Acting Secretary of Labor Julie Su recently convened a meeting with business leaders, investors, workers, and worker advocates to discuss the benefits of worker voice and the changing attitudes of the industry and investor community towards workers. The meeting aimed to promote pathways to good jobs, equity, and economic empowerment [fb7c1bff].
During the meeting, participants engaged in conversations about strategies for building and recognizing worker voice, as well as the importance of upholding fundamental rights in the workplace. Representatives from Microsoft, New York City Comptroller Brad Lander, the AFL-CIO, and other business and labor leaders were in attendance. The event also explored new data on worker sentiment and models for embedding worker voice [fb7c1bff].
This meeting reflects the ongoing efforts to empower workers and create a more inclusive and equitable workplace. It highlights the changing perspectives on work and the increased worker organizing happening in the United States. The Department of Labor is committed to supporting workers in this moment of change and ensuring that their voices are heard [fb7c1bff].
Julie Su, the acting U.S. Secretary of Labor, is facing criticism for her handling of funds during her tenure as California's secretary of labor. Under Su's leadership, California lost $30 billion in federal COVID-relief funds to fraudsters, including international crime gangs. Su's nomination as Secretary of Labor is currently stalled in the Senate due to objections from California congressman Kevin Kiley, who claims that Su's negligence cost taxpayers over $30 billion in fraudulent unemployment claims. Despite these objections, President Biden has appointed Su as the acting secretary of labor [7a345f3a].
The mismanagement of funds under Su's watch has had a significant impact on the victims who suffered as a result. These individuals, who are not actors, have experienced real and lasting harm due to the mishandling of funds. It is important that accountability is upheld and that measures are taken to prevent such mismanagement in the future [7a345f3a].
Kimberly Hudson, a senior branch office administrator with Edward Jones, recently traveled to Washington, D.C. to meet with U.S. legislators and advocate for issues important to individual investors and business owners. Hudson serves as the Kentucky chair on the Grassroots Task Force, a volunteer group of more than 100 Edward Jones financial advisors, registered branch associates, and branch office administrators. The Task Force advocates for expanding financial education in public high schools and building financial security for pre-retirees and retirees. Hudson held meetings with Congressmen Rogers, Barr, Guthrie, McGarvey, Massie, and Comer, as well as Senators McConnell and Paul [5e8739ed].
April's jobs report data reveals an addition of 175,000 jobs added to the US economy, below estimates of 240,000. Annual wage growth also slowed. Acting Labor Secretary Julie Su discusses the steps the Biden administration is taking to aid the American worker, including new legislation to enable accessibility to overtime pay. Secretary Su states that April's job growth is a continuation of the strong, steady job growth seen since President Biden came into office. The new overtime pay rule aims to restore fair pay for a hard day's work and ensure that millions more Americans who work over 40 hours in a week receive the pay they deserve. Secretary Su also addresses the obstacles preventing women from rejoining the US labor market full-time [7b44ac77].
The Department of Labor has issued a new overtime regulation that raises the salary threshold for employees classified as executive, administrative, or professional. The first increase will take effect on July 1, 2024, raising the annual salary from $35,600 to $44,000. On January 1, 2025, the salary threshold will increase to $58,600 per year. The regulation also includes an automatic escalator clause to reset it every three years. The increases for employees classified as highly compensated will also take place in two steps. The HCE annual salary threshold will go from $107,400 to $132,900 on July 1, and to $151,200 on January 1, 2025. The regulation will force employers to either increase an employee's salary to maintain their exempt status or reclassify them as non-exempt. The previous regulation proposed by the Obama administration, which included a salary threshold of over $50,000, was struck down by a federal judge. The Trump administration then finalized a regulation that increased the salary threshold to a little more than $35,000. The new regulation will add to the burdens of employers, particularly small businesses, municipalities, and charitable nonprofits. The regulation may also jeopardize worker-employee flexibility and the ability to work remotely. The regulation is expected to face legal challenges [670b8d12].
A federal judge in Texas has temporarily blocked a Biden administration rule that would extend mandatory overtime pay to 4 million salaried U.S. workers. U.S. District Judge Sean Jordan ruled that the U.S. Department of Labor rule improperly bases eligibility for overtime pay on workers' wages rather than their job duties. The rule, set to go into effect on Monday, would require employers to pay overtime premiums to salaried workers who earn less than $1,128 per week when they work more than 40 hours in a week. Texas, led by Republican Attorney General Ken Paxton, filed a lawsuit arguing that the rule violates federal law by conditioning overtime exemptions primarily on workers' pay rather than their duties. The Labor Department can seek review of the ruling in the 5th U.S. Circuit Court of Appeals [876f5ae1].
This development poses a major blow to the Biden administration in providing better protection for workers and ensuring salaried employees get paid for working overtime.