Lyft might suspend its services in California, if the recent ruling that requires it to classify its drivers as full-time employees is not overturned. The announcement was made by Lyft co-founder and President John Zimmer during the organization’s second-quarter earnings call. Uber had made the similar announcement earlier this Wednesday.
According to a survey carried out by Paycor on 5 August, 2020, it was revealed that while the coronavirus pandemic challenged numerous businesses – small- and medium-sized organizations were optimistic about the economy recovery. The survey revealed about 54% of business leaders had plans to hire full-time employees in 2020. Further, more than 70% of about 600 business leaders that were surveyed revealed that the impact of COVID-19 on the business have been ‘moderately challenging,’ and about 87% of businesses had attempted to take advantage of government loan or tax program.
US President Trump’s executive order that was meant to boost weekly aid for unemployed Americans aimed to alleviate ‘acute financial distress,’ for numerous families across the nation. According to the executive order, the unemployed workers were to get an extra $400 a week in jobless benefits. But the restrictions on that extra assistance of about $400-a-week increase in benefits –implied that the amount would not be available to a huge chunk of unemployed workers.
In a recent announcement made by British life insurer Prudential, it was revealed that it planned to spin off its US business Jackson and would be focusing on Africa and its largest market Asia. The announcement was made on Tuesday and was in a response to investor pressure for a split. Prudential’s shares hit eight-week high as investors cheered the news that the company would follow in the footsteps of its peers.
Amazon, the retail ecommerce giant on Tuesday announced it had hired 1,000 employees at its Nashville, Tennessee office. With this announcement Amazon’s SVP of retail operations, Dave Clark, revealed that the company is ‘ahead of schedule,’ in its efforts to bring about 5,000 jobs to Nashville. Amazon had selected Nashville as its East Coast logistics hub, dubbed the Operations Center of Excellence in 2018.
While Uber fights a lawsuit from the California attorney general claiming that the company had denied benefits to its drivers, the Uber CEO Dara Khosrowshahi laid out his argument for a ‘third way’ to classify gig workers. Khosrowshahi had shared his argument in a New York Times op-ed published on Monday and came at a time when the company was fighting the lawsuit. As per the lawsuit, Uber had falsely classified them as contractors. According to the op-ed, Uber CEO had suggested companies relying on gig work should be required by law to create benefit funds that could be used by workers.
In a recent turn of events, McDonalds had sued its ex-CEO Steve Easterbook in Delaware state court to take back his compensation and 26 weeks of severance benefits. According to a Securities and Exchange Commission filing on Monday, it was claimed that the ousted executive had lied during the restaurant’s internal probe into his consensual relationship with an employee. The QSR also claimed that it received an anonymous tip in July, claiming that Easterbook had a physical relationship with an employee despite his denial, which prompted further investigation.
According to tax experts, it is believed that President Donald Trump’s payroll tax deferral plan could spell a bad news for the workers, as payroll tax holiday could result in higher tax bills for employees in 2021. While the lawmakers remained at a deadlock over coronavirus relief efforts last week, Trump had signed a package of four executive orders on 8 August, 2020. Temporary deferral of the employee’s share of the payroll tax for workers who earned no more than $104,000 per year.
Burlington Coat Factory faced two FLSA lawsuits when its assistant store managers claimed that they were deprived of overtime pay. The lawsuits brought by the assistant store managers claimed that while they worked for more than 40 hours in a workweek, they were deprived of overtime as they were misclassified as exempt under state and federal wage and hour laws. The preliminary approval of the settlement would be granted by a New Jersey federal trial judge.
With air travel still not picking up amid the COVID-19 scare, Delta Airlines encouraged its cabin crew to either take a year off or consider other options to avoid involuntary furloughs. According Allison Ausband – senior vice president of Delta in-flight service – the company had confirmed that they would be over-staffed from October into the summer of 2021.
According to the announcement made by the US Equal Employment Opportunity Commission (EEOC), the agency confirmed that it had resumed the issuance of charge closure documents thus ending a temporary suspension due to the COVID-19 pandemic. The announcement was made on 3rd August, 2020. The agency had announced the temporarily suspension on 21 March, 2020 and had said it would only resume it when charging parties would request them.
While there has been a decline in the number of Americans who sought jobless benefits, there is a staggering 31.3 million people who received unemployment checks in mid-July. The current market scenario suggested the labor market was stalling as the country battled a resurgence in new COVID-19 cases that is threatened a budding economy recovery. Another report on the market revealed a surge of 54% in job cuts that were announced by employers in July.
In another incident the Scotts Co. had agreed to pay about $3.1 million as a settlement claim to put a rest to the state and federal wage and hour claims by lawn care workers in various states. According to the lawsuit filed by the workers – who provided lawn care services to the Scotts’ customers – alleged that the employer misapplied the ‘fluctuating workweek’ method in paying the wages. Thus violating the requirements of the Fair Labor Standards Act (FLSA).
Another lawsuit filed, this time to help the workers of New Jersey. In a recent development, a business-backed group had filed a lawsuit that claimed New Jersey’s new law – which required employers to give workers more advanced notice before laying them off – violated the federal law that governed employee benefits.
In a recent development a federal judge approved a settlement of $75,000 between UPS Freight and the US Equal Employment Opportunity Commission(EEOC), which resolved the agency’s claims that UPS demonstrated disparate treatment toward drivers with disabilities who temporarily sought non-driving work. According to the lawsuit, EEOC had also challenged a collective bargaining agreement between UPS Freight and the Teamsters ‘under which drivers with disabilities could be reassigned to non-driving work for medical reasons but with 10% less rates as compared to drivers reassigned for non-medical reasons.
The recent reports by Labor Department reveal disturbing facts. The reports revealed that far fewer hiring as expected in July because companies had exhausted loans to help with wages and new COVID-19 infections flared up across the country. The entire situation supported the view that the nascent economy recovery was faltering. The reports revealed that there had been a sharp decline in the job growth in July, however, there was other data that showed services sector gained momentum as the new orders raced to a record high, but a sharp decline in hiring.
According to the COVID-19 Employer Playbook for a Safe Reopening, issued by the California Department of Public Health, dated 31 July 2020, workforce training is one of the seven elements California employers must include in their preparedness, response, and control plans for coronavirus. The guideline also emphasized that plans must also include identification of areas and job tasks with potential exposure risk and control measures for such risks. The training aims to impart the basic knowledge about COVID-19. The guideline also emphasized that employer education should cover safety measures like social distancing, handwashing, and mask-wearing practices.
In an internal memo, Exxon Mobil Corp informed the employees, it would start suspending the employer match to retirement savings plans beginning in early October. The company shared the information on Tuesday. According to a copy of message, the move is aimed to reduce various costs.
According to a federal judge ruling, various features of the US Department of Labor’s (DOL) regulations implementing the paid-leave provisions of the Families First Coronavirus Response Act (FFCRA) had exceeded the agency’s authority under federal law. The struck-down DOL regulations include the final rule’s work-availability requirement; it’s definition of ‘health care provider’ for the purposes of excluding certain healthcare sector employees from emergency leave benefits among others.
In a recent development related to Walmart Inc, the retail giant had agreed to pay $20 million to settle claims over physical ability tests. The retail giant had come under scanner by the Equal Employment Opportunity Commission (EEOC) over its practice of giving the applicants at grocery warehouses physical ability tests across the country. Thus making it more difficult for women to find a job with Walmart.
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