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North American Edition
19th April 2024
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THE HOT STORY
U.S. business groups seek permanent block of Biden rule on worker classification
The U.S. Chamber of Commerce and other major business groups have asked a Texas federal judge to permanently block a Biden administration rule that would make it more difficult for companies to treat certain workers as independent contractors rather than their employees. The groups argue that the U.S. Department of Labor failed to adequately explain why it was abandoning a Trump-era regulation that drew clearer lines for determining worker classification under federal wage laws. The business groups claim that reclassification will harm many independent contractors and may drive some out of the workforce altogether. The rule, which took effect on March 11, is expected to have a broad impact on industries relying on gig workers. Multiple challenges to the rule are pending, and Republicans in Congress are pushing for its repeal. The case is currently before U.S. District Judge Marcia Crone in Beaumont, Texas.
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LEGAL
Google fires 28 employees over protest against Israeli contract
Google has fired 28 employees who participated in a sit-in protest against the tech giant's contract with the Israeli government. The protest, organized by the group No Tech for Apartheid, took place at Google offices in California and New York. Video footage showed police arresting employees in the office of Google Cloud CEO Thomas Kurian. Google stated that physically impeding employees and preventing them from accessing company facilities was a violation of company policies. Google has denied that the contract is related to weapons or intelligence services. Google CEO Sundar Pichai had warned employees about disrupting co-workers or using the company as a personal platform. No Tech for Apartheid accused Google of retaliation and claimed that the fired employees had not directly participated in the protests. The group also denied allegations of property damage and threats to other workers.
Supreme Court ruling may have a chilling effect on employers' diversity initiatives, lawyers say
Rights groups are celebrating the Supreme Court's ruling that allows a police sergeant to sue over a discriminatory job transfer, calling it an "enormous win for workers." However, lawyers warn that the ruling may have a chilling effect on employers' diversity initiatives. Some employment lawyers say the same reasoning could be applied to workplace development programs or employee resource groups that have been designed to benefit traditionally underrepresented cohorts. “Could you say that exclusion from participation in a mentoring or leadership program materially disadvantages someone?” said Jonathan Segal, a partner specializing in employment and labor law at Duane Morris. Even before the opinion, he was advising companies to steer clear of development programs that only allow the participation of people from protected groups. Now, he says, “the risk is even higher.”
DOJ to offer some execs immunity under whistleblower program
The Justice Department’s criminal division will give immunity to executives who provide information about corporate misconduct they themselves were involved in, according to details of a new pilot program. To be eligible, executives must voluntarily provide original information, cooperate with prosecutors and agree to give up any profits they may have derived from the reported misconduct. The program covers tips related to a range of misconduct, including financial and healthcare fraud, money laundering and corporate bribery. The policy is designed to put pressure on companies to disclose misconduct before their own executives do, said Nicole Argentieri, the head of the Justice Department’s criminal division, according to prepared remarks from Monday’s speech, which took place at an event hosted by New York University’s School of Law. “The department is upping the ante . . . by increasing the incentives for others to come forward,” Ms. Argentieri said, adding “Call us before we call you.”
Sheetz c-store chain hit with discrimination lawsuit
The Sheetz convenience store chain is facing a discrimination lawsuit filed by federal officials. The lawsuit alleges that Sheetz discriminated against Black, Native American, and multiracial job applicants by automatically rejecting them based on a failed criminal background check. The Equal Employment Opportunity Commission (EEOC) filed the suit against Sheetz and its subsidiary companies, claiming that the chain's hiring practices disproportionately impact minority applicants and violate federal civil rights law. Sheetz denies the allegations and has emphasised its commitment to diversity and inclusion. The privately-held company, which operates over 700 stores in six states, has been in a dispute with the EEOC for nearly eight years. The EEOC is seeking remedies for unlawfully denied employment, including job offers, back pay, and retroactive seniority. 
CYBERSECURITY
Global financial firms fall behind on monitoring and archiving personal messaging apps, survey shows
Global financial companies are not adequately monitoring and archiving business-related communications on personal messaging apps, according to a survey by SteelEye. The survey found that 63% of compliance executives in the U.S., Europe, and Asia Pacific were not monitoring staff usage of WhatsApp for compliance purposes. Only 27% said they were investing in communications surveillance capabilities. The failure to monitor personal messaging apps could lead to regulatory breaches and fines. The U.S. Securities and Exchange Commission has already cracked down on business-related text messages over personal messaging platforms. Financial penalties linked to record-keeping missteps across personal messaging tools have exceeded $2bn.
WORKFORCE
New jobless claims flat at 212,000
The number of Americans who applied for unemployment benefits in the seven days to April 13th was unchanged at 212,000, according to the Labor Department, pointing to continued strength in the labor market. Economists polled by Reuters had forecast 215,000 claims. Unadjusted claims declined 6,756 to 208,509 last week. Filings in California jumped by 3,063. There were also notable increases in claims in Connecticut, Georgia and Oregon. The four-week moving average was unchanged too, at 214,500. Continuing claims, reported with a one-week lag, rose 2,000 to 1.812m. "Jobless claims remain well below levels that would signal a major slowdown in job growth," said Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics. "A strong labor market gives the Federal Reserve the room to put off rate cuts until inflation gets back on a sustainable path to 2%."
HEALTH & WELLBEING
Record-breaking temperatures lead to increase in heat-related ER visits
As climate change continues to bring hotter temperatures, last summer's record-breaking heat led to a significant increase in emergency department visits for heat-related illnesses. Working-age Americans were particularly vulnerable, often lacking access to air conditioning during triple-digit temperatures. "Heat-related illness will continue to be a significant public health concern as climate change results in longer, hotter and more frequent episodes of extreme heat," warned Ambarish Vaidyanathan, a researcher at the National Center for Environmental Health. The study found that July and August of 2023 had the highest rates of heat-related ER visits, with men being more affected than women. Working-age individuals, especially frontline essential workers, faced the highest risks. Certain regions, such as Arkansas, Louisiana, New Mexico, Oklahoma, and Texas, experienced a significant increase in heat-related ER admissions. The study highlights the need for better access to cooling spaces and affordable air conditioning to mitigate the health impacts of extreme heat.
REMOTE WORK
Nike CEO blames remote working for sales slump
The CEO of Nike, John Donahoe, has criticized remote working for the company's first sales slump in over two years. Donahoe stated that it is difficult to achieve bold and disruptive innovation, such as developing new shoes, through Zoom meetings. Donahoe emphasised the importance of rebuilding the innovation pipeline and plans to showcase Nike's new approach during the Olympics in Paris.
Biden administration improves program for military spouses to telework from overseas
President Joe Biden's administration has announced new steps to improve a program that allows federal employees who are military spouses to telework from overseas. The steps are part of Jill Biden's Joining Forces initiative to support military and veteran families. The agreement between the Department of Defense and the Department of State aims to ease approvals of remote work arrangements under the Domestic Employees Teleworking Overseas program. These measures will help military spouses continue their careers and keep their families together when the servicemember is stationed abroad. Military spouses currently face a 21% unemployment rate, and more than 16,000 military, veteran, and surviving spouses work across federal departments and agencies.
TRAINING & DEVELOPMENT
New partnership provides college degrees and skills for Olympic athletes
American Olympic athletes now have access to college degrees and other skills for life after sports through a partnership with the Denver-based education company Guild. The deal between Guild, the organizers of the 2028 Los Angeles Olympics, and the U.S. Olympic and Paralympic Committee aims to assist athletes in transitioning to the next phase of their lives after retirement. Guild's online platform offers over 250 opportunities, including undergraduate and graduate programs, certification programs, and career counseling. The partnership addresses the need for career and professional development among Olympic and Paralympic athletes, with 60% of athletes aged 39 and younger expressing the need for assistance. The program has already attracted 95 athletes within days of its launch. Guild's services provide an opportunity for athletes to acquire skills for new careers that they may have missed out on while focusing on sports. The partnership aligns with the commitment to supporting athletes' overall well-being and offers fully funded programs, with the USOPC covering up to $10,000 a year for partially funded programs. Athletes can utilize Guild for up to 10 years after retirement.
INTERNATIONAL
Female-led businesses provide economic lifeline for Afghan women under Taliban restrictions
A study by the United Nations Development Programme (UNDP) has found that female-led businesses are serving as an economic lifeline for Afghan women living under Taliban restrictions. However, these businesses face challenges in accessing capital and markets. The study revealed that 41% of surveyed Afghan female entrepreneurs had to take on debt, with only 5% able to gain credit through banks or micro-finance institutions. Additionally, over 70% reported restrictions on their operations, including the inability to travel to local markets without a male guardian. While the Taliban have not formally banned women from work, their restrictions have led to a decline in female formal employment. The study emphasizes the importance of international support for these businesses, as they play a crucial role in sustaining local economies. Challenges faced by female-led businesses include competition from cheap imports and a lack of credit access. The future of Afghanistan depends on the success of these businesses, according to the UNDP.
Business travel for bankers in Hong Kong takes a hit
Business travel perks for bankers in Hong Kong are being cut back as firms tighten their belts amid a deal drought in the region. Some banks have reduced hotel allowances to below $100 a night, while other cutbacks include car pooling, taking the train instead of a taxi, and booking second-class tickets for high-speed rail. The austerity measures are a far cry from the days when bankers could book flights on a whim and travel in business class. The prolonged real estate crisis and concerns about China's economy have led to job cuts and warnings against financial elitism. Even at the likes of Goldman Sachs and UBS, austerity is being felt, with some bankers voluntarily booking premium economy seats instead of business class.
 


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