Workspan Daily News Bytes for Dec. 6, 2024
Workspan Daily
December 06, 2024
Key Takeaways

  • U.S. Hiring Rebounded in November; Jobs Total Beat Estimates
  • DOL Looks to Phase Out Subminimum Wage for Workers with Disabilities
  • University Rescinds Raises After Court’s Decision on OT Final Rule
  • Missouri Senate Introduces Pay Transparency Bill
  • Volkswagen Workers Go on Strike in Germany 
  • Apple Accused of Monitoring Workers’ Personal Devices 
  • Macy’s Employee Hid Up to $154 Million in Expenses 

U.S. Hiring Rebounded in November; Jobs Total Beat Estimates

American jobs creation rebounded in November after a dismal October that was impacted by the Boeing labor impasse and hurricanes in the Southeast.

Total nonfarm payroll employment rose by 227,000 in November and the unemployment rate was 4.2%, the U.S. Department of Labor’s Bureau of Labor Statistics reported on Friday, Dec. 6. Economists had estimated a 207,500 increase in jobs and a 4.1% unemployment rate. The updated October report showed just 36,000 new jobs created.

In November, employment trended up in healthcare, leisure and hospitality, government, and social assistance. Employment increased in transportation equipment manufacturing, reflecting the return of workers who were on strike. Jobs in the retail sector trended downward.

Average hourly earnings for all employees on private nonfarm payrolls rose by 13 cents, or 0.4%, to $35.61. Over the past 12 months, average hourly earnings have increased by 4.0%. In November, average hourly earnings of private-sector production and nonsupervisory employees rose by 9 cents, or 0.3%, to $30.57.

The average workweek for all employees on private nonfarm payrolls edged up by 0.1 hour to 34.3 hours. In manufacturing, the average workweek was steady at 40.0 hours, and overtime edged up by 0.1 hour to 2.9 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls remained at 33.7 hours.

DOL Looks to Phase Out Subminimum Wage for Workers with Disabilities

The U.S. Department of Labor (DOL) announced on Dec. 3 a proposed rule that would phase out the issuance of certificates allowing employers to pay some workers with disabilities less than the federal minimum wage, currently $7.25 per hour, for the work they perform.

The current federal law allows the agency to issue certificates under Section 14(c) of Fair Labor Standards Act, which lets employers pay certain workers less than the federal minimum wage based on the notion that their disabilities hinder productivity. The department proposes to discontinue the issuance of new certificates and establish a three-year phase-out period for employers with existing certificates once a final rule becomes effective.

The DOL’s proposal follows a review of the program, and the new rule would not take effect until a public comment period ends on Jan. 17, 2025.

University Rescinds Raises After Court’s Decision on OT Final Rule

Ohio State University has decided to rescind pay raises given to 306 employees after a federal judge recently struck down a nationwide overtime salary threshold rule, according to the National Public Radio affiliate in Columbus, Ohio.

The U.S. Department of Labor’s April 2024 final rule had mandated that employees (in most cases) who are classified as exempt from overtime by their employer make at least $43,888 in base salary beginning on July 1, 2024 (up from the previous $35,568 annual standard outlined in the DOL’s 2019 final rule) and $58,656 in base salary beginning on Jan. 1, 2025.

According to WOSU Public Media, Ohio State provided raises (totaling more than $2 million in aggregate) to 306 employees to put them over the Jan. 1 threshold and keep them salaried. With the U.S. District Court for the Eastern District of Texas nullifying the DOL rule on Nov. 15, the university opted to reverse its decision to give those employees an additional raise. Affected employees were notified by email on Nov. 22.

According to The Lantern, a Columbus newspaper, the email stated, “We know this is disappointing, and we want to provide a six-week advance notice that will give you time to plan ahead. Given the reversal in the law, we will continue to focus on impact and decisions that consider all of our staff and the university.”

Missouri Senate Introduces Pay Transparency Bill

On Dec. 1, the Missouri Senate introduced a pay transparency bill with an effective date of Aug. 28, 2025. Senate Bill 373, “New Law Relating to Wage Range Inquiries by Employees and Prospective Employees,” is sponsored by Democratic state Senator Steve Roberts. The bill states:

Under this act, no employer shall fail or refuse to provide a wage range to:

  • A prospective employee for a position for which the prospective employee is applying, upon the earliest of the prospective employee’s request or prior to or at the time an offer of compensation is made; or
  • An employee who has applied for a promotion or transfer to a new position if an employee has (a) completed an interview for the promotion or transfer or been offered the promotion or transfer, and (b) requested the wage or salary range or rate for the promotion or transfer.

Nothing in this act prohibits an employer or employment agency from asking a prospective employee about his or her wage or salary expectation for the position for which such person is applying.

The bill proposes fines of between $1,000 and $5,000 for employer violations of this act.

Volkswagen Workers Go on Strike in Germany

As reported by CNN, tens of thousands of Volkswagen workers are taking part in strikes that began Dec. 2 at auto manufacturing plants across Germany, marking the largest walkouts at the company since 2018. Workers at nine of Volkswagen’s 10 German plants are striking, according to labor union IG Metall.

The strikes follow weeks of collective bargaining negotiations during which VW refused to rule out mass layoffs and plant closures. The automaker has said it may need to close plants in Germany for the first time in its 87-year history. In October, the company also said employee pay would need to be cut by 10% to increase cost-competitiveness and future viability.

The fourth round of negotiations will take place on Dec. 9.

Apple Accused of Monitoring Workers’ Personal Devices

According to a Reuters report, Apple has been accused of illegally monitoring its workers’ personal devices and iCloud accounts while also barring them from discussing their pay and working conditions.

The lawsuit was filed in California by Amar Bhakta, who works in digital advertising for Apple. Bhakta claims the company requires employees to install software on personal devices they use for work, which allows Apple to access their email, photo libraries, health and “smart home” data, and other personal information.

The lawsuit also alleges Apple imposes confidentiality policies that prohibit employees from discussing working conditions, including with the media, and engaging in legally protected whistleblowing.

An Apple spokesperson said in a statement the lawyer’s claims lack merit and that its workers are trained annually on their rights to discuss their working conditions.

Macy’s Employee Hid Up to $154 Million in Expenses

Macy’s had to delay the release of its full quarterly results after it discovered an employee intentionally hid up to $154 million of expenses over several years, according to the Associated Press. The retailer was expected to report quarterly results on Nov. 26.

Macy’s said that it identified an issue related to delivery expenses in one of its accrual accounts in early November. An independent investigation and forensic analysis found that a single employee with responsibility for small package delivery expense accounting intentionally made erroneous accounting accrual entries to hide roughly $132 million to $154 million of expenses from the fourth quarter of 2021 through the fiscal quarter ended Nov. 2.

The company added that the person behind the conduct is no longer an employee, and that the investigation didn’t identify involvement by any other worker.

Macy’s anticipates reporting its full third-quarter financial results by Dec. 11.

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