertainty – are impacting all businesses. They don’t know what the law is today, what it will be tomorrow, and even which laws are going to be in effect, enforced, disregarded or changed. That uncertainty cuts across industries and legal areas.


SMALL BUSINESS

What issues are affecting your small business clients the most? 

Luke T. Mohrhauser, McKee, Voorhees & Sease 

I would say pricing and the unwillingness of larger companies to partner with or invest in the small companies. Everyone seems to be taking care of themselves (and rightfully so), but this does affect investment and willingness to work with some of the smaller clients.

Eric Tubbs and Eric Fischer, Shareholders, Nyemaster Goode PC

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Issues involving contracting and corporate governance consistently plague small businesses. Doing business without contracts or with poorly drafted contracts created from forms or precedent agreements can lead to difficulty recouping damages or money-losing transactions. Using an attorney to create contracts or review the terms of an agreement or contract puts a small business on much firmer legal footing should disputes arise. The same holds for governing documents. Many small businesses either don’t have them or the documents were poorly drafted and don’t align with the business owner’s intentions. Disputes between owners can be costly and emotionally draining. Taking the time up front to put together comprehensive governing documents can substantially limit the risk of a business dispute. We encourage our small business clients to make the investment in well-drafted contracts at the time of formation of the company and to review them regularly to ensure they continue to reflect the owners’ intentions. 

Tyler Coe

Tyler Coe, Shareholder and divorce/family attorney, Dentons Davis Brown 

Talent and the rapid expansion of subspecialties in law. For example, clients do not just want a divorce lawyer, they want a divorce lawyer well-versed in complex financial matters.

Melvin O. Shaw and Kathleen Law, Iowa State Bar Association 

Small businesses, like larger corporations, are facing an increasingly complex legal landscape. One of the biggest concerns is the rising cost of compliance. New tax policies, stricter labor laws and evolving DEI regulations are making it more difficult for small business owners to keep up with legal requirements while managing day-to-day operations. Hiring and workforce issues are also a challenge. Proposed changes to noncompete agreements and independent contractor classifications mean small businesses must carefully evaluate employment policies to avoid legal exposure. At the same time, securing funding remains an obstacle, as lending requirements have tightened, commercial loan rates have increased and access to small business grants has become more unpredictable. 

Data privacy and cybersecurity compliance are also significant concerns. Small businesses that operate online must adhere to stricter data protection laws, yet many struggle with limited resources and unclear guidance. Intellectual property protection is an increasing priority. As small businesses expand their digital presence, they must ensure their trademarks, copyrights and brand identity are protected while avoiding unintended infringement on the rights of others. With these challenges in mind, small business owners are seeking legal support to help them navigate regulatory changes, protect their assets and develop long-term strategies for stability and growth.

Danielle Smid, BrownWinick Law 

Our smaller ag clients are very concerned about the immigration changes as they tend to rely on workers that are not U.S. citizens for their workforce. 


CORPORATE

What issues are affecting your corporate clients the most? 

Eric Tubbs and Eric Fischer, Nyemaster Goode PC

A number of our corporate clients have been incorporating AI tools in their businesses, which has raised concerns about the possible liability to the client in using such tools. Companies using AI face numerous legal challenges, including intellectual property concerns, liability issues, data privacy laws and regulatory compliance. AI-generated content raises questions about copyright ownership, while AI-driven decisions can lead to liability disputes, especially if errors cause harm. Bias and discrimination in AI models expose companies to legal risks under anti-discrimination laws. Data privacy regulations, such as General Data Protection Regulation and California Consumer Privacy Act, require strict handling of user data, and AI’s use of personal information must comply with these laws. Additionally, regulatory bodies worldwide are developing AI-specific laws, requiring companies to adapt to evolving legal landscapes. Due to the fact that use of AI, and the legal frameworks regulating AI, are rapidly developing, this is an area we have been increasingly helping our corporate clients navigate. 

Lori Chesser, Dentons Davis Brown 

The need for talent is strong. Given Iowa’s population challenges, we see a continued need for foreign talent. This includes retaining foreign students and recruiting from other parts of the U.S. or directly from abroad. 

Melvin O. Shaw and Kathleen Law, Iowa State Bar Association 

Corporate clients are facing a wide range of legal challenges, including compliance with evolving regulations, workforce-related concerns and increased litigation risks. Many companies are reevaluating their environmental, social and governance strategies to align with new legal and industry expectations. Employment law continues to be a major focus, with changes in noncompete agreement bans, independent contractor classifications and wage transparency regulations requiring businesses to revise internal policies. Intellectual property protection is also becoming more critical, especially as AI-generated content raises new questions about copyright, ownership rights and liability. Businesses are seeking legal guidance to protect proprietary information, while adapting to rapid technological advancements. Another growing issue is data privacy and cybersecurity compliance. Businesses operating across multiple jurisdictions must navigate stricter state and federal regulations, which impose increased reporting requirements and penalties for data breaches. With these evolving challenges, corporate clients are working closely with legal counsel to develop proactive compliance strategies and minimize legal risks.


What overall trends are you seeing in your field or specialty?

TECHNOLOGY

Nick Bushelle

Nicholas Bushelle, Associate and corporate and venture tech attorney, Dentons Davis Brown

Moving corporate domiciles out of Delaware. For over 100 years, Delaware has been the predominant state of formation for U.S. business entities due to its well-developed corporate case law and specialized judicial bench. That may be changing, as Delaware faces an exodus of tech companies such as SpaceX, Tesla, TripAdvisor and Dropbox to Texas or Nevada, which may have more management-friendly laws. This trend intensified after the Court of Chancery ordered the rescission of Elon Musk’s $55.8 billion compensation package from Tesla, despite receiving shareholder approval. Musk has urged companies to relocate to states he believes are less politically motivated. While this issue has gotten a lot of attention in the news, Delaware remains the most popular choice, and in the venture tech industry, venture capital funds still normally want the startups they invest in to be incorporated in Delaware. 

Kay Oskvig, Whitfield & Eddy PLC

AI continues to offer exciting options and solutions for organizations. Employees are suggesting new workflows, companies are deploying AI in critical infrastructure, and organizations of all types are analyzing data differently. Safety, accuracy and security vulnerabilities exist, but risk should not stop organizations from considering and testing tools in compliant, safe environments. In 2025, I look forward to discussing “hybrid intelligence” with clients.

Luke T. Mohrhauser, McKee, Voorhees & Sease 

The use of AI and how it can be used in inventions and other creations has been a question from many clients. Furthermore, as most processes and machines become more reliant on AI, automation and machine-learning, there are issues with how best to protect the innovations. The U.S. Patent and Trademark Office has provided some guidance, but we are finding that there are still inconsistencies on how the policies are being applied and finding the best way to describe the innovations to ensure protection and enforceability.

Tyler Coe, Dentons Davis Brown 

Clients want to know how their data is being handled. Are financial documents being freely filed with the courts with or without protective orders? Are parties willing to sign nondisclosure agreements regarding information gleaned concerning family trusts and businesses? With the proliferation of how easy it is to access information, clients want to know all the risks and employ the best tactics to keep their information private. 

Danielle Smid, BrownWinick Law 

Definitely data privacy and labor laws over the past year. I think we will see a big emphasis on AI with the Trump administration where the Biden administration focused more on AI regulation and the new administration will focus more on incorporating AI into our businesses. 

Melvin O. Shaw and Kathleen Law, Iowa State Bar Association 

Several emerging legal issues are shaping business operations in 2025:

  • AI and liability: As businesses increasingly use AI for hiring, data analysis and automation, they must address legal risks related to AI decision-making and compliance with evolving regulations.
  • Data privacy and cybersecurity: With growing concerns over data breaches and digital security, businesses must comply with new state and federal privacy laws that impose stricter penalties and reporting requirements.
  • Employment law changes: Wage transparency laws, evolving remote work policies and shifts in worker classification rules continue to impact employers.
  • Environmental regulations: Climate-related compliance requirements are expanding, requiring businesses to integrate sustainability measures into their operations.

DIVORCE

Tyler Coe, Dentons Davis Brown 

Clients who own businesses are looking long-term to decide how best to structure their divorce settlements. They understand turbulence is likely in the short term but are committed to seeing their businesses through the long run.


LABOR AND EMPLOYMENT LAW

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Thomas Cunningham, Shareholder, Nyemaster Goode PC 

The primary questions from our clients regarding changes in federal labor and employment law center on:

  • The impact of the National Labor Relations Board’s aggressive agenda on the private workplace. NLRB limitations on the use of confidentiality and nondisparagement terms in employment agreements, and invalidation of certain long-used employee handbook policies have employers seeking to avoid unfair labor practice charges.
  • Compliance issues under the Pregnant Workers Fairness Act. The PWFA sometimes requires employers to provide greater accommodations than those required under the Americans with Disabilities Act.
  • The number of discrimination, harassment and retaliation claims is on the rise across the nation. Equal Employment Opportunity Commission (as opposed to Iowa Civil Rights Commission) involvement also appears to be increasing.
  • Employers with workplaces outside Iowa are juggling compliance issues due to varying requirements. Nearby states have passed or are passing new pay transparency and paid leave laws. Compliance with this patchwork quilt of employment laws is challenging for multistate employers.

Danielle Smid, BrownWinick Law 

While we saw increased employer litigation and investigations during the Biden administration from most governmental agencies, we expect to see a downturn in that litigation as the new Trump administration tends to lean more pro-business and thus pro-employer. I also expect to specifically see less investigative action from agencies as they are being downsized, although we expect more from the Department of Homeland Security based on President Trump’s recent executive orders. 

Kay Oskvig, Whitfield & Eddy PLC 

The state of Iowa has invested heavily in workforce development. Many of our clients continue to adapt and improve employee retention. Our clients are testing different schedules, revising applicant processes, deploying AI and new technology, and exploring how to train experienced new hires who changed industries. In addition, many clients regularly prune and enhance their benefit packages to align with what employees actually want and use.


INTELLECTUAL PROPERTY

Luke T. Mohrhauser, McKee, Voorhees & Sease 

We are an intellectual property law boutique firm, so there will always be a need for IP protection. The biggest trends of recent are where companies are choosing to file for protection. While the U.S. is a given, many international companies are being more selective on protection outside of the U.S., as this appears to be the greatest of unknowns, both in terms of potential political developments and the companies’ willingness to enforce protections outside of the U.S.


MERGERS & ACQUISITIONS

Chris Sackett, BrownWinick Law 

In mergers and acquisitions, the trend is toward larger, more complex transactions with greater risk and potentially greater rewards. This is challenging, given political, economic and regulatory uncertainty. The complexity includes the number and nature of the parties and advisers, financing structures, risk management and insurance strategies, supply chain and pricing uncertainty, etc. All of this means very detailed pre-planning for sellers and very deep diligence for buyers are critical. More than before, we are seeing “bet the company” type risks and opportunities. The importance of trusted teams and advisers has never been greater.

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Gigi Wood

Gigi Wood is a senior staff writer at Business Record. She covers economic development, government policy and law, agriculture, energy, and manufacturing.

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