Employers are increasingly concerned with helping workers improve their day-to-day finances, the Employee Benefit Research Institute (EBRI) Financial Wellbeing Employer Survey found. Companies today are concerned with helping workers prepare for retirement and are expanding the areas they wish to address with their financial wellbeing offerings. In addition to retirement planning, other top issues include helping workers deal with high health care costs, high costs of living, financial-related stress, daily living expenses, and budget and money management. Recent public policy developments—such as the passage of SECURE 2.0 — have led to an increased focus on emergency savings, which is reflected in the priorities of employers: 77% reported either offering or planning to offer an emergency savings account within the next year or two, a slight increase over last year. However, employers cited costs to employees and the company itself as a challenge in offering financial wellbeing programs. Continuing a trend observed in 2023, employers measure the impact of their financial wellness offerings on employee productivity and worker satisfaction. In turn, 70% of the companies surveyed reported having explicitly developed a cost-benefit analysis to determine the return on investment (ROI) of their financial wellbeing offerings. When asked about the factors these cost-benefit analyses were based on, benefits decision makers most commonly reported basing their calculations on improved employee financial wellbeing, improved productivity and performance, and improved employee recruitment/retention. Improved absenteeism/tardiness and reduced medical or mental health claims were less commonly cited in formulating cost-benefit analyses evaluating firms’ financial wellness offerings. Satisfaction with financial wellness initiatives themselves was also an important measure of success. Improving usage of existing employee benefits and improving employee retention were slightly less important this year than in 2023. Still, most benefits decision makers reported being optimistic that their company’s budget for these benefits will increase in the short term, an indication that these benefits are a critical component of their benefit offerings.
A new study released by the U.S. Centers for Disease Control and Prevention (CDC) on Nov. 7 found that diary workers infected with bird flu went undetected. Eight workers tested positive for bird flu antibodies in a sample of 115 Michigan and Colorado dairy farm workers exposed to cows infected with bird flu in a serosurvey, or collection and testing of blood samples. Only four of the eight remembered having symptoms—mostly conjunctivitis—that began prior to or shortly after identification of infected herds. All eight were Spanish speakers and reported milking cows or cleaning the milking parlor, which are higher risk activities for contracting bird flu. None wore respiratory protection, and less than half wore eye protection, highlighting the need for better tools to support worker protection, the CDC reported. Only one person reported they knowingly worked with bird flu-infected cows. In turn, the CDC continues to assess the risk to the general population as low. Efforts to protect people with exposure to animals or animal products affected by bird flu continues to be a key focus of the CDC’s public health activities. As a result of the findings, the CDC intensified recommendations in three areas to focus on the highest exposure tasks in poultry and dairy operations, ultimately to reduce the risk of infection. Going forward, the CDC is expanding its testing recommendation to include workers who were exposed and who do not have symptoms, particularly those workers who were exposed without having worn proper personal protective equipment (PPE). “There may be individuals who were infected with H5 [highly pathogenic avian influenza (HPAI) A(H5)], but who do not recall having symptoms,” Dr. Nirav Shah, CDC principal deputy director said. “That means that we in public health need to cast a wider net, in terms of who is offered a test, so that we can identify, treat, and isolate those individuals.” “This active case finding reduces the likelihood that a mild infection could turn into a severe infection, or that the infection spreads to anyone else,” he continued. “Simply put, the less room we give this virus to run, the fewer chances it has to cause harm or to change. And the best way to limit the virus's room to run is to test, identify, treat, and isolate as many cases as possible in humans and as quickly as possible.” Additionally, the CDC now recommends the use of Tamiflu for exposed, asymptomatic workers who did not protect themselves with adequate PPE. For example, high risk exposure includes a splash of milk in the face from an infected cow or exposure during infected poultry depopulation. Receiving Tamiflu reduces the likelihood of an asymptomatic case being symptomatic, and thus, lowers the risk and the chances of onward transmission to close contacts. The CDC’s third new recommendation is sharper focus on PPE guidance for workers based on their risk of exposure. The CDC’s PPE recommendations will prioritize the type of PPE a farm worker should wear based on its data indicating which farm tasks present the highest risk for bird flu exposure and infection. The CDC also has developed additional resources to support training workers on PPE use and to explain its role in preventing bird flu from animals infecting humans. “The purpose of these actions is to keep workers safe, to limit the transmission of H5N1 to humans, and reduce the possibility of the virus changing,” Shah said. As of Nov. 6, the CDC has confirmed 46 human cases of bird flu in the U.S. this year. (The CDC will not be including the eight people who tested positive for bird flu antibodies in its totals.) Twenty-five cases are due to the ongoing outbreak in dairy cows, 21 of which are in California. Twenty cases are due to poultry depopulation, including the 11 recent cases from Washington. Additionally, one case in Missouri has been confirmed with no known animal or animal product exposure. As CMM previously reported, on Oct. 29, the U.S. Department of Agriculture National Veterinary Service Laboratories confirmed bird flu-infected pigs was confirmed for the first time. The CDC has been working very closely with National Institutes of Health (NIH), particularly its Rapid Acceleration of Diagnostics (RADx) program, to evaluate rapid diagnostic tests that are already available on the market to determine whether those tests are capable of detecting H5. These tests can already detect influenza A, influenza B, sometimes even COVID-19 in general.
U.S. Department of Labor (DOL) recovered more than US$53,000 in back wages and damages from a residential and commercial cleaning service in Columbia, South Carolina, that misclassified 59 workers as independent contractors. Investigators with the DOL’s Wage and Hour Division found Finichel LLC, operating as Finichel Cleaning Services, paid employees straight-time rates for all hours worked over 40 instead of the time-and-a-half premium for overtime hours as required by the Fair Labor Standards Act (FLSA). The employer also failed to keep records of the amount of time worked by employees as required by law. Back wages and liquidated damages recovered: $53,044 for 59 workers. “Misclassifying employees as independent contractors undermines workers’ rights,” said Jamie Benefiel, Wage and Hour Division district director in Columbia, South Carolina. “If workers are misclassified as independent contractors, they don’t get paid overtime or have access to employer-provided health and retirement benefits. They also don’t have access to family and medical leave.” “If workers or employers need help understanding this, they should reach out to the Department of Labor or go to our website and get the information they need,” Benefiel added. The FLSA requires that most employees in the U.S. be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 in a workweek.
New Jersey’s statewide minimum wage will increase by US$0.36 to $15.49 per hour for most employees, effective Jan. 1, 2025. The New Jersey Department of Labor and Workforce Development (NJDOL) sets the minimum wage for the coming year based on any increase in Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics. “Aligning the state minimum wage with any increases in the cost of living is a critical step toward economic fairness and security for all New Jersey workers,” said Robert Asaro-Angelo, labor commissioner. “This adjustment fosters a more equitable economy and ensures our workforce can continue to thrive.” Under the law, the minimum wage rate for employees of seasonal and small employers will continue to increase gradually until 2028 to lessen the impact on those businesses. The minimum hourly wage for these employees will increase to $14.53 on Jan. 1, up from $13.73. New Jersey’s minimum wage increase is not unlike increases set for other states and cities. In 2025, minimum wage in Rhode Island, Illinois, and Delaware wage is set to increase to $15 per hour. New York State’s minimum wage will increase to $15.50 on Jan. 1, 2025. On July 1, Chicago already set its minimum wage at $16.20 an hour. Other states with minimum wages set at $15 or more include: California, Connecticut, Maryland, Massachusetts, Washington, and Washington, D.C. Currently, Washington, D.C., has the highest state/territory minimum at $17.50. In November, voters will decide whether to increase California’s minimum wage gradually to $18 an hour, which would be the highest statewide minimum wage by 2026. In California, fast-food workers already must be paid at least $20 per hour. Nearly 40 California cities already have local minimum wages higher than the state’s.
With the growth of artificial intelligence (AI) in employee recruitment, the U.S. Department of Labor (DOL) on Sept. 24 released AI & Inclusive Hiring Framework, a new tool designed to support the inclusive use of AI in employers’ hiring technology and increase benefits to disabled job seekers. Published by the Partnership on Employment & Accessible Technology, the framework will help employers reduce the risks of creating unintentional forms of discrimination and barriers to accessibility as they implement AI hiring technology. Funded by the department’s Office of Disability Employment Policy (ODEP), the initiative will also help workers and job seekers navigate the potential benefits and challenges they may face when encountering AI-enabled technologies. The framework has 10 focus areas, including practices, goals, and sample activities that employers can adopt in their AI governance and disability-inclusive hiring initiatives. Each area has information on maximizing benefits and managing risks for workers and job seekers when an organization assesses, acquires, or deploys an AI hiring technology. “The ODEP works with many employers eager to hire people with disabilities and benefit from their talents,” said Taryn Williams, assistant secretary for disability employment policy. “These employers recognize that AI tools can improve recruitment and hiring but may also impact workplace culture and inclusion of disabled employees. The AI & Inclusive Hiring Framework published today charts a clear course for employers to navigate this transformation successfully.” The initiative aligns with the Biden-Harris administration’s commitment to prevent AI-powered employment tools from hindering U.S. workers’ employment prospects. In October 2022, the White House’s Office of Science and Technology Policy released its Blueprint for an AI Bill of Rights to promote more equitable and inclusive digital hiring practices with workers with disabilities and other underserved communities.
A new study reveals that Georgians are most eager to find jobs in the United States, with the highest volume of monthly job-hunting keyword searches per 100,000 people. The localization management platform Centus used Google Keyword Planner to analyze the search volume data for each U.S. state in the past year for keywords related to finding a job. These keywords included “Glassdoor,” “ZipRecruiter,” “Indeed Jobs,” and “Job near me.” To avoid population bias, a monthly search volume per 100,000 people was then calculated. Top 10 most eager states to find a new job Georgia—4,272 monthly Google searches for job-hunting keywords per 100,000 people. On average, the state has a total of 471,142 searches for job-hunting keywords every month. Delaware—3,561 monthly searches for keywords related to finding a job per 100,000 residents, and an average monthly total of 36,743 searches. Florida—3,546 monthly searches for job-hunting keywords for every 100,000 people, and a total of 801,696 searches on average per month. Mississippi—3,516 searches every month for every 100,000 people, and a total of 103,353 job-seeking searches per month. Maryland—3,459 monthly searches per 100,000 people, and a total of 213,755 each month on average. North Carolina—3,428 monthly searches for every 100,000 people, and an average monthly total of 371,397 over the last year. Texas—3,422 monthly searches on average per 100,000 people, and a total of 1,043,728 every month—the second highest on the list. Illinois—3,389 monthly searches for every 100,000 residents, and a total of 425,321 per month over the last year. Arizona—3,360 monthly job-hunting searches for every 100,000 people, and a total of 249,675 searches per month. South Carolina—3,318 monthly searches on average per 100,000 people, and a total of 178,283 searches every month over the last year.
New York is the best state for employees in the United States, with the highest index score for factors related to workers’ safety and well-being, according to new research from StartFleet.io. The business service company analyzed the 2022 and 2023 U.S. Department of Labor Statistics to reveal the best and worst states for employees, with New York at the top. The ranking evaluated the percentage of workers represented by unions, the percentage of workers paid below the minimum wage, and the number of fatal workplace injuries for each state. These factors were weighted evenly, and a total score was calculated, producing an overall score out of 100 for each state on which the final ranking is based. New York recorded the highest index score at 77.7 out of 100. A total of 22.1% of workers are represented by a labor union and 0.6% of workers are paid below the minimum wage, which is $16.00 in New York City, Long Island, and Westchester County and $15.00 in the rest of the state. The state has reported an average of 3.1 fatal injuries in the workplace per 100,000 workers in 2022. Washington is in second place, with an overall index score of 75.4 out of 100 in the study. The state is home to 19.1% of workers who are represented by a labor union and 0.4% of workers who are paid below the minimum wage, which is $16.28 per hour—the highest state minimum wage in the country. Washington has recorded an average of 3.1 fatal injuries in the workplace per 100,000 workers in a year. Hawaii takes third spot, with a total index score of 74.5 out of 100. The state reports that 23.4% of workers are represented by a labor union, and 0.6% are paid below the minimum wage, which is $14.00 per hour. In 2022, 4.4 fatal injuries in the workplace were recorded on average per 100,000 people in the state. Ranking fourth is Oregon, with a score of 72.2 out of 100 in the study. The state is home to 16.9% of workers who are represented by labor unions and 0.4% are paid below the minimum wage, which is between $13.70 to $15.95 per hour, depending on the area. Oregan reported an average of 3 fatal workplace injuries in 2022 per 100,000 people. Completing the top five best states for employees is California, scoring 71.9 out of 100. In the Golden State, 17.6% of workers are represented by a union and 0.5% of workers are paid below the minimum wage, which is $16.00 per hour, but higher in some cities and counties, such as Los Angeles and San Francisco. California reported an average of 3.1 fatal workplace injuries in 2022 per 100,000 people. Rounding out the top 10 best states in which to work were Minnesota, Connecticut, New Jersey, Alaska, and Illinois. On the other hand, Arkansas is revealed to be the worst state for employees in the U.S., with the lowest index score in the study at 24 out of 100. The state records 5.7% of its workers to be represented by a labor union and 2% of workers who are paid below the minimum wage, which is $11.00 per hour. Arkansas reported an average of 6.2 fatal injuries in the workplace per 100,000 people. Wyoming is the second-worst state for workers, with a score of 27 out of 100 in the study. A total of 7.4% of workers in the state are represented by a union and 1.2% are paid below the minimum wage, which is $7.25 per hour. In 2022, 14 fatal injuries in the workplace were recorded on average per 100,000 people in the state. Louisiana is third, scoring 27.7 out of 100 in the ranking. The state is home to 5.2% of workers represented by a labor union and 1.6% of workers who are paid below the minimum wage, which is $7.25. Louisiana reported an average of 6.7 fatal injuries in the workplace per 100,000 people. Completing the 10 worst states for employees is Georgia, South Carolina, North Carolina, North Dakota, Texas, Tennessee, and Idaho.
This week and last, the U.S. Department of Labor (DOL) has implemented several new benefits, policies and guidance for the labor market. Check out what’s new below: Mental Health The DOL along with the departments of Health and Human Services and the Treasury issued final rules to strengthen protections to expand access to mental health and substance use disorder care. Released on Sept. 9, the rules build on the departments’ commitment to achieving the full promise of the Mental Health Parity and Addiction Equity Act of 2008. The act requires group health plans and health insurance issuers offering group and individual health insurance coverage that offer mental health or substance use disorder benefits to cover those benefits in parity with medical and surgical benefits, without imposing greater restrictions on mental health or substance use disorder benefits as compared to medical and surgical benefits. More than 15 years after the law’s enactment, the departments’ enforcement efforts have shown that many still encounter barriers to accessing mental health and substance use disorder care as compared to medical and surgical care under their health plan or coverage. “Simply put, getting care for anxiety should be as easy as getting medical help for an injured shoulder, and getting medication to treat depression should be as simple as getting medication to treat high cholesterol,” said Lisa M. Gomez, Employee Benefits Security assistant secretary. Investing in America and Investing in Americans Executive Order On Sept. 6, the Biden-Harris administration announced the Investing in America and Investing in Americans Executive Order to drive more federal dollars toward good-paying, safe jobs offering the right to organize and providing critical benefits such as childcare. The Executive Order builds upon the work of the DOL’s Good Jobs Initiative, which provides resources to maximize the creation of good jobs through federal investments. Through the DOL and nine agency partners, around US$240 billion in federal projects are more likely to pay better wages, hire people of color, and offer benefits such as childcare, healthcare, and transportation. Cybersecurity In its continuing effort to protect U.S. workers’ retirement and health benefits, on Sept. 6 the DOL updated current cybersecurity guidance confirming that it applies to all types of plans governed by the Employee Retirement Income Security Act, including health and welfare plans, and all employee retirement benefit plans. The new Compliance Assistance Release issued by the department’s Employee Benefits Security Administration provides best practices in cybersecurity for plan sponsors, plan fiduciaries, recordkeepers, and plan participants. The release updates EBSA’s 2021 guidance and includes the following: Tips for hiring a service provider. Cybersecurity program best practices. Online security tips. Child Labor On Sept. 5, the DOL’s Bureau of International Labor Affairs published the 11th edition of its List of Goods Produced by Child Labor or Forced Labor and the 23rd edition of the Findings on the Worst Forms of Child Labor. In addition to identifying the types of products, the industries involved and where they exist, the reports assist foreign governments in developing effective policy responses, and support businesses’ due diligence and risk management in their supply chains. The International Labor Organization estimates millions of people worldwide are working in abusive labor conditions, including 160 million children in child labor and nearly 28 million people in forced labor.
A record high number of 401(k) accounts contained US$1 million or more during the second quarter, according to a new data analysis by Fidelity Investments. As of June 30, nearly half a million 401(k) accounts (497,000) had balances of $1 million or more, up 2.5% from the prior quarter, according to Fidelity’s analysis of 24 million 401(k) accounts across 26,000 employer-sponsored plans. The average balance hit $1.595,200 million, up from $1,581,000 at the end of March. The number of individual retirement account (IRA) participants carrying balances of $1 million or more also hit a record high last quarter, jumping 6% from the first quarter to nearly 399,000. The vast majority of 401(k) participants’ average savings rate was 14.2% of their income in the second quarter, on par with where it was in the prior quarter, Fidelity reported. The good news is that this savings rate is slightly under the 15% retirement experts typically recommend and reflects a combination of employee and employer match contributions, CNN said. The average 401(k) balance rose to $127,100, up 1% from the first quarter, and up 13% from a year ago. “Although increases were modest, retirement savers in the second quarter of 2024 benefited from the continued upswing of the previous quarter when contribution levels and average account balances reached record highs,” said Sharon Brovelli, Fidelity president of workplace investing Investments. “…This quarter, Americans leveraged positive market conditions to build upon their savings and further secure their financial future.”
A new Australian rule, which went into effect on Aug. 26, allows employees to ignore out-of-work hour emails and text messages from employers. For example, employees cannot be punished for refusing to read or respond to late night emails or text messages on vacation. Supporters said the “right to disconnect” law gives employees the right to ignore the invasion of their personal lives by work emails, texts, and calls, a trend that has accelerated since the COVID-19 pandemic blurred the division between home and work, Reuters reported. The Australian law adds the country to a list of about two dozen countries, mostly in Europe and Latin America, which have similar laws. To cater for emergencies and jobs with irregular hours, the Australian rule still allows employers to contact their workers, who can only refuse to respond where it is reasonable to do so. Inspired by Australia, a San Francisco assemblyman proposed legislation earlier this year that would grant workers the right to disconnect outside of work, with violations punishable by fine. NPR reported it would make California the first state in the country to do so, but the bill was criticized by business groups and shelved in committee this spring.
A new research report by the Employee Benefit Research Institute (EBRI) found the prime working age population (25 to 64 years old) has significantly fallen and is being filled by older workers. At the same time, the labor force participation rate of those ages 65 or older has not reached its pre-pandemic level, while that of the prime working age population has reached that level. The report examined the U.S. civilian labor force through December 2023, using data from the U.S. Census Bureau’s Current Population Survey. As the Baby Boom generation has aged, the American labor force has also grown older. Key findings in the report include: • The share of the labor force that is of prime working ages (ages 25–64) has significantly fallen since the mid-1990s despite the labor force participation rates of individuals of these ages remaining near mid-1990s levels. The decrease is being driven by the smaller number of people of these ages (meaning that younger and older Americans are needed to cover this decrease). So far, the older population has been filling the gap in the labor force, as those younger than age 25 are at near record-low levels for their share of the labor force. Beginning in 2008, the U.S. population (ages 16 or older) became increasingly composed of those ages 65 or older. By 2023, this age category made up the largest share of the population. Americans ages 16-24 made up the smallest proportion of this population, while those ages 45-54 made up the second smallest share. When analyzing the U.S. population ages 16 or older by age and gender, females ages 65 or older made up the largest proportion by a sizable margin. However, males of the same ages tended to make up a comparatively larger share of the labor force than females, with the labor force gaps being smallest among the youngest and oldest age ranges. The labor force participation rates of those ages 16 or older were overall relatively constant from 1975-2023. However, participation rates rose for females and fell for males, though both genders had lower participation rates in 2023 than in 2008. Labor force participation rates of White Americans ages 16 and older declined from 2000-2023, with the rates for Black and Hispanic Americans also being lower in 2023 than in 2000. However, the labor force participation rates for Black and Hispanic Americans increased sharply from 2021–2023 after falling in 2020, while this was not the case for White Americans. “Despite the difference in labor force participation (LFP) rates between 1975 and 2023 being less than 2 percentage points, significant changes in labor force patterns and composition have occurred over the past several decades,” Craig Copeland, EBRI wealth benefits research director said. “The LFP rates decreased for men and increased for women over this timespan, though female LFP rates have trended down since the 1990s, resulting in a lower overall LFP in recent years. A large decline in the LFP rate was observed among those ages 16-19 at the beginning of the 2000s, while those ages 65 and over have had an increase in the LFP rate. The age of the labor force will play an important role in companies’ work force development. “At present, the aging of the Baby Boom generation has resulted in an increased share of older individuals in the labor force,” Copeland said. “However, members of this generation are almost all at least in their 60s, and the next generation, Gen X, is much smaller. So, a decrease in the share of workers ages 55 or older is imminent. How quickly this outcome results will be determined by whether the Baby Boom generation has continual higher labor force participation rates at ages over 65 than what has occurred in the past.”
According to a recent Labor Day survey, most workers (67%) believe they are working harder this year than last year. Still, 67% of Americans said they are doing better financially than they were last Labor Day. These mixed results show the impact inflation has on workers. Most Americans (74%) think inflation is erasing their hard work, and 93% want a raise to keep up with inflation. Additionally, nearly two in three Americans said inflation will affect their Labor Day plans. “There is not a lot that workers and employers can do individually to reverse the rate of inflation, but there are ways to stay afloat,” said Cathy Carey, University of Southern Indiana professor of economics. “Some ways to do this are to rein in excess spending, save in ways that take advantage of higher interest rates and market returns, and hold off on more significant purchases until wages catch up or prices fall. “This is not a time to lose hope and give up on hard work. Quite the contrary—this is the time to stand out so that when the benefits of hard work pay off, they pay off bigger, particularly in occupations that are commission-based or use merit pay. Employees might seek additional training or education to enhance their skills. Employers can help workers through training programs, which can lead to internal promotions and pay raises, allowing employees to keep pace with inflation.”
