The Department of Labor released new guidance that makes it easier for companies to hire unpaid interns. As we discussed here, the dividing line between ‘employee’ and ‘intern’ has been contested. Finding Obama-era DOL guidance too strict, the Second Circuit in 2016 created a ‘primary beneficiary’ test for analyzing the worker-employer relationship: where the worker benefits more, the worker is an intern; where the employer benefits more, the worker is an employee. The DOL has now adopted this ‘primary beneficiary’ test and rescinded the Obama-era guidance, leaving unpaid internships at for-profit companies on strong footing.
In response to shareholder activism by Arjuna Capital, Citigroup has released data on the gender and racial pay gaps in the company’s U.S., UK, and German workforces. The data shows women making 99% of what men do and employees of color making 99% of what their white coworkers do. The data compares workers with the same title and responsibilities; it doesn’t reflect the different demographics at different levels in the company. Citi announced plans to increase pay for women and minorities in response to these findings. More data describing Citigroup’s UK workforce will follow before April 2018, when new annual reporting requirements kick in.
Where the Obama Administration audited employer paperwork to identify unauthorized workers, the Trump Administration has sent ICE officers to workplaces like 7-Eleven. The New York Times notes that this reprise of Bush-era raids creates fear and compromises workplace organizing. “It’s not motivating people to self-deport,” in the words of Mariela Martinez, organizing director of the Los Angeles Garment Worker Center. “It’s motivating people to not use their labor rights.”
Equal pay and paid sick leave are two key priorities for incoming New Jersey Governor Phil Murphy. The Washington Post reports on his plans to make the state a progressive beacon, including support for immigrants and legalization of marijuana.
Daily News & Commentary
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July 30
Supreme Court denies Cemex's bid to pause bargaining order; employers remain exposed to Title VII suits over English-only rules; Texas judge declines to enjoin NLRB proceeding despite unconstitutional removal protections.
July 29
NYC public defender strikes spread to the Bronx; NLRB drops challenge to New York labor law after Amazon wins its case; new data shows appointments of women and minorities to S&P 500 boards at lowest level in a decade.
July 28
DOJ drops charges against SEIU California president; Massachusetts nurses file ULP against hospital; Democratic lawmakers look to remove damage caps in employment discrimination cases
July 27
NY Port Authority proceeds to trial on PUMP Act case; First Circuit denies stay in order vacating H-1B visa fee; DC Circuit panel denies First Amendment claim over disclosure of confidential emails in allegation of prison's COVID-19 mismanagement.
July 24
EEOC drops request for UPenn's Jewish staff; Starbucks defeats mail-in ballots; and Mamdani appoints Lina Khan.
July 23
Ninth Circuit affirms ban of transphobic books in school; leading demographer warns of impending labor shortage.