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President Donald Trump’s administration has ordered all federal departments and agencies to provide lists of employees who are underperforming, as it seeks to shrink the workforce and awaits a court ruling related to its deferred resignation offers. A memo sent by the Office of Personnel Management on Thursday directs the agencies to submit names of every employee who has received less than a fully successful performance rating in the past three years and to note whether the workers have been on performance plans. The memo, which was viewed by The Associated Press, also emphasized that the agencies report any obstacles to making sure they have the ability to swiftly terminate poor performing employees who cannot or will not improve. The memo seeks the employees name, job title, pay plan and other details, as well as whether that employee is under or successfully completed a performance improvement plan within the last 12 months.” The office also is asking if an agency has proposed or issued a decision in such cases, and whether any action is being appealed or challenged, as well as any outcome. The data is due by March 7. Charles Ezell, the acting director of OPM who sent the memo, wrote that the office is developing new performance metrics for evaluating the federal workforce, a standard that aligns with the priorities and standards in the President’s recent Executive Orders. To assist the office, Ezell wrote that all agencies should submit data regarding their performance management plans and policies, including those contained in collective bargaining agreements. So far, 65,000 federal workers have opted into the deferred resignation program, according to a White House official who wasn’t authorized to disclose the latest figures and spoke on condition of anonymity. The program is being challenged in court, and a federal judge scheduled a hearing for Monday afternoon to consider arguments over whether the plan can proceed. Rian Witte, Associated Press Associated Press writer Chris Megerian contributed to this report.
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E-Commerce
Telehealth company Hims & Hers Health is fighting back after the drug industry’s main lobbying group called out its first Super Bowl ad as “misleading” and in potential violation of marketing rules. The ad is a one-minute spot set to Childish Gambino’s “This is America,” which admonishes the U.S.’s “broken” weight-loss business and instead offers up its “affordable, doctor-trusted” copycat weight-loss drugs. The lobbying group, Pharmaceutical Research and Manufacturers of America, said Thursday the ad was “a clear violation” of the Federal Food, Drug, and Cosmetic Act and “misrepresents the safety and efficacy of their knockoff GLP-1 medicines.” Hims & Hers, which includes a brief disclaimer in the ad that the compounded drugs aren’t FDA approved, said the pushback from the industry meant its ad had clearly struck a chord. “We’ve called out the system and now the system is asking that our ad get taken down,” a spokesperson says. “This is a blatant attempt to shut down an ad that calls them out.” The telehealth firm operates on the idea that consumers who can’t afford, or balk at, the hundreds or thousands of dollars required to get weight-loss medications such as Wegovy, will pay Hims & Hers for less expensive, compounded versions of those medications. The compounded versions also serve as a way to increase access to weight-loss drugs in a time of steep shortages. To be sure, compounded drugs aren’t the same as generic drugs. They’re not approved by the FDA, so compounded drugs don’t require the same rigorous testing that is required for brand-name drugmakers. They’re often criticized due to their risk for potential contamination. But companies that sell compounded medicines say they offer high-quality drugs. Hims & Hers said that its “commercial aims to highlight why the U.S. is in an obesity crisis, while showcasing that Hims & Hers is committed to being part of easing the strain the weight-loss drug shortage is placing on the millions of Americans who have obesity and are looking for help.” Hims & Hers stock jumped more than 11% on Friday following the pushback. As of Friday afternoon, shares were up nearly 8%. The company declined to comment on the bump, as it’s in a quiet period ahead of releasing its earnings report.
Category:
E-Commerce
Amazon has agreed to pay nearly $4 million to settle charges that the e-commerce company subsidized its labor costs by taking tips its delivery drivers received from customers, District of Columbia Attorney General Brian L. Schwalb said Friday. The settlement came four years after Amazon forked over $61.7 million to resolve a complaint the Federal Trade Commission brought over similar accusations. In 2022, the office of D.C.’s attorney general at the time followed up with a lawsuit alleging Amazon violated the Districts consumer protection laws by misleading residents about how tips paid digitally were used. According to the lawsuit, the affected drivers were part of Amazons Flex business, which allows people to deliver Amazon packages with their own cars. D.C.s lawsuit said that after launching the program in 2015, the company represented to consumers that all tips added during check-out for Amazon Flex orders would go to drivers. But both the District and the FTC alleged that Amazon changed its payment model in late 2016 to lower its costs but did not disclose the switch to either customers or drivers. In particular, the FTC’s previous complaint alleged the company algorithmically reduced its own wages for drivers in different locations using data it collected about average tips in a specific area. Amazon then used the tips to make up the difference between its new base pay and the $18-$25 per hour it had promised drivers, the complaint said. The FTC said Amazon didnt stop taking the tips until 2019, when the company found out about the agency’s investigation into the issue. Amazon has denied the allegations and did not admit to wrongdoing as part of the settlement announced Friday. Like any successful program, Amazon Flex has evolved over time, and this lawsuit relates to a practice we changed more than five years ago, Amazon spokesperson Steve Kelly said in a statement. Under the terms of the settlement, the company will pay $2.45 million in penalties plus $1.5 million in legal fees. It must also disclose on its website and app how tips impact driver earnings.
Category:
E-Commerce
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