Quick Hits - August 13, 2025 - American Society of Employers - ASE Staff

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Quick Hits - August 13, 2025

Willing to work long hours? We want you: If you think free time is overrated, this is the job market for you. Corporate job listings this summer stress long hours, a competitive business environment, and the importance of hustle. It might seem impractical to recruit applicants with a pitch that loosely translates to “this is going to hurt.” But we’re a long way from 2022.  Americans are facing months-long job searches and competition from laid-off workers as companies shrink headcount. Though the U.S. is still adding jobs every month, the pace of hiring has slowed and some of the country’s largest employers are cutting their white-collar workforces. In the tougher environment, many applicants find that managers are taking a harder line. They’re not just reining in flexible schedules, remote work, and perks that became staples of the previously tight job market. They’re warning prospective and new employees to get ready for the grind, and they’re not afraid to say it out loud.  “They’re testing the limits of what they can ask of their employees, knowing how hungry people are to work, and knowing they’re in the driver’s seat,” said Lori Reed, president of Reston, Va.-based recruiting firm Schechter Reed. “The pendulum has swung, and companies are in control again.”  Source: Wall Street Journal 7/6/25

Gen Z looking to de-digitize: A surprising shift is emerging in corporate America as Gen Z workers, despite growing up as digital natives, are driving demand for more in-person workplace experiences and disconnection from technology.  Recent research from marketing experience (MX) company Quad and the Harris Poll reveals a workplace trend that could fundamentally reshape how companies operate.  The “Return of Touch” study found that 81% of Gen Z workers wish it was easier to disconnect from digital devices, while the same percentage believe digital detoxes should become routine workplace practice. This presents both challenges and opportunities for employers navigating hybrid work models and digital-first cultures. The implications for talent strategy are significant. Golden advocates for organizations to leverage this shift by creating stronger apprentice cultures with in-person mentorship opportunities. The research suggests that 78% of Americans prefer in-person social interactions to digital-only experiences, indicating that the trend extends beyond just younger workers. Meanwhile, organizations that successfully adapt could gain significant competitive advantages in recruiting and retaining talent, the study suggests.  Source: Worklife 7/3/25

More companies dropping DEI in reporting: More than 200 S&P 500 (^GSPC) companies scrubbed words such as "diversity" and "equity" from their annual reports in 2025, according to Freshfields, a law firm and data provider, and nearly 60% fewer S&P 500 companies are using the phrase "diversity, equity, and inclusion." Many are also swapping out words such as “diversity" and "equity” from their annual reports and instead using terms like inclusion, belonging, and meritocratic workplace.  "We're observing a shift in language," ISS-Corporate executive director Kosmas Papadopoulos said. Bank of America replaced "diversity" with "opportunity," including renaming the diversity and inclusion group within its human resources department the opportunity and inclusion group. BlackRock, the world’s largest money manager, also removed four references to "diversity" in its latest annual report, including replacing a section titled "diversity, equity and inclusion" with one called "connectivity and inclusivity." Softer language added to corporate filings may help avoid the ire of Trump's executive orders, but wordsmithing may not be enough to stop the lawsuits and complaints.  Source: Yahoo Finance 7/6/25

Federal contractors can face criminal charges for false certifications: The new case decision of concern is Kousisis v. United States, No 23-909 (May 22, 2025). Remarkably, the Kousisis case decision has flown under the radar since its issuance months ago. However, the case decision now adds enormous new legal risk to federal contract and grant bidders now facing potential double-barrel legal trouble: new “fraudulent inducement in contract/grant procurements” under federal wire fraud and conspiracy to commit wire fraud laws. Federal prosecutors in the Kousisis case adopted a new legal theory to attack recipients of federal monies. The federal government’s new “fraudulent inducement” argument that the SCOTUS endorsed is that fraudulent statements of compliance in contract and grant bids, or with the terms or certifications set out in contracts and grants, may cause the contracting or grant agency to award the contract or grant when it might otherwise not have awarded the contract. This could apply to federal contractors and grant recipients will soon be making that the services they are delivering under a federal contract or grant services come from a company or institution not violating any federal nondiscrimination law and not sponsoring any unlawful DE&I programs.  Source: Outsolve 7/2/25

DOL withdrawing rules to eliminate subminimum wages for disabled workers: On July 7, 2025, the U.S. Department of Labor (DOL) formally withdrew its Notice of Proposed Rulemaking (NPRM) that would have amended 29 C.F.R. part 525 by phasing out the issuance of certificates authorizing subminimum wages to workers with disabilities under Section 14(c) of the Fair Labor Standards Act (FLSA). In doing so, the DOL cemented its position not to move forward with the proposed regulatory changes, declining to pursue formal rulemaking on this issue at this time.  Under Section 14(c) of the FLSA, employers can seek certification from the DOL to pay subminimum wages to workers who have disabilities for the work being performed. The certificate also allows for the payment of less than the prevailing wages to workers who have disabilities for the work being performed on contracts subject to the McNamara-O’Hara Service Contract Act and the Walsh-Healey Public Contracts Act. In announcing the decision to withdraw the proposed rule, the DOL noted the complexity of issues raised as evidenced by the over 17,000 public comments received as the primary reasons for the withdrawal and indicated the need for additional engagement and analysis before determining a path forward and its legality, considering that the certification program was authorized by the FLSA itself.  Source: Littler 7/7/25

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