HR In Five

The daily five-minute brief on the business of HR.

Daily brief · 5 min
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The day's stories

01

Ninth Circuit revives DEI training hostile-environment claim against Seattle

A federal appeals court allowed a hostile-work-environment suit over Seattle's mandatory DEI sessions to proceed, shifting scrutiny to how such training is designed and run.

The Ninth Circuit let a hostile-work-environment claim tied to Seattle's mandatory DEI initiative move forward, HR Dive reports. According to a court document cited in the report, one exercise allegedly required employees to "line up based on how 'racist' or 'anti-racist' they perceived themselves to be in comparison to their coworkers." The allegations have not been tested at trial. Per HR Dive's framing, the ruling puts the design and facilitation of training sessions — rather than whether employers hold them at all — in front of HR and legal teams.

02

Florida becomes 18th state with a $15 minimum wage

More than a third of US states now set a floor of at least $15 an hour, widening the patchwork multi-state employers plan labor costs against.

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Florida this week became the 18th state with a minimum wage of at least $15 per hour, according to Restaurant Business. That puts more than one-third of US states above the $15 mark, the outlet reports. Restaurant Business says the shift increases pressure on operators to navigate a patchwork of local wage requirements. For employers running across state lines, wage planning now runs against that patchwork rather than a single national baseline.

03

Small businesses added 28,000 jobs in September, Gusto reports

An eighth consecutive month of small-business hiring gains, with reported pay up 4.0% year over year, gives compensation planners an outside benchmark for the smallest employers.

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America's small businesses added an estimated 28,000 net new jobs in September, according to the Gusto Small Business Jobs and Pay Report carried by CNHI News. The report marks an eighth straight month of growth and says average hourly earnings across small-business employees rose 4.0% year over year to $37.40. Gusto reports micro-businesses led hiring for a second consecutive month. The figures are estimates drawn from Gusto's own payroll data rather than federal statistics.

04

EEOC sues Bombardier over pre-employment breathing test

The agency alleges a post-offer breathing test screened out applicants with disabilities, testing where routine medical screening ends and unlawful exclusion begins.

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The EEOC has accused Bombardier Inc. of violating federal law by using a breathing test to screen out job applicants with disabilities, Bloomberg Law reports. According to the report, Learjet Inc., doing business as Bombardier, required all candidates receiving conditional job offers to take the test. The allegations are as yet unproven. Employers running conditional-offer health checks sit on the same line the suit draws between routine medical screening and disability-based exclusion.

Also moving today

Read the transcript
Welcome in, today is Wednesday, September thirtieth, and we begin with a federal appeals ruling on mandatory diversity training, reported by HR Dive. A hostile work environment claim built on required DEI sessions is going forward. According to HR Dive, the Ninth Circuit found that Seattle's diversity initiative may have created a hostile work environment, letting the claim proceed. The same reporting cites a court document describing one exercise in which employees allegedly had to line up based on how racist or anti-racist they perceived themselves to be in comparison to their coworkers. That account was published Tuesday. What now sits in front of HR and legal teams is not whether such sessions exist, but how they are designed and facilitated, because those details are what the court allowed a claim to be built on. Industry reaction leans toward seeing program litigation risk running in both directions at once, with some employers challenged for going too far and others challenged for pulling back, and a recurring read is that the pincer, rather than any single ruling, is the emerging compliance problem. Also today, Florida's minimum wage rises from fourteen dollars to fifteen dollars an hour, effective September thirtieth. Restaurant Business reports the step completes the phased schedule voters approved in a twenty-twenty constitutional amendment, and makes Florida the eighteenth state at or above a fifteen-dollar floor. Per that reporting, the rate holds through December thirty-first, twenty twenty-seven, after which the state adjusts annually for inflation. Tipped roles move too. With a tip credit of three dollars and two cents, the minimum direct cash wage rises to eleven ninety-eight, from ten ninety-eight. For operators running across state lines, that is labor-cost planning against a widening patchwork rather than one national baseline. Among staffing and operator voices, a recurring concern is wage compression rather than the floor itself, with supervisors just above minimum losing their differential in the same pay period. Separately, small businesses added an estimated twenty-eight thousand net new jobs in September, an eighth straight month of growth, according to the Gusto Small Business Jobs and Pay Report carried by CNHI News. Average hourly earnings rose four percent year over year, to thirty-seven dollars and forty cents, while starting pay for new hires rose three point one percent, to about twenty-five dollars and eighty cents. The same report revises August down to eighteen thousand five hundred, leaving September below the twelve-month average of thirty-four thousand. Health care and social assistance led again, and firms with five to nine employees added more jobs than any other size tier. That hands compensation planners an outside benchmark for the smallest employers. Some practitioners tie the streak to benefits premiums small employers are absorbing, a squeeze they suggest could eventually show up in headcount. Now, to a disability bias suit over a pre-employment medical screen. Bloomberg Law reports the EEOC has accused Bombardier of violating federal law by using a breathing test to screen out job applicants with disabilities. Per that reporting, the commission's complaint alleges Learjet, doing business as Bombardier, required every candidate receiving a conditional offer to pass a pulmonary function test, regardless of whether the role actually required respirator use, and rescinded offers from anyone who failed. That complaint also alleges the company did not provide reasonable accommodations to qualified applicants with disabilities. The same account places the filing in the US District Court for the District of Arizona on Monday. The question being tested is where routine post-offer medical screening ends and disability-based exclusion begins, a line every employer running conditional-offer health checks sits on. Now, a few more headlines moving the trade today. The EEOC has also sued New York coffee chain Hungry Ghost, alleging it fired a Muslim barista days after he asked to avoid afternoon shifts during Ramadan, Bloomberg Law reports. In the UK, Personnel Today reports the government says it intends to crack down on what it terms bogus self-employment. The scope is not yet defined. Also from Personnel Today, the AI minister argues the UK must treat an unprecedented artificial intelligence hit to the jobs market as a serious possibility. No contingency plan has been announced. And finally, HRD Canada reports a one hundred sixty-two million dollar Mitacs deal will fund ten thousand AI work placements, pairing students and graduates with employers to speed adoption and build Canada's talent pipeline.