- U.S. Economy Added 254,000 Job in September
- EEOC Sues Wabash National for Pregnancy Discrimination
- Massive Port Strike Ends, with Tentative Agreement on Wages
- California Governor Signs Bill on IVF and Infertility Treatment Coverage
- Industry Groups Seek Delay of IRS Required Minimum Distribution Changes
- CVS Health to Lay Off Nearly 2,900 Employees
U.S. Economy Added 254,000 Jobs in September
Employers added an estimated 254,000 jobs in September, according to data released Friday by the Bureau of Labor Statistics. That’s a much higher tally than August’s monthly total (which was upwardly revised to 159,000) and it smashed economists’ expectations for a 140,000-job gain, according to CNN.
The unemployment rate dropped to 4.1% from 4.2%, the BLS report showed.
Robust service-sector hiring — particularly across the healthcare (+71,700) and leisure and hospitality (+78,000) industries — drove last month’s job gains. Service industries accounted for 202,000 of the monthly gains.
Although the construction sector added 25,000 jobs last month (a pace that exceeded pre-pandemic averages), the manufacturing sector, which employs close to 13 million people, downshifted very slightly and logged a loss of 7,000 jobs.
EEOC Sues Wabash National for Pregnancy Discrimination
The U.S. Equal Employment Opportunity Commission (EEOC) filed a lawsuit against Wabash National Corp., a nationwide producer of semi-trailers and other commercial trucking equipment, stating the company violated federal law when it failed to accommodate an employee’s known pregnancy-related limitation and subjected her to an unlawful medical inquiry. It is the first federal lawsuit claiming violation of the new Pregnant Workers Fairness Act, which went into effect June 18.
According to the EEOC’s lawsuit, Wabash denied a pregnant employee’s accommodation request to transfer to a role that did not require lying on her stomach. Instead, the company forced her to take unpaid leave and ultimately gave her no choice but to return to her position without modification. The company’s decision to deny the accommodation request caused her to fear for the health of her pregnancy, the EEOC said, and she was forced to resign while nearly eight months pregnant.
In response to her request, the company also unlawfully required medical documentation and failed to accommodate even though it could have provided changes similar to those the company provides for non-pregnant workers with similar limitations, according to the suit.
Massive Port Strike Ends, with Tentative Agreement on Wages
As reported by the Associated Press, the International Longshoremen’s Association, which represents 45,000 striking U.S. dockworkers at East and Gulf coast ports, reached a deal Thursday, Oct. 3 to suspend a three-day strike until Jan. 15 to provide time to negotiate a new contract.
The temporary end to the strike came after the union and the U.S. Maritime Alliance, which represents ports and shipping companies, reached a tentative agreement on wages, the union and ports said in a joint statement. The Associated Press reported the ports sweetened their wage offer from about 50% over six years to 62%. Any wage increase would have to be approved by union members as part of the ratification of a final contract.
According to CNN, this was the first strike at these ports since 1977. Before the strike ended, the union was seeking a $5-an-hour pay increase each year over six years, with top pay climbing from $39 an hour to $69, equating to a 77% pay hike over the life of the contract.
California Governor Signs Bill on IVF and Infertility Treatment Coverage
California Gov. Gavin Newson signed legislation into law Sunday, Sept. 29, that requires certain insurance providers to cover costs for infertility treatment and in vitro fertilization (IVF), his office announced in a web post.
According to Newsom’s news release, the law requires large group healthcare service plan contracts and disability insurance policies to provide coverage for infertility and fertility services, including IVF. The bill also requires these companies to cover a maximum of three completed oocyte retrievals.
The requirements would be for healthcare service plans issued, adjusted or renewed on or after July 1, 2025, according to USA Today.
Industry Groups Seek Delay of IRS Required Minimum Distribution Changes
Several industry groups, including the American Retirement Association (ARA) and the American Benefits Council, have requested that the effective date of recently proposed regulations concerning required minimum distribution (RMD) changes made by the SECURE 2.0 Act be delayed and that certain provisions be clarified.
The regulations proposed by the Internal Revenue Service on July 19 included a provision that clarified the intent of SECURE 2.0 that those born in 1959 would have an RMD age of 73 and another that said voluntary Roth distributions would not count toward the RMD annual amount for a participant.
The proposals will take effect on Jan. 1, 2025, under a good-faith compliance standard even though they may not be finalized by then.
The ARA has urged the IRS to make the election automatic but revocable in both cases so it is easier for plans to implement, and so participants have a fair opportunity to elect a different option. The American Benefits Council described the proposals as “unworkable” in a letter sent to the IRS.
CVS Health to Lay Off Nearly 2,900 Employees
As reported by Reuters, CVS Health said Tuesday, Oct. 1, it would lay off about 2,900 employees, representing less than 1% of its workforce, to cut costs.
The reductions, part of the company’s previously announced plan, would primarily impact corporate roles and not frontline jobs in stores, pharmacies and distribution centers, it said.
Last year, the company eliminated about 5,000 non-customer-facing roles as part of its restructuring plan.
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