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Hobby Lobby Supreme Court case: Why your company must care

(Business News) Companies’ compliance with Obamacare may soon rely on the Supreme Court’s decision in the Hobby Lobby case which cites religious freedom is violated by being forced to provide morning-after pills and IUDs to employees as they believe they constitute abortion.

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Contraceptives case heard before the Supreme Court

The U.S. Supreme Court yesterday heard the long awaited case spearheaded by Hobby Lobby regarding whether for-profit companies may refuse to include contraception coverage as mandated by Obamacare, due to religious objections. It appears that the justices were split by gender, with male justices expressing skepticism and female justices supporting the contraception mandate.

After hearing the arguments, the justices will make a decision and write an opinion, with the final ruling expected in June.

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Hobby Lobby objects specifically to the morning-after pills and IUDs, which they argue constitute abortion, and at the early onset of the company’s lawyer’s arguments before the Court, Justice Sonia Sotomayor asked, “What about employers who have religious objections to health plans that cover other basic medical procedures — blood transfusions, immunizations, medical products that include pork?”

The lawyer asserted that each would have to be evaluated by the courts – in other words, that is not in argument before the Court in this case.

Endless questions of “what if?”

Along the same lines, Justice Elena Kagan noted that an employer might have a religious objection to complying with sex discrimination laws, minimum wage laws, family leave laws, as well as child labor laws – what then?

Sotomayor noted that the Court has consistently resisted “measuring the depth of someone’s religious beliefs,” and added that the issue is convoluted – whose religious rights are being exercised? The business owners’? The corporate officers’? The shareholders’?

Kagan stated that Obamacare is a choice and that Hobby Lobby owners could simply pay the per-employee fine. By choice.

“I thought part of the religious commitment of the employers was to provide health insurance,” opined Chief Justice John Roberts, which Hobby Lobby’s lawyer agreed with.

Questions before the Solicitor General

Justice Anthony Kennedy said that the government sees this case as the employer putting its employees in a disadvantaged position, and asked if the employer’s religious beliefs just trump those of the employees? He told U.S. Solicitor General, Donald Verrilli, “Under your view, a for-profit corporation could be forced, in principle … to pay for abortions.”

Verrilli said there is no law requiring for-profit corporations to provide abortions, to which Roberts quickly asked, “Isn’t that what we are talking about? They have to pay for methods of contraception that they believe provide abortions.”

Verrilli noted that the methods in question are approved by the FDA, and under federal laws are not considered abortion.

Justice Ruth Bader Ginsburg pointed out that although this case is focused solely on morning-after pills and IUDs, another employer may object to all contraceptives based on a decision in favor of Hobby Lobby, again, convoluting the issue.

Breyer asks if it couldn’t become a win-win

Justice Stephen Breyer simply asked if there is an alternative in the form of providing contraception coverage for Hobby Lobby employees that doesn’t violate owners’ religious rights, namely, having the government pay for the coverage.

Justice Antonin Scalia immediately added that these contraceptives aren’t exactly expensive.

Verrilli claimed that IUDs are the most effective method of contraception and cost between $500 and $1,000, and that even if the government agreed to pay, corporations signing forms attesting to their objections would make them “complicit,” which is exactly what many are already arguing.

What every company must know

First and foremost, depending on the size of your company, whether or not you must cover the cost of contraceptives will soon be determined, and fines may be associated with a lack of compliance.

Below is how the mandate currently works, an although it is being challenged, you should be aware of what is required of your company or your employer:

breaking-it-down

For full details, the Wall Street Journal did an amazing job of live blogging the entire hearing.

Marti Trewe reports on business and technology news, chasing his passion for helping entrepreneurs and small businesses to stay well informed in the fast paced 140-character world. Marti rarely sleeps and thrives on reader news tips, especially about startups and big moves in leadership.

Business News

What you need to know about the historic TikTok deal (for now)

(BUSINESS NEWS) No one really knows what’s happening, but the TikTok deal’s impact on business, US-China relations, and the open internet could be huge.

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Male black hands holding app opening TikTok app.

So, maybe you’ve heard that Oracle and Walmart are buying TikTok for national security!

Um, not exactly.

Also, Trump banned TikTok!

Sort of? Maybe?

But then he said he approved the Oracle-Walmart-TikTok deal!

We guess?

The terms of the proposal seem to shift daily, if not hourly. The sheer number of contradictory statements from every player suggests no one really knows what’s going on.

Just one example: Trump said the deal included a $5 billion donation to a fund for education for American youth. TikTok parent ByteDance, said, “Say what now?”

Here’s what we think we know (as of this writing):

Oracle and Walmart would get a combined 20 percent stake in a new U.S.-based company called TikTok Global. Combine that with current US investors in China’s ByteDance, TikTok’s parent, that would give American interests 53 percent. European and other investors would have 11 percent. China would retain 36 percent. (On Saturday Trump said China would have no interests at all. But that does not jibe with the reporting on the deal.)

Oracle would host all user data on its cloud, where it is promising “security will be 100 percent” to keep data safe from China’s prying eyes. But reporting has differed on whether Oracle will get full access to TikTok’s code and AI algorithms. Without full control, skeptics say, Oracle could be little more than a hosting service, and potential security issues would remain unaddressed.

Walmart says they’re excited about their “potential investment and commercial agreements,” suggesting they may be exploring e-commerce opportunities in the app.

The US Committee on Foreign Investment in the United States, which is overseen by Treasury Secretary Steven Mnuchin, still has to approve any deal.

As for the TikTok “ban” – which isn’t really a ban because current users can keep it – the Commerce Department postponed the deadline for kicking TikTok off U.S. app stores to September 27, to give time for the deal to be hammered out. Never mind that it’s still not clear whether the U.S. government has authority to do that. Unsurprisingly, ByteDance says it doesn’t in a lawsuit filed September 18.

Whatever happens with the whiplash of the deal’s particulars, there are bigger issues in play.

According to business news site Quartz, moving data storage to Oracle mirrors what companies like Apple have done in China: Appease the Chinese government by allowing all data hosting to be inside China. A similar move could “mark the US, too, shifting from a more laissez-faire approach to user data, to a more sovereign one,” says China tech reporter Jane Li.

More obvious: Corporate sales and mergers are now part of the parrying between the U.S. and China, which adds a whole new playing field for negotiations among businesses.

In the meantime, TikTokkers keep TikTokking. White suburban moms continue to lip sync to rap songs in their kitchens. Gen Z continues to make fun of the president – and pretty much everything else.

And downloads of the app have skyrocketed.

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Business News

Hobby Lobby increases minimum wage, but how much is just to save face?

(BUSINESS NEWS) Are their efforts to raise their minimum wage to $17/hour sincere, or more about saving face after bungling pandemic concerns?

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Hobby Lobby storefront

The arts-and-crafts chain Hobby Lobby announced this week that they will be raising their minimum full-time wage to $17/hour starting October 1st. This decision makes them the latest big retailer to raise wages during the pandemic (Target raised their minimum wage to $15/hour about three months ago, and Walmart and Amazon have temporarily raised wages). The current minimum wage for Hobby Lobby employees is $15/hour, which was implemented in 2014.

While a $17 minimum wage is a big statement for the company (even a $15 minimum wage cannot be agreed upon on the federal level) – and it is no doubt a coveted wage for the majority of the working class – it’s difficult to not see this move as an attempt to regain public support of the company.

When the pandemic first began, Hobby Lobby – with more than 900 stores and 43,000 employees nationwide – refused to close their stores despite being deemed a nonessential business (subsequently, a Dallas judge accused the company of endangering public health).

In April, Hobby Lobby furloughed almost all store employees and the majority of corporate and distribution employees without notice. They also ended emergency leave pay and suspended the use of company-provided paid time off benefits for employees during the furloughs – a decision that was widely criticized by the public, although the company claims the reason for this was so that employees would be able to take full advantage of government handouts during their furlough.

However, the furloughs are not Hobby Lobby’s first moment under fire. The Oklahoma-based Christian company won a 2014 Supreme Court case – the same year they initially raised their minimum wage – that granted them the right to deny their female employees insurance coverage for contraceptives.

Also, Hobby Lobby settled a federal complaint in 2017 that accused them of purchasing upwards of 5,000 looted ancient Iraqi artifacts, smuggled through the United Arab Emirates and Israel – which is simultaneously strange, exploitative, and highly controversial.

Why does this all matter? While raising their minimum wage to $17 should be regarded as a step in the right direction regarding the overall treatment of employees (and, hopefully, $17 becomes the new standard), Hobby Lobby is not without reason to seek favorable public opinion, especially during a pandemic. Yes, we should be quick to condone the action of increasing minimum wage, but perhaps be a little skeptical when deeming a company “good” or “bad”.

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Business News

RIP office culture: How work from home is destroying the economy

(BUSINESS NEWS) It’s not just your empty office left behind: Work from home is drastically changing cities’ economies in more ways than you think.

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An empty meeting room, unfilled by work from home employees.

It’s been almost six months since the U.S. went into lockdown due to COVID-19 and the CDC’s subsequent safety guidelines were issued – it’s safe to say that it is not business as usual. Everyone from restaurant waitstaff to start-up executives have been affected by the shift to work-from-home. Even as restrictions slowly begin to lift, it seems as though the office workspace – regarded as the vital venue for the U.S. economy – will never truly be the same.

Though economists have been focusing largely on small businesses and start-ups, we are only just beginning to understand the impact that not going back into the white-collar office will have on the economy.

The industries that support white-collar office culture in major cities have become increasingly emaciated. The coffee shops, food trucks, and food delivery companies that catered to the white-collar workforce before, during, and after their workday, are no longer in high demand (Starbucks reported a loss of $2 billion this year, which they attribute to Zoomification). Airlines have also been affected as business travel typically accounts for 60%-70% of all air travel.

Also included are high-end hotels, which accommodate the traveling business class. Pharmacies, florists, and gyms located in business districts have become ghost towns. Office supplies companies, such as Xerox, have suffered. Workwear brands such as J. Crew and Brooks Brothers have filed for bankruptcy, as there is no longer a need to dress for the office.

In Manhattan – arguably the country’s most notorious white-collar business mecca – at least 1,200 restaurants have been permanently lost. It is also is predicted that the one-third of all small businesses will close.

Additionally, the borough is facing twice as many apartment vacancies as this time last year, due to the flight of workers no longer tied to midtown offices. Workers have realized their freedom to seek more affordable and spacious residence outside the city. As companies decentralize from cities and rent prices drop, it isn’t all bad news. There is promise that particular urban white-collar neighborhoods will start to become accessible to the working class once again.

Some companies, like Pinterest and REI, are reporting that their shift to work from home is in fact permanent. The long-term effects of deserted office buildings are yet to make themselves evident. What we do know is that the decline of the white-collar office will force us to reimagine the great American cities – with so much lost due to the coronavirus, what can now be gained?

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