NYC employers must now inform workers of their labor rights
As of July, New York City employers must inform employees of their labor rights, irrespective of immigration status. The "Know Your Rights at Work" law, implemented by the Department of Consumer and Worker Protection, requires employers to distribute and display a poster detailing these rights in multiple languages. Key rights include protection against employer retaliation for exercising legal protections, fair wages, specified work hours, sick days, temporary schedule changes, and unpaid time off. Special provisions are included for workers in fast food, retail, delivery, and other specific sectors. Workers can access information via a QR code on the poster or the city's website, and can call 311 for assistance with any questions or complaints.
See "NYC employers must now inform workers of their labor rights", Ana Valdez Saravia , NBC New York , July 3, 2024
Raids Find Luxury Handbags Being Made by Exploited Workers in Italy
Recent raids in Italy have exposed the exploitation of foreign workers in factories producing luxury handbags for brands like Dior and Armani. Milan prosecutors found these workshops paying a fraction of the retail price for labor, with Dior paying €53 for handbags sold at €2,600 and Armani paying €93 for bags priced at €1,800. The investigation highlighted the inadequate oversight of supply chains by luxury brands, revealing poor working conditions and illegal employment practices. Some workers were paid as little as €2-€3 an hour and subjected to long hours in unsafe environments, living and working in the same facilities. Court rulings criticized the brands for not sufficiently monitoring their supply chains but did not charge them. Instead, suppliers might face charges for worker exploitation. Measures like court administration were imposed on units of Dior and Armani to oversee and rectify these issues. The findings underscore the challenges luxury brands face in ensuring ethical production practices while maintaining the "Made in Italy" label, which is crucial for their market appeal. The situation raises questions about the true cost of luxury goods as well as the responsibility of brands to ensure humane conditions throughout their supply chains.
See "Raids Find Luxury Handbags Being Made by Exploited Workers in Italy", Nick Kostov, The Wall Street Journal , July 3, 2024
Wage growth nears three-year low in June as labor market enters 'different regime'
Pay increases for American workers have continued to decline from post-pandemic highs. New ADP data shows annual wage growth for job stayers at 4.9% in June, the slowest since August 2021, and 7.7% for job changers, down from 7.8% in May. Despite the slowdown, the labor market remains tight. The Bureau of Labor Statistics reported 8.14 million job openings at the end of May, up from 7.92 million in April. ADP's National Employment Report indicated 150,000 private-sector jobs were added in June, slightly down from May's 157,000. Economists are cautious about the labor market's future, with the unemployment rate at a two-year high and rising continuing unemployment benefit claims. Despite low layoffs, the Federal Reserve is monitoring labor market conditions and inflation data closely. The upcoming nonfarm payroll report is expected to show 190,000 new jobs added in June, with unemployment steady at 4%.
See "Wage growth nears three-year low in June as labor market enters 'different regime'", Josh Schafer, Yahoo Finance, July 3, 2024
Overtime Rule Blocked for State of Texas Ahead of July 1 Launch
A federal judge in Texas has granted a preliminary injunction to halt the implementation of the U.S. Labor Department's new overtime rule for the state of Texas, which was set to go into effect on July 1. The rule, aimed at expanding overtime pay eligibility to 4 million workers nationwide, was challenged by Texas, which argued that compliance costs would strain the state budget and lead to job cuts and reduced state services. Judge Sean D. Jordan of the U.S. District Court for the Eastern District of Texas ruled in favor of Texas, citing potential irreparable harm and an imbalance of equities against the rule. The decision temporarily prevents the rule from affecting Texas state employees, although its broader implications for other states and businesses remain uncertain. The new rule intended to raise the salary threshold for overtime eligibility from $35,568 to $43,888 initially, with a further increase to $58,656 by January 1, 2025. The state estimated that fewer than 100 employees would be impacted by the change. The case has been consolidated with a similar challenge from business groups in the Eastern District of Texas.
See "Overtime Rule Blocked for State of Texas Ahead of July 1 Launch", Rebecca Rainey, Bloomberg Law , July 2, 2024
Yeezy, Ye Sued Over Employees’ Abusive Working Conditions
Ye (formerly Kanye West), his company Yeezy LLC, and former chief of staff Milo Yiannopoulos are being sued by eight former employees over claims of a hostile and abusive working environment during the development of an app for Ye's new album, Vultures 2. The lawsuit, filed in the U.S. District Court for the Central District of California, alleges severe bullying, discrimination based on age, race, gender, sexual orientation, and ethnicity, and forced labor. The plaintiffs, including minors, claim they were marginalized, subjected to racial slurs, and forced to work long hours without pay. The lawsuit seeks unpaid wages, overtime, compensatory and punitive damages, and other costs.
See "Yeezy, Ye Sued Over Employees’ Abusive Working Conditions ", Bernie Pazanowski, Bloomberg Law , July 2, 2024
US to Fight Labor Shortage With New Chips Act Worker Program
The Biden administration has initiated a program to bolster the U.S. computer-chip workforce, addressing a labor shortage that threatens domestic semiconductor production. This initiative, part of the 2022 Chips and Science Act, allocates $5 billion to the National Semiconductor Technology Center (NSTC) to fund up to 10 workforce development projects with budgets ranging from $500,000 to $2 million.The NSTC will continue to review additional proposals to determine total spending. The Chips Act also includes $39 billion in grants to boost U.S. chipmaking and $11 billion for semiconductor R&D. Industry estimates predict a shortage of 90,000 technicians by 2030, which could hinder new factories. Michael Barnes of Natcast emphasized the need to develop a domestic workforce to support the industry's growth. Since the Chips Act's inception, over 50 community colleges have expanded semiconductor programs. Major companies like Intel, TSMC, Samsung, and Micron have committed significant workforce funding. The Commerce Department also announced a $6.7 million grant to Rogue Valley Microdevices for a new factory in Florida.
See "US to Fight Labor Shortage With New Chips Act Worker Program", Mackenzie Hawkins, Yahoo Finance, July 2, 2024
California voters to weigh proposal to ban forced prison labor in state constitution
In November, California voters will decide on a constitutional amendment to eliminate the exemption allowing involuntary servitude as punishment for a crime. The proposed change, approved by the state Legislature, aims to prohibit forced prison labor, where incarcerated individuals are often paid less than $1 an hour for tasks such as fighting fires and cleaning. Authored by Democratic Assemblymember Lori Wilson, the amendment seeks to ensure that incarcerated individuals are not exploited and to prioritize rehabilitative services. The proposal is part of the California Legislative Black Caucus's package of reparations bills addressing the state's history of racism and discrimination. Despite previous opposition from Governor Gavin Newsom's administration due to potential costs, the measure has gained legislative support. Similar amendments have been adopted in states like Alabama and Oregon, while efforts to amend the U.S. Constitution have stalled. Proponents argue that the reform is necessary to end the legacy of involuntary servitude and promote dignity and fair wages for all workers in California.
See "California voters to weigh proposal to ban forced prison labor in state constitution", Sophie Austin, The Associated Press, June 28, 2024
US Supreme Court Ruling Curbing Agency Powers Could Hobble Labor Board
The U.S. Supreme Court's recent ruling abolishing "Chevron deference" could significantly curtail the National Labor Relations Board's (NLRB) power to enforce labor laws. This 6-3 decision removes the requirement for courts to defer to federal agencies' interpretations of ambiguous laws, shifting the authority to interpret such laws to the courts.
Experts suggest this change will lead to more frequent overturning of NLRB decisions, complicating the board's ability to adapt labor laws to new workplace conditions. Critics argue this will hinder the NLRB's effectiveness in protecting workers' rights, while supporters believe it will prevent drastic policy shifts with changes in the board's political makeup.
The ruling could embolden federal judges to challenge NLRB decisions, disrupting the board's historically high success rate in appeals and altering the enforcement of labor laws in the U.S.
See "US Supreme Court Ruling Curbing Agency Powers Could Hobble Labor Board", Thomson Reuters, U.S. News & World Report, June 28, 2024
California lawmakers approve changes to law allowing workers to sue employers over labor violations
In a landmark decision, the California Legislature has passed bills amending the 20-year-old Private Attorneys General Act (PAGA), which allows employees to sue employers over labor violations. These reforms emerged from a collaborative agreement between Governor Gavin Newsom, lawmakers, business groups, and labor leaders, effectively preventing a ballot measure that sought to repeal the law. Key changes include lowering penalties for minor infractions, increasing them for severe violations, and allowing businesses with fewer than 100 employees to correct violations before penalties are enforced. The revised law also adjusts the allocation of fines, increasing the share that goes directly to affected workers from 25% to 35%. Governor Newsom praised the compromise as a significant achievement in his State of the State address, highlighting the complexity of the issue and the successful resolution. The bills passed unanimously in both the state Senate and Assembly and are expected to take effect immediately upon Newsom's signature.
See "California lawmakers approve changes to law allowing workers to sue employers over labor violations", The Associated Press, ABC7, June 28, 2024
Hollywood Workers Union Reaches Pay, AI-Use Deal With Top Studios
The International Alliance of Theatrical Stage Employees (IATSE) announced a tentative three-year agreement with major studios, including Disney and Netflix, represented by the Alliance of Motion Picture and Television Producers (AMPTP). The deal includes pay hikes of 7%, 4%, and 3.5% over the term and introduces safeguards against the use of artificial intelligence (AI). Specifically, it ensures that no employee will be required to provide AI prompts that could lead to job displacement. This follows a similar agreement reached by the SAG-AFTRA actors union in late 2023, which also included pay raises, streaming bonuses, and AI usage protections. IATSE member are set to ratify the deal.
See "Hollywood Workers Union Reaches Pay, AI-Use Deal With Top Studios", Rishabh Jaiswal and Savio D'Souza, U.S. News & World Report, June 26, 2024
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