OBAMA SAYS MORE JOBS PROGRAMS ON THE WAY / SAYS PRIVATE SECTOR JOBS NOT GROWING FAST ENOUGH
More from the Emeritus Newsroom- Responding to the release of more troubled employment numbers, Presidnet Obama rounded up his political advisors for a speech in the White House Rose Garden to promote more jobs programs. Obama admitted even with increased job creation so far in the private sector, it was not enough to absorb the loss of temporary government jobs, such as the 2010 Census.
Obama explained:
"As I’ve said from the start, there’s no quick fix to the worst recession we've experienced since the Great Depression. The hard truth is that it took years to create our current economic problems, and it will take more time than any of us would like to repair the damage. Millions of our neighbors are living with that painfully every day. But I want all Americans to remind themselves there are better days ahead".
Obama called for action on a job initiative that includes a $30 billion dollar loan program for small businesses. Obama said he would have more details and would answer more questions at a news conference scheduled for next Friday.
The President also outlined the concepts of the proposal and that it will not add to the deficit.
"Up until this past May, we were not only waiving fees for entrepreneurs who took out Small Business Administration loans, we were also encouraging more community banks to make loans to responsible business owners. These steps are part of the reason about 70,000 new Small Business Administration loans have been approved since I took office. And I thank Karen Mills for the outstanding job she’s been doing as Administrator of the Small Business Administration.
We’ve also been extending -- fighting to extend these loan enhancements with a small business jobs bill. It’s a bill that will more than double the amount some small business owners can borrow to grow their companies. It will completely eliminate capital gains taxes on key investments, so small business owners can buy new equipment and expand. And it will accelerate $55 billion in tax cuts for businesses, large and small, that make job-creating investments in the next 14 months.
And keep in mind, it is paid for. It will not add one dime to our deficit. So, put simply, this piece of legislation is good for workers; it’s good for small business people; it’s good for our economy. And yet, Republicans in the Senate have blocked this bill -- a needless delay that has led small business owners across this country to put off hiring, put off expanding, and put off plans that will make our economy stronger".
Text of President Obama's statement, click here. 09/03/2010
UNEMPLOYMENT RISES WITH GOVERNMENT JOB CUTS / PRIVATE SECTOR ADDED 67,000 JOBS / REVISIONS ADD MORE JOBS FROM JUNE AND JULY
More from the Emeritus Newsroom- The private sector added 67,000 jobs in August, which was offset by more than 121,000 federal government jobs which were cut, mostly temporary census jobs. In addition, states and other local governments shed jobs due to new fiscal year budget cuts. The national unemployment increased in August by one tenth per cent to 9.6%, signaling more evidence that private sector employer remain cautious due to lack of consumer spending out of fear of losing jobs or due to unemployment.
President Obama says the report clearly shows that private sector employment continues to rise to take over temporary jobs tied to the stimulus or census. Obama pointed out that revised figures from june show July private sector job gains were 107,000, up from the previously reported 71,000. He said, June figures, previously reported at 31,000 private sector jobs added, were in fact, 61,000.
Other shifting of August job statistics included a rising number of those marginally attached to the job market as more long term unemployed outlasted their benefits, still are jobless but remain discouraged that nothing will materialize for them. The number of those considered long term unemployed, still receiving benefits, declined to 42% from earlier months when 44-46% of the total unemployment benefits were spent on those unemployed 27 weeks or more, the benchmark for being considered long term unemployed.
Department of Labor press release, click here . Commentary by the Commission of the Bureau of Labor Statistics, click here. 09/03/2010
INCREASE IN FORECLOSURES EXPECTED / WEEKLY INITIAL JOBLESS CLAIMS ARE DOWN
More from the Emeritus Newsroom- The Mortgage Bankers Association announced today that the number of homes in some stage of foreclosure dropped in the second quarter to 9.85% of all outstanding home loans. However, the MBA sees more trouble on the horizon. The group says the number of short term delinquencies has been going up since the first of the year, meaning that an increase of foreclosures is expected later this year and early next. The MBA blames high unemployment for much of the problem since those who are jobless have fewer options for refinancing, even with the government's "Making Home Affordable" refinancing program. According to Jay Brinkmann, MBA’s chief economist,
“Ultimately the housing story, whether it is delinquencies, homes sales or housing starts, is an employment story. Only when we see a consistent increase in employment will we see an increase in sales and starts, and a sustained improvement in the delinquency numbers. Until we see the increase in the number of households that comes with an increase in the number of paychecks, all measures of the health of the housing industry will continue to be weak”.
The MBA report found the percent of loans one payment behind had peaked in the first quarter of 2009 at 3.77 percent and fell to 3.31 percent by the end of 2009. Unfortunately that rate has now risen to 3.51 percent. The causes are likely two-fold. First, 30-day delinquencies are very closely tied to first-time claims for unemployment insurance. The number of first-time claims fell through most of 2009 but leveled off in 2010 and have started to rise again. This increase in unemployment directly impacts mortgage delinquencies. Second, some percentage of the loans modified over the last several years have become delinquent again because those borrowers, by definition, have weak credit.
On the positive side this week, initial claims for unemployment dropped by a larger amount than expected. The Labor Department says seasonally adjusted initial claims last week through Saturday were 473,000, a decrease of 31,000 from the previous week's revised figure of 504,000. The 4-week moving average was 486,750, an increase of 3,250 from the previous week's revised average of 483,500.
The advance seasonally adjusted insured unemployment rate was 3.5 percent for the week ending Aug. 14, a decrease of 0.1 percentage point from the prior week's revised rate of 3.6 percent.
The advance number for seasonally adjusted insured unemployment during the week ending Aug. 14 was 4,456,000, a decrease of 62,000 from the preceding week's revised level of 4,518,000. The 4-week moving average was 4,508,750, a decrease of 28,000 from the preceding week's revised average of 4,536,750.
The fiscal year-to-date average of seasonally adjusted weekly insured unemployment, which corresponds to the appropriated AWIU trigger, was 5.001 million.
Most experts agree the weekly initial claims count needs to settle between 300-400,000 to have a net gain of employment.
Full text of MBA press release, click here. Full text of Department of Labor press release, click here. 08/26/2010
INITIAL JOBLESS CLAIMS REACH 500,000 FOR FIRST TIME SINCE NOVEMBER / CONFERENCE BOARD SAYS ECONOMY GREW SLIGHTLY IN JULY
More from the Emeritus Newsroom- For the fifth week in a row, the number of initial jobless claims, increased. The Labor Department reported today that initial jobless claims for the week of August 14th was 500,000, an increase of of 12,000 from the previous week. Also, the four week average of first time filings also went up by 8,000 to be the highest since December. Meanwhile, the Conference Board announced today their data shows the economy grew in July and will continue slow growth. The Conference Board's Leading Economic Index shows the U.S. increased 0.1 percent in July to 109.8, following a 0.3 percent decline in June, and a 0.5 percent increase in May.
“The indicators point to a slow expansion through the end of the year,” says Ken Goldstein, economist at The Conference Board. “With inventory rebuilding moderating, the industrial core of the economy has moved to a slower pace. There appears to be no change in the pace of the service sector. Combined, the result is a weak economy with little forward momentum. However, the good news is that the data do not point to a recession.”
Says Ataman Ozyildirim, economist at The Conference Board: “The economy should continue expanding, albeit slowly. The LEI is growing at its slowest pace since mid-2009 and it has been essentially flat since March. However, the index is still well above pre-recession levels and the CEI remains on a rising trend that began in late 2009. All four coincident indicators have risen over the last six months, with July’s gain in industrial production offsetting the recent weakness in employment.”
Full text of Labor Department press release, click here. Conference Board press release, click here. 08/19/2010
U-S DEPARTMENT OF LABOR ANNOUNCES $22 MILLION FOR GRANTS TO HIRE DISABLED YOUTH AND ADULTS
More from the Emeritus Newsroom- The Employment and Training Administration (ETA), in coordination with DOL's Office of Disability Employment Policy (ODEP), announces the availability of approximately $22 million for cooperative agreements to state Workforce Investment Act (WIA) administering entities. This funding is being used to implement the Disability Employment Initiative (DEI), under which the Department intends to make 6 to 10 grant awards that are designed to: 1) improve educational, training, and employment opportunities and outcomes of youth and adults with disabilities who are unemployed, underemployed and/or receiving Social Security disability benefits; and 2) help these individuals with disabilities find a path into the middle class through exemplary and model service delivery by the public workforce system. Full text of press release from the U-S Department of Labor, click here. 08/18/2010
B-P TO PAY $50 MILLION FINE FOR DEADLY TEXAS REFINERY ACCIDENT / FEDS CLAIM COMPANY FAILED TO FIX PROBLEMS
More from the Emeritus Newsroom- The U-S Occupational Safety and Health Administration has levied a $50.6 million fine stemming from the 2005 explosion at its Texas City, Texas, refinery that killed 15 workers and injured 170 others. The agreement resolves failure-to-abate citations issued after a 2009 follow-up investigation. In addition to paying the record fine, BP has agreed to take immediate steps to protect those now working at the refinery, allocating a minimum of $500 million to that effort. The agency claims that, in September 2005, OSHA cited BP for a then-record $21 million as a result of the fatal explosion at its Texas City refinery in March of that year. Upon issuance of the citations, the parties entered into an agreement that required the company to identify and to correct deficiencies. In a follow-up investigation in 2009, OSHA found that although the company made many changes related to safety, it failed to live up to several extremely important terms of that agreement. As a result, OSHA cited BP for "failure to abate" violations with penalties totaling a record $50.6 million that BP now has agreed to pay. *
During that same 2009 investigation at the Texas City refinery, OSHA also identified 439 new willful violations and assessed more than $30 million in penalties. Litigation before the Occupational Safety and Health Review Commission regarding those violations and penalties is ongoing and is not impacted by today's settlement. Department of Labor press release, click here. 08/13/2010
PRESIDENT SIGNS MANUFACTURING ENHANCEMENT ACT OF 2010 / DESINGED TO BOOST MANUFACTURING JOBS IN U-S
More from the Emeritus Newsroom- Saying the manufacturing sector has gained 183,000 jobs this year, President Obama says the country is on track for more. Today he signed the Manufacturing Enhancement Act of 2010 in order to boost manufacturing in the U-S without creating more tensions among trading partners abroad.
Obama outlined the working of the new act.
"To make their products, manufacturers -- some of whom are represented here today -- often have to import certain materials from other countries and pay tariffs on those materials. This legislation will reduce or eliminate some of those tariffs, which will significantly lower costs for American companies across the manufacturing landscape -– from cars to chemicals; medical devices to sporting goods. And that will boost output, support good jobs here at home, and lower prices for American consumers".
And the President defended recent legislation that included more incentives for companies that invest at home.
"That’s why we fought for and passed tax breaks for companies that are investing here in the United States rather than companies that are keeping profits offshore. That’s why we closed loopholes that encourage corporations to ship American jobs overseas. That’s why we’re enforcing our trade laws -- in some cases, for the very first time. That’s why we told America’s automakers that if they made the tough decisions required to compete in the future, that America would stand by them. And that’s why we’re investing in a clean energy industry and the jobs that come with it -– jobs that pay well and carry America to a cleaner, more secure and more energy-independent future".
Full text of speech and White House signing ceremony, click here. Video of President Obama speech and signing of the Manufacturing Enhancement Act of 2010. 08/11/2010
DEFENSE DEPARTMENT CUTTING THOUSANDS OF JOBS
More from the Emeritus Newsroom- The potential effects of Defense Department cuts mean as much, perhaps more, for private contractors than for defense department employees. Last year, private contractors made up nearly 40% of the Department of Defense workforce, without counting those in Iraq and Afghanistan.
"Our headquarters and support bureaucracies . . . have swelled to cumbersome and top-heavy proportions, grown over-reliant on contractors, and grown accustomed to operating with little consideration to cost", said Defense Secretary Robert Gates in a news conference today.
Gates proposes cutting:
The Business Transformation Agency. The agency – with 360 people and a budget of $340 million. Operations will be transferred to other agencies.
Fifty General and Admirals along with 150 top civilians. Freezing the number of top positions in the DOD.
Eliminating the position of Asst. Secretary of Defense for Network Integration and some functions of the Joint Staff Command, Control, Communications and Computer Systems.
The Joint Forces Command which includes about 2,800 military and civilian personnel which costs about $240 million a year.
10% of the budget for intelligence advisory and assistance contracts.
Gates said those employees displaced by the cuts would be given assistance through various programs to find other employment.
Reaction to the proposed cuts has been swift.
Most of the cuts will affects areas of northern Virginia, from the Pentagon to Quantico in Prince William County, along the I-95 corridor. The Joint Forces Command is in Hampton Roads, Virginia, which is part of the military heavy Norfolk metro area.
The cuts are by no means a done deal. The administration likely to endorse most, if not all. Union workers are certain to mount an opposition campaign. And one Norfolk area newspaper claims U.S. Rep. Randy Forbes and other opponents are working on several challenges to Gates' plan.
Department of Defense press release, click here. Federal Times article, click here. CSPAN video of Gates news conference, August 9 2010, click here. 08/09/2010
AGE BIAS SUIT AGAINST GOOGLE GETS GREEN LIGHT FROM COURT
More in this article from Reuters News Service, click here- 08/09/2010
UNEMPLOYMENT RATE UNCHANGED / LABOR FORCE PARTICIPATION RATE DOWN
More from the Emeritus Newsroom- The July 2010 employment report, released today, brought more lost jobs...131,000. With private sector payroll up 71,000 jobs, the unemployment rate in the U-S remained at 9.5%. Payroll employment declined by 131,000 in July, largely reflecting a decrease in the number of temporary census workers (-143,000).
One of the more telling signs of the current employment picture comes from the labor force participation rate. That's the percentage of the population which is involved in the workforce. Since April 2010, the labor force participation rate has dropped .6 % (6 tenths) of a percent. The number of those unemployed for more than 27 weeks, considered the long term unemployed, has remained the same at 6.6 million. The number of those marginally attached to the workforce, those willing and able to work, still unemployed, increased by 340,000 to 2.6 million.
A positive signal is considered to be those employed part time, not able to find full time work, actually declined 623,000 since April 2010. Bureau of Labor Statistics press release, click here. 08/06/2010
LAST WEEK'S UNEMPLOYMENT CLAIMS UP
More from the Emeritus Newsroom- New filings for unemployment benefits were up last week, well above the 300-400,000 new claims threshold needed to increase employment. According to the Bureau of Labor Statistics,
In the week ending July 31, the advance figure for seasonally adjusted initial claims was 479,000, an increase of 19,000 from the previous week's revised figure of 460,000. The 4-week moving average was 458,500, an increase of 5,250 from the previous week's revised average of 453,250.
The advance seasonally adjusted insured unemployment rate was 3.6 percent for the week ending July 24, unchanged from the prior week's un revised rate of 3.6 percent.
The advance number for seasonally adjusted insured unemployment during the week ending July 24 was 4,537,000, a decrease of 34,000 from the preceding week's revised level of 4,571,000. The 4-week moving average was 4,575,500, an increase of 25,750 from the preceding week's revised average of 4,549,750.
The fiscal year-to-date average of seasonally adjusted weekly insured unemployment, which corresponds to the appropriated AWIU trigger, was 5.028 million.
Unemployment statistics for July are expected tomorrow morning and recent weekly filing increases suggest the rate could rise from the June figure of 9.5%. BLS press release, click here. 08/05/2010
ECONOMIC SIGNALS - NEW ADP JOBS REPORT SHOWS 42,000 NEW JOBS / OTHER INDICATORS - SLOW TO STAGNANT RECOVERY
More from the Emeritus Newsroom- Payroll data giant ADP today gave more assuring news that the economy is making a recovery, even though some segments are irregular. According to ADP,
"Nonfarm private employment increased 42,000 from June to July 2010 on a seasonally adjusted
basis, according to the ADP National Employment Report®. The estimated change of
employment from May to June was revised up slightly, from the previously reported increase of
13,000 to an increase of 19,000.
July’s rise in private employment was the sixth consecutive monthly gain. However, over those
six months increases have averaged a modest 37,000, with no evidence of acceleration.
Unlike the estimate of total establishment employment to be released on Friday by the Bureau of
Labor Statistics (BLS), today’s figure does not include the effects of federal hiring — and now
firing — for the 2010 Census. Hiring for the census peaked in May. For this reason, Friday’s
figure for the change in nonfarm total employment reported by the BLS might be weaker than
today’s estimate for nonfarm private employment in the ADP National Employment Report.
July’s ADP Report estimates nonfarm private employment in the service-providing sector rose
by 63,000. Employment in the goods-producing sector declined 21,000 during July while
employment in the manufacturing sector decreased 6,000, the first decrease in six months.
Large businesses, defined as those with 500 or more workers, saw employment remain flat and
employment among medium-size businesses, defined as those with between 50 and 499 workers
increased by 21,000. Employment among small-size businesses, defined as those with fewer
than 50 workers, increased by 21,000 in July.*
In July, construction employment dropped 17,000, the smallest decline since November 2007.
Construction employment has declined for over three years, and the total decline in construction
jobs since the peak in January 2007 is 2,240,000. Employment in the financial services sector
dropped 1,000, the smallest decline since June 2007. Financial Services employment ha
declined for over 3 years".
Other economic statistics from the past week continue to indicate a very slow recovery for the average American. Job creation remains weak with the unemployment rate remaining high in many states and likely to go higher due to expected layoffs in various state and local agencies. Federal stimulus funds, still to be spent, are keeping unemployment from hitting higher numbers.
The Bureau of Labor Statistics just released July 2010, "Issues in Labor Statistics" , the BLS says , "Changes in employment over the past few years have mirrored changes in unemployment. The number
of employed workers decreased from 145.0 million
in December 2007 to 139.1 million in June 2010 while the employment-population ratio decreased from 62.7 percent to 58.5 percent. The employment-population ratio had declined by 0.7 percent from March to December 2007, before the start of the recession".
"The proportion of workers unemployed the previous month remaining unemployed increased through mid-to-late 2009 and has not declined as of June 2010. Flows into employment
increased substantially in early 2010 for the first time since early 2007 but decreased in the second quarter of 2010. Both of these movements were due almost entirely to flows from the not-in-the-labor-force category rather than from unemployment" , according to BLS.
What the BLS statistics show is a deteriorating job market before the start of the most recent recession, and hundreds of thousands of workers remaining outside the labor force despite their attempts to return.
The July 28th Beige Book Report from the Federal Reserve claims, " Economic activity has continued to increase, on balance, since the previous survey, although the Cleveland and Kansas City Districts reported that the level of economic activity generally held steady. Among those Districts reporting improvements in economic activity, a number of them noted that the increases were modest, and two Districts, Atlanta and Chicago, said that the pace of economic activity had slowed recently".
Latest BLS figures show that 14.6 million people are still listed as unemployed, not counting those who have dropped out due to poor job prospects.
ADP July jobs report, click here. Bureau of Labor Statistics "Issues" report, click here. Federal Reserve Beige Book Report, click here. 08/04/2010
WHITE HOUSE BELIEVES SENATE WILL PASS UNEMPLOYMENT EXTENSION NEXT WEEK /WEST VIRGINIA GOVERNOR EXPECTED TO NAME REPLACEMENT FOR THE LATE SEN. BYRD BY THIS WEEKEND TO GET 60TH VOTE
More from the Emeritus Newsroom- The White House is bearing down on Republicans who are opposed to the extension of unemployment benefits unless they are paid for. Extended unemployment benefits are customarily paid for under "emergency "spending rules, adding to the federal deficit. But, Republicans who have opposed the extension, are pushing a continuation of the Bush administration tax cuts which also are not paid for, according to the White House. The White House and Democratic congressional leaders are poised to jump on that and other so called, "hypocrisies" by those opposing to the extension of unemployment benefits to the long term unemployed. White House Press Secretary Robert Gibbs, during his briefing today, predicted congress will pass some form of extension next week under pressure from the White House and Democratic leaders. West Virginia Governor Joe Manchin is expected to name a replacement for the late Sen. Robert Byrd (D) possibly by the weekend. This would give Democrats possibly their 60th vote for passage. The 60 votes will be needed to overcome Republican delays over objections to the $34 billion dollar price tag. Today's Bureau of Labor Statistics report showed more discouraging news for the long term unemployed as figures showed a net loss of hiring between May 2009 to May 2010 ( see below). 07/13/2010
LABOR DEPARTMENT REPORTS NET JOB LOSS MAY 2009-MAY 2010
More from the Emeritus Newsroom- The U-S endured a net loss in hiring from May 2009 to May 2010. The Bureau of Labor Statistics today released information showing hires totaled 49.4 million and separations totaled 49.9 million, yielding a net employment loss of 0.6 million. There were 3.2 million job openings on the last business day of May 2010. according to the BLS. The job openings rate was little changed over the month at 2.4 percent. The hires rate (3.4 percent) was little changed and the separations rate (3.1 percent) was unchanged. This release includes estimates of the number and rate of job openings, hires, and separations for the total non farm sector by industry and geographic region.
The quits rate can serve as a measure of workers’ willingness or ability to change jobs. In May, the quits rate was essentially unchanged at 1.4 percent for total non farm and was little changed in every industry and region. The number of quits fell by 1.4 million (46 percent) between the November 2006 peak and the September 2009 trough. Since September 2009, the number of quits has risen by 161,000.
Over the 12 months ending in May, the quits rate (not seasonally adjusted) was little changed for total non farm and total private and unchanged for government. The quits rate was little changed in every industry and region over the year except in information where the rate decreased and in federal government where the rate increased. Full text of BLS press release, click here. 07/13/2010
NAACP CALLS ON B-P TO GIVE MINORITIES BETTER CHANCE AT HIGHER PAYING GULF CLEANUP JOBS
More from the Emeritus Newsroom- The NAACP today sent a letter to B-P executives claiming the company is hiring out of state workers rather than locals who need the jobs and that the better paying jobs are disproportionately not available to minorities. The group says local minority contractors are also not getting their fair share of cleanup work and that some contractors are not giving minority employees sufficient clothing and safety gear to protect themselves. B-P had not yet responded to the group's letter as of this posting. NAACP letter, click here. NAACP President and CEO Benjamin Todd Jealous, said "Workers of color tend to be assigned the most physically difficult, lowest paying jobs, with the most significant exposure to toxins, while white workers tend to be in supervisory, less strenuous positions". The group is holding its annual convention beginning this weekend in Kansas City. First Lady Michelle Obama is scheduled to speak Monday, July 12th. NAACP convention web site, click here. 07/09/2010
WEEKLY INITIAL UNEMPLOYMENT CLAIMS TREND UP
More from the Emeritus Newsroom- Just as more unemployment benefits are expiring, initial claims for unemployed workers were up again last week. The Department of Labor's weekly claims report shows there were more than 13,000 filings over those of last week. at least 472,000 initial claims were filed as of the end of last week. The previous week's figure was 459,000. Insured unemployment numbers are plummeting as extended unemployment benefits are running out. Still just over five million unemployed remain on benefits. A figure that is likely to drop again unless congress is able to come up with an extension. Department of Labor press release, click here. 07/01/2010
SENATE FAILS AGAIN TO DEFEAT REPUBLICAN HOLD ON UNEMPLOYMENTEXTENSIONS
More from the Emeritus Newsroom- Battered by repeated Republican objections over funding for at least 2 million unemployed American, Senate Democratic Majority Leader Harry Reid (D) NV, said it could be the middle of next month before they have the votes to defeat a Republican delay on the bill and take a vote. In a statement tonight after the failed vote, Reid said,
"It is beyond disappointing that Republicans continue to stand almost lockstep against assistance for out-of-work Americans — especially since many of these same Republicans spent months protecting Wall Street and preserving tax cuts for CEO's who ship American jobs overseas.
We will vote on this measure again once when there is a replacement named for the late Senator Byrd. In the meantime, I sincerely hope that Republicans will finally listen to the millions of unemployed Americans who need this assistance to support their families in these tough times. These Americans and millions more demand that Republicans stop filibustering support for unemployed workers".
It's expected to be middle July at the earliest when Sen. Byrd's replacement could be seated in the chamber.
HOWEVER, THERE SEEMS TO BE SUPPORT FOR RESETTING THE TIMETABLES FOR THOSE RECIEVING UNEMPLOYMENT BENEFITS, WHICH MAY MEAN RESTORATION OF BENEFITS FOR THOSE WHO HAVE ALREADY BEEN UNEMPLOYED LONGER THAN 2 YEARS. Here are some of the details from the revised bill that went down to defeat tonight, according to the Washington Independent.
Unemployment benefits: Restarts the emergency unemployment compensation program phased out at the end of May 2010. The program provides up to 53 weeks of extended benefits, depending on the state’s unemployment rate. The measure is retroactive — meaning that Americans who have lost their unemployment checks will be compensated — and goes through November.
Further extended benefits: Restarts funding for further tiers of unemployment benefits to 99 weeks.
Eliminates the penalty for part-time workers collecting unemployment benefits: Gives states the option to let UI claimants keep certain benefits if switching to state benefits would reduce their weekly UI check by at least $100 or 25 percent.
These three provisions cost $33.9 billion over ten years.
Extends the closing date for the home buyer tax credit: Home buyers need to have purchased a house by April 30, 2010. Now, they need to close by Oct. 1, not July 1, 2010. The provision is estimated to cost $140 million over ten years.
Change to the Travel Promotion Act (TPA): The Department of Homeland Security was due to fund the Travel Promotion Board by the end of the year. This delays that funding start by a year. This change saves $95 million over ten years.
No, you cannot claim a home buyer tax credit from prison: Remember all those prisoners claiming the home buyer tax credit — even when serving life sentences? This allows the IRS to disclose tax return information to prison officials, to help recoup money from fraudulent claims. This raises $6 million over ten years.
Finding money elsewhere: This takes back $94 million in unspent Defense Department funding due to expire on Sept. 30, 2010. This saves $45 million over 10 years.
Washington Independent article on Senate proposals, click here. 06/30/2010
FIRST INDICATION OF WEAK JOBS REPORT FOR JUNE
More from the Emeritus Newsroom- this Friday, the US Department of Labor is scheduled to provide its first report on June employment numbers. The Payroll firm ADP often provides a window to what can be expected. ADP reported today that the US private sector economy only created 13,000 new non- farm seasonally adjusted,jobs in June....far less than expected and much less than needed to provide jobs to the more than 15 million now unemployed. The June figure is also less than that in from the revised figure in May when 57,000 private sector jobs s were added. Full text of ADP June jobs report, click here. 06/30/2010
HOUSE FAILS TO PASS STAND ALONE UNEMPLOYMENT EXTENSION / REPUBLICANS HALT BILLS IN BOTH CHAMBERS OVER SPENDING
More from the Emeritus Newsroom- Democratic leaders in the House today tried in vain to get extended unemployment benefits passed as a stand alone measure. A previous house measure HB 4213 is hopelessly deadlocked in the Senate over ways to pay for it. Republicans refuse to go along with the 34 billion dollar price tag being added to the federal deficit. Today. House leaders floated HB 5618 which eliminated provisions for Medicaid payments for states and remains unresolved. Medicare payments for doctors, which was already separated from HB 4213, was passed last week in both chambers, then signed by President Obama. The latest versions had already cut benefits for those unemployed more than two years and did not renew subsidy payments for extended health insurance through former employers. Today's vote needed 277 to pass but only mustered 261 . A two thirds majority was needed to overcome Republican delays. Nearly two million unemployed workers are expected to lose benefits over the July 4th holiday if congress cannot pass some form of extension. 06/29/2010
CONSUMER CONFIDENCE DIPS AS FEARS OVER UNEMPLOYMENT AND BENEFITS STIR NEW CONCERNS / STOCK MARKET TAKES BIG HIT ON NEWS
More from the Emeritus Newsroom- The New York Stock Exchange lost more than 300 points and later recovered to lose just over five points before the end of trading. The erratic trading reflected concerns over the fragile global economy and took a nose dive after news broke about growing pessimism among Americans. Consumers, convinced that the job market will get worse the rest of the year, took the Conference Board's June Consumer Confidence Index to 52.9, a drop of nearly ten points from May's index of 62.7.
Lynn Franco, Director of The Conference Board Consumer Research Center, said, “Consumer confidence, which had posted three consecutive monthly gains and appeared to be gaining some traction, retreated sharply in June. Increasing uncertainty and apprehension about the future state of the economy and labor market, no doubt a result of the recent slowdown in job growth, are the primary reasons for the sharp reversal in confidence. Until the pace of job growth picks up, consumer confidence is not likely to pick up.” . Press release from Conference Board, click here. 06/29/2010
STATES DESPARATE TO CLOSE BUDGET GAPS / THOUSANDS MORE LAYOFFS AND SERVICE CUTS LIKELY
More in this article from Associated Press, click here- National Governor's Association June 2010 Survey, click here. States facing the worst budget gaps, CNBC report, click here. 06/28/2010
DEMOCRATS BLAME REPUBLICANS FOR MORE DELAYS / EXTENDED UNEMPLOYMENT AID GETS 57 VOTES AND FAILS
More in this report from the New York Times, click here- 06/24/2010
CUTS IN MEDICAID AND UNEMPLOYMENT BENEFITS LIKELY AS DEMOCRATS TRY TO GET REPUBLICAN VOTES
More in this article from Congressional Quarterly, click here- 06/22/2010
REPUBLICANS SAY "NO" TO STAND ALONE UNEMPLOYMENT BENEFITS EXTENSION / SENATE ENDS WEEK WITHOUT PASSAGE
More from the Emeritus Newsroom- Republican leaders balked Friday at a proposal from Senate Majority Leader Harry Reid to vote on extended unemployment benefits as a stand alone bill, which would be separated from the rest of HB 4213, the so called, Tax Extenders Bill. The current form of HB 4213 also includes a provision to prevent cuts in doctor's Medicare reimbursements. Republicans claim the extended unemployment benefits need to be paid for without adding to the deficit. Democrats say the benefits should be considered emergency spending exempt from those considerations. For now Democrats do not have the 60 votes needed to defeat a Republican filibuster, so it remains stuck in the Senate. Meanwhile, by the end of this month, an estimated one million unemployed workers will have lost their benefits, including subsidies for former employer health insurance payments. The current version of HB 4213 WILL NOT continue those payments, even if it is approved. 06/18/2010
SENATE FAILS TO STOP REPUBLICAN DELAY ON UNEMPLOYMENT EXTENSION / DEMOCRATS DEFEAT REPUBLICAN MOVE TO USE STIMULUS MONEY / ANOTHER VOTE POSSIBLE FRIDAY OR MONDAY
More from in this article from M-Live, click here- 06/17/2010
POLL: 75% OF PUBLIC APPROVES CONTINUATION OF UNEMPLOYMENT BENEFITS
Link to hear page and testimony for Subcommittee on Income Security, May 6th hearing on solvency of unemployment benefits system, click here. 05/07/2010
U-S UNEMPLOYMENT RATE IS UP / MORE JOBS CREATED BUT MORE UNEMPLOYED ENTER WORKFORCE LOOKING FOR JOBS
More from the Emeritus Newsroom- With the national GDP improving, more people are entering the workforce hoping to find jobs. And the latest job creation numbers from the Department of Labor, for April, shows the economy created 290,000 jobs last month. Still it was not enough to make up for those who have lost their jobs and others entering the workforce, forcing the unemployment rate up .2 of a per cent to 9.9%. The unemployment rate had been 9.7% for the first three months of the year. The number of those unemployed for at least 27 weeks continues to trend upward, with 6.7 million now listed in that category, making up 44.9% of those receiving unemployment compensation. Full text of Labor Department press release, click here. Secretary Solis comments on stats, click here. 05/07/2010
EEOC GETS $500,000 SETTLEMENT FOR TEENAGE FEMALES IN SEX HARRASSMENT CASE
More from the Emeritus Newsroom- Female basement telemarketing company workers were subjected to sexual harassment, demands for sex and other humiliation according to investigators with the Equal Employment Opportunity Commission. As part of a settlement reached with attorneys for Everdry, the female victims, some of them teenagers, will receive more than a half million dollars compensation in that case. The EEOC, in a statement says, Everdry Marketing and Management has paid $471,096 in damages, plus $86,581 in post-judgment interest, to 13 victims of sexual harassment. The payout satisfies a judgment obtained by EEOC against Everdry in October 2006 following a four-week trial in Rochester, N.Y. (case # 01-CV-6329). The individual payouts range from about $24,000 to $56,000, including the interest, which covers the time the women had to wait to receive their jury awards. Everdry was required to pay the substantial interest after the ultimate resolution of the case was delayed by an appeal Everdry filed in the U.S. Court of Appeals for the Second Circuit challenging various aspects of the jury’s verdict and other district court rulings. The Court of Appeals affirmed the jury’s verdict and award of damages. Cleveland-based Everdry provides basement waterproofing services through various franchises. The case concerned a prolonged period of physical and verbal sexual harassment of mostly teenage telemarketers by male managers and co-workers at Everdry’s Rochester, N.Y., location. The EEOC charged that the harassment included repeated demands for sex, frequent groping, sexual jokes and constant comments about the bodies of women employees. On one occasion, a male manager requested sex from a teenager with the promise of a raise if she consented.
“Many of the victims in this case were young and especially vulnerable,” said EEOC Chair Jacqueline A. Berrien. “We are gratified that the appeals court has now paved the way for these harassment victims to finally receive the relief the jury awarded.”
EEOC press release, copy click here. 05/06/2010
WAL-MART LOSES DECISION ON CLASS ACTION LAWSUIT / NINTH CIRCUIT U-S COURT OF APPEALS ALLOWS MORE FEMALE EMPLOYEES TO JOIN LAWSUIT
More from the Emeritus Newsroom- the 9th Circuit Court of Appeals has ruled that a lawsuit against Wal-Mart can continue as a "class action". The lawsuit, which could grow into the largest sex discrimination lawsuit in U-S history, claims that that female workers at the chain were paid less and granted fewer promotions than their male counterparts, and that Wal-Mart’s corporate structure encouraged and condoned gender discrimination. At least a million female employees could be included in the suit, which covers company actions since June of 2001. Six plaintiffs joined original filer Betty Dukes. They had originally tried to include female employees who worked for the company back to 1998, but the appeals court set the year at 2001. More from Associated Press, click here. 04/26/2010
PRESIDENT OBAMA SIGNS EXTENDED UNEMPLOYMENT BENEFITS / BOTH SENATE AND HOUSE APPROVE BENEFIT PACKAGE FROM APRIL 5TH TILL END OF MAY
More in this article from Politico, click here- 04/15/2010
FED CHAIR BERNANKE SURE OF RECOVERY, CONCERNED ABOUT DEFICIT / FED RELEASES BEIGE BOOK ECONOMIC REPORT, SHOWS HIRING STILL WEAK
More from the Emeritus Newsroom- Federal Reserve Chairman Ben Bernanke today, testifying before the the Joint Economic Committee, says the economy continues to show improvement, however, he says long term unemployment remains the country's biggest challenge. Bernake told the committee that striking a balance between getting out of the recession and dealing with the federal deficit was the biggest financial challenge long term. Bernake suggested that continued unempl0oyment benefits in the enar term was unavoidable, but that as the economy improved the country must cut its debt and especially the federal deficits after 2014. Also, the Federal Reserve today released its Beige Book report on the economy. It reflected much of what Bernake had told the House Oversight Committee, pointing out that the trend of long term unemployment continues to increase, with an increasing percentage of those unemployed who have been out of work for at least 27 weeks. Bernanke testimony, click here. Beige Book Report, click here. 04/14/2010
$200 MILLION SEX DISCRIMINATION LAWSUIT AGAINST DRUG MAKER NOVARTIS HEADS FOR TRIAL
More in this article in the New York Times, click here- 04/06/2010
ECONOMY PRODUCES BEST JOB CREATION MONTH IN 18 MONTHS / LONG TERM UNEMPLOYED NUMBERS KEEP RISING
More from the Emeritus Newsroom- The number of jobs gained increased by 162,000 in March, and the unemployment rate held at
9.7 percent, the U.S. Bureau of Labor Statistics reported today. Temporary help services and health care
continued to add jobs over the month. Employment in federal government also rose, reflecting the hiring
of temporary workers for Census 2010. Employment continued to decline in financial activities and in
information.
But the number of those long term unemployed (those jobless for 27 weeks and over) increased by 414,000 over
the month to 6.5 million. In March, 44.1 percent of unemployed persons were jobless for 27 weeks or more. The number of persons working part time for economic reasons (sometimes referred to as involuntary part-time workers) increased to 9.1 million in March. About 2.3 million persons were marginally attached to the labor force in March, compared with 2.1
million a year earlier. (The data are not seasonally adjusted). These individuals were not in the labor
force, wanted and were available for work, and had looked for a job sometime in the prior 12 months.
They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. Among the marginally attached, there were 1.0 million discouraged workers in March, up by 309,000
from a year earlier. (The data are not seasonally adjusted.) Discouraged workers are persons not currently
looking for work because they believe no jobs are available for them. The remaining 1.3 million
persons marginally attached to the labor force had not searched for wor unemployment insurance taxes or offering health insurance. As well as creating a special employees rights website, the bill would set violations and penalties when an employer fails to keep wage and hour records or
provide a worker with notice of classification, the worker will be considered an employee. It also:
Requires that records kept pursuant to the Act include an accurate classification of the worker as
either an employee or a non-employee.
Requires that all employees and non-employees be given written notice of their classification and that
they be directed to DOL employee rights resources.
Makes it a violation of the Fair Labor Standards Act to discharge or discriminate against a worker
because he or she has opposed any practice concerning his or her classification.
Makes it a violation of the Fair Labor Standards Act to misclassify an employee.
Extends a private right of action to misclassified employees to recover lost wages and, when an
employer also violates minimum wage or maximum hour standards, double liquidated damages.
Subjects employers to a civil penalty up to $1,100 for misclassification violations or violations of
minimum wage or overtime standards and up to $5,000 when such v
SENATE PASSES JOBS BILL / INCLUDES MORE TAX BREAKS FOR SMALL BUSINESS
More from the Emeritus Newsroom- President Obama says he will sign the first of several major jobs bills expected from congress this year. The vote was 68-29 with 11 Republicans voting with Democrats for passage. The bill (HR4213) is the larger of two jobs bills with unemployment benefits extensions and gives tax breaks to employers who hire workers unemployed for more than 60 days, includes COBRA subsidies for unemployed workers from their former employers, capital gains taxect. Thomas listing on HR 4851 Thomas listing on HR 4213, the long term unemployment extension, click here. 03/26/2010
IMAGINE SCHOOLS TO PAY $570,000 TO SETTLE PREGNANCY DISCRIMINATION CASE / SUIT BROUGHT BY TWO WOMEN
More from the Emeritus Newsroom - A settlement has been reached in the pregnancy discrimination case against Imagine Schools, which operated charter schools in Kansas City. The suit was brought by themployment benefits extensions through the end of the year and tax incentives for small business, could pass by Thursday and would then be presented to President Obama for his signature. The bill has passed the Senate once, but was changed in the House and was sent back to the Senate, where more capital gains tax deductions for small businesses have been included. Senate clerk's page on vote including bill description, click here. 03/15/2010
EMPLOYMENT STUDY: MORE GROWTH IN TOP AND BOTTOM WAGE SCALE JOBS / FALLOUT CONTINUES IN THE MIDDLE / INCLUDES MUST SEE VIDEO
More from the Emeritus Newsroom- Among the experts at a two day forum, held by the Center for American Progress, was the author of a study which projects most of the near term job growth to be at the high and low ends of the wage scale with deteriorating propects in the middle. MIT economics professor David Autor analyzed the state of the U.S. labor market over the past three decades. Autor's basic conclusions are based on the following findings:
- U.S. employment growth is polarizing, with job opportunities increasingly concentrated in relatively high-skill, high-wage jobs and low-skill, low wage jobs.
- Employment polarization is not a uniquely American phenomenon; it is widespread across industrialized economies.
- Key contributors to job polarization are the automation of routine work and, to a lesser extent, the international integration of labor markets through trade and, more recently, offshoring. The declining penetration of labor unions and the falling real value of the federal minimum wage have played a smaller role.
- The Great Recession quantitatively but not qualitatively changed the trend toward employment polarization in the U.S. labor market. Employment losses during the recent recession were far more severe in middle-skill white- and blue-collar jobs than in either high-skill, white-collar jobs or in low-skill service occupations.
- The earnings of college-educated workers relative to high school-educated workers have risen steadily for almost three decades.
- The rise in the relative earnings of college graduates is due both to rising real earnings for college-educated workers and falling real earnings for noncollege-educated workers, particularly noncollege-educated males.
- Gains in educational attainment have not generally kept pace with rising educational returns, particularly for males. And the slowing pace of educational attainment has contributed to the rising college/high school earnings gap.
Another economist from the Center for American Progress, Harry J. Holzer, contends there are "rubust" opportunities in the middle wage level. Holzer says, "The notion that we are developing an “hourglass economy” with large top and bottom layers but a vastly shrinking middle, while not without basis, has been overblown. Accordingly, tml">More in this article from the Huffinton Post, click here- 06/07/2010
SENATE SCHEDULED TO VOTE ON UNEMPLOYMENT EXTENSION NEXT WEEK
More from the Emeritus Newsroom- Extended unemployment benefits and other included in House Bill 4213 are expected to make it to the Senate floor next week, but will no doubt, be forced into conference to reconcile difference with the House version. So far various political media are reporting that the bill will likely pass the Senate next weektors. If employees are classified as independent contractors, then an employer doesn’t have to
pay them overtime or their share of Social Security or Medicare. Employers don’t have to worry about paying
ing unemployment have been out of work more than 27 weeks as the number of applicants is at least five times those of job openings, and the May jobs report showed little expansion in private sector employment. Direct Thomas Link to HB 4213, click here. 06/10/2010
to but likely faces another vote in the house. The final version in the Senate remains to be seen, however there is mounting pressure to include more benefits for 99ers. Those who have been unemployed for the last two years. Nearly half of all those gettk in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities. Full text of Bureau of Labor Statistics press release, click here. Economic Policy Institute analysis of jobs report, click here. 06/07/2010
UNEMPLOYMENT BENEFITS EXTENSIONS PASS HOUSE BUT NOT IN TIME FOR ACTION BEFORE HOLIDAY BREAK IN SENATE / SENATE RESUMES JUNE 7TH
More from the Emeritus Newsroom- The US House managed to pass their version of the extended unemployment benefits bill, which extends unemployment benefits through November but DOES NOT INCLUDE COBRA HEALTH INSURANCE SUBSIDY PAYMENTS AND DOES NOT INCLUDE MORE BENEFITS FOR THE "99'ERS" OR THOSE IN TIER 5 WHO HAVE EXHAUSTED THEIR BENEFITS. This could change by the time the House version gets to the Senate on June 7th, when it returns from the holiday break. Most benefits for the unemployed will run out by June 2d. Some Senate leaders have already expressed concern that the benefits may not be extended to SOME of the long term unemployed, those without work for more than 27 weeks, whose ranks have swelled to at least 45% of all jobless benefits paid. And with 5.9 applicants for each job posting, those not employed face the likely hood of their status remaining unchanged for the rest of the year. And various government and private sector reports are predicting the nation's unemployment rate will remain high through the end of the year. 05/31/2010
UNEMPLOYMENT EXTENSIONS FACE BATTLE FROM CORPORATIONS TRYING TO SAVE TAX LOOPHOLE ON OVERSEAS PROFITS / BENEFITS SET TO RUN OUT JUNE 2
More from the Center for American Progress, click here- More on the extension proposal now in the House, from the Working America Project, click here. 05/25/2010
SUPREME COURT RULES EMPLOYERS CAN'T USE TESTS TO DISCRIMINATE
GOOBYE THE "K-S-A"TEST AND OTHER BROKEN DOWN FEDERAL HIRING PRACTICES / MASSIVE CHANGES SET TO START BY NOVEMBER 1ST / MANAGERS FACE MORE INVOLVEMENT, LESS DEPENDENCE ON COMPUTER SELECTION OF "TOP CANDIDATES"
More from the Emeritus Newsroom- President Obama announced changes earlier in the week to streamline the federal hiring process. Government hiring managers are expected to submit plans for changes by August 1st in order to put them into place by November 1st. It is hoped this will cut the time it takes to hire a prospective employer, from 4 to 5 months, to two at most. Obama's announcement was met with cheers and jeers depending on your stake in the process. Cheers from department personnel who waited months for a selection process to whittle down the, "top candidates" from those who applied. Candidates, who sometimes were certainly NOT the "top candidates". That's because the "top candidates" were selected by a computer according to key words it scanned from their , Knowledge, Skills and Abilities test, otherwise known as the dreaded "KSA's". And the jeers were coming from detached managers who did not want to be bothered with the hiring process because they had too many other things going on. It will also help managers, who now have to complete a 40 step process iolly the same question, which you had just poured your soul into, but now must find more specifics to squeeze out an answer. And how to make the answers different? Well, that was dirty little secret to the KSAs. The real function was to inflict a mental price for applying for the job. Hopefully, enough to wear you down to keep you from applying, en-mass, for other federal jobs, for if you were simply able to submit your name, cover letter and a resume, the administrative team would be overburdened with too many applications. Problem was, there were too many administrators who did not like the system either, since many of them were forced to select from what computers gave them, in the final selection process. And there are 40 steps in the current selection process, compared to the 14 that the Obama Administration is proposing. Another problem....the stimulus funds have authorized additional federal hiring, with much of the money left unspent due to the logjam in the current hiring process. The almost certain losers, for now, and we stress for now, because like cock roaches they come out somewhere else...the writers of the, "How to apply for a Federal Job" books and videos. Face it. It was all a scam. More on the federal hiring changes from FederalTimes.com. 05/15/2010
SENATE AND HOUSE DEMOCRATS MOVE BILL TO PROTECT OLDER WORKERS
From the Emeritus Newsroom-Senate and House Democrats have come up with a bill to crack down on employment discrimination against older workers. The House on May 5th and the Senate on May 6th held hearings on each others versions of the "Protecting Older Workers Against Discrimination Act". H.R. 3721, the Protecting Older Workers Against Discrimination Act. The Senate version is S.1756.
The legislation, according to the National Senior Citizens Law Center, will correct a June 2009 ruling by the U-S Supreme Court, which, in a narrow 5-4 majority so weakened the 1967 Age Discrimination in Employment Act (ADEA), that employers are left with little incentive to comply. The case, Gross v. FBL Financial Services, illustrates the accuracy of President Obama's recent observation that we "are now seeing a conservative jurisprudence" that is both "activist" and bent on gutting laws that, like the ADEA, were enacted to protect ordinary people.
The case stemmed from a 2003 case involving , Jack Gross, aged 54 and a 32-year employee of FBL Financial, who was demoted from his position as claims administration director, and transferred to a newly created position with drastically reduced responsibilities. Gross sued, and at trial introduced "evidence suggesting that his reassignment was based at least in part on his age" (as stated by Justice Clarence Thomas writing for the majority). Gross' employer responded with the claim that the reassignment was part of a "corporate restructuring." The jury found for Gross and awarded him $46,945 in lost compensation, after receiving.
On October 6, 2009, Senators Tom Harkin and Patrick Leahy and Representative George Miller, simultaneously introduced identical corrective bills, entitled the Protecting Older Workers Against Discrimination Act. The fact that legislative hearings have now occurred on both sides of the Capitol indicates that Congress may well restore equal opportunity guarantees for older workers - just as it did in February 2009, when it overturned the infamous 2007 5-4 Ledbetter v. Goodyear decision that undermined equal pay opportunity safeguards in Title VII. Only through such prompt action can Congress prevent the further metastasizing of this threat to the economic security of older Americans, and all Americans. National SeniorCitizes Law Center press release, click here.
According to an article on the American Constitution Society website, the latest proposal aims to fix a loophole resulting from the June 2009 Supreme Court decision that stripped older workers of vital protections against bias on which they had relied for over 40 years. In this ruling, which Justice Stevens in dissent characterized as "unabashed judicial law-making," "irresponsible," and in "utter disregard" of the Court's own precedents and "Congressional intent," a narrow 5-4 majority so weakened the 1967 Age Discrimination in Employment Act (ADEA), that employers are left with little incentive to comply. In 2003, Jack Gross, aged 54 and a 32-year employee of FBL Financial, was demoted from his position as claims administration director, and transferred to a newly created position with drastically reduced responsibilities. Gross sued, and at trial introduced "evidence suggesting that his reassignment was based at least in part on his age" (as stated by Justice Clarence Thomas writing for the majority). Gross' employer responded with the claim that the reassignment was part of a "corporate restructuring." The jury found for Gross and awarded him $46,945 in lost compensation, after receiving the judge's instructions that they must rule for the employee if he proved by a preponderance of the evidence that "age was a motivating factor" in his demotion. "However," the judge instructed, the jury must rule for the employer if the employer proves by the preponderance of the evidence that the employer would have demoted Gross "regardless of his age." This instruction tracked settled law. But the Supreme Court majority changed the law, and held that Gross and others in his situation needed to show that age was the "but for" cause of their adverse treatment, and that evidence that age was a motivating factor would not shift the burden of proof to the employer to prove that the adverse action would have occurred regardless of the employee's age. After the Supreme Court bounced him back to square one, Mr. Gross testified before Congress that the conservative Justices had "hijacked" his case to make an ideological point. His view cannot be dismissed as sour grapes. On the contrary, this 5-4 reversal of the jury verdict in Mr. Gross' favor creates a veritable perfect storm for older workers.
House Hearing page with full text of statements and direct link to live webcast, click here. Senate Health Education & labor Committee hearing page with links to video and testimony text, click here. American Constitution Society article, click here. 05/13/2010
STATES' UNEMPLOYMENT FUNDS HEAD FOR MORE TROUBLE / LOWER TAXES ON EMPLOYER WAGES PARTIALLY TO BLAME
More from the Emeritus Newsroom- Congress is still working on a bill that will extend unemployment benefits through the end of the year. Extended benefits are set to run out the first week of June in most states. A report released by the GAO points out that, as of April 1, 2010, 34 of the 53 state trust funds have outstanding loans totaling $38.9 billion from the federal government to pay benefits. Long-standing UI tax policies and practices in many states over 3 decades have eroded trust fund reserves, leaving states in a weak position prior to the recent recession. Further, average U.S. pre-recession funding levels of state trust funds were lower prior to the recent recession than for the previous three recessions. While benefits over the last 3 decades have remained largely flat relative to wages, employer tax rates have declined. First, most state taxable wage bases have not kept up with increases in wages. As of 2010, only 17 of the 53 state trust funds have taxable wage bases that are indexed to average wages. Second, many employers pay very low tax rates on state taxable wage bases. From 1978 to 2008, average minimum tax rates levied on employers by states dropped from 1.14 percent to 0.37 percent of taxable wages. Options to improve state UI trust fund financial conditions include raising and indexing the FUTA taxable wage base, which has remained at $7,000 per worker per year since 1983. This could induce many states to raise and index their own taxable wage bases. In addition, state UI tax reform could reduce the number of employers paying very low rates and those that pay less in UI taxes than benefits paid to their former workers. Other options include adjusting state tax rates more frequently; raising solvency targets before lowering rates; setting additional conditions to receive interest-free federal loans; and raising interest credits for well funded trust funds. Options to improve state UI trust fund financial conditions include raising and indexing the FUTA taxable wage base, which has remained at $7,000 per worker per year since 1983. This could induce many states to raise and index their own taxable wage bases. In addition, state UI tax reform could reduce the number of employers paying very low rates and those that pay less in UI taxes than benefits paid to their former workers. Other options include adjusting state tax rates more frequently; raising solvency targets before lowering rates; setting additional conditions to receive interest-free federal loans; and raising interest credits for well funded trust funds. Full text of GAO Summary and direct links to full report, click here. Background and chronologhere remains a strong need for more workers with better cognitive and analytical skills and with four-year college degrees, as Autor emphasizes. But the kinds of postsecondary education and training below the level of a four-year bachelor’s degree that still provide satisfactory preparation for many well-paying middle-skill jobs should be supported as well Democrats, in passing an extension of unemployment benefits, with COBRA subsidies, to help laid off workers buy health insurance from their former employers. It was a separate bill from the one held up last week by Sen. Jim Bunning, which provided only a month extension, to cover current needs while the bill with a year extension, as part of the Senate jobs bill, was being considered. The vote today was 62-36, with Sen. Ben Nelson (D) NE, the only Democrat voting against it. Republican joining Democrats were, Bond, Collins, Murkowski, Snowe, Vitter, Voinovich. It now goes to the House where it could end up in a conference committee since the House approved a different $154 million version in December. The Senate bill also provides $140 billion in tax breaks, prevents payment cuts to doctors in the medicare program, extra money for states coping with higher Medicaid expenses, as well as continuation of local and state sales tax exemptions, tax breaks for green energy projects and products. Another jobs bill, this one costing $15 billion is also expected to be passed this week. Thomas listing of Senate amended bill (S.AMDT.3336 Amends), click here : Original H.R.4213, click here. 03/10/2010
CALIFORNIA PRISON STAFF NURSE FACES $10,000 WAGE CUT WITH $177,000 IN OVERTIME / THE PITFALLS OF LAYOFFS AND STAFF CUTS
More in this article from the LA Times, click here- 03/08/2010
UNEMPLOYMENT RATE HOLDS STEADY
More from the Emeritus Newsroom- The nation's workforce lost 36,000 jobs in January, somewhat less than expected, but the nation's unemployment rate held steady at 9.7%. According to the Bureau of Labor Statistics, employment fell in construction and information, while temporary help services added jobs. Severe winter weather in parts of the country may have affected payroll employment and hours; however, it is not possible to quantify precisely the net impact of the winter storms on these measures. Statistically, the bureau's survey shows the long term unemployed remaining 4 in every ten personsreceiving unemployment benefits since December. Although the BLS actual number of those long term unemployed dropped by 180,000, there are still at least 6.1 million people in that catagorywith a long way to go. A review of the February jobs picture by Heidi Shierholz from the Economic Policy Institute shows the labor market is now roughly 11.1 million jobs below what would be needed to restore the pre-recession unemployment rate. In order to fully fill in this 11.1 million job gap in the labor market in the next three years (by February 2013), employment would have to increase by 415,000 jobs every month between now and then.
In February, according to the Bureau of Labor Statistics, the number of unemployed persons, at 14.9 million, was essentially unchanged, and the unemployment rate remained at 9.7 percent.
Among the major worker groups, the unemployment rates for adult men (10.0 per-
cent), adult women (8.0 percent), whites (8.8 percent), blacks (15.8 percent),
Hispanics (12.4 percent), and teenagers (25.0 percent) showed little to no
change in February. The jobless rate for Asians was 8.4 percent, not season-
ally adjusted.
The number of long-term unemployed (those jobless for 27 weeks and over) was
6.1 million in February and has been about that level since December. About 4
In 10 unemployed persons have been unemployed for 27 weeks or more.
In February, the civilian labor force participation rate (64.8 percent) and
The employment-population ratio (58.5 percent) were little changed.
The number of persons working part time for economic reasons (sometimes refer-
Red to as involuntary part-time workers) increased from 8.3 to 8.8 million in
February, partially offsetting a large decrease in the prior month. These in-
Dividuals were working part time because their hours had been cut back or be-
Cause they were unable to find a full-time job. (see table a-8.)
About 2.5 million persons were marginally attached to the labor force in
February, an increase of 476,000 from a year earlier. (the data are not sea-
Sonally adjusted.) These individuals were not in the labor force, wanted and
Were available for work, and had looked for a job sometime in the prior 12
months. Full text of BLS report, click here.
Economic Policy Institute review of figures, a must read, click here. 03/05/2010
HOUSE PASSES $15 BILLION JOBS BILL / PASSED SENATE LAST WEEK
More from the Emeritus Newsroom- The House today joined the Senate in approving the $15 billion jobs bill, which provides tax breaks for employers, with special tax breaks for hiring those who are among the long term unemployed. The vote was 217-201. President Obama is expected to sign it before the weekend. This, on the eve of what is expected to be a slighly worse job picture from last month. The Labor Department is expted to release the official report tomorrow morning. SENATE DEMOCRATS COPY OF JOBS BILL, CLICK HERE. Thomas listing with language of the bill, click here. 03/04/2010
WAL-MART AGREES TO $11.7 MILLION SETTLEMENT IN SEX DISCRIMINATION LAWSUIT
More from the Emeritus Newsroom - Female job applicants complained they were never hired for warehouse positions at the Wal-Mart distribution center in London, Kentucky. As the Equal Employment Opportunity Commission investigated the claim, the agency found the women were right.
In its lawsuit against the company, the EEOC found that from 1998 through February 2005. During that time period, the EEOC contends, Wal-Mart regularly hired male entry-level applicants for warehouse positions, but excluded female applicants who were equally or better qualified. The EEOC alleged that Wal-Mart regularly used gender stereotypes in filling entry-level order filler positions. Hiring officials told applicants that order filling positions were not suitable for women, and that they hired mainly 18- to 25-year-old males for order filling positions, the EEOC said.
Excluding women from employment or excluding them from certain positions because of gender violates Title VII of the Civil Rights Act of 1964. Wal-Mart agreed to pay $11.7 million dollars in back wages and other compensation, plus another $250,000 in administrative fees.
The consent decree settling the suit, entered by the court on March 1, 2010, requires Wal-Mart to provide order filler jobs, as they become available, to eligible and interested female class members, as determined by a claims administrator. Wal-Mart will fill the first 50 available order filler positions with female class members. For the next 50 positions, female class members will be offered every other job. Thereafter, every third position will be offered to female class members.
“Forty-plus years after the passage of the Equal Pay Act and Title VII of the Civil Rights Act, far too many employers are still blatantly excluding women from particular jobs, segregating their workforces on the basis of sex, and denying women equal pay for equal work,” said Acting EEOC Chairman Stuart J. Ishimaru. “Let this major settlement serve as a warning: Employers must stop engaging in these outdated and sexist practices, or they will face severe legal consequences.”
Pursuant to the consent decree, Wal-Mart has agreed not to discriminate against females in hiring for order filler positions and not to retaliate against applicants or employees who exercise their rights, complain about discrimination or assist in an investigation or discrimination-related proceeding. Wal-Mart will post a notice of non-discrimination at its warehouse facilities in Kentucky, train its managers and employees involved in the hiring process at the London Distribution Center, and use validated interview questions for the order filler position. Walmart will also submit reports to EEOC detailing its compliance with the decree. Full text of the EEOC press release, click here. 03/04/2010
PROTECTION FOR WORKERS WHO SUFFER FROM SEASONAL AFFECTIVE DISORDER (TOO LITTLE SUN)
More in this article from the LA Times, click here- 03/03/2010
SENATE PASSES EXTENDED UNEMPLOYMENT BENEFITS AND COBRA PAYMENTS FOR HEALTH INSURANCE / SEN. JIM BUNNING DROPS OPPOSITION AFTER DEAL CUT TO CONSIDER HIS PROPOSED CHANGES / BUNNING AMENDMENTS FAIL
More from the Emeritus Newsroom -THE SENATE TONIGHT PASSED 78-19, a $10 billion dollar package (HR 4691) (link to bill summary and text, click here) that includes payments for COBRA health insurance subsidies for unemployed workers to purchase coverage from their former employers, highway projects, Medicare payments for doctors and funding for the National Flood Insurance Program. Extended unemployment benefits ran out February 28th as the Senate was locked in a battle over a mere one month extension while working out details for a longer extension. As part of a deal to stop a delay from Sen. Jim Bunning (R) KY, Senate leaders agreed to vote on changes proposed by Bunning, which then failed before the vote approving the extensions. Democratic Majority Leader Harry Reid questioned Sen. Jim Bunning's true motives for blocking the bill since his objections last Thursday night. Bunning (R) KY claims the proposal is not fair since it would add to the nation's deficit. reid claims Bunning has not objected to other bills of similar structure, including previous stimulus proposals. Bunning, on the floor of the Senate, this morning, detailed why he thinks this proposal is different.
"There comes a time when 100 senators are for something that we all support. If we can't find $10 billion to pay for it, we're not going to pay for anything. We will not pay for anything fully on the floor of the U.S. Senate. Now, he said I only offered one way to pay for this. That's untrue. I offered more than one way. I negotiated with the Leader -- the Leader's staff, rather, and we had worked out two-week extension to $5 billion with a different pay-for. The debt that we have arrived at , even the head of the Federal Reserve Bank, Chairman Bernanke, said it's not sustainable. It's unsustainable. What does that mean to the American people, to the same people that are struggling to pay their bills, that are on unemployment, that could have been covered had the Baucus-Grassley bill been considered, and could have been covered not for 30 days but for three months?
Now, because there were some tax extenders in that bill, the Democrat majority stopped the bill from being considered. I'm not filibustering the bill. A filibuster is -- a filibusterer is somebody who talks a long time. I am exercising my right as a senator duly elected from Kentucky to object to a U.C. that's completely different than filibustering. Everybody knows that a member of this body that anybody, 100 of us, can object to anything that is brought to the floor of the U.S. Senate, whether it be a nominee, whether it be a judge, whether it be somebody that is appointed to the Treasury. Anybody can object. And there is a procedure that takes place that you can overcome that objection. Why doesn't the Democratic majority use that procedure?
So I'm going to make one more shot, and as long as we continue to have the extenders being brought forth and paid for, I'm going to make it. I ask Unanimous Consent that the Senate proceed to the immediate consideration of H.R. 4691, that the amendment at the desk which offers a full offset be agreed to, the bill be amended -- as amended be read a third time and passed, and the motion to reconsider be laid upon the table". Full text of Bunning statement, click here.
Summary and link to text of HR 4691, click here- 03/02/2010
MEDICARE PAYMENTS TO DOCTORS / 2,000 FEDERAL TRANSPORATION WORKERS FURLOUGHED / FALLOUT FROM SEN. BUNNING'S BLOCK OF EXTENDED UNEMPLOYMENT BENEFITS / EXTENSION WAS PART OF JOBS PACKAGE
More from the Emeritus Newsroom- When Sen. Jim Bunning (R) KY blocked a voice vote on a package that included extended unemployment benefits, it effectively blocked Medicare payments to doctors, projects involving more than 2,000 federal transportation workers, National Flood Insurance, a loan program for small business, and copyright laws which allow satellite television providers to carry local television stations. Unless the delay drags on longer than this week, it is not likely to have a major effect. But many states, already impoverished by high unemployment rates, won't have any slack if the money from the extension does not pass this week.Senate Majority Leader Harry Reid claims Bunning's reasons for blocking the $10 billion proposal was not based on facts. In a statement from Reid's office, the Majority Leader points out:
"Bunning Claims Reid Pulled The Baucus-Grassley Bill From The Floor. Senator Bunning asserted that Senator Reid pulled the Baucus-Grassley bill, which included a 3-month extension of UI and Cobra, from the Senate floor. Speaking on the Baucus-Grassley proposal, Senator Bunning said, “(T)here were more provisions in the bill also. It cost a little more than the, the $10 billion that is asked for because it was a three-month extension. Senator Reid pulled that bill from the floor of the U.S. Senate. He did it. The Leader of the Democrats pulled that bill from the floor.” [Senate Floor, 3/1/10]
FACT: The Bill Was Never Offered On The Floor. The Baucus-Grassley proposal was never offered on the Senate floor.
Bunning Suggests He Would Have Supported The Baucus-Grassley Bill. At the end of his incorrect comments on the Baucus-Grassley bill, Senator Bunning seemed to suggest that he would have supported that bill and said, “I support extending unemployment benefits, COBRA benefits, flood insurance, highway bill fix, doc fix, small business loans, distant network television for satellite viewers.” [Senate Floor, 3/1/10]
FACT: The Baucus-Grassley Bill Did Not Offset The Cost Of Extending UI And COBRA. Just like the current legislation Democrats continue to ask unanimous consent to pass, the Baucus-Grassley proposal did not offset the cost of extending the UI and Cobra programs".
Full Text of Reid's statements, click here. Sen. Bunning's statement, see story below. 03/01/2010
SEN. JIM BUNNING PUTS HOLD ON UNEMPLOYMENT EXTENSION / COMPLAINS IT AND OTHER PROGRAMS IN SAME BILL ADD TO DEBT
More from the Emeritus Newsroom- Kentucky Senator Jim Bunning last night repeated his objections to passage of extended unemploymenty benefits and COBRA health insurance subsidies by single handedly holding up the vote. Since many senators had gone home for the weekend , Senator Dick Durbin (D) Il, had tried, on a voice vote, to pass the extension and was stopped by Bunning, who objected to the extensions being funded by more debt. Sen. Durbin questioned Bunning's sincerity on the objection being as that he (Bunning) had approved less critical measures similarly debt funded. Bunning today released a statement, based on earlier speeches, that the extensions should be paid for, not added to the nations increasing debt. Bunning said,
"It seems to me people have not been listening, particularly the Senator from Illinois. He has been through two of these with the leader. He heard the arguments on both sides. Unfortunately, he has a one-side-only view of this situation. I have offered the same COBRA, flood insurance, unemployment insurance, Satellite Home Viewing Act, highway funding, SBA loans, small business provisions--I have offered to do the same thing for the same amount of time. The only difference I have, and some of my good friends from the other side of the aisle, is that I believe we should pay for it. There is a right over the last 3 years of the Democratically controlled Congress. We have run up $5 trillion in debt. There has to be a time to stop that." (2/25/10)
"Well, we have tried to work this out with the majority, particularly after the pay-go vote last week. When 100 senators are for a bill and we can't find $10 billion to pay for it, there's something the matter, seriously the matter with this body. I've said that last night. I don't want to repeat myself. I have offered several ways to pay for it. If everybody in this chamber -- and there is no senators except me here right now, but there are 100 members of this body -- believes as the senator from Illinois does that this is essential and we should pass it, then we should pay for it. There are going to be other bills brought to this floor that are not going to be paid for, and I'm going to object every time they do it. I don't much agree with the Chairman of the Federal Reserve, but it was striking yesterday when he said if at the present level of debt and the present administration's budget is passed, that the debt of the United States will be unsustainable, unsustainable to me means that there is a chance of one of the rating agencies downgrading the rating on our debt. We cannot allow that to happen. Because I have got too many young grandchildren that want America to be the same America that I grew up in. And I'm worried to death that that's not going to be the case."
Full text of Bunning statement, click here.
Sen. Bunning's delay has prompted a firestorm of protest from other Senators who supported the extension. New Hampshire Senator Jeanne Shaheen, in a statement released today by her office said,
“For unemployed workers across New Hampshire, unemployment insurance and CORBA benefits provide a lifeline. These critical services are not only important for families struggling to make ends meet, they are also critical to our nation’s economic health.
“Because of the obstruction of one Senator, nearly one million Americans will soon lose these benefits, which will surely have a ripple effect throughout our economy. These jobless Americans will be soon forced to make impossible choices between paying for necessities like groceries, prescriptions drugs, and gasoline, which will affect local businesses. They will default on paying their bills and won’t be able to adequately heat their homes.
“The political gridlock in Washington must stop. There is no excuse for blocking a short-term fix to one our nation’s most pressing problems while we work on a long-term solution.”
Shaheen has co-sponsored two pieces of legislation aimed at ending this type of political gridlock by changing the rules of the Senate so that important, noncontroversial legislation can no longer be held up by a very small minority of Senators, or in this case, by just one Senator.
Full text of Shaheen statement, click here.
02/26/2010
INITIAL UNEMPLOYMENT FILINGS UP AGAIN LAST WEEK / MORE SIGNALS OF STAGGERING ECONOMY
More from the Emeritus Newsroom - For the second week in a row , the nation's weekly inital filings for unemployment benefits increased, edging closer to the one half million mark. The latest figures, which show the advance figure for seasonally adjusted initial claims, the week of February 20th, was 496,000, an increase of 22,000 from the previous week's revised figure of 474,000. The 4-week moving average was 473,750, an increase of 6,000 from the previous week's revised average of 467,750.
The advance seasonally adjusted insured unemployment rate was 3.5 percent for the week ending Feb. 13, unchanged from the prior week's unrevised rate of 3.5 percent.
The advance number for seasonally adjusted insured unemployment during the week ending Feb. 13 was 4,617,000, an increase of 6,000 from the preceding week's revised level of 4,611,000. The 4-week moving average was 4,600,750, an increase of 4,250 from the preceding week's revised average of 4,596,500.
The fiscal year-to-date average for seasonally adjusted insured unemployment for all programs is 5.209 million. This means the ranks of the long term unemployed are likely to rise, or on average, stay nearly the same, for at least the next month. Those who are considered, long term unemployed, being unemployed longer than 27 weeks, now takes up about 40% of all payments for unemployment benefits.
02/25/2010
SENATE APPROVES JOBS BILL
More from the Emeritus Newsroom- The Senate has approved H.R. 2847, substituting the "Jobs for Main Street Act, 2010" as Division A of the Act and the "Statutory Pay-As-You-Go Act of 2009" as Division B. The vote was 70-28, with 13 Republicans joining Democrats to approve the bill. Sen. Ben Nelson of Oklahoma was the only Democrat voting against it. The bill provides extended unemployment benefits as well as tax breaks for job creation and more funds for the nations highway system. SENATE DEMOCRATS COPY OF JOBS BILL, CLICK HERE. Thomas listing with language of the bill, click here. 02/24/2010
CBO SAYS STIMULUS ACT CREATED OR SAVED 2.1 MILLION JOBS IN LAST QUARTER OF 2009
More from the Emeritus Newsroom -Often the subject of criticism and jokes, a more credible accounting of the employment effect from the Stimulus Act shows 2.1 million jobs were created or saved in the in the last quarter quarter of 2009. That's the conclusion of the Congressional Budget Office, which stated in its report,
"...that in the fourth quarter of calendar year
2009, ARRA added between 1.0 million and 2.1 million
to the number of workers employed in the United States,
and it increased the number of full-time-equivalent jobs
by between 1.4 million and 3.0 million. Increases in FTE
jobs include shifts from part-time to full-time work or overtime and are thus generally larger than increases in
the number of employed workers. CBO also estimates
that real (inflation-adjusted) gross domestic product
(GDP) was 1.5 percent to 3.5 percent higher in the
fourth quarter than would have been the case in the
absence of ARRA". Full text of CBO report, click here. 02/24/2010
FED CHAIR BERNANKE TO HOUSE COMMITTEE: "UNEMPLOYMENT IS THE BIGGEST ISSUE WE HAVE"
More from the Emeritus Newsroom-In response to a question from House Financial Services Committee Chairman Barney Frank, Federal Reserve Chairman Ben Bernanke admitted employment was the "biggest problem" for the country now. He suggested the government has to take stronger action, but cautioned about adding too much to the deficit. Projections through the next ten years warn of the nation's debt consuming 5% or more of Gross Domestic Product. Bernanke warned that in order to turn the economy around long term, the nations debt would need to be cut to at least 2.5% to 3% of GDP. During his prepared statement, Bernanke told the committee,
"The U.S. economy expanded at about a 4 percent annual rate during the second half of last year. A significant portion of that growth, however, can be attributed to the progress firms made in working down unwanted inventories of unsold goods, which left them more willing to increase production. As the impetus provided by the inventory cycle is temporary, and as the fiscal support for economic growth likely will diminish later this year, a sustained recovery will depend on continued growth in private-sector final demand for goods and services". Full Text of Bernanke's prepared statement, click here. C-SPAN video of Bernanke testimony and comments, click here. 02/24/2010
SENATE DEMOCRATS BEAT REPUBLICAN DELAY, VOTE EXPECTED WEDNESDAY FEB. 24TH, INCLUDES EXTENDED UNEMPLOYMENT
More from the Emeritus Newsroom - Senate Democrats along with five Republicans provided enough votes this afternoon to advance the jobs bill, which includes extended unemployment benefits. The cloture vote was taken on the House modified the Commerce-Justice-Science Appropriations Act, 2010, H.R. 2847, substituting the "Jobs for Main Street Act, 2010" as Division A of the Act and the "Statutory Pay-As-You-Go Act of 2009" as Division B. Republicans leaders forced Democratic leadership to take a cloture vote with 60 votes needed to advance the proposal to a final vote expected Wednesday, February 24th. Republicans claimed that Senate Majority leader Harry Reid broke a deal to include more business tax breaks. This is the bill which has the extended unemployment benefits, which are replacing those which run out February 28th. Thomas listing with language of the bill, copy click here. 02/22/2010
REPUBLICANS AGAIN DELAY UNEMPLOYMENT BENEFITS EXTENSION
More from the Emeritus Newsroom- Democratic Senate leaders are hoping to win a procedural (cloture) vote Monday, in order to advance a jobs bill which includes extended unemployment benefits. Various media outlets are reporting that lobbyists are getting Republican support for additional tax breaks and projects as part of the job creation packages. The problem comes as most states are running out of money for extended unemployment benefits, which are set to expire February 28th. Labor advocates say passage soon is critical to avoid interruptions in benefits, since states must get the money in time to continue benefits the first week in March. Senate Majority Leader Harry Reid (D) NV says much of the jobs bill includes amendments and proposals from Republicans such as The Schumer-Hatch jobs payroll tax exemption that offers employers an exemption from social security payroll taxes for every worker hired in 2010 that has been unemployed for at least 60 days. There would also be an additional $1,000 income tax credit for every new employee retained for 52 weeks to be taken on the employer’s 2011 income tax return. Senator Orrin Hatch, the most senior Republican senator, authored the legislation with Senator Charles Schumer. Full text of Sen. Reid press release, copy click here. 02/19/2010
FEDERAL TRADE COMMISSION BUSTS EMPLOYMENT CON ARTISTS
More from the Emeritus Newsroom - The Federal Trade Commission has announced a new crackdown on con artists who are preying on unemployed Americans with job-placement and work-at-home scams, promoting empty promises that they can help people get jobs in the federal government, as movie extras, or as mystery shoppers; or make money working from their homes stuffing envelopes or assembling ornaments.
With the U.S. unemployment rate just under 10 percent, the FTC is redoubling its efforts to put a stop to these schemes, which make life even more difficult for hundreds of thousands of Americans already wrestling with the economic downturn.
As part of the law enforcement sweep announced today, dubbed “Operation Bottom Dollar,” the FTC has filed seven cases against the operators of deceptive and illegal job and money-making scams and announced developments in four previously filed job scam cases. In addition, the sweep includes 43 criminal actions by the Department of Justice, many involving the substantial assistance of the U.S. Postal Inspection Service, as well as one additional civil action by the Postal Inspection Service and 18 actions by state attorneys general.
During a joint press conference yesterday, at the FTC, David C. Vladeck, Director of the FTC’s Bureau of Consumer Protection, was joined by Tony West, Assistant Attorney General for the Civil Division of the Department of Justice; Ohio Attorney General Richard Cordray; and a Grandview, Texas, job seeker who lost money to a company that made false promises of full-time work with benefits. The FTC also announced partnerships with the online job placement service Monster.com, the search engine Bing, by Microsoft, and the centralized network of online communities Craigslist, to help job seekers recognize job scams so they can avoid being victimized. Monster, Careerbuilder, Bing and Craigslist will display FTC consumer education material to people who are using the companies’ Web sites to look for jobs.
Full text of FTC press release, copy click here. 02/19/2010
OBAMA: STIMULUS SAVED ECONOMY / CALLS ON CONGRESS TO PASS MORE JOB CREATION INCENTIVES
More from the Emeritus Newsroom- President Obama, looking back on the first year of the Stimulus Act, says it stabilized the economy and stopped the free fall. He admitted it has not done enough to spur job growth as 8.4 million jobs have been lost since the start of the recession December 2007. In a speech Wednesday at the White House, Obama called on congress to pass more incentives for small business hiring. In fact, the administration has proposed through various programs, at least 300 billion dollars in job creation tax and hiring incentives along with workforce training. The nation's unemployment rate remains high at 9.7%, however recent weekly initial claims reports such as the one released today (See below)) show initial claims for unemployment benefits, while lower than last year at this time, remain high enough to provide little for those who are among the long term unemployed, which make up at least 39% of those receiving benefits. Obama's proposed budget sets aside the money, with congress to decide how much and through what means it will be spent.Obama told the audience at the Old Executive Office Building near the White House, that:
"The Recovery Act was never intended to save every job or restore our economy to full strength. No bill or government program can do that. Businesses are the true engines of growth; businesses are the engines of job creation in this country. They always will be. But during a recession, when businesses pull back and people stop spending, what government can do is provide a temporary boost that puts money in people's pockets, and keeps workers on the job, cuts taxes for small businesses, generates more demand; gives confidence to entrepreneurs that maybe they don’t have to cut back right now, maybe they can hold steady in their plans and in their dreams. That's exactly what we've been able to do with the Recovery Act".
"And I just want to point this out -- there has never been a program of this scale, moved at this speed, that has been enacted as effectively and as transparently as the Recovery Act. I’m grateful that Congress agreed to my request that the bill include no earmarks, that all projects receive funding based solely on their merits".
Full text of President Obama's comments on the Stimulus Act, copy click here. 02/18/2010
UNEXPECTED INCREASE IN FIRST TIME UNEMPLOYMENT CLAIMS
More from the Emeritus Newsroom- The Labor Department reports today that in the week ending Feb. 13, the advance figure for seasonally adjusted initial claims was 473,000, an increase of 31,000 from the previous week's revised figure of 442,000. The 4-week moving average was 467,500, a decrease of 1,500 from the previous week's revised average of 469,000.
The advance seasonally adjusted insured unemployment rate was 3.5 percent for the week ending Feb. 6, unchanged from the prior week's unrevised rate of 3.5 percent.
The advance number for seasonally adjusted insured unemployment during the week ending Feb. 6 was 4,563,000, unchanged from the preceding week's revised level of 4,563,000. The 4-week moving average was 4,585,750, a decrease of 24,000 from the preceding week's revised average of 4,609,750.
The fiscal year-to-date average for seasonally adjusted insured unemployment for all programs is 5.240 million. Full text of Labor Department report, copy click here. 02/18/2010
TOYOTA ORDERS PRODUCTION CUTS AT TWO U-S PLANTS
More from the Emeritus Newsroom- Toyota announced this morning that it will have two more weeks of production shutdowns at two U-S plants. The company refuses to say whether shutdowns at its San Antonio and Georgetown, Kentucky plants are due to the recall of 8.5 million vehicles around the world. The San Antonio shutdowns are expected the weeks of March 15 and April 12th. The company expects the Georgetown, Ky. shutdowns on February 26th and three more days in March and April yet to be specified. The company has also announced today weaker than expected recent sales figures and is considering $1,0000 rebates and extended warranties
K-MART PAYS $120,000 IN AGE DISCRIMINATION CASE / EEOC CLAIMS PHARMACY MANAGER ACCUSED VICTIM OF BEING "TOO OLD" AND "GREEDY"
More from the Emeritus Newsroom- A 70 year old pharmacist who wanted to continue working beyond retirement age was forced to quit due to mistreatment. In announcing a $120,000 settlement with K-Mart in that case, the Equal Employment Opportunity Commission says over the course of four years, a pharmacy manager openly professed on several occasions that the pharmacist was “too old,” “should just retire,” and was “greedy” for continuing to work at age 70. Further, the EEOC said, the manager continued to humiliate her in writing by stating, “The pharmacy is no longer your forte” and “You need to retire from pharmacy work now,” in a communication book open to the entire department.
The manager also purposely scheduled her to work on Sundays – knowing that she attended church those days – to encourage her to quit, according to the EEOC. The agency further contended that the victim complained to a district manager, general manager and human resources manager regarding the age-based harassment, to no avail.
Further, the EEOC charged, Kmart threatened legal action against the pharmacist using a pretext on an unrelated matter to retaliate against her for her discrimination complaint. Finally, the EEOC said, she had to quit to escape the mistreatment.
In June 2009, the EEOC filed its lawsuit in U.S. District Court, District of Hawaii (EEOC v. Kmart Corporation, et al., Case No. CV09-00300 SOM BMK), claiming that Kmart failed to take remedial action, which forced the pharmacist to resign. Full text of the EEOC press release, click here. 03/30/2010
REPUBLICANS DELAY SHORT TERM UNEMPLOYMENT EXTENSION BILL/ EXTENSION APRIL 5-MAY 5, HELD UP IN SENATE OVER FUNDING / LONG TERM UNEMPLOYMENT MAY 5-DEC. 31ST APPROVED EARLIER THIS MONTH
More from the Emeritus Newsroom- Its been hard to keep track of the patchwork of unemployment extensions, which have been approved or held up in congress.
The long term unemployment, COBRA extension and $20 billion jobs bill known as HR 4213, was passed earlier this month and signed by President Obama.
Now the short term unemployment extension has been held up in the Senate . Oklahoma Senator Tom Coburn (R), on Thursday, forced a "cloture" vote on HR 4851, which is the short term unemployment and COBRA extension from April 5th to May 5th, meaning the bill will need 60 votes to pass "cloture" and advance to the Senate floor for a final vote. Coburn is sounding the Republican concern that the extension adds to the deficit.
Since the Senate has, as of today, gone on its Easter break, short term benefits will technically run out April 5th, as congress is returning from their break. Because of the way the federal government is paying out to states on these things, it remains to be seen what effect, if any this will have on payouts to the unemployed. Unless the extension is delayed more than a week, after congress gets back from their break, it may not have any effefore hiring someone to fill a vacant position. The proposed changes would reduce those steps to to a 14. One of the complications has been additional money for stimulus related programs, which have gone largely unspent, due to the lag in hiring for federal positions. More in this story from the Federal Times. click here. 05/15/2010
PROPOSED "PROTECTING OLDER WORKERS AGAINST DISCRIMINATION ACT" MOVES FORWARD IN BOTH HOUSE AND SENATE
More from the Emeritus Newsroom- Both the House and Senate appear likely to move on a bill to deal we Equal Employment Opportunity Commission on behalf of two former female employees. The EEOC says the women were not hired at a new charter school because of their pregnancies. Both had been employed at a charter middle school owned by the company, which had been closed. Imagine Schools then opened a private middle and high school, Renaissance Academy, at the same location. The lawsuit claimed that the company did not rehire LuShonda Smith, an office manager, and Charity Brooks, an administrative assistant, to work at the new school because they were pregnant. Pregnancy discrimination violates Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act. The EEOC filed suit in September 2008 after first attempting to reach a pre-litigation settlement. Full text of EEOC statement, click here. 03/23/2010
CONGRESSIONAL BUDGET OFFICE PROJECTION CALLS FOR UNEMPLOYMENT TO DROP AND HOLD UNDER 6% BY 2016
More from the Emeritus Newsroom- An encouraging note from the Congressional Budget Office as their projections for unemployment show the rate sharply dropping over the next six years, then leveling off. Still, the rate will not reach pre recession levels, at least through 2020. In a presentation delivered to the annual gathering of the nation's Lieutenant Governors, CBO Deputy Director, Robert Sunshine said, that while unemployment will drop sharply as stimulus programs take hold, the number of those unemployed who have permanently lost their jobs has increased. Sunshine says the CBO thinks that more than 50% of those now without work, are those who will never be called back and are more likely to remain unemployed due to the economic conditions of their trade or profession. CBO projections show the number of those facing temporary lay offs will decrease this year as those facing permanent job loss will increase. Sunshine presentation to Lieutenant Governors, click here.
STATES' UNEMPLOYMENT FUNDS HEAD FOR MORE TROUBLE / LOWER TAXES ON EMPLOYER WAGES PARTIALLY TO BLAME
More from the Emeritus Newsroom- Congress is still working on a bill that will extend unemployment benefits through the end of the year. Extended benefits are set to run out the first week of June in most states. A report released by the GAO points out that, as of April 1, 2010, 34 of the 53 state trust funds have outstanding loans totaling $38.9 billion from the federal government to pay benefits. Long-standing UI tax policies and practices in many states over 3 decades have eroded trust fund reserves, leaving states in a weak position prior to the recent recession. Further, average U.S. pre-recession funding levels of state trust funds were lower prior to the recent recession than for the previous three recessions. While benefits over the last 3 decades have remained largely flat relative to wages, employer tax rates have declined. First, most state taxable wage bases have not kept up with increases in wages. As of 2010, only 17 of the 53 state trust funds have taxable wage bases that are indexed to average wages. Second, many employers pay very low tax rates on state taxable wage bases. From 1978 to 2008, average minimum tax rates levied on employers by states dropped from 1.14 percent to 0.37 percent of taxable wages. Options to improve state UI trust fund financial conditions include raising and indexing the FUTA taxable wage base, which has remained at $7,000 per worker per year since 1983. This could induce many states to raise and index their own taxable wage bases. In addition, state UI tax reform could reduce the number of employers paying very low rates and those that pay less in UI taxes than benefits paid to their former workers. Other options include adjusting state tax rates more frequently; raising solvency targets before lowering rates; setting additional conditions to receive interest-free federal loans; and raising interest credits for well funded trust funds. Options to improve state UI trust fund financial conditions include raising and indexing the FUTA taxable wage base, which has remained at $7,000 per worker per year since 1983. This could induce many states to raise and index their own taxable wage bases. In addition, state UI tax reform could reduce the number of employers paying very low rates and those that pay less in UI taxes than benefits paid to their former workers. Other options include adjusting state tax rates more frequently; raising solvency targets before lowering rates; setting additional conditions to receive interest-free federal loans; and raising interest credits for well funded trust funds. Full text of GAO Summary and direct links to full report, click here. Background and chronology of problem from the House Committee on Ways and Means, Income Security Subcommittee, click here. Link to hear page and testimony for Subcommittee on Income Security, May 6th hearing on solvency of unemployment benefits system, click here. 05/07/2010
U-S UNEMPLOYMENT RATE IS UP / MORE JOBS CREATED BUT MORE UNEMPLOYED ENTER WORKFORCE LOOKING FOR JOBS
More from the Emeritus Newsroom- With the national GDP improving, more people are entering the workforce hoping to find jobs. And the latest job creation numbers from the Department of Labor, for April, shows the economy created 290,000 jobs last month. Still it was not enough to make up for those who have lost their jobs and others entering the workforce, forcing the unemployment rate up .2 of a per cent to 9.9%. The unemployment rate had been 9.7% for the first three months of the year. The number of those unemployed for at least 27 weeks continues to trend upward, with 6.7 million now listed in that catagory, making up 44.9% of those recieving unemployment compensation. Full text of Labor Department press release, click here. Secretary Solis comments on stats, click here. 05/07/2010
EEOC GETS $500,000 SETTLEMENT FOR TEENAGE FEMALES IN SEX HARRASSMENT CASE
More from the Emeritus Newsroom- Female basement telemarketing company workers were subjected to secual harrassment, demands for sex and other humiliation according to investigatros with the Equal Employment Opportunity Commission. As part of a settlement reached with attorneys for Everdry, the famle victims, some of them teenagers, will recieve more than a half million dollars compensation in that case. The EEOC, in a statement says, Everdry Marketing and Management has paid $471,096 in damages, plus $86,581 in post-judgment interest, to 13 victims of sexual harassment. The payout satisfies a judgment obtained by EEOC against Everdry in October 2006 following a four-week trial in Rochester, N.Y. (case # 01-CV-6329). The individual payouts range from about $24,000 to $56,000, including the interest, which covers the time the women had to wait to receive their jury awards. Everdry was required to pay the substantial interest after the ultimate resolution of the case was delayed by an appeal Everdry filed in the U.S. Court of Appeals for the Second Circuit challenging various aspects of the jury’s verdict and other district court rulings. The Court of Appeals affirmed the jury’s verdict and award of damages.Cleveland-based Everdry provides basement waterproofing services through various franchises. The case concerned a prolonged period of physical and verbal sexual harassment of mostly teenage telemarketers by male managers and co-workers at Everdry’s Rochester, N.Y., location. The EEOC charged that the harassment included repeated demands for sex, frequent groping, sexual jokes and constant comments about the bodies of women employees. On one occasion, a male manager requested sex from a teenager with the promise of a raise if she consented.
“Many of the victims in this case were young and especially vulnerable,” said EEOC Chair Jacqueline A. Berrien. “We are gratified that the appeals court has now paved the way for these harassment victims to finally receive the relief the jury awarded.”
EEOC press release, copy click here. 05/06/2010
DEPARTMENT OF LABOR TARGETS FIRMS VIOLATING LABOR LAWS AS THE CHEAPER PATH TO INCREASE PROFITS
More from the Emeritus Newsroom- In addition to $25 million in the new Labor Department budget to crack down on missclassification of employees, the Senate and House are taking up two bills that would impose more restrictions, on so called, "safe harbors" for employers to declare employees as "Independent Contractors". With both House and Senate sponsors, the push is on once again to plug the loophole many employers use to lower labor costs through misclassification of employees as "Independent Contractors". Called the Employee Misclassification Prevention Act, Senator Sherrod Brown (D) OH and Rep. Lynn Wolsey (D) CA, have restarted the push to pass it before the end of the current congressional session. In a press release, from Sen. Brown, the bill will address misclassified workers have been denied basic worker safeguards, including:
Minimum wage
Health and safety laws
Overtime
Discrimination
protections
Unemployment insurance
Workers’ compensation.
Brown claims that tens of thousands of employers misclassify their employees – many cut corners to save costs by converting employees
into independent contracboost sales. It was only last year the company announced expansion of 4 cylinder engine production at its Huntsville, Alabama plant beginning in 2011. 02/16/2010
EEOC GETS $6.2 MILLION SETTLEMENT IN DISABILITY DISCRIMINATION CASE AGAINST SEARS / OTHER NOTABLE JOB DISCRIMINATION SETTLMENTS ANNOUNCED
More from the Emeritus Newsroom- Settlements in three job discrimination cases filed by the Equal Employment Opportunity Commission have brought victims in those cases more than $7 million. The Four cases include a $6.2 million settlement with the EEOC in a disability discrimination case against Sears. The EEOC claims Sears maintained an inflexible workers’ compensation leave exhaustion policy and terminated employees instead of providing them with reasonable accommodations for their disabilities, in violation of federal law resulting in the largest monetary settlement for a single lawsuit in EEOC history.
Under the terms of the decree, the EEOC provided claim forms to certain Sears employees who had been terminated under Sears’ workers’ compensation leave policy. The claimants were asked to report to the EEOC, among other things, the extent of their impairments, their ability to return to work at Sears, and whether Sears had made any attempt to return them to work. Based on these criteria, the EEOC found that 235 individuals were eligible to share in the settlement. The average award was approximately $26,300. More than twenty claimants were found to be ineligible by the EEOC. As with all EEOC litigation, none of the settlement fund will retained by the EEOC; all of it will be distributed.
“It is a satisfying day indeed when victims finally receive compensation for the wrongful discrimination they have endured,” said EEOC Acting Chairman Stuart J. S “The EEOC is pleased and proud that we fought long and hard on this case to protect the rights of workers with disabilities, and that many Sears employees will now benefit from our law enforcement efforts.”
In other EEOC lawsuits up-dated since January 28th, the EEOC announced it Landwin Management, Inc., a San Gabriel, Calif.-based hotel operator, for $500,000 and significant remedial relief in cases alleging national origin discrimination and sexual harassment. Both suits were filed in September 2007 under Title VII of the Civil Rights Act of 1964.
In the first lawsuit (Case No. CV 07-06169 SJO), the EEOC charged that non-Chinese banquet servers were rejected for hire based on their national origin when the San Gabriel Hilton severed its contract and hired Landwin Management to operate the establishment in April 2005. The EEOC said that all the non-Chinese banquet servers who previously worked for the hotel at the time, many of whom were Latino, were not hired back during the turnover and instead replaced with less qualified Chinese workers.
In the second suit (Case No. CV 07-05916 PA), the EEOC alleged that the San Gabriel Hilton subjected female employees to a sexually hostile work environment, including verbal sexual harassment by the housekeeping department supervisor, who referred to the women as “whores” and “prostitutes” in addition to other offensive language. The supervisor also allegedly reprimanded the female employees if they even spoke to men, and Landwin failed to respond to the employees’ complaints of harassment.
The EEOC also filed in 2005 against Boeing in connection with two lawsuits. (EEOC v. The Boeing Company, 05cv03034 PHX FJM), the EEOC brought sex discrimination and retaliation claims against Boeing on behalf of two female engineers at Boeing’s Mesa, Arizona facility. Antonia Castron complained of gender-based harassment, including sexist remarks, creating a hostile environment and, a few days later, she found herself transferred to a new unit that did not suit her skill set. Less than two months after the transfer, Boeing laid her off, purportedly because she could not perform as well as other engineers in her new unit.
“Instead of stopping the harassment or reprimanding the men who tormented me, they moved me to a unit that designed structures,” said Castron. “I was skilled at electrical engineering. That’s like asking a heart surgeon to do brain surgery. Then they evaluated me for layoff based on my ability to perform structural work. They set me up for layoff.”
The EEOC claimed that Boeing managers harbored discriminatory and retaliatory motives when it transferred and terminated Castron. Manufacturing engineer Renee Wrede twice complained of sex-based harassment, and twice Boeing’s internal investigators substantiated her complaints. Nonetheless, according to the EEOC, the company allowed her harassers to influence her layoff evaluations and reduce her scores. As a result, Wrede also received a layoff notice in October 2002. The EEOC’s investigation showed that Boeing manipulated evaluation scores used in its October 2002 reduction in force to justify the terminations of Wrede and Castron.
“An employer is only setting itself up for more trouble when it punishes a worker for exercising her right to complain about unlawful activity in the workplace,” said EEOC Acting Chairman Stuart J. Ishimaru. “The EEOC is always especially concerned when we uncover this kind of unlawful retaliation. It chills witnesses and victims from reporting illegal discrimination at work, and therefore interferes dangerously with the Commission’s law enforcement efforts.”
In an earlier lawsuit (EEOC v. The Boeing Company, CV-03-1210-PHX-PGR), the EEOC sought relief on behalf of Kelley Miles, a female mechanic at the Mesa facility, who works on the Apache helicopter that Boeing manufactures for the U.S. Army. The EEOC charged that Boeing allowed Miles’ co-workers to harass her on an ongoing basis due to her gender and allowed one or more managers to contribute to that harassment without taking appropriate steps to address the behavior. Much of the harassment directed at Miles was designed to make it more difficult for her to perform her job, the EEOC said. Male co-workers took Miles’ tools and either broke them, hid them, or changed the adjustments before returning them. Other harassment was sexual in nature. Miles reported this conduct to Boeing’s Human Resources Department, but the company did nothing to address it. As a result, the harassment continued.
The suit also charged that Boeing retaliated against Miles for complaining about gender-based harassment. After Miles reported her co-workers’ conduct to Boeing’s Human Resources Department, a manager warned several of Miles’ co-workers to be careful of what they said to her because the manager had them on a list.
Boeing’s alleged conduct violates Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination based on race, color, religion, sex (including sexual harassment or pregnancy) or national origin and protects employees who complain about such offenses from retaliation.
And finally, a huge law firm, based in New York City has been sued by the EEOC for openly cutting compensation packages to attorney after they reach 70 years of age. The EEOC filing claims that Kelley Drye & Warren, an international law firm, violated federal age discrimination law through its compensation system, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit it filed today.
According to the EEOC’s suit, in Kelley Drye’s system, attorneys who practiced law after turning 70 years of age received dramatically reduced compensation compared to similarly productive younger attorneys solely because of their age. The EEOC further charged that Kelley Drye unlawfully retaliated against Eugene T. D'Ablemont, an attorney who has practiced law at the firm for over 40 years, by further reducing his compensation after he complained about this discriminatory policy and filed a charge with the EEOC.
“Law firms that single out older attorneys for adverse treatment simply because of their age run great risk of violating the federal prohibition on age discrimination,” said EEOC Acting Chairman Stuart J. Ishimaru. “This lawsuit should serve as a wake-up call for law firms to examine their own practices to ensure they comport with federal law.”
The EEOC’s lawsuit, Civil Action No. 10- CV-0655, filed in U.S. District Court for the Southern District of New York, said that Kelley Drye requires all partners to give up their ownership interest in the firm at the age of 70. If an attorney continues to work, his or her compensation consists of an annual "bonus" payment in an amount totally within the discretion of the firm's executive committee. Since D'Ablemont turned 70 in 2001, even though he routinely has obtained over $1 million in fees annually from his clients, his compensation has been substantially less than younger lawyers at the firm with similar productivity. Moreover, in 2008 and 2009, after D'Ablemont had complained internally about Kelley Drye's age-based compensation system, ultimately resulting in his filing of an age discrimination charge with the EEOC, the firm reduced his bonus payment by two-thirds even though his productivity remained the same.
Press release on Sears settlement, click here. San Gabriel Hilton-Landwin Management lawsuit, click here. Boeing lawsuit, click here. .Kelley Drye lawsuit, click here. 02/11/2010
BIPARTISAN JOBS BILL ANNOUNCED IN SENATE
More from the Emeritus Newsroom- Republican and Democratic Senate leaders announced today an agreement to stimulate job creation and provide additional unemployment benefits, including health insurance payment assistance, for those who are jobless. The agreement was announced by Senate Finance Committee Chairman, Sen. Max Baucus (D)MT and Ranking Member Sen. Charles Grassley (R) IA. In a joint announcement from the two, the proposal is called the , "Draft Hiring Incentives to Restore Employment (HIRE) Act". A summary claims the deal offers:
Schumer‐Hatch Jobs Payroll Tax Exemption. This provision would offer an exemption from social
security payroll taxes for every worker hired in 2010 that has been unemployed for at least 60 days. The
maximum value would be equal to 6.2% of wages up to the FICA wage cap ($106,800). There would also
be an additional $1,000 income tax credit for every new employee retained for 52 weeks to be taken on
the employer’s 2011 income tax return. This proposal is estimated to cost $13 billion over ten years.
Extension of Section 179 Expensing. This provision would extend 2008 and 2009 section 179 expensing
thresholds so that taxpayers may elect to write‐off up to $250,000 of certain capital expenditures
(subject to a phase‐out once expenditures exceed $800,000) in 2010 in lieu of depreciating those costs
over time. This proposal is estimated to cost $35 million over ten years.
Election to Convert Tax Credit Bonds to Build America Bonds. Under current law, Congress provided tax
credit bonds to qualifying issuers for certain school and energy projects. Tax credit bonds provide the
bond holder a federal tax credit in lieu of interest. Build America Bonds provide qualifying issuers a
direct payment from the Treasury for a portion of the interest paid on the bond for government works
projects. This provision would allow qualifying issuers of tax credit bonds the option of issuing tax credit
bonds under current law, or utilizing the direct subsidy Build America Bond structure for bonds issued
after the date of enactment. The federal subsidy would equal 45 percent of the borrowing cost (65
percent for qualifying small issuers). The proposal is estimated to cost approximately $2 billion over ten
years.
Highway Trust Fund. This provision would extend highway and transit programs through calendar year
2010, and transfers from the General Fund to the Highway Trust Fund $19.5 billion in interest foregone
since 1998. It would also halt annual payments the Highway Trust Fund makes to the General Fund as
reimbursement for tax‐exempt users of the highway program (e.g. state/local fleets and transit
providers). This provision also repeals an $8.7 billion rescission of un obligated balances of contract
authority, a provision which passed in the 2005 SAFETEA‐LU legislation. This proposal has no revenue
effect.
Extension of Expiring Tax Provisions
The draft HIRE Act would also extend several tax provisions that expired at the end of 2009, providing
much needed tax relief for individuals and businesses. These provisions include the research and
development credit, the 15‐year recovery period for leasehold, restaurant, and retail improvements, the
new markets tax credit, the active finance exception under Subpart F, and the CFC look‐through rules.
The draft HIRE Act would also extend several energy tax provisions, including credits for home efficiency
and alternative fuel vehicles, as well as for bio diesel, renewable diesel and other alternative fuels. The
draft bill also includes several disaster relief provisions. The total cost of the extenders provisions is
about $31 billion over ten years.
Pension Funding Relief
The provision would provide temporary, targeted funding relief for single employer and multi employer
pension plans that suffered significant losses in asset value due to the steep market slide in 2008. The
pension funding provisions raise about $6 billion over ten years.
Economic Safety Net Provisions
Unemployment Insurance Extension. This provision would extend current law, including increased
unemployment benefits, through May 31, 2010. Under current law, an unemployed worker may receive
up to 26 weeks of unemployment benefits provided by the state in which they were employed. After
the state‐provided benefits are exhausted, the worker may qualify for 34 more weeks of benefits
provided by the federal government. If that person is unemployed in a state with an unemployment
rate above 6 percent, they qualify for an additional 13 weeks of benefits also provided by the federal
government. Unemployed workers in states with an unemployment level over 8.5 percent qualify for an
additional six weeks of benefits also provided by the federal government. In addition, the Federal
government pays 100 percent of the cost of state Extended Benefits programs which provide up to 13
additional weeks of benefits for unemployed workers who have exhausted regular state benefits or
Emergency Unemployment Compensation. Last year’s economic recovery bill increased weekly
unemployment benefits by an additional $25 per week. Without extension, these provisions will expire
on February 28, 2010. This proposal is estimated to cost $22 billion over ten years.
Extension of COBRA Premium Assistance. This provision would extend the 65‐percent COBRA premium
subsidy for terminated workers through May 31, 2010. This provision also includes technical
clarifications to the program. The proposal is estimated to cost $3 billion over ten years.
Extension of Expiring Health Care Provisions.
The draft HIRE Act also extends health provisions, a number of which expired at the end of 2009. These
provisions include a seven‐month extension of the sustainable growth rate update formula. Without
this fix, physicians participating in Medicare face a 21 percent reduction in payments. The bill also
extends the exceptions process for Medicare therapy caps and extends payment provisions for mental
health providers, ambulance services, physicians in areas where the work geographic practice cost index
(GPCI) is below 1.0, certain physician pathology services, the rural hospital flexibility (Flex) program,
improved payments for outpatient services in hospitals in rural areas, direct billing for Indian health
service providers, Medicare hospital wage index reclassifications under the section 508 program,
provisions concerning long‐term acute care hospital services, and certain Medicare Advantage plans,
including special needs plans, cost plans and senior housing programs. The draft bill would also provide
an accreditation exemption for certain pharmacies that furnish durable medical equipment and would
clarify eligibility for physician health information technology incentive payments. And finally, the draft
bill would keep the 2009 federal poverty guidelines to protect people in means‐tested programs from
losing benefits and includes a provision to disregard refundable tax credits and refunds as income for
twelve months from receipt. The total cost of the health extenders provisions is about $10 billion over
ten years.
Other Provisions
The draft bill contains five provisions outside the jurisdiction of the Finance Committee. These include
short‐term extensions of two expiring authorities under the Patriot Act, the national flood insurance
program, and certain SBA loan provisions. In addition, the draft bill includes an estimated $1.5 billion in
agriculture disaster assistance and a five‐year reauthorization of satellite home viewer legislation. These
provisions are estimated to cost $3 billion over ten years.
Offsets
Foreign Account Tax Compliance. These provisions include a comprehensive set of measures to reduce
offshore noncompliance by giving the IRS new administrative tools to detect, deter and discourage
offshore tax abuses.
The House already passed its version of a jobs bill, but the Senate version has key differences with tax credits. Still, Senate leaders say they expect a compromise measure to pass both houses. The goal is to pass the measure by February 19th, which is seen as the deadline to set in motion payments for unemployment compensation to prevent expiration in benefits by the end of the month.
FULL TEXT OF SUMMARY, COPY CLICK HERE. 02/11/2010
CONGRESS FACES FEBRUARY 19TH DEADLINE TO AVOID CUTOFF OF EXTENDED UNEMPLOYMENT BENEFITS
More from the Emeritus Newsroom - With millions of unemployed workers facing a cutoff in benefits by the end of February, congressional negotiators are trying to come up with a compromise to make it happen by February 19th. That's the date seen by many worker advocates as the latest possible date for approval in order to avoid interruption of benefits. Christian Dorsey, spokesman for the Economic Policy Institute, tells Emeritus News that the house version of a jobs bill contains extended unemployment benefits, but the Senate version, at this point, does not. Dorsey says there seems to be agreement that the benefits extension needs to get done. The same situation existed last fall, when Republicans delayed the measure, eventually winning business tax breaks and extension of the first time home buyers tax credit before allowing it to come for a vote. The delay led to an interruption of benefits in some states with high unemployment. 01/28/2010
SENATE DEMOCRATS PROPOSING 80 BILLION DOLLAR JOBS BILL
More from the Emeritus Newsroom- Senate Democrats, trying to gain more support among Republicans for another jobs creation bill, are proposing slightly more than 80 billion dollars for tax credits for businesses to encourage hiring. Republicans object to the money to fund the proposal coming from TARP money for bank bailouts. The Senate version is considerably less costly than a version passed in the House calling for more than 150 billion dollars in spending. It remains to be seen how much of an impact the Senate version would have on extended unemployment benefits. With extended benefits set to run out for millions of long term unemployed next month. With more than 39% of the unemployment compensation going to those out of work 6 months or more, congress is under pressure to come up with something. The Economic Policy Institute has suggested a $400 billion dollar package that it claims would reduce the national unemployment rate to 9.5% by year's end. The EPI proposal suggests federal investments to create jobs, including spending on safety net programs such as extended unemployment insurance for the long-term unemployed and subsidized COBRA health insurance, which also serve to preserve existing jobs and create new ones. Full text of EPI proposal, copy click here. 01/26/2010
HOME BASED JOBS INCREASE / COLLEGE EDUCATED WORKERS MAKE UP HALF OF HOME BASED EMPLOYMENT
More from the Emeritus Newsroom-At least half of all at home workers are college educated d making more money that you might expect. According to statistics from the most recent reporting year, 2005, a total of 11 Million in the workforce were employed at home in 2005
The number of people who worked at home increased by nearly 2 million,
from about
9.5 million in 1999 to about 11.3 million in 2005, according to new data
released by the U.S. Census Bureau. Nearly half of these home workers had
college degrees and nearly half of them earned $75,000 a year or more.
These figures come from Home-Based Workers in the United States:
1999-2005, a series of tables that describe the type of employment,
occupations and characteristics of home-based workers in the United States.
The tables examine the total workforce and compare those who work at home
with those who do not. The data are produced from a supplement to the
Survey of Income and Program Participation.
"An examination of the data shows an increasing percentage of the
workforce is spending at least some time working from home," said Alison
Fields, chief of the Census Bureau's Journey to Work and Migration
Statistics Branch. "This survey provides a better picture of the attributes
of these people, as well as which professions and occupations allow them to
work at home."
Home-based workers made up 8 percent of the total U.S. workforce in
2005, an increase from 7 percent in 1999. Among those who worked at home in
2005, about 8.1 million did so exclusively, an increase from 6.7 million in
1999.
Examining those who worked at home in 2005 by industry, the largest
percentage worked in professional and related services (32 percent),
followed by business and repair services
(12 percent) and finance, insurance and real estate (10 percent).
The most popular occupations among those who reported working at home
were professional (25 percent), executive, administrative and managerial
(22 percent) and sales (18 percent).
The median monthly earnings of workers who worked at home were about
$2,400 in 2005; the median annual family income for these workers was
approximately $68,000.
High-paying jobs were more likely to involve working at home for some or
all of the work time. In 2005, 46 percent of people who said they worked at
home some or all of the time earned at least $75,000 per year, compared
with 34 percent of non-home workers who made at least that much. Those who
worked both at home and in an office had the highest percentage of
high-paying jobs - about 54 percent of whom made $75,000 or more annually
in 2005.
Along with more money came longer hours. About 11 percent of those who
worked at home for some or all of their workweek reported working 11 or
more hours in a typical day in 2005. Only about 7 percent of workers who
worked outside the home reported doing so.
Despite the long hours, there seemed to be more flexibility for people
who worked at home. In 2005, about 23 percent of home-based workers
reported their weekly work hours varied, compared with only 10 percent of
those who worked outside the home.
Characteristics of home-based workers:
· In 2005, about 51 percent were female.
· About 4 percent were age 15-24; nearly 18 percent were 25-34; 26
percent were 35-44; 26 percent were 45-54; 18 percent were 55-64
and nearly 9 percent were 65 and older.
· White non-Hispanics made up about 82 percent of this workforce;
blacks represented about 6 percent, Asians nearly 4 percent, and
all other races about 3 percent. Hispanics, who could be of any
race, made up about 6 percent.
· About 47 percent of those who worked at home had at least a
bachelor's degree; almost 32 percent had at least some college;
about 17 percent had a high school diploma; and about 5 percent
had less than a high school diploma.
Full text from the Census Bureau press release, copy click here. 01/25/2010
FORTUNE MAGAZINE OUT WITH BEST 100 EMPLOYERS / ONE EMPLOYER REPORTED TO HAVE 45,0000 JOB OPENINGS
More from the Emeritus Newsroom- Making its name in business consulting and intelligence, SAS is rated as the top company to work for. With such benefits as its own medical clinic and 90% payment of 4employee insurance premiums, SAS also has other perks, such as $410 a month toward child care, a summer camp for kids and a huge fitness center.
Fortune lists Accenture, the former Arthur Anderson consulting arm, as another of the top companies to work for. Accenture reportedly has thousands job openings it is trying to fill. It is ranked 84th best company in the Fortune survey.
The survey is broken down by rankings for salaried positions and hourly positions. Many of the companies, such as Dreamworks, the animation studio, are ranked in both surveys.
Full text of Fortune magazine article and related survey lists, click .Fortune magazine listings of companies with the most job openings, copy click .
01/25/2010
SAMS CLUB CUTS 11,200 PRODUCT SAMPLING JOBS / POSITIONS NOW IN HANDS OF SAMPLING CONTRACTOR
More from the Emeritus Newsroom - Wal-Mart says it is cutting about 10% of subsidiary Sam's Club staff at more than 600 stores it operates. Marketing contractor Shopper Events will take over those duties and it remains to be seen how many of the current sampling employees at Sam's Club will be picked up by Shopper Events. Sam's Club will also be cutting about two employees per store who handle business memberships. Wal-Mart, this month has already closed ten Sam's Club locations with lackluster sales. Of course, in typical PR spin, Wal-Mart has framed the developments as a program to "enhance demo programs" at the stores, only mentioning the job cuts further in to the press release. Full text of Wal-Mart press release, copy click . 01/25/2010
AARP WINS $70 MILLION SETTLEMENT FOR TELEVISION WRITERS AGE BIAS SUIT
More from the Emeritus Newsroom- A judge in California has given preliminary approval to a $70 million settlement involving television producers, agents and broadcast companies in an age bias suit against 150 television writers over the age of 50. ?The lawsuit was brought 8 years ago, according to an article in the AARP Bulletin. The AARP has claimed over the years, along with other advocacy groups, that discrimination against older writers is rampant and well known with television companies, agents and producers offering no apologies or denials. The AARP article quotes Tom Nelson, chief operating officer at AARP, calling the age discrimination settlement a victory for older workers across America.
“The importance of the settlement cannot be overestimated, given the fact that television … greatly influences the public’s perceptions,” he said. “Age diversity, as well as other forms of diversity, in the writers who play a key role in developing programming themes is one critical component for ending those stereotypes.”
The writers involved in the suit claimed that finding work in the television industry was nearly impossible because of widespread age discrimination by talent agencies and entertainment companies.
Washington, D.C., lawyer Paul Sprenger, lead counsel in the case, has blamed the writers’ predicament on “the result of insidious ageist stereotyping” in the industry.
According to court papers filed early in the suit, Brandon Tartikoff, then-president of NBC, established a policy of not hiring older writers, while former Fox Broadcasting President Jamie Kellner said, “We don’t need anyone over 50 years of age to succeed with our business plan.”
“No one in Hollywood would say publicly, ‘I don’t hire women,’ or ‘I don’t hire blacks,’ ” Sprenger said, “but they will say, ‘I don’t hire older workers.’ ”
Full text of article in the AARP Bulletin, click here. 01/23/2010
CBO RECOMMENDS AID TO UNEMPLOYED AND TAX BREAKS FOR EMPLOYERS WHO HIRE AS MOST COST EFFECTIVE WAY TO BOOST JOBS
More from the Emeritus Newsroom- Concerns over the rising federal deficit and the number of long term unemployed have prompted calls for moderation to address rising and long term unemployment. The Congressional Budget Office analysis as to the best way to balance competing forces of the economy, suggests proposals that would promote the most creation of full time jobs. The CBO study presented to the Senate Budget Committee suggests:
"CBO concludes that further policy action, if properly designed, would promote economic growth and increase employment in 2010 and 2011. Different policies vary in cost-effectiveness as measured by the cumulative effects on GDP and employment per dollar of budgetary cost and in the time patterns of those effects. Moreover, despite the potential economic benefits in the short run, such actions would add to already large projected budget deficits. Unless offsetting actions were taken to reverse the accumulation of additional government debt, future incomes would tend to be lower than they otherwise would have been.
MORE AID TO UNEMPLOYED
"Extending additional unemployment benefits would
directly help those who would otherwise exhaust their
unemployment benefits between March and December
of this year. Households receiving unemployment benefits
tend to spend the additional benefits quickly, making
this option both timely and cost-effective in spurring economic
activity and employment. A variant of this option
would extend assistance with paying health insurance
premiums, which would allow some recipients to maintain
health insurance coverage they would otherwise have
dropped. This variant would result in increased demand
for health care services, and it would increase the income
available to purchase other goods and services for recipients
who would have purchased insurance even without
this special assistance. Both policy options could dampen
people’s efforts to look for work, although that concern is
less of a factor when employment opportunities are
expected to be limited for some time".
MORE TAX BREAKS FOR HIRING
"Providing tax credits for increases in payrolls would
increase both output and employment. The effect on output
would come through the same four channels as the
effect on output of reducing employers’ payroll taxes.
CBO estimates that this option and the preceding one
would have approximately the same economic impact per
dollar of budgetary cost through the first three channels
discussed above. Through the fourth channel, however,
this option provides a substantially larger increase in
employment and hours than the previous option because
this policy would provide tax benefits linked to payroll
growth; fewer budget dollars would be used to cut taxes
for workers who would have been employed anyway, so
the incentive to increase payroll per dollar of forgone revenue
would be greater. However, linking the availability
of the credit to payroll growth would provide no incentive
to maintain employment at firms that have been contracting
and thus less incentive to maintain employment
overall in industries and regions where the economy
remains the weakest".
Full text PDF download of CBO study, copy click here. 01/23/2010
WOMEN STILL MAKE LESS THAN MEN / KEY REASON WHY WOMEN LESS LIKELY TO LOSE JOBS THAN MEN / WAGES MOVE UP IN 2009
More from the Emeritus Newsroom -The Bureau of Labor Statistics says that wages moved up 2.7% in the last quarter of 2009, when compared to the last quarter of 2008, when the financial collapse was continuing with no end in sight. This latest report on wage differentials between men and women and those among minority groups, offer an interesting snapshot of how the recession has affected various levels of the workforce. As reported in a Pew Research survey earlier this week, men are now less educated than their wives and wives are seen as more likely to be earning the bigger paycheck and less likely to be laid off. However, it is interesting to note that women, according to the BLS are still only earning 81% of the earnings of mens' average earnings. This means that while women are making more and likely more educated than their husbands, they have accomplished this despite making less in median earnings than male workers to begin with. And since male workers are making more in median earnings, they are more likely to face layoffs, as companies try to cut payrolls of more expensive workers. This has shown up in the Pew survey as husbands are making up about 75% of the layoffs involving married spouses. BLS press release, copy click here. .Full text of Pew report, copy click here. 01/21/2010
INITIAL UNEMPLOYMENT CLAIMS UP BY 36,000 LAST WEEK
More from the Emeritus Newsroom - More signs that the early going for 2010 will be tough for those who are unemployed, as last weeks initial claims were up more than 36,000 over the previous week. According to the bureau of Labor Statistics, first time unemployment claims in the U-S last week were, 482,000 compared to the previous weeks figure of 446,000. Analysts are saying the latest weekly figures are a continuing signal that the economy is not adding enough jobs to compensate for the jobs lost, adding to problems for the long term unemployed. The statistics are also more evidence for support of continuing unemployment benefits beyond those approved for the end of February, since the average number of applicants per job opening is now 6.4 with little hope of near term improvement. BLS press release, copy click here. . 01/21/2010
THE JOBS THAT WON'T BE COMING BACK AND CHANGES WORKERS FACE
More from the Wall Street Journal, copy click here- 01/16/2010
NEW JOBS DROP / STATS RELEASED BY BUREAU OF LABOR STATISTICS / CONFERENCE BOARD SEES HOPE IN 2010
More from the Emeritus Newsroom-The Bureau of Labor Statistics reports that the job openings rate for the latest reporting month, November 2009, was largely unchanged at 1.8%. Contributing to the employment problem is the discharges and layoffs combined rates range between 1.6% -1.85, trending at or above the new job creation rate, which has fueled the imbalance between those looking for jobs, and jobs which are available. It is this statistic which continues to prove a challenge for those who are the long term unemployed, who have been looking for more than 27 weeks, and the discouraged, who are no longer seeking employment due to the lack of available jobs. The latest stats are a clear contributor to the ratio of job applicants per job, which now stands at 6.4. That's compared to 1.7 applicants per job at the start of the recession in December 2007. Full Text of BLS press release, copy click . THE CONFERENCE BOARD, a business policy think thank has also announced that The Conference Board Employment Trends Index (ETI)™ continued to rise in December, its sixth consecutive increase. The index now stands at 91.8, up 1.7 percent from the November figure. The index is down 5.2 percent from a year ago. This month’s increase was driven by positive contributions from all eight components.
"Given the sharp and widespread improvement in the Employment Trends Index in recent months, it is very likely that we will see at least some job growth during the first quarter," said Gad Levanon, Associate Director, Macroeconomic Research at The Conference Board. "Despite the disappointing job report last Friday, the relatively strong economic recovery in the second half of 2009 suggests that the employment trend should reach a turning point in the very near future."
Full text of Conference Board's press release, copy click here. 01/12/2009
EEOC REPORTS RECORD HIGH JOB DISCRIMINATION CASES IN 2009 / RALPH SCHOMP AUTOMOTIVE TO PAY $1.5 MILLION TO SETTLE AGE BIAS LAWSUIT
More from the Emeritus Newsroom- According to statistics released by the Equal Employment Opportunity Commission, FY 2009 data show that private sector job bias charges (which include those filed against state and local governments) alleging discrimination based on disability, religion and/or national origin hit record highs. The number of charges alleging age-based discrimination reached the second-highest level ever. Continuing a decade-long trend, the most frequently filed charges with the EEOC in FY 2009 were charges alleging discrimination based on race (36%), retaliation (36%), and sex-based discrimination (30%). Multiple types of discrimination may be alleged in a single charge filing. The commission adds that 93,277 workplace discrimination charges were filed with the federal agency nationwide during Fiscal Year (FY) 2009, the second highest level ever, and monetary relief obtained for victims totaled over $376 million. The comprehensive enforcement and litigation statistics for FY 2009, which ended Sept. 30, 2009. Commissioning investigators claim the near-historic level of total discrimination charge filings may be due to multiple factors, including greater accessibility of the EEOC to the public, economic conditions, increased diversity and demographic shifts in the labor force, employees’ greater awareness of their rights under the law, and changes to the agency’s intake practices that cut down on the steps needed for an individual to file a charge. Full text of EEOC press release, copy click . AND THE COMMISSION ALSO ANNOUNCED A $1.5 MILLION SETTLEMENT WITH RALPH SCHOMP AUTOMOTIVE, BASED IN LITTLETON, COLORADO, IN AN AGE AND SEX DISCRIMINATION CASE. EEOC officials say five women were subjected to sex discrimination and a sexually hostile work environment while employed by the car dealership. The unlawful conduct allegedly included offensive verbal comments and physical touching, demotion, refusal to transfer, salary reduction and failure to promote.The EEOC also alleged that five older male employees were terminated because of their ages and replaced with younger, less experienced workers. Additionally, a manager in his twenties allegedly made age-related comments prior to the terminations and younger employees with lower sales numbers were retained. Full Text of EEOC press release on Schomp case, copy click here. 01/08/2010
NATION'S UNEMPLOYMENT REMAINS AT 10% / RANKS OF LONG TERM UNEMPLOYED UP
More from the Emeritus Newsroom- The nation's unemployment rate held steady at 10% in the latest report from the Bureau of Labor Statistics. the latest report, that from December 2009, shows employers cut more than 85,000 jobs, more than expected. However, for the last half of 2009 job losses declined showing the recession is bottoming out. Long term unemployed and discouraged worker numbers continue to rise. The BLS says there are 6.1 million long term unemployed. Long term unemployed are those who have been without work for more than 27 weeks. There were 929,000 discouraged workers in December, up from 642,000 in December of 2008. Discouraged workers are those who have given up saying there are no jobs for them. Statisticians continue to estimate there is one job for every 6-14 applicants depending on the job and the location. Most of the recent job losses are coming from the construction, manufacturing and wholesale sectors. Temp and health care employers are doing most of the hiring. At the start of the recession in December 2007, the unemployment rate was 5%. BLS press release, copy click here. DESPITE LOSSES IN NEARLY EVERY OTHER SECTOR, JOBS IN HEALTH CARE CONTINUE TO RISE WHICH IS STEALING GROWTH FROM OTHER SECTORS OF THE ECONOMY. More in this article from the New York Times, click here. AND THE ECONOMIC POLICY INSTITUTE SAYS THERE IS NO SIGN OF A ROBUST JOBS RECOVERY HOWEVER, WPI POINTS TO A POSITIVE FACTOR THAT nominal hourly wages of production workers grew 3.9% from December 2007 to December 2008 but dropped to 2.2% growth from December 2008 to December 2009, including a 2.6% annualized growth rate over the last three months. Nominal weekly wages of production workers grew 2.4% from December 2007 to December 2008 but dropped to 1.9% growth from December 2008 to December 2009. This included a 3.8% annualized growth rate over the last three months. Full text of EPI press release, copy click here. . 01/08/2009
RADIOACTIVE WASTE PROCESSING COMPANY TO PAY $650,000 TO SETTLE RACE DISCRIMINATION AND RETALIATION LAWSUIT
More from the Emeritus Newsroom- A Tennessee company has agreed to pay $650,000 to 23 African American workers to settle a race discrimination and retaliation lawsuit, which had been filed on the workers behalf by the Equal Employment Opportunity Commission. According to the EEOC, Race, LLC, doing business as Studsvik, LLC (Civil Action No. 2:07-cv-2620, filed in U.S. District Court for the Western District of Tennessee, Western Division), Courtney Britton, who worked as a lead worker in the shop for Studsvik, and other African American employees, were subjected to racially offensive comments by their white supervisor. Further, the complaint alleged that Britton’s supervisor regularly referred to him and other African American employees with the N-word and other derogatory slurs, such as “boy.”
In addition, the EEOC said, white managers subjected Britton and other African American employees to excessive radiation exposure, more than their white co-workers. The EEOC also charged that Britton was suspended for 15 days and then laid off in retaliation for complaining about the racial harassment.
“Some of the discrimination alleged in this case is unusually extreme because of the physical danger it created for African American employees,” said EEOC Acting Chair Stuart J. Ishimaru. “It is deeply disturbing that this kind of race-based discrimination could be inflicted upon innocent workers. Further, the EEOC is particularly concerned when people who have the courage to speak out against such discrimination then experience retaliation by their employer. The EEOC will fight such misconduct forcefully, as we did in this case". Full text of EEOC press release, copy click here. 01/04/2010

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