- Virginia Governor Vetoes AI Regulation Bill
- BLS Releases Latest Employer Costs for Employee Compensation Report
- New Study Reveals Top Concerns of Hospitality Workers
- Wells Fargo Health Plan Lawsuit Dismissed
- JP Morgan Switches out ‘Equity’ for ‘Opportunity’
Virginia Governor Vetoes AI Regulation Bill
As reported by The Hill, Virginia Republican Gov. Glenn Youngkin vetoed a bill Monday, March 24, that would regulate artificial intelligence (AI) in the state for applications including employment.
Introduced in January, House Bill 2094 would have created requirements for the development, deployment and use of “high-risk artificial intelligence systems.” Employers in Virginia would have been responsible for “consequential decisions” that influence employment decisions, such as hiring, promotions, terminations, etc. Businesses also would have been on the hook for decisions related to healthcare access and insurance determinations. The concern was that such systems, based on their constructed architecture, could introduce algorithmic bias. The bill would have created civil penalties for noncompliance and been enforced by the Virginia attorney general.
“There are many laws currently in place that protect consumers and place responsibilities on companies relating to discriminatory practices, privacy, data use, libel and more. HB 2094’s rigid framework fails to account for the rapidly evolving and fast-moving nature of the AI industry and puts an especially onerous burden on smaller firms and startups that lack large legal compliance departments,” Youngkin explained in his veto statement.
He went on to say, “The role of government in safeguarding AI practices should be one that enables and empowers innovators to create and grow, not one that stifles progress and places onerous burdens on our Commonwealth’s many business owners. This bill would harm the creation of new jobs, the attraction of new business investment, and the availability of innovative technology in the Commonwealth of Virginia.”
If signed into law, Virginia would have become the second state to enforce comprehensive AI rules. Colorado Gov. Jared Polis signed a bill in May 2024 requiring developers of AI to avoid discrimination in high-risk systems. The law is set to go into effect next year. Meanwhile, a California state senator recently introduced a bill that would bar employers from using AI systems to make hiring, promotion, discipline or termination decisions.
BLS Releases Employer Costs for Employee Compensation Report
The U.S. Department of Labor’s Bureau of Labor Statistics (BLS) reported on March 14 that in December 2024, employee compensation costs for private-sector employers averaged $47.20 per hour worked. Wages and salaries averaged $32.52, while benefit costs averaged $14.68.
In December, total employer compensation costs for state and local government workers averaged $63.46 per hour. Wages and salaries averaged $39.22 and accounted for 61.8% of employer costs, while benefit costs averaged $24.23 and accounted for 38.2%.
The new report put a special focus on the private-sector leisure and hospitality industry. For this sector in December, total employer compensation costs averaged $19.90 per hour worked. Wages and salaries averaged $16.25 and accounted for 81.7% of employer costs, while benefit costs averaged $3.65 and accounted for 18.3%.
A further breakdown in the leisure and hospitality industry included:
- Total employer costs for sales and office occupations averaged $20.47 per hour worked. Wages and salaries averaged $16.66 per hour worked and accounted for 81.4% of employer costs, while benefit costs averaged $3.81 per hour worked and accounted for the remaining 18.6%.
- Total employer costs for service occupations averaged $18 per hour worked. Wages and salaries averaged $14.93 per hour worked and accounted for 82.9% of employer costs, while benefit costs averaged $3.07 per hour worked and accounted for the remaining 17.1%.
- Total employer compensation costs averaged $24.95 per hour worked for full-time workers and $16.57 per hour worked for part-time workers. For full-time workers, employer costs for legally required benefits averaged $1.98 per hour worked and accounted for 8% of employer costs. For part-time workers, employer costs for legally required benefits averaged $1.70 per hour worked and accounted for 10.3% of employer costs.
New Study Reveals Top Concerns of Hospitality Workers
A new hospitality industry case study found that bill paying, food and access to wages were some of the top concerns of workers.
Produced by the Employee Benefit Research Institute (EBRI) and Fourth, a data intelligence platform, the study was conducted in the fall of 2024 and included nearly 70 hospitality industry workers who used an earned wage access (EWA) program during the past 12 months. An EWA program offers employees access to their earned pay before the traditional, scheduled payday.
Some key findings in the report include:
- Paying monthly bills was the most common source of financial stress among study participants (60%), followed by not having enough savings in case of emergency (46%) and job/income security (33%).
- The most common reason cited for access to earned wages was food, reported by 76% of study participants. The second-most common use reported by 47% was rent/housing.
- More than half (53%) of study participants indicated they always worry about their daily expenses.
- The majority (75%) of users accessed earned wages at least on a weekly basis, as 58% indicated they use it several times a week and 17% said they use it once a week.
- Study participants were asked how much of their earned wages they accessed on average. Approximately 41% said they drew $100 or more, 27% said $50 to $99 and another 22% said $25 to $99.
Wells Fargo Health Plan Lawsuit Dismissed
On Monday, March 24, a U.S. District Judge in Minnesota tossed out a lawsuit brought on by four former Wells Fargo & Company employees who claimed that the financial services company mismanaged their health plans and caused employees to overpay for prescription drugs.
According to PlanSponsor, the employees filed the lawsuit (Navarro v. Wells Fargo & Co.) in July 2024 and alleged that Wells Fargo mismanaged the plan’s employee prescription drugs benefits program, resulting in employees paying “substantially more” in premiums and out-of-pocket costs for certain drugs than they would have absent of Wells Fargo’s “mismanagement.”
Wells Fargo denied these allegations and filed a motion to dismiss the case in September 2024 for lack of standing or failure to state a claim upon which relief can be granted.
Judge Laura M. Provinzino agreed with Wells Fargo and said in her ruling that, under the Employee Retirement Income Security Act (ERISA), the plaintiffs’ allegations failed to demonstrate concrete harm.
Provinzino dismissed the lawsuit without prejudice, meaning the plaintiffs can refile the charges.
JP Morgan Switches out ‘Equity’ for ‘Opportunity’
A JPMorgan Chase internal memo stated last week that management is changing the wording of its equitable and diverse workplaces initiative, opting for “diversity, opportunity and inclusion” (DOI) instead of the previous “diversity, equity and inclusion” (DEI).
JP Morgan is just one of the latest large U.S. companies to make significant changes to programs and policies following President Donald Trump’s recent executive orders that target DEI.
“The ‘e’ always meant equal opportunity to us, not equal outcomes, and we believe this more accurately reflects our ongoing approach to reach the most customers and clients to grow our business, create an inclusive workplace for our employees, and increase access to opportunities,” Jenn Piepszak, the company’s chief operating officer, said in the memo.
The DOI organization will continue to report to Thelma Ferguson, she said. However, according to the memo, some of the diversity programs that were centrally managed by the DOI organization will now shift to functions such as HR and corporate responsibility.
“This means some activities, councils or chapters may be consolidated to streamline our process and engagement strategy,” Piepszak said.
The bank also plans to reduce training on these topics.
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