Four-year degrees still worthwhile: The number of good jobs will grow substantially by 2031, and the majority of them will require at least a four-year degree, Georgetown University’s Center on Education and the Workforce predicted in a new report. Researchers expect the number of good jobs for workers with a bachelor’s degree or higher to increase by over 15 million from 2021 to 2031, according to the report. It defines good jobs as those offering a minimum of $43,000 per year and a median annual salary of $74,000 in 2022 dollars for workers aged 25 to 44.  Meanwhile, the center predicted that the good jobs available to workers with a high school diploma or less will decline by almost 600,000 during that period. The report estimates that 62% of positions in 2031 will meet the criteria to be considered good jobs. That would be an increase of 3 percentage points from 2021. The report offers colleges a way to underscore their value at a time when one-third of U.S. adults report having little to no confidence in higher education.  But institutions should still expect to increase their financial accessibility.  Source:  HR Dive 7/30/24

Employers’ headhunting has become important tool for recruitment: About one in four U.S. employees (24%) have been recruited by another organization in the past three months, up from Gallup’s initial benchmark of 19% in 2015.  These elevated recruitment rates have held steady in recent years. Employees are just as likely to be recruited now as they were during the employee-friendly “great resignation” labor market of 2021. Despite market shifts, finding top talent to fill important positions remains a fundamental challenge and focus for business leaders. To bolster their efforts, recruiters are increasingly turning to poaching employees, targeting workers from other organizations who are not actively looking or even watching for new job opportunities. These employees have a nearly one in five (19%) chance of being recruited within a three-month period, a 27% increase from 2015. Among U.S. employees recently recruited, 50% reported that organizations had learned about them through an online professional networking site, such as LinkedIn, up from 39% in 2015. Employees who report being recently recruited through online professional networking sites (61%) and job sites and search firms (70%), such as Indeed, are significantly more likely to leave their organization than those recruited through other methods.  Source: Workplace 7/31/24

Payday apps may be considered loans: On July 18, 2024, the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) issued a proposed interpretive rule (the “Proposed Rule”) purporting to clarify the application of the Truth in Lending Act (“TILA”) and Regulation Z to earned wage access (“EWA”) programs. Unlike other interpretive rules issued by the Bureau, including the interpretive rule on the application of certain TILA and Regulation Z “credit card” provisions to buy now, pay later products, the Proposed Rule is styled as a proposal and request for comment that will not become effective until after the CFPB considers comments and issues a final interpretive rule.  Earned wage access is a service that allows workers to obtain wages that they have earned, but have not yet been paid, prior to the worker’s regularly scheduled payday. Without getting too technical, the EWA may be considered a loan subjecting itself to the CFPB rules and requirements.   For employers thinking of using these apps, contact legal counsel before implementation.  Source: Mayer Brown 7/23/24

U.S. DOL wants employers to report on payments made to employees in union activities: Employers have long been required by the Labor Management Reporting and Disclosure Act (LMRDA) to report the amount of money spent on the use of “persuaders” during union campaigns, but now the Department of Labor’s Office of Labor Management Standards (OLMS) has proposed a new rule, currently under review by the Biden administration, modifying the rules regarding employer disclosures. In doing so, the Biden administration is seeking to require employers to disclose at least part of the compensation paid to their own employees, to the extent those individuals engage in “reportable” activities. OLMS, which oversees and enforces these reporting obligations, says employers now also may be required to report any portion of an employee's compensation, or the “split” of income received by its own employees to the extent any portion was attributable to time spent performing “persuader-like” activities. This would even include “the pro rata shares of the supervisor’s wages that were spent undertaking the reportable activity.” Willfully failing to make these disclosures may subject an employer to criminal penalties including fines of up to $10,000 and imprisonment.  Source: Barnes & Thornburg LLP 7/31/24

Massachusetts is the newest state with pay transparency requirements:  Effective July 31, 2025, employers with at least 25 employees in Massachusetts will need to provide pay range information directly to employees and applicants, upon request. This will include:

• The pay range for an employment position on all job postings.  The pay range is defined as the annual salary range or hourly wage range that the covered employer reasonably and in good faith expects to pay for such position at that time. 
   
• Disclose the pay range for a particular employment position to an existing employee who is offered either a promotion, transfer, or new position with different job responsibilities.
   
• Provide the pay range for a particular employment position to an employee holding said position, or to an applicant for such position, upon receipt of such request.

The posting requirements are broadly defined to cover “any advertisement or job posting intended to recruit job applicants for a particular and specific employment position,” including posts by the employer and third parties.  Also, no later than Feb. 1, 2025, employers with at least 100 employees will need to file a wage data report to the state secretary. The wage data report will include workforce demographic and pay data categorized by race, ethnicity, sex, and job category. The aggregated data will be published and available on the Massachusetts Executive Office of Labor and Workforce Development’s website.  Source:  Jackson Lewis 8/2/24