THE HOT STORY

OPM illegally directed worker firings

A federal judge in California has ruled that President Trump’s Office of Personnel Management (OPM) exceeded its authority by directing federal agencies to fire thousands of recently hired workers. Judge William Alsup determined OPM usurped powers reserved for individual agencies but did not order reinstatement, citing employees’ new jobs and agency reorganizations. Agencies must update personnel files to reflect that terminations were not performance-related. The ruling affects multiple agencies, including Defense, Commerce, and Health and Human Services, and underscores limits on OPM’s role in implementing executive workforce directives.

Bloomberg Law

LEGAL

UAW and GE Aerospace reach agreement on healthcare and other issues

Members of the United Auto Workers (UAW) union at GE Aerospace's facilities in Evendale, Ohio, and Erlanger, Kentucky, have reached a tentative agreement with the company, securing improvements in job security, healthcare costs, and additional vacation time. The five-year contract includes provisions for GE to cover nearly all healthcare premium increases and establishes strong job security protections, including minimum headcount guarantees. UAW members are set to vote on the ratification of the agreement on September 19, while picket lines will remain active until the vote is concluded.

Reuters

TECHNOLOGY

AI can become a new ‘favourite co-worker’ to HR

The HR and payroll sector is looking to keep pace with advanced technologies, most notably, artificial intelligence. Organizations in the business of human capital management (HCM) are increasingly embracing the power of AI with sophisticated platforms tailored to the unique demands of HR and payroll. One such organization is UKG, a provider of HR, payroll and workforce management solutions for organizations worldwide. UKG has developed and is offering its clients a conversational AI tool called UKG Bryte AI. “The power of AI is not in replacing people – it’s in augmenting them,” says Julie Develin, senior partner, human insights, at UKG. “It’s about creating the time and space for HR and payroll professionals to focus on building better workplaces.”

The Globe and Mail

REGULATION

AI firms could benefit from exemptions from federal oversight

U.S. Senator Ted Cruz has proposed a bill that would allow artificial intelligence companies to apply for two-year exemptions from federal regulations in a bid to foster innovation and help U.S. firms compete with China. Cruz emphasised that while the "regulatory sandbox" would not exempt companies from all laws, it would enable them to experiment with new technologies while outlining potential risks and mitigation strategies. However, consumer advocacy group Public Citizen has expressed concerns that the proposal could treat Americans as "test subjects" and highlighted the need for careful oversight of AI development amid varying state regulations.

Reuters

STRATEGY

xAI to lay off hundreds of data annotators

Elon Musk’s xAI has laid off around 500 data annotators, its largest team, who trained the Grok chatbot by categorizing raw data, according to Business Insider. Employees were informed by email and will be paid until contracts end or November 30. xAI says it will expand specialist tutor roles tenfold despite the cuts.

Reuters

ECONOMY

U.S. consumer sentiment falls to lowest since May

The University of Michigan reported Friday that U.S. consumer sentiment fell in September to the lowest since May, with long-term inflation expectations rising for the second straight month. The university's preliminary sentiment index declined to 55.4, from 58.2 in August, and well below the 58 expected among economists polled by Reuters. The survey's measure of consumer expectations for inflation over the next year was unchanged at 4.8%, but rose to 3.9% for the next five years, from 3.5% last month. "Consumers continue to note multiple vulnerabilities in the economy, with rising risks to business conditions, labor markets, and inflation," Joanne Hsu, the director of the Surveys of Consumers, said in a statement. "Likewise, consumers perceive risks to their pocketbooks as well; current and expected personal finances both eased about 8% this month. Trade policy remains highly salient to consumers, with about 60% of consumers providing unprompted comments about tariffs during interviews, little changed from last month."

Bloomberg

Reuters

Bipartisan push underway to save Obamacare credits

In a bipartisan effort, U.S. Congress members from both parties are advocating for the extension of expiring Obamacare health tax credits to ensure government funding beyond September 30th. The initiative aims to provide Senate Democrats with a notable achievement while helping Republicans avoid a potential backlash from voters due to rising healthcare costs. “Families getting notice in about six weeks that their healthcare premiums are going to go up at the end of the year is not the right direction,” said Rep. Jen Kiggans (R-VA.) If Congress does not act, premiums in the ACA marketplace could increase by an average of 18% next year, according to KFF. Advocacy groups are urging Congress to act swiftly, as the estimated cost of the program is $380bn. Sen. Tammy Baldwin (D-WI) emphasized the urgency, saying: “We need to extend these tax breaks as soon as possible.”

US News and World Report

TAX

Tax cuts era officially over, warns OECD

The Organisation for Economic Cooperation and Development (OECD) has declared the end of the tax cuts era. Rising debts and increased spending on climate change, ageing populations, and defence have prompted the shift. The OECD's report on tax reforms highlights that jurisdictions across all income levels are now seeking to increase revenues. "High levels of debt, coupled with spending needs . . . has meant that jurisdictions . . . have adopted strategies to mobilize more revenues," the OECD said.

The Daily Telegraph

INTERNATIONAL

Macquarie places avatar workers in HR

Australian multinational financial services group Macquarie is set to trial digital workers in its finance and human resources departments, partnering with Future Secure AI. While automating tasks is common, replacing entire jobs remains challenging due to the need for human interaction and tacit knowledge. “While we are early in the journey, we are supporting our people as they explore and adapt to new technologies, including through initiatives such as Future Secure AI’s digital co-workers to work as part of our teams,” a Macquarie spokeswoman said. “This particularly addresses repetitive, high-volume and uniform processes, so teams can better manage workloads, deliver outcomes more quickly at reduced cost and with reduced risk of manual error, and focus on more strategic initiatives.”

Financial Review

Over 40% of private sector staff in Thailand suffer sexual harassment

Over 40% of employees in Thailand's private sector have experienced sexual harassment, according to a study by Mahidol University. The research, supported by the Thai Health Promotion Foundation, surveyed 603 employees across five industries. LGBTQ+ workers reported the highest harassment rate at 60.2%, followed by women at 45.9%. The study found significant gaps in workplace protections, with 45.4% of employees saying their companies lacked clear anti-harassment measures. Lead researcher Suchada Tawisith said: "Sexual harassment is not only a violation of dignity but also has economic consequences and reputational risks for companies."

Bangkok Post

OTHER

Ohio agency approves controversial license plates

The Ohio Bureau of Motor Vehicles has agreed to approve vanity license plates reading “GAY” and “MUSLIM” following a federal lawsuit filed by two residents. The lawsuit claimed that the state improperly rejected their requests for the personalized plates. The resolution was facilitated during a Zoom hearing by Senior Judge Dan Aaron Polster of the U.S. District Court for the Northern District of Ohio. The agency acknowledged its error in rejecting the proposed plates, conceding: "We erred in rejecting the proposed personalized plates."

Bloomberg Law

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