Justin Cassera is a student at Harvard Law School.
In today’s news and commentary, Block lays off over 4,000 workers, and new data on H-1B fees comes to light.
On Friday, the CEO of financial technology company Block announced that the firm was laying off more than 4,000 employees, close to 40% of its workforce. Citing gains from artificial intelligence, affected employee roles were deemed superfluous when compared to cheaper and more efficient AI tools. In a letter to shareholders, CEO Jack Dorsey stated, “Intelligence tools have changed what it means to build and run a company . . . A significantly smaller team, using the tools we’re building, can do more and do it better.” Shares of the company rose more than 20% in premarket trading following the news.
On Thursday, a government attorney revealed that only about 70 employers have paid the $100,000 “Trump fee” on foreign workers seeking employment under the H-1B program. The information was disclosed in a court hearing regarding the validity of the fee and, given the small number of businesses who have paid, may undermine arguments that the fee is a revenue-raising measure that requires Congressional approval. In response to this argument raised by the government, counsel for the plaintiffs said that the Supreme Court has “abandoned distinctions between regulatory and revenue raising taxes.” Litigation challenging the fee continues in the Northern District of California and the U.S. Court of Appeals for the D.C. Circuit.
Daily News & Commentary
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August 18
New Trump administration rules will remove the Merit Systems Protection Board's independence; a CFPB union leader suspended alleges retaliation; the National Treasury Employees Union requires its members to pay dues as it battles to stay financially afloat.
August 17
Tensions rise between New York City's teachers' union and City Hall; NLRB judge finds Brooklyn hospital violated labor law.
August 16
New documents show that federal surveillance operations targeted Minnesota labor unions during the ICE surge, and the Equal Employment Opportunity Commission denies halting federal class discrimination complaints.
August 14
Hollywood unions diverge in response to the Paramount-Warner merger saga; Tesla defeats a years-long strike in Sweden, and labor scholars advocate for state sectoral bargaining policy innovation.
August 13
EEOC complaint process expected to harm federal workers; former UAW leaders endorse Fain challenger; Xbox employees protest layoffs.
August 12
Third Circuit affirms dismissal of driver’s bias and retaliation claims against CBS and Teamsters; employment litigation surges in Washington state; MIT Sloan professor argues the rise of “disposable workers” is transforming American employment.