Latest news with #USDepartmentofLabor
Yahoo
22-05-2025
- Business
- Yahoo
Mass resignations at labor department threaten workers in US and overseas, warn staff – as more cuts loom
A 'catastrophic' exodus of thousands of employees from the US Department of Labor threatens 'all of the core aspects of working life', insiders have warned, amid fears that the Trump administration will further slash the agency's operations. The federal agency has already lost about 20% of its workforce, according to employees, as nearly 2,700 staff took retirement, early retirement, deferred resignation buyouts or 'fork in the road' departures earlier this year. Remaining workers fear further cuts are on the way, as the threat of a mass 'reduction in force' firing looms large after a February order from the White House for agencies to draw up 'reorganization' plans. Related: From 'fiasco' to 'fantastic': Americans weigh in on 100 days of Trump 'The department has gotten 20% smaller, before any formal reductions in force are announced. A lot of people headed for the exits because so many different components of the Department of Labor have been threatened by reduction in forces [Rifs],' said an employee at the Bureau of Labor Statistics (BLS), a key government data agency, who requested to remain anonymous for fear of retaliation. 'God only knows how much smaller it will be when the Rifs are announced.' A spokesperson for the labor department said they could not confirm the number of employees who have taken retirement or resignation offers, or are now on administrative leave. They did not provide further comment on the impact on operations. Last month Jihun Han, chief of staff to the US secretary of labor, Lori Chavez-DeRemer, sent a staff-wide email warning they could face criminal charges for speaking to journalists about agency business. 'All of the core aspects of working life can no longer be assumed, because the Department of Labor was chronically underfunded for a long time, and eliminating half the staff, or whatever their goals are, will cause it to be absolutely dysfunctional,' the BLS employee said. 'I think it's catastrophic.' The cuts will have ripple effects for workers throughout the US economy, such as for wage and hour enforcement and safety protections, and state and local governments that rely on funds from the labor department, they cautioned. An attorney at the labor department, who also requested to remain anonymous, said attrition had forced attorneys to take on more administrative tasks, such as picking up mail and taking on workloads that detract from their job duties. Office cleaning and maintenance had also decreased, they claimed. 'They've cynically exempted a lot of frontline positions, such as wage and hour investigators or safety inspectors, but of course those people will have to do a ton more work. If you cut one place, it doesn't work as well as it did before as all of the support those people had is no longer there,' the attorney said. 'We're doing a lot more work, work that there is no reason attorneys should be doing. What it means is workers are going to get fewer services.' International labor grants totaling $577m were cut at the labor department in March, eliminating work and research being done over several years and cancelling about $237m in funds yet to be disbursed. An employee at the Bureau of International Labor Affairs (ILAB) said about half the bureau's staff had taken buyout offers in the wake of the grant cuts and threats of terminations. In addition to grants, the agency also ensures basic labor rights are upheld in free trade agreements and conducts research, including congressionally mandated reports on forced and child labor in other countries. 'The bottom line is it's worse for workers overseas. It will harm workers in the US because it will make it easier for foreign companies to unfairly compete with businesses in the US, by making it easier and cheaper to outsource to other countries,' the ILAB employee said. 'And it's worse for American consumers and US businesses that would rather not have products made by child slaves.' Overall, cuts to grants, contracts, office leases at the labor department enacted by the so-called 'department of government efficiency' (Doge) – led by the billionaire tycoon Elon Musk – total $455m, including $23m from shutting down offices, and $192m for other contracts and services. Despite the small fraction of federal spending allocated to the labor department, Doge has listed the department as fourth for the highest claimed savings among all departments in the federal government. Funding for the labor department had already significantly decreased in recent decades, from $119bn in 1980 when adjusted for inflation to $54.3bn last year. Workers inside the department say attrition and cuts have undermined or hampered operations, increasing workloads on those still there. 'It's become a hostile environment for folks,' said an employee working in a civil rights division. Trump issued an executive order in January characterizing diversity, equity and inclusion efforts as discriminatory. 'There have been leads and supervisors who have left, so there's nobody to do that work, except for those of us who are still there,' they added. 'Generally, I would say civil rights enforcement is going to be extremely delayed.' A worker who recently left the women's bureau at the labor department said staff leaving, coupled with grant cuts and lack of direction and leadership, had severely diminished the work of the bureau. 'This administration is showing they don't care about the over 70 million working women in the US,' they claimed. 'Without the work of the women's bureau, we'll lose valuable data and research about how women are faring in the workforce, as well as initiatives that help women enter and succeed in good-paying jobs.' Project 2025, the rightwing blueprint drawn up ahead of Trump's re-election, called for sweeping changes at the labor department, including the ability to make it easier to decertify unions, offer states waivers for exemptions from federal labor laws, maximize hiring of political appointees, freeze recruitment of career personnel and significantly reduce the department's budget. The Heritage Foundation, which organized Project 2025, has in the past called for the department to be shut down. 'The anticipated drastic cuts to the [labor department] are anti-worker,' Julie Su, secretary of labor under Biden, wrote in a report last month. 'They are part of the administration's war on workers that includes obliterating union protections, stripping workers of collective bargaining rights, and attacks on federal employees and the workers who depend on them.'
Bloomberg
15-05-2025
- Business
- Bloomberg
Partners Group Will Urge Trump Officials to Bless Private Equity in 401(k)s
Buyout firm Partners Group is lobbying the US Department of Labor to issue further guidance on private equity and 401(k)s, seeking to spur greater adoption of alternative investments in Americans' retirement accounts. The private equity firm plans to write to the Labor Department, which oversees retirement plans, in the coming days, according to people with knowledge of the matter. Partners Group will ask the department to reaffirm that private equity has a place in 401(k) investment lineups, the people said, asking not to be identified because the letter isn't yet public.
Yahoo
12-05-2025
- Business
- Yahoo
US Labor Department ends fair pay probe into Scale AI
The US Department of Labor has concluded its investigation into Scale AI, a startup backed by Nvidia and Amazon, regarding its compliance with the Fair Labor Standards Act (FLSA), reported Reuters citing a source familiar with the situation. The FLSA sets the framework for minimum wage, overtime pay, and other employment standards within the country. The inquiry, which commenced nearly one year ago, during the tenure of former President Joe Biden, scrutinised the startup's fair pay practices and working conditions, Scale AI said in March 2025. In response to the closure, Scale AI said it was "pleased' with the update from DOL, reported TechCrunch. Scale AI, established in 2016, specialises in providing accurately labelled data crucial for training advanced AI tools like OpenAI's ChatGPT. The startup also offers a platform for AI research exchange, boasting contributions from more than 9,000 cities and towns globally. In the previous year, Scale AI secured $1bn in a late-stage funding round led by Accel, with NVIDIA, Amazon, and Meta also participating. The funding, which elevated the company's valuation to approximately $14bn, is aimed at enhancing data capabilities for enterprise clients, the US Department of Defense, and supporting the DEFCON 31 red-teaming event announced by the White House. The funding round also saw investments from prominent entities including Coatue, Tiger Global Management, Intel Capital, and AMD Ventures. This followed a $325m series E funding round in 2021, which at the time reportedly valued Scale AI at around $7.3bn. "US Labor Department ends fair pay probe into Scale AI" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Business Mayor
10-05-2025
- Business
- Business Mayor
US Department of Labor drops investigation into Scale AI: Report
The US Department of Labor stopped its investigation into Scale AI's compliance with the Fair Labor Standards Act, TechCrunch reported on Friday, citing a source directly familiar with the matter. The FLSA is a federal law that establishes minimum wage, overtime pay, recordkeeping and other labor norms. The investigation was looking into Scale AI's compliance with fair pay practices and working conditions. It was initiated nearly a year ago under the former President Joe Biden's administration, the company had said in March. Scale AI did not immediately respond to a Reuters request for comment. Founded in 2016, Scale AI is a data labeling startup backed by tech giants Nvidia, Amazon and Meta. Scale AI, last valued at nearly $14 billion, also provides a platform for researchers to exchange AI-related information, with contributors in more than 9,000 cities and towns. READ SOURCE
Time of India
10-05-2025
- Business
- Time of India
US Department of Labor drops investigation into Scale AI: Report
Live Events The US Department of Labor stopped its investigation into Scale AI 's compliance with the Fair Labor Standards Act , TechCrunch reported on Friday, citing a source directly familiar with the FLSA is a federal law that establishes minimum wage, overtime pay, recordkeeping and other labor investigation was looking into Scale AI's compliance with fair pay practices and working conditions. It was initiated nearly a year ago under the former President Joe Biden's administration, the company had said in AI did not immediately respond to a Reuters request for in 2016, Scale AI is a data labeling startup backed by tech giants Nvidia Amazon and Meta Scale AI, last valued at nearly $14 billion, also provides a platform for researchers to exchange AI-related information, with contributors in more than 9,000 cities and towns.
