Quick Hits - March 12, 2025 - American Society of Employers - Anthony Kaylin

Quick Hits - March 12, 2025

Federal contractor minimum wage case is set up for Supreme Court:  The U.S. Court of Appeals for the Fifth Circuit has reversed a Texas federal court’s decision that invalidated President Biden’s executive order increasing the hourly minimum wage for employees of federal contractors. The appeals court upheld the minimum wage mandate, concluding it was a valid exercise of presidential authority. The decision sets up a circuit split with the Ninth Circuit, which held that President Biden exceeded his authority under the Procurement Act when he issued the executive order. State of Texas v. Trump, 2025 U.S. App. LEXIS 2485 (Feb. 4, 2025).  Source: Jackson Lewis 2/10/25

New study shows CHROs are worried about healthcare costs:  According to a study by StrategicCHRO, a stunning 85% of CFOs and CHROs participating in a  survey conducted by Chief Executive Group say rising healthcare costs are putting significant pressure on their companies’ bottom lines, adding a non-negligible burden to the mounting expenditures they have spent the past five years trying to reduce.  While only 20% of the 200-plus executives surveyed cite cost-cutting as a top organizational priority this year, 48% acknowledge that they are still under pressure to reduce the financial strain caused by healthcare benefits programs.  It’s not surprising. Half of all respondents say healthcare costs are one of the largest SG&A expenses, and 99% say it is their responsibility as finance and people chiefs to ensure that the employer’s healthcare spending is well-managed. The growing demand from employees for broader and cheaper healthcare benefits adds to the pressure. Three-quarters of CHROs participating in our survey say their workforce is expressing a desire for better coverage—and 80 % of both CHROs and CFOs polled say balancing rising healthcare costs with the benefits expansion employees seek is a constant battle.  Source: StrategicCHRO

Employees with chronic conditions afraid to take time off for medical care:  Seventy-six percent of workers with chronic conditions like hypertension, heart disease, diabetes, and asthma need to manage their conditions during the workday, but more than half haven’t formally shared their conditions with their company, according to the results of a national poll by Harvard T.H. Chan School of Public Health and the de Beaumont Foundation released Feb. 11th.  Of the 1,010 working adults surveyed, one-third say they’ve had to skip medical appointments or delay receiving care to not interfere with work. About half of those with chronic conditions say they didn’t think they could take time off work or take a break to manage their conditions in the past year.  Meanwhile, more than half of workers say they deal with physical chronic health conditions.  Also, one-quarter of workers with chronic conditions say they’ve missed chances for promotions because of their conditions, and one in five say they’ve received bad reviews or negative feedback.  Source: HR Dive 2/13/25

EEOC to take on anti-American bias: LeoPalace Resort, a major hotel and resort in Guam, agreed to pay more than $1.4 million to settle allegations the company provided non-Japanese employees, including workers of American national origin, with less favorable wages, benefits, and terms of employment than workers from Japan in similar or subordinate positions. The settlement was announced a day before new EEOC Acting Chair Andrea Lucas vowed to protect U.S. workers from anti-American bias. EEOC alleged LeoPalace Resort violated Title VII of the Civil Rights Act of 1964, which protects workers against employment discrimination based on national origin. Under the consent decree, LeoPalace Resort also will hire an external monitor to oversee compliance and training, review policies and procedures, conduct audits for EEOC, and potentially reinstate former employees. Source: HR Dive 2/19/25

Do you have a program to recruit boomerangs? The phrase “boomerang employees” – describing workers who return to their former employers after having left their jobs has made its way into the HR lexicon in the last few years, and for good reason. The overriding benefit of bringing back return workers is simple and fairly obvious: familiarity. Among other upsides, boomerang hiring allows employees to return to the fold, so to speak, without much onboarding or training.  The boomerang hiring trend has leveled off since the pandemic peaked and the Great Resignation subsided, says Sibyl McCarley, chief people officer at HireVue. Yet, boomerang employees, she says, can be a critical addition to the workforce – if HR approaches hiring this population strategically. When re-engaging past employees about new opportunities within the organization, HR can leverage 1:1 or mass text campaigns sent from within a company dashboard, McCarley suggests. She also recommends creating dedicated alumni programs or social media groups where former employees can stay connected and updated on company news.  “The best way to keep in touch with former employees, especially with limited resources,” she says, “is to have a positive off-boarding process where you make it clear to people that you value their work and gladly welcome them back if an opportunity presents itself.”  Source: HR Executive 2/13/25

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